While broadcast advertising revenues may be stagnant, the radio industry’s local digital ad revenues will continue growing at a double-digit rate in 2015, according to new research by Borrell Associates commissioned by the Radio Advertising Bureau. Borrell expects local radio stations’ total digital ad revenues to grow 18% from $494 million in 2014 to $583 million this year. That’s an acceleration from 16% growth in 2013-2014.
Other findings from the Borrell survey show local broadcasters are bolstering their digital content and advertising capabilities, as two-thirds of station managers believe digital holds “significant opportunity” for revenue growth.
Indeed, over a third of radio station managers said their stations now have at least one employee dedicated full-time to digital operations and sales, compared to just 11% in 2013.
MY TAKE: The local stations are what? “… bolstering their digital content and advertising capabilities” ?? Really? How so? The problems we have are so numerous that I can only address the huge fundamental issue I see right off the bat and a couple of side issues. The biggest, fundamental problem that this article brings up is that I don’t think they asked the right questions in order to get the real answers we need. Like, what are these “digital” personnel at the stations doing? More than likely they are fiddling with Web page content and putting local ads up that someone — either himself or another local, sales rep is supposed to be selling. Really? I believe that a lot more station owners SAID that they were doing something about digital than actually are because if there were ever any respondents, at any time in history who would be tempted to lie in a situation, I believe this is one of them. Let’s give them the benefit of the doubt and say yes, the stations are selling local ad space onto their Web site. Or even into a mobile app (is there even a good one out there? Let me know). I really doubt it because besides your long-time local clients who will buy to keep you afloat, what the advertiser of today wants: not many people in radio seem to have. And that is hard ROI. But this is not their fault! At the moment, radio has only been “given” these new ideas and a few disparate “apps” in which to try and figure something out.
There are some ideas coming out of the large conglomerate, radio companies and they seem to always get a lot of followers from smaller companies as if people think these BIG radio companies know what they are doing. IMO, they do not…either. Following them didn’t work out so great when they decided to clamp down on their playlists and fire good, local talent for a bunch of teenage card readers and button pushers did it? There needs to be a better answer. Feel free to leave a comment to add to the discussion and to follow the link to read the rest/entire article. Thanks for stopping by.
Read the rest here: Radio’s Local Digital Revenues To Soar In 2015 http://buff.ly/1GWYUen