Until now it has rarely been possible for a small operator to benefit from the growing market in programmatic advertising.  The big groups do this to monetize their sizable audiences.  Now with the help of LRS and our partners at DAX (Global Radio) we can bundle your audience along with many more to deliver a cumulatively significant audience for delivery by geography.

What is programmatic advertising?

When set up correctly your output on FM/DAB etc. remains as it always was.  You sell your airtime in the local market and it gets played in the same way as it always did.  Your online channels and apps etc. carry the programmatic ads.  These are sometimes national messages but are often regionalised so an online listener in London might hear a completely different ad than a listener in Glasgow.  Depending on how you normally sell your airtime there are options on how to set this up.  The most simple configuration assumes you ‘sell’ on FM/DAB so those ads are always heard.  Online, in different markets the same ads will replaced by the alternatives.  If you are an online only operation or you do sell online in your local market then it is a simple matter of a slightly different set-up to ensure ads appear where they should.

How does it work?

It’s simple but not easy!  The good news is all of the hard work has already been done for you.  The system needs stations to feed a dedicated stream which will be provided to you free of (normally £50+VAT per month) charge by our partners at RCS.  All you have to do is insert silent triggers into your schedules at appropriate times.  This part is relatively simple on most scheduling and programming systems.  As a member of LRS you will get full instructions and after a little testing (off-air) you should be good to go.  We anticipate most will not, but if you do need extended support this can be provided for a small set up fee.  Self-set up instructions will be provided when you join.  Please be aware the free dedicated stream is for ad-insertion.  You’ll probably want to use an existing stream for FM/DAB distribution.

How will we get paid?

When you sign up with us as a member if you wish to join the LRS programmatic network you’ll be asked to sign a simple contract.  When relevant ads are played on your station they are logged as such.  Each month we will analyse the figures and stations will invoice us. 69% of the total revenue LRS receives goes to stations.  The remaining 31% goes to our partners and to LRS to cover our time and costs.


How long are we committed for?

This will be agreed in your contract.  Typically you will need to agree to a 12 month period of commitment to qualify.


Could I do this without LRS?

In theory yes, in practice unlikely.  The operators of programmatic advertising can only cover their costs by delivering huge audiences.  One independent operator, even a really successful one is unlikely to generate enough significant impacts for the way in which these ads are sold.  Together we are stronger (what LRS is all about) and so LRS members on this project can benefit from the scale offered by collaboration.

What about VAT?

When we invoice DAX we charge VAT.  If you are registered for VAT you will invoice us plus VAT also.  If you are not registered for VAT you can only invoice for the actual amount with no VAT added.

Can we refuse/choose to NOT play an ad?

With our other product (AIMS & IRIS) Yes.  However with DAX it’s not so simple.  One of the reasons programmatic platforms refuse to deal with single independent operators is the admin involved in this.  If the system identifies a relevant ad it WILL play.  You can however schedule your breaks such that for instance a DAX ad will not be adjacent to a local ad that might in rare cases conflict.  Most of our stations are happy to receive extra revenue from online only ad replacement.  When they sell locally they often only sell actual broadcast on DAB or FM.

Do we need to run a certain break pattern?

Yes. To be part of DAX, and to maximise your revenue you need to open up 3x 60 seconds per hour for potential ad replacement.  The break pattern for this may be varied from time to time (we will let you know) to maximise revenue.  Currently the break pattern is as follows:

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