As part of my ongoing look at entrepreneurs championing new technologies, I sat down with Internet Radio Expert and entrepreneur Mark Lassoff, VP of Sales and Marketing at NLI Media Group, who heads up their Internet Broadcasting Group.

O J Way: What is Internet radio?

ML: Technically, Internet Radio is the distribution of audio entertainment or informational programming via the Internet. What makes it “radio” is that all of the listeners are hearing the same thing at the same time. That’s what’s known as a single feed, just like a traditional radio station. But of course, you hear different programs or content depending on the time you’re listening.

O J Way: So why is Internet radio better?

ML: The net effect is that Internet radio gives people options they never had with traditional station. People are tired of the same 10 stations playing the same music available in every market. Do you like reggae? There are Internet radio stations that format nothing but Marley. Opera fan? Several choices in Internet radio cater to your tastes.

O J Way: What will you find on Internet radio right now?

ML: Internet radio is about to undergo a major change.

Right now, many traditional radio stations simply rebroadcast their signal through Internet radio. Wrong answer! People aren’t looking for another channel of traditional commercial radio.

Another segment would be hobbyists and DJ wanna-be’s. The quality of a lot of these programs is low. These are vanity productions, but the lower costs of Internet radio can help this channel grow.

The new and, I believe, most important segment of Internet radio broadcasters is traditional advertisers who are developing their own content. Here’s the business opportunity: 57% of weekly Internet radio users report listening while purchasing goods at a website. So Internet radio reaches customers right when they’re at a place where they can make purchasing decisions – namely when they’re online.

O J Way: Who would choose to listen to ads?

ML: By carefully crafting programming, advertisers can speak directly to their customer base. Internet radio is most successful with narrow demographic slices that are not reachable through the traditional radio medium. These would never stand a chance over traditional broadcast, but when you aggregate the worldwide audience, then the numbers start to make sense.

O J Way: What’s an example?

ML: A broadcast that focused on pilots would never be aired on traditional radio, but there are approximately 10,000 commercial pilots in the US alone, and another 100,000 general aviation pilots. Internet radio makes this kind of narrowcasting efficient. And what kind of things do pilots want to buy? Headsets. Aeronautical mapping technologies. And pilots also happen to buy a lot of luggage.

O J Way: Who makes up the Internet radio audience?

ML: Around 29 million people listen on a weekly basis, and that includes 59% of the 18-34 demographic. That’s a 50% increase in the past year. There’s a huge potential audience of the 80% of Americans with online access. Radio web site visitors are highly loyal, with two-thirds of station web site visitors visiting weekly, and nearly a quarter visiting daily. They listen in the home and at work.

O J Way: Are there any competing technologies?

ML: I wouldn’t say it’s a “versus” situation. Podcasting, social networking, etc. all complement what we’re doing with online radio. People who listen to digital radio platforms don’t spend less time listening to AM/FM radio because obviously they’re listening in two very different places.

O J Way: Who is doing it best right now?

ML: I am. If you’re interested in trying Internet radio, visit InternetBroadcastingGroup.com.

O J Way: And finally, what Internet Radio do you listen to?

ML: I listen to CigarBoyz.com radio, an opera station from Switzerland, and a couple of 80’s streams. Go REO Speedwagon!

O J Way: That’s definitely an untapped niche! Thanks for sitting down, and thanks for lunch!

ML: My pleasure!

Full disclosure: There may be a conflict of interest that has biased my views on Internet radio because Mark bought me lunch at Wok of Fire on North Lamar Blvd. I recommend the Sesame Chicken.