Report: Radio Digital Sales Set to Grow 22 Percent
February 26, 2014

A new report issued by Borrell Associates on behalf of the Radio Advertising Bureau (RAB) shows that radio's digital revenue is poised to grow 22 percent  this year, surpassing the half-billion mark in digital advertising for the first time. The report, titled Benchmarking: Local Radio Stations' Online Revenues, states that the average station made $166,490 in digital advertising in 2013, or about 3 percent of its total revenue. Some large-market stations are making millions, Borrell reported. Average revenue for four-station clusters is approaching three-quarters of a million dollars.

The report also offers insights into what radio managers are thinking with regard to their digital ventures. The majority of managers (62 percent) believe their sales reps are talking to the wrong buyers when trying to sell digital, and an overwhelming majority (92 percent) believe that more training would help boost digital sales at their stations.

"There are a lot of positives here," commented Borrell Associates CEO Gordon Borrell. "We're still seeing three-fourths of the managers say they believe digital sales hold a lot of growth potential, and now we're seeing some clear suggestions on how to tap it. Training is an opportunity, as is the need to get more buy-in from upper management. Apparently, the rank-and-file are trying to get the word back to the general that there's gold in them thar' hills."

Overall, radio sellers closed $426.3 million in local online advertising last year, according to the report. That number could hit $520 million this year as many radio groups expand into selling fast-growing digital services. Those services include app development, Search Engine Optimization (SEO) and social media and e-mail management. Based on the report, one-third of station groups already have expanded into those offerings.

"We're experiencing year-over-year double digit growth in Radio; and to truly maximize this revenue stream this survey continues to provide us with areas to improve upon and ultimately grow our overall revenue share," said RAB President and CEO Erica Farber. "Most notably, sales managers are looking for continued training for their sales staffs and a better understanding of the digital buying community. The RAB is poised to help in this area through our professional development programs and outreach."

Breaking News
Brooke & Jubal Joins WSHE/Chicago For Mornings
KWEE/Portland Adds Tino Cochino To Nights
October 24, 2016
CBS Radio Names Brian McHale SVP/Information Technology
Nielsen Announces Launch of National Television Out-Of-Home Measurement Service
The Atlantic Records New York Team Celebrates Charli XCX
October 20, 2016
CBS Radio Signs Michael Martin To Multi-Year Contract Renewal
SportsRadio 94WIP/Philly Adds Joe Decamra & Jon Ritchie To Middays
October 19, 2016
Frankie C Extends Agreement With KZHT/Salt Lake City
Voncile Anderson Named Beasley Director/NTR Sales In Tampa Bay
In Brief - October 19, 2016
October 18, 2016
Rob Stringer Promoted To CEO Of Sony Music Entertainment
iHeartMedia St. Louis Announces The Debut Of The New Alt 104.9
Entercom Agrees To Acquire Four Radio Stations In Charlotte From Beasley Broadcast Group
Ebro Returns To Portland
Townsquare Media Names John Roberts OM For Tyler-Longview, Texas
Jacobs Media & PRPD’s 8th Annual Public Radio Tech Survey Released
In Brief - October 18, 2016
October 17, 2016
WFLZ/Tampa Names Kruz Program Director
Republic Records Promotes Wendy Goldstein To Executive Vice President
Alpha Media Mankato Names Bob Rose Market Manager
Corey B. Joins WBBM-FM (B96)/Chicago As New Night Host
October 14, 2016
Race Taylor Re-Ups With WPLJ/New York
Andrew Berger Named Imaging Director For KPWR/Los Angeles
October 13, 2016
Music News
Kings of Leon Earn First #1 Album
Quick Hits: The Chainsmokers, Drake, Prince, Sting, Charlie Puth, The Decemberists, Dead or Alive
Quick Hits: Radiohead, Frank Ocean, A$AP Ferg
"Crash" Into Against Me!
Maroon 5 Closes The Top 40 and Hot AC Radio Panels Upon Impact
Jordan Fisher Will Make His Broadway Debut In Hamilton On November 22
Quick Hits: Kanye West, Eminem, Bruno Mars, Gwen Stefani
Pearl Jam, 2Pac & Depeche Mode Lead 2017 Rock Hall Nominees
Green Day Tops Billboard 200 For Their Third Time
Quick Hits: Liam Payne, Rock & Roll Hall Of Fame, Mother Love Bone
Quick Hits: Kings Of Leon, Elton John, Roger Waters
Maroon 5 Debuts New Single Featuring Kendrick Lamar
Louise Goffin To Perform Surprise Concert
Quick Hits: Drake, Depeche Mode
Drake Earns Record-Setting 13 American Music Award Nominations

Jon Zellner
EVP/Programming Operations

          Question Of
           The Week

FMQB Member Login

Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!