Radio Clusters Rank Second In Online Advertising Among Media Outlets, Finds Borrell Associates
March 24, 2016 at 5:07 AM (PT)
In a new report, "Benchmarking Local Digital Media," BORRELL ASSOCIATES writes, "Twenty years ago, online advertising was barely a blip on any media company’s radar. Today, it’s providing a much-needed shot in the arm to flagging ad sales at print and broadcast companies. In 2015, traditional media companies sold $10.5 billion in digital advertising. Print media benefited most, with newspaper and yellow pages companies averaging more than one-fourth of their ad revenue from digital sales. Meanwhile, TV averaged 10.6% of sales from digital, radio 5.5%, and cable systems 4.3%. In most local markets, the daily newspaper is the largest single seller of digital advertising. In major cities, metro newspapers averaged $12 million in 2015. Many made more than $20 million."
BORRELL concludes, "Internet pureplay still rule the digital space — mostly because there are so many of them. Companies like CRAIGSLIST, YELP, ANGIE’S LIST, AUTOTRADER.COM, ZILLOW and dozens of others average $2 million each in large and medium markets, and far outnumbered traditional media competitors. Combined, the pureplay companies snared 76% of the $48 billion spent on local digital advertising last year while newspapers accounted for 11%. This report assesses the competitive landscape for local digital advertising and offers benchmarking data on average revenue, median and top performers for each of five types of media companies that are selling digital advertising. The research provides guidance on the two questions that we think traditional media companies should be asking: How are we doing compared with everyone else, and how much could we be making in digital sales?"