RAB/Borrell Study Shows Radio's Digital Ad Sales Efforts Paying Off

Study

A new study by the RADIO ADVERTISING BUREAU and BORRELL ASSOCIATES showed the radio industry's digital advertising initiatives paying off with increased revenue predicted to hit close to $1 billion this year.  The report, “Radio’s Digital Sales Inch Closer to $1 Billion,” available to RAB members on the organization's website, shows local radio station digital ad revenue at $804 million in 2018, projected to increase to $949 million for 2019.  The average station earned over $256,321 on the digital side in 2018, up 15% year-to-year, and the report predicts that digital ad revenue will make up over 10% of the average station's ad revenue in 2019.

Other findings from the survey of 1,715 local radio buyers and 132 radio managers include the statistics that 97% of radio advertisers are including digital advertising with traditional forms of advertising in their campaigns, up from 85% a year ago; 25% of the average station’s radio customers buy digital advertising from the station; streaming video ads are bought by 27% of radio buyers with 9% more planning to do so; station managers are more positive about their companies' digital strategies; over half of stations (57%) include digital options with every sales pitch; and the average radio cluster brings in $1.15 million, which represents between 1 and 6.6% of their markets' addressable digital market, depending on market size, with best-practice market clusters getting four to five times that figure.

“Digital has been integrated into all facets of broadcast radio’s offering both in programming and sales, and the results are definitely paying off,” said RAB Pres./CEO ERICA FARBER.  “As radio continues to provide integrated marketing solutions to its advertisers we expect to see continued growth. The RAB is focused on providing digital training and continued knowledge-building for our members so they can better serve their clients.

“Broadcast radio has been focused on digital’s integration into its overall offerings and as this year’s study reveals, we continue to see growth and attributable results,” added FARBER. “RAB’s digital training offerings are also evolving to meet the industry’s needs and provide the training necessary for sellers and marketers today.”

“This year’s findings quantify that there’s great upside potential,” said BORRELL ASSOCIATES CEO GORDON BORRELL. “Nearly all radio buyers are also buying digital advertising, yet only 1 in 4 of a typical station’s customers is buying digital products from the station. Closing that gap represents a big opportunity.”

RAB members and survey participants can watch a free webinar covering the results of the survey on FEBRUARY 12th or 14th.

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