The Bid4Spots marketplace is used for terrestrial radio by 2,300 radio stations in the US, making it the largest radio advertising network in the States after just a year of operating.

The company is now adapting its reverse auction model for the independent online radio marketplace. This heavily fragmented segment will deliver reach once an efficient buying mechanism is in place. The first auction will take place on January 16, 2007.

Dave Newmark, Bid4Spots CEO tells us:

“We’re creating an entirely new marketplace for a huge group of broadcasters and advertisers who want an easy and profitable way to do business with each other. We’re opening up the opportunities in a big way for all involved – and in the process expanding our own business into one of the most exciting new advertising channels today. It’s the perfect complement to our terrestrial model.”

About 42 million Americans are estimated to tune in to 25,000 independent online broadcasters. So far, there’s been no way to aggregate them for advertisers who want to reach these listeners. Despite their reach, these broadcasters receive little or no revenue, and are essentially invisible to the advertising community.

Michael Guarnieri, radio media manager for Citrix Online comments:

“This is pretty revolutionary, it’s the kind of thing that changes the way we buy Internet radio. The independent online broadcasters have targeted, loyal audiences of people who tune in from around the country for the specialized content. The demographics are desirable – listeners are affluent and tech-savvy and generally spend more time listening online. The reverse auction model lets stations compete for my business, bidding my prices down – giving me a new uncluttered advertising channel at an incredible bargain.”