Harker Asks, 'Are Radio's Leaders Waking Up?'
May 22, 2014 at 3:57 AM (PT)
In their latest blog post, RICHARD HARKER and GLENDA SHRADER BOSHE at HARKER RESEARCH ask, "Are Radio’s Leaders Waking Up?"
They note, "First quarter revenues were flat again, further evidence that radio is stuck in neutral. Yes, digital revenue grew, but broadcast spot sales continued to erode. Digital’s growth was a hollow victory: Digital contributes a mere 3% of radio’s revenue. Broadcast spots contribute over 90%. If spot sales decline by a mere 1%, $140 Million in spots is wiped off the books. Given digital’s meager contribution, it has to increase 15% just to stay even, let alone jump-start sales."
Continuing, they write, "As we pointed out in our previous post, digital grew by 16% last year, but growth is on a downward trajectory. It is increasingly likely that digital sales growth won’t be able to make up for even modest declines in broadcast spot sales. What should broadcasters do? The only practical solution is to put a stop to the decline in spot radio sales. Radio has to put considerably greater effort into growing the broadcast product, continuing to develop compelling programming, then selling it better. If radio has any hope of growing revenue in today’s environment, it is going to come from increasing the value of broadcast spots, then selling more."
Find out what HARKER sees in the future by clicking here.