Friday, April 18, 2014
Advertisement:
What is RSS/XML?
Subscribe to FMQB News.

RAB: Radio Has Turned A Corner In Digital Sales
February 25, 2013

The Radio Advertising Bureau (RAB) has released a new report from Borrell Associates, showing that radio gained digital share in 2012, and many stations appear to be building on that momentum in 2013. The report adds that there appears to be significant profit in local digital sales operations.

The report, titled Benchmarking: Local Radio Stationsí Online Revenues, says that radio grew its online ad revenues 22 percent last year, outpacing the 20 percent overall increase in local online ad expenditures. That was enough to achieve a share increase of two-tenths of a point, to two percent.

The report is based on Borrell's annual industry-wide survey on more than 6,200 local online operations, including more than 2,000 radio stations in 527 clusters. This report analyzes data derived from three principal sources: media ad revenue, local business ad spending, and a special radio manager survey asking questions about digital revenue resources, sales methods, expenses and other digital operations.

The growth signaled a boost for the radio industry, which had lost digital advertising market share for three years against aggressive sales from newspaper, TV, yellow pages and Internet pure play competitors. The results offer strong evidence that radio is turning the corner in digital sales, according to the report.

"In terms of digital advertising, radio has been in a come-from-behind position for years," said Gordon Borrell, CEO of Borrell Associates. "But it looks like quite a few groups are breaking out and even challenging their newspaper and TV competitors for a slice of that very large digital pie. I hope the data in this report will show radio general managers and general sales managers that it is entirely possible to generate millions in digital sales, and that there's a high likelihood that these sales hold significant profit margins."

Overall, radio sellers closed $370.7 million in local online advertising last year. Borrell expects the number to pass $420 million this year as many radio groups double down on digital sales efforts. Much of that growth will be fueled by stations budgeting for unusually high growth. In a survey of 1,075 radio stations administered in January as part of the report, 17 percent said they expect growth of 30 percent or more this year.

Additionally, stations are diverting their focus from banner advertising and branching out to sell other, more popular formats like email advertising, paid search and even video ads. While banner ads were the largest single source of revenue for 32 percent of the stations who participated in the survey, the number dropped to 22 percent for 2013.

"Digital strategy among radio stations and groups is varied," remarked RAB President/CEO Erica Farber. "Revenue opportunities continue to grow for those who are pushing the digital limits with online and mobile initiatives. As radio further defines and focuses on monetizing their digital platforms and applications, we will continue to see growth for radio in revenue and market share."




 
Breaking News
Report: Two-Thirds See Radio As Local
L & L And Alpha Merge As Alpha Media
In Brief - April 17, 2014
FMQB FYI... Links You Should Know About
April 16, 2014
BIA/Kelsey Says "The Internet Radio Revolution Has Arrived"
In Brief - April 16, 2014
April 15, 2014
Alan Chartrand Named Market President For CCM+E-Boston
CBS Radio New York SVP Market Manager Don Bouloukos To Retire
In Brief - April 15, 2014
April 14, 2014
CCM+E Research Report: The Power of Personality
In Brief - April 14, 2014
April 11, 2014
The Week In Review: 4/7-4/11
eQB NOW
Major Labels Sue Megaupload
In Brief - April 11, 2014
FMQB FYI... Links You Should Know About
April 10, 2014
BIA/Kelsey Predicts Continued Mobile Growth
Radio Disney & Dees Entertainment Announce Partnership
In Brief - April 10, 2014
April 9, 2014
Report: Apple Considering Retooling iTunes
In Brief - April 9, 2014
April 8, 2014
SNL Kagan Releases Report On Q1 Radio Station Sales
UMG Acquires Eagle Rock Entertainment
Music News
Grohl & Novoselic Talk Nirvana's Hall Of Fame Night
Quick Hits: Coldplay, Forbes' wealthiest rappers, American Idol, Beck, The Whigs
AC/DC Will "Continue To Make Music"
Frozen Soundtrack Still Rock Solid In Sales
Quick Hits: Miley Cyrus, Jay Z & Beyonce, Made In America festival, Paul McCartney, The Who, Golden Gods Awards
Is AC/DC Really Retiring?
Quick Hits: Nirvana, Imagine Dragons, 2 Chainz, Muse, The Rolling Stones
Coachella Boasts Star-Studded Cameos In Weekend One
Quick Hits: Ed Sheeran, Lana Del Rey, Smashing Pumpkins, Janelle MonŠe & Kimbra
The Week In Review: 4/7-4/11
Nirvana, KISS & More Enter Rock Hall Of Fame
Demi Lovato and Jason Derulo To Stream Live Performances
Quick Hits: Capital Cities, Billboard Music Awards, Drake
Linkin Park Ready To Rock With The Hunting Party
Quick Hits: Nirvana, Katy Perry, Madonna, Smashing Pumpkins, Quebec City Summer Fest
FMQB NOW

Nick Petropoulos
Glassnote Entertainment
Group

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!