Streaming Audio And Video Lead Agency Spend Plans, Borrell Survey Finds.

One in five ad agencies that spend money in local markets tells Borrell Associates that they plan to spend more on broadcast radio, and nearly twice that number plan to increase their clients’ investment in streaming audio ads. For radio stations selling digital ads, their biggest opportunity is likely video. Borrell’s spring survey data shows that the biggest lure for ad buyers is streaming video ads.

“Streaming video advertising tops the list with nearly two-thirds of agencies saying they're seeing more buying this year. They're also seeing increased spending for social media and streaming audio,” says Center For Sales Strategy CEO Matt Sunshine. In Borrell’s summer chart-of-the-week series vlog post. “The fact that streaming video appears at the top of this list and cable TV appears in the top five of the cut list is an indication of where the money for streaming video advertising might be coming from.”

Sunshine also points out that the top four media were budget cuts are print-based. “If you’re selling print media, you’ll have to invest heavily in communicating your value proposition,” he says.

The data shows that one in four ad buyers plans to reduce client spending on AM/FM radio but just 6% expects digital audio budgets will be reduced.

Borrell calculates the average local radio station advertiser spent $48,060 in the medium last year, which puts AM/FM near the top when it comes to spending. The only media channels to get a higher average spend from local advertisers were out-of-home ($67,575) and search engine marketing ($58,567) with radio getting a higher average total than even television.

The data also shows that number of local advertisers that consider radio advertising either “very effective” or “extremely effective” has grown by a third in recent years. In 2017, Borrell says one in four local advertisers gave those high marks to radio. Today, one in three do. Only broadcast television (39%) and direct mail (37%) have higher effectiveness ratings than radio in the Borrell surveys.