Cisneros Interactive, a corporate division that encompasses the Cisneros organization’s digital initiatives, today announced its acquisition of a majority stake in Audio.Ad, a digital audio advertising network that reaches more than 35 million users in Latin America and the U.S. Hispanic market.
Founded by German Herebia and Carlos Cordoba, Argentine entrepreneurs with more than 15 years of experience in the Latin American Internet market, Audio.Ad is the first network of audio spots serving Latin America and the U.S. Hispanic market, allowing advertisers to place audio advertising spots in traditional radio stations’ live online streams and digital audio-streaming services heard on a variety of connected devices, such as desktop computers, laptops, smart phones, tablets, and digital audio players.
“Cisneros Interactive continues its strategy for innovation in digital advertising, acquiring a majority interest in the first network of audio spots in the region. This investment supports two true impresarios of the digital world, German Herebia and Carlos Cordoba, who we previously partnered with in 2011 when Cisneros Interactive invested in RedMas, an online ad network they founded,” emphasized Victor Kong, President of Cisneros Interactive. “With the launch of Audio.Ad, German and Carlos have once again proven their ability to implement their entrepreneurial vision in the digital advertising market.”
As a result of the buy-in, RedMas, the Cisneros Interactive company led by Herebia and Cordoba, CEO and COO, respectively, will exclusively market Audio.Ad’s advertising solutions in Latin America and the U.S. Hispanic market.
“The entry of Cisneros Interactive as a partner of Audio.Ad allows us to expand our network into every market of the region, and it brings along a sales force with extensive experience in the digital industry,” stated German Herebia, who added that the investment “will allow us to open an office in Brazil by the first half of 2015.”
As for Carlos Cordoba, he stressed that “Audio.Ad is a pioneer in digital advertising, introducing the concept of digital audio spots in the region. This venture is in line with Cisneros Interactive’s strategy, which continually seeks innovation in digital advertising solutions. Today, radio and music are heard on multiple devices, and this presents a great opportunity for brands, as well as for digital content producers.”
In its first quarter of operation, Audio.Ad implemented audio spot campaigns in a number of Latin American countries for such advertisers as Speedy, Movistar, Personal, Claro, Unilever-AXE, Petrobras, Miller beer, Honda Motors, Volkswagen, Mitsubishi, SixFlags and Dodge.
The network is incorporating the most important radio stations in the United States, Argentina, Mexico, Chile, Peru, Colombia, Uruguay, Paraguay, Dominican Republic, Venezuela, Ecuador, Guatemala, and El Salvador as premium publishers to monetize their content and advertising inventory through Audio.Ad.
“Online radio consumption registered an increase not only in the United States but throughout the region. In Latin America, listeners consumed an average of 30 minutes of audio content a day through various devices connected to the Internet. This scenario empowers Audio.Ad’s business, which in its first three months conducted campaigns for more than 20 advertisers in six countries and established affiliations with the region’s main digital audio players,” explained Gonzalo Alonso, Managing Director of Audio.Ad.
“The Infinite Dial,” a study carried out in the United States by Edison Research and Triton Digital and released in March 2014, indicates that online radio consumption has doubled since 2008, and that 75% of people between the ages of 12 and 24 consumed digital audio in the past year, while 50% of those in the age segment of 25 to 54 did the same.