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Study Shows Broadcast Radio Continues Focus on Digital Sales,
Poised to Surge Revenue 22% in 2017
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New York, NY – February 7, 2017 -- Radio stations’ digital revenues are poised to surge 22% this year, growing to a record $753 million, according to research released jointly by the Radio Advertising Bureau and advertising research firm Borrell Associates.
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, in 2016:
• Digital ad sales growth averaged 12% for radio stations.
• Small markets saw far higher growth rates for digital sales – between 36% and 83%.
• 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.
• The vast majority of radio advertisers believe that radio sales reps possess solid marketing and digital skills.
“We’re seeing a lot more optimism from radio managers this year,” said Gordon Borrell, CEO of Borrell Associates. “Twice as many told us they’re planning for growth of 20% to 50% in 2017, so there’s obviously something in the air.”
“We’re starting to see great momentum with digital in both small and large markets. Stations that are evolving their offerings beyond their core broadcast business are seeing revenue benefits,” stated Erica Farber, President and CEO, RAB. “The results from this study provide us with insights of where efforts are paying off and what additional training is needed to continue the trend,” added Farber. “The RAB is focused on providing digital training and continued knowledge building for our members.”
This is the fifth year that Borrell has produced the benchmarking report for RAB. The report utilizes Borrell’s database that tracks digital revenue for 10,597 local online operations in the U.S. and Canada, including 3,210 radio stations. It also provides insights from a recent survey Borrell conducted of 2,667 radio advertisers, as well as a 14-question survey of 194 U.S. radio station managers.
The full report is available to RAB members on RAB.com: Click here. A live webinar featuring the survey results presented by the RAB and Gordon Borrell is available for free to RAB members and survey participants. To register for the February 14 or 16 webinar click here.
Press Inquiries: To receive an executive summary, please send an email to press@rab.com.
About the Radio Advertising Bureau
The Radio Advertising Bureau is the not-for-profit trade association representing America's broadcast radio industry. Its primary objective is to drive revenue growth through advocacy, providing the tools and resources to help the industry attract new sales talent to the medium and enhance industry professionalism through training and support. The RAB serves more than 6,000 member stations in the U.S. and more than 1,000 member networks, representative firms, broadcast vendors, and international organizations. Learn more at www.rab.com.
About Borrell Associates
Borrell Associates is a research firm that tracks and analyzes trends in local advertising. Hundreds of media properties subscribe to its Compass product, seen at www.adspending.com, which offers comprehensive data on advertising and marketing expenditures for any U.S. or Canadian market. The firm publishes regular reports on trends in local advertising and each spring in New York City convenes #LOAC, largest gathering of local digital media executives. The company was established in 2001 and is based in Williamsburg, Va. More information can be found at www.borrellassociates.com or by calling 1-757-221-6641.
Contact info:
Press@rab.com
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