RAB Finds Radio's Digital, Off-Air Platform Revenues Hit New Highs
March 3, 2016 at 8:15 AM (PT)
"Radio boasts the broadest mass reach among all media -- while simultaneously affording narrow targeting capabilities through numerous program formats and networks," writes the RAB in a new report. The new release says these attributes combine to make broadcast radio the most efficient, effective vehicle for advertising, and notes that, "Radio's unparalleled consumer reach through broadcast is increasingly being enhanced by stations' ability to provide additional reach through both digital platforms and ‘Off-Air,' or non-traditional, extensions like events, sponsorships and ticket sales."
In 2015, radio held its own in attracting ad dollars within the highly competitive media environment, and 2015 also represented milestones for radio's Digital and Off-Air sectors: Revenue derived from radio's increasingly important digital platforms topped $1 billion for the first time, and off-air sales grew 11% over last year's strong performance to exceed the $2 billion mark. Combined, Digital and Off-Air sectors comprise nearly one-fifth of radio's total bottom line for the full year 2015.
"More and more advertisers are extending the unmatched reach of broadcast radio by taking advantage of radio's off-air and digital options," said RAB Pres./CEO ERICA FARBER. "By using radio stations' digital and off-air platforms, advertisers are extending the scope and reach of their messaging -- and because more and more consumers are enjoying experiential events or spending time on devices, off-air opportunities can build on the strength of broadcast radio and provide the ability to reach them effectively and efficiently."
Other Non-Spot highlights for 2015 include:
- Off-Air sales now represent nearly 12% of total revenue
- Network's strong second half (up 3%) helped boost full year by 1%
"Radio realized 2015 gains across many categories," said FARBER. "These positive trends will continue as advertisers rediscover radio's strengths as a traffic driver, brand builder that delivers results."