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
Cox Media Group Tampa Names Dan Mason OM For HOT 101.5, 97X, 102.5 The Bone
Logan Named PD/Morning Host At WNCV/Fort Walton Beach
Jay Towers Promoted To Anchor Of Fox 2 Morning News in Detroit
In Brief - August 20, 2014
August 19, 2014
Greg Ausham Named PD At WNNX/Atlanta
Emmis Communications, Beasley Broadcast Group Deploy Jelli Radio Ad Platform In Major Markets
Cumulus Taps Dan Mandis As PD Of WWTN/Nashville
In Brief - August 19, 2014
August 18, 2014
Republic Records Promotes David "Davey Dee" Ingenloff to VP/Rhythm Crossover Promotion
NAB President/CEO Gordon Smith To Keynote The Conclave
Westwood One Names George King VP/Programming, Network Formats
Cox Media Group Miami Launches The DJ Laz Morning Show on WFLC
Vince Szydlowski Named SVP, Label Sales For Capitol Music Group
In Brief - August 18, 2014
August 15, 2014
eQB NOW
The Week In Review: 8/11-8/15
CCM+E Miami Names Michael "Mud" Gross PD At WBGG-FM
WQHT/New York MD Karlie Hustle Resigns
Townsquare Media Promotes Heather DeLuca to Brand Manger for WSJO/Atlantic City
RAB Report: Radio's Q2 '14 Revenue Performance Down 3%
CMG San Antonio Rebrands 106.7 FM as The Eagle
In Brief - August 15, 2014
August 14, 2014
Clear Channel Political Advertising Targeting Tool, AuDiO, Now Incorporates Nielsen Data
Cumulus Media, Katz Radio Group Enter New Long-Term Partnership
NBC Joins Forces With iHeartRadio For Digital Premiere Of New Romantic Comedy "A TO Z"
In Brief - August 14, 2014
Music News
Nickelback Signs With Republic Records
Quick Hits: album sales, Taylor Swift, Foo Fighters, Super Bowl halftime show, Gerard Way, Tiesto, Smashing Pumpkins
New Taylor Swift Album Due Out October 27
Quick Hits: Lady Gaga & Tony Bennett, Haim, Fashion Rocks concert, T.I., iTunes Festival, Unlocking the Truth, Leonard Cohen
Colbie Caillat Sets September 30 Street Date
Quick Hits: Coldplay, U2, Christina Aguilera, B.o.B, Wiz Khalifa, Becky G, Bob Seeger
Lil Wayne's Tha Carter V Coming October 28
Quick Hits: Nickelback, Sia, Shindig Music Festival, Def Jam Records, Annie Lennox
The Week In Review: 8/11-8/15
Quick Hits: Taylor Swift, Sam Smith, Meghan Trainor, Primus / Tool, Becky G, John Mellencamp
Guardians Of The Galaxy's Awesome Mix Hits #1
Quick Hits: Nicki Minaj, Death Cab For Cutie, Metro Station, Celine Dion, She & Him, Karen O
Honda Stage Launches at iHeartRadio Theater L.A.
Quick Hits: Kings Of Leon, Daft Punk, Linkin Park's Joe Hahn, Goo Goo Dolls, Bob Weir & RatDog
Foo Fighters Set November 10 Street Date
FMQB NOW

Sean Demery, PD
WYMS/Milwaukee

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!