The pursuit of digital revenue took centerstage last year as stations expanded sales training and bet big on the hottest-selling product — streaming video. And according to the latest annual digital benchmarking report from RAB and Borrell Associates, digital revenue topped the $2 billion mark last year.
“It also resulted in an odd phenomenon: At the local level, the radio industry now sells more video advertising than audio advertising — at least on the digital side of the business,” the report’s executive summary says. It also notes that digital income has doubled in the past five years “and is no longer a sideline business,” with the average digital income for a radio station coming in at $482,470.
Industrywide, digital sales totaled $2.1 billion last year, an increase of 10.2%. This year, they’re forecast to grow an additional $206 million. The digital ad growth outlook is 9.7%, slightly below last year’s rate.
“There is no indication that the radio industry will ease up on the digital reins,” the executive summary says. “Nearly half of radio managers are budgeting growth of 20% or more this year. With roughly two-thirds of a station’s radio customers not buying their digital products and services, opportunity abounds. Stations are increasing their focus on selling digital products to existing customers as well as creating a base of digital-only customers that can be farmed for radio sales.”
A live webinar featuring the survey results presented by RAB and Borrell Associates is available for free to RAB members and survey participants. The presentation takes place at noon (CT) on Wednesday, Feb. 19. To register for the live presentation, click HERE.
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