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
BIA/Kelsey Report: KIIS-FM Becomes Highest Revenue-Generating U.S. Radio Station In 2014
E.W. Scripps Company Completes Merger, Spinoff Transaction With Journal Communications
City Of Hope To Honor UMG's Lucian Grainge With Spirit Of Life Award
Concord Music Group Acquires Vanguard, Sugar Hill Labels From The Welk Music Group
In Brief - April 1, 2015
March 31, 2015
iHeartRadio Music Festival Returns To Las Vegas
Conclave Opens Rockwell Award Voting To The Industry
Baltimore's Queen Of Rock To Retire
ReverbNation Ups Simon Perry To Chief Creative Officer, Head Of A&R
Coleman Insights VP Chris Ackerman Retires
Ace & TJ Renew For Year 13 On WQEN
In Brief - March 31, 2015
March 30, 2015
Cumulus Names Tommy Page SVP Of Brand Partnerships
Conclave Opens Rockwell Award Voting To The Industry
Coleman Insights VP Chris Ackerman Retires
March 30, 2015
Larry Blumhagen Appointed VP/Director Of Sales For CBS Radio Los Angeles
In Brief - March 30, 2015
March 27, 2015
eQB NOW
KIIS FM Announces Wango Tango 2015 Line-Up
In Brief - March 27, 2015
March 26, 2015
Rock 'n' Roll Marathon Series Teams Up With iHeartMedia
Big D Named New APD/Morning Show Personality At KPLV
Triton Digital To Integrate Live Audio Broadcast Ads For MLBAM
Sinclair Broadcast Group Launches Digital Ventures Group
WERO Taps Robyn Banks For Nights
Music News
Rolling Stones Set 15-City Zip Code Tour
Quick Hits: album sales, Joni Mitchell, Pemberton Festival, Christina Perri, Alt-J, Cynthia Lennon
Jay Z Launches Tidal Streaming Service
Ed Sheeran Tacks On Fall U.S. Tour
Quick Hits: Justin Bieber, Smashing Pumpkins & Marilyn Manson, Led Zeppelin, Alternative Press Music Awards, Walk Off The Earth, Lynyrd Skynyrd
Taylor Swift Tops iHeartRadio Music Awards
Quick Hits: Ariana Grande, Milky Chance, Billboard Music Awards, Rob Thomas, Christina Aguilera, Failure
Zayn Malik Discusses Exit From One Direction
Quick Hits: NCAA March Madness Festival, George Ezra, Saturday Night Live, Ozzy Osbourne, Duran Duran
Pitbull's Globalization Spreads To SiriusXM
Quick Hits: Rihanna, AWOLNATION, Three Days Grace, Zendaya & Radio Disney Music Awards, Bonnaroo, Audiotopsy
McCartney, Metallica To Headline Lollapalooza 2015
Zayn Malik Leaves One Direction
Kendrick Lamar Debuts Atop The Billboard 200
Quick Hits: Van Halen, Britney Spears / Iggy Azalea, A$AP Rocky, The Library of Congress
FMQB NOW

Pat Paxton
Pres. of Programming
Entercom

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

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