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
Afternoons With Adam Bomb Debuts on Q100/Atlanta
Beasley Media Group Names Randy Bliss OM For Fayetteville Market
Beasley Media Group Expands Responsibilities For Urban PD Tap Money
Nadine Santos Promoted To Director/Programming & Artist Relations At Music Choice
UMG And Alex Da Kid Sign Multi-Faceted Agreement
Debra Green Takes Over Nights On WSRV/The River
January 18, 2017
Gregg Nadel Named President of Elektra Records
CBS Radio Rebrands KVIL And AMPs Up The Dallas-Fort Worth Market
KDND/Sacramento Is Looking For Next Night Superstar
January 17, 2017
Angi Taylor Joins The Rendezvous
Randy Savage Joins Cumulus As OM Wilkes Barre/Scranton, PA Cluster
Hubbard Radio Chicago Signs Eric & Kathy To Multi-Year Agreement
Jill Devine Signs Multi-Year Renewal At KYKY/St. Louis
January 13, 2017
Pandora Expects To Exceed Q4 2016 Guidance, Citing Subscription Momentum and RPM Growth
SiriusXM Launches "Hits 1 in Hollywood"
In Brief - January 13, 2017
January 12, 2017
Beasley Names Debbie Mazella Program Director Of Magic 98.3/New Jersey
The Dave & Mahoney Morning Show Returns To KXTE (X107.5)/Las Vegas
January 11, 2017
Cumulus Promotes Matt Raback To VP/Market Manager For York-Lancaster-Reading, PA
Crystal Castorena Named GM For Impact Radio Group
Justin Luvv Named Afternoon On-Air Personality/Imaging Director For WRWM/Indianapolis
January 10, 2017
Ron Parker Named New Afternoon Host At WLS-FM/Chicago
KLOS/Los Angeles Kicks Off 2017 With New Programming Additions
Mark Kassof & Co. Launches Mobile Music Test
Music News
Justin Timberlake, Britney Spears Among People's Choice Award Winners
Quick Hits: Grammy Lineup, Audioslave, Third Eye Blind
Maroon 5 Scores Their Ninth #1 Top 40 Hit
Quick Hits: Lollapalooza Paris, Metallica, Brit Awards, U2, Radiohead, George Harrison, Dave Matthews & Tim Reynolds
Quick Hits: Ed Sheeran, Ariana Grande, John Legend, Fifty Shades Darker, Trent Reznor
U2, Chili Peppers, The Weeknd & Chance the Rapper Headlining Bonnaroo
Quick Hits: Ed Sheeran, Prince
Quick Hits: Rocklahoma, Prince's Estate, Big Sean, Shaky Knees Music Festival, Spoon
U2 Announce Joshua Tree Anniversary Tour
Quick Hits: Panorama Festival, Green Day, Billboard 200, A Perfect Circle
Ed Sheeran Releases Two New Singles
Tool, Chance the Rapper & Phoenix Headlining Governors Ball
Beyoncé, Radiohead & Kendrick Lamar Headlining Coachella 2017
Quick Hits: BottleRock Napa Valley Festival, The Chainsmokers, Ed Sheeran
Pop Star George Michael Dead at 53
FMQB NOW

 

Question Of
The Week

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!