It’s no coincidence that some of the most innovative developments in and around radio these past couple of years revolve around the advertising message – specifically, the interactive nature of platforms that connect audiences and brands. Last year, we highlighted Jelli, Mike Dougherty’s programmatic buying service. And with startups like Clip Interactive integrating a wide range of programming and commercial features that enhance the broadcast, you know there are lots of bright minds working on better ad models.
Today’s “Radio’s Most Innovative” honoree is becoming more familiar to radio broadcasters with each passing month. XAPPmedia has developed an innovative way to integrate voice commands to streaming radio streamcasts with the goal of enriching the experience on a safe and interactive platform. Like a lot of innovative technologies, XAPPmedia started with a different goal in mind but discovered that radio was, in fact, the perfect opportunity for the company.
It is important for us to fully disclose that our mobile app company, jācapps, recently entered into a partnership with XAPPmedia which you’ll read about below. We’ve also included a couple of XAPPmedia ads so you can hear how they stand out and how they work.
CEO Pat Higbie isn’t a dyed-in-the-wool “radio guy,” and that’s becoming a common trait among many innovators who covet the radio space and are excited by the possibilities. But his background is right in the center of radio’s need to reinvent its advertising model, and that’s a big reason why XAPPmedia is our focus of innovation today.
JM: Pat, tell us about your background. Have you ever been involved in the radio or advertising business before?
PH: I was exposed to media and advertising at a young age. My father spent his entire career in the newspaper business in New York City during the golden age of print. He worked on the advertising side of the business and implemented “targeted advertising” to serve the nine distinct geographies in the New York metro area.
JM: What attracted you to this opportunity?
PH: It happened while brainstorming with my co-founders, Frank Raines and Harley Radin, about markets that could benefit from innovation in voice technology. We saw rapid change occurring in media as user behaviors adapted to mobile. We were attracted to audio because it is the most natural medium for people who are consuming content while they’re busy doing other things with their hands and eyes, and voice is the most natural interaction paradigm for them.
JM: How did the original concept for XAPP come about?
PH: We were initially attracted to the idea of creating an app to give people a better, more personalized way to consume audio news by giving them the ability to interact by voice, and we intended to monetize the app with interactive audio ads. However, our research revealed that the Internet radio market had already grown to over 100 million people in the U.S. alone, so we decided to build an interactive audio services platform and to make these content, navigation and advertising services available to all audio app publishers.
JM: What was it about the existing mobile advertising model that convinced you that voice-response advertising could work?
PH: It’s all about user experience. We noticed that Internet radio services were adopting visual media for mobile advertising, but most listeners were ultra-mobile – they couldn’t see the screen because they were walking, driving, exercising, or working. We now have data that show that 79% of all listening occurs when the screen is not viewable. Banners don’t work in that environment. However, there was an opportunity to take advantage of the microphone and enable consumer engagement by voice. It is really a simple premise that better aligns with the audio experience on mobile.
JM: How does XAPP work?
PH: A XAPP Ad sounds a lot like any other audio ad. The twist comes at the end of the spot when the listener is prompted to say an action phrase such as, “connect call,” “download app,” or “send coupon.” If the listener speaks that short prompted phrase, the action is automatically executed for them. On the back-end, XAPP’s cloud-based voice engine determines if the phrase spoken matches the action phrase and if it does, executes the action on the consumer’s mobile device. The ads are created just like traditional audio ads so they are inexpensive to produce.
JM: You made a pretty big splash when you introduced XAPP with NPR. What did you learn from those results that convinced you that XAPP could become a game-changer for mobile advertising?
PH: Three things stand out. First, the conversion rates are 5-10 times higher than other mobile ads. Second, we confirmed that visual creative is not visible during the vast majority of audio impressions so hand- free, eyes-free engagement is the only option to convert most listeners. Third, advertisers and audio publishers have come up with many more creative ways to use the interactive audio services than we could have contemplated on our own.
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JM: You’ve claimed that XAPP will generate much higher CPMs than traditional banner ads. How does XAPP’s response rate differ from that approach?
PH: XAPP Ads are commanding CPMs “north of $20” according to Adweek, whereas banners go for low single digit dollars. The voice engagement paradigm is a natural fit for an audio medium in part because voice is the only option for engagement of a listener with a smartphone in his or her pocket. Unlike a 0.11 – 0.40% response rate of typical mobile banner ads or visual display tiles, XAPP Ads are showing a 1.09% – 7.86% conversion rate. Advertisers are willing to pay a premium for innovative ways to engage with consumers and for measurably high conversion rates.
JM: What is your rollout strategy to the radio industry now?
PH: A big part of our strategy of working with radio broadcasters is through jācapps. Hundreds of stations using jācapps as their mobile platform can add XAPP Ads to their advertising mix now. Other stations that have their own mobile apps can also work with us directly to integrate XAPP technology.
JM: Your website notes that XAPPmedia exists to give consumers a voice and connect them directly with brands. Why the customer-first orientation, and how does that differ from the traditional radio model?
PH: XAPPmedia started from the perspective of creating an enhanced user experience. Ads that enable you to use your voice are just one example that provides convenience for consumers. We also provide audio publishers the ability to create voice-driven app navigation and enable consumers to use their voice to select preferred content. We are helping consumers avoid the necessity of a touch click when a simple spoken word can execute the same action without the need to pull the phone off your dashboard or out of your pocket. It offers consumers a literal voice in how they receive their audio content and that is a big change from traditional broadcast radio.
JM: You also mention that you “harness mobile, cloud and voice technology to make audio advertising interactive, simple and spontaneous.” How do you think mobile can change the way that radio has always defined its advertising platform?
PH: Broadcast radio is a one-way communication mechanism. In order for listeners to respond to ads or station contests, they must stop listening and use another channel to communicate, typically the phone or web. Radio delivered through mobile devices can take advantage of the native communication backchannel, enabling seamless two-way consumer engagement. Instead of listeners being passive consumers of audio content, they can use their voice to actively engage with the content or offers that interest them. And, they can do it all hands free and eyes free. That is what XAPP brings to the table.
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JM: As you’ve gotten to know radio people these past couple years, what are your impressions of the industry and the people who work in it?
PH: Radio people are passionate about the medium. They also have a survival instinct and have used programming and operational efficiencies to remain profitable over the last decade. Yet, they know the industry is in a state of accelerating change that threatens their existence.
JM: Why is mobile so increasingly important to the radio industry?
PH: Because that is where audience is increasingly spending their time. Over half of Americans now listen to Internet radio on mobile each month. They prefer the convenience of mobile device-based listening and even if your programming is great, it is competing with many more options than ever before. The key thing is to transform great broadcast content into great mobile content and then maximize the rates you can command for the ad inventory that comes from growing your mobile listenership. XAPP was developed to address this specific challenge.
JM: What suggestion would you give to someone with an innovative idea that is having a hard time getting traction?
PH: Focus on the market opportunity and make sure your value proposition is compelling to both your users and customers.
INNOVATION QUOTE OF THE WEEK
“There’s a way to do it better – find it.”
Thomas Edison
More of Radio’s Most Innovative
- Radio’s Most Innovative: Joel Denver/All Access
- Radio’s Most Innovative: Nikki Marra’s “College Radio Road Trip”
- Radio’s Most Innovative: Dr. Demento
- Radio’s Most Innovative: Jim Fox and KKDO’s “Like/Dislike”
- Radio’s Most Innovative: Dr. Ruth Westheimer
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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