Commentary

Million Dollar Digital Advertising In Radio Markets

According to research released jointly by the Radio Advertising Bureau and advertising research firm Borrell Associates, radio stations’ digital revenues are poised to surge 22% this year, growing to a record $753 million.

The report shows that last year the average radio station generated between $49,159 and $602,783 in digital advertising sales, depending on market size. It also showed that among the more than 800 clusters, the average market cluster surveyed broke the million-dollar mark in digital sales for the first time, reaching $1.1 million.

Among other findings, says the report, in 2016:

  • The vast majority of radio advertisers believe that radio sales reps possess solid marketing and digital skills
  • Digital ad sales growth averaged 12% for radio stations
  • Small markets saw far higher growth rates, between 36% and 83%, for digital sales
  • 2.5% of market clusters made more than $5 million in digital sales
  • Stations are becoming less dependent on banner ads, selling other forms of digital advertising

Gordon Borrell, CEO of Borrell Associates, says “… seeing a lot more optimism from radio managers this year… twice as many (say) they’re planning for growth of 20% to 50% in 2017… “

Erica Farber, President and CEO, RAB, follows noting that “… starting to see great momentum with digital in both small and large markets… offerings beyond their core broadcast business are seeing revenue benefits… RAB is focused on providing digital training… for members…”

For more information from Borrell and RAB, please visit here.

 

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