Borrell

Pandora increasing spot loads and hiring more AEs

Thursday, May 30, 2013 - 12:45pm

Borrell Associates says its research shows local media companies with ad execs dedicated to digital sales average twice the online revenue of those without specialized AEs, and that hiring digital sales representatives is rising.

Borrell has released its 2013 update on local media digital sales executives, "Assessing Local Digital Sales Forces." You can download a free executive summary of the study here.

Greg Harmon, the study's author, also sees some bold competition from "online pureplay" companies (for example, Pandora or Yelp) who are paying an average starting salary 50% higher than what TV, newspaper, and radio managers offer.

The ad reps, whether working for a pureplay or a traditional media outlet, will likely have plenty to do. Today Strata says its data from a first quarter survey shows 76% of advertisers are "more interested in digital than they were a year ago (up 51% over 2011)," including the "streaming/online radio" segment, for which 54% say they are "more interested in this than last year."

In its summary of the survey, Strata mentioned "streaming or online radio/TV" as an example of a new advertising area into which 47% of respondents say they'll soon expand. Read more from Strata here.

Strata, you'll remember (from RAIN coverage here), is one of the two media buying platforms that has integrated Pandora inventory into their platforms. Pandora CFO Mike Herring called that "a watershed moment" for Internet radio.

He spoke at the Cowen Technology, Media and Telecom Conference, also addressing the webcaster's growing sales force, saying, "every one of [the recent hires] was a top one, two, three seller at their local [terrestrial] station." (He's also quoted as saying these new hires "take somewhat of an initial pay cut coming to Pandora, with the opportunity to be part of something that’s growing," which doesn't necessarily contradict the Borrell finding, as these AEs weren't necessarily dedicated digital sellers at their previous employers.)

And growing it is: Herring says Pandora is increasing the amount of ads it sells and airs, to a maximum of about "3-1/2 units an hour, and they only use :15s and :30s," reports Tom Taylor Now. Read more on Herring's quotes from the Cowen conference from Tom here.

Radio's local digital revenue grows, but share is still dwarfed by newspaper and TV

Tuesday, February 26, 2013 - 12:20pm

Borrell Associates, in new research for the RAB, says radio's local digital ad revenues grew 22% in 2012 over the previous year -- slightly higher than the local media average of 20%. This follows news (in RAIN here) that radio's overall digital revenue was up 11%.

However, for the past three years radio has been losing local online market share to newspaper, TV, yellow pages and Internet companies, and radio's share of local online sits at just 2%.

"It looks like quite a few groups are breaking out and challenging their newspaper and TV competitors for a slice of that very large digital pie," said Borrell Associates CEO Gordon Borrell (pictured). He expects online ad revenue to pass $420 million this year for radio.

RAB CEO and president Erica Farber (also pictured) said, "Revenue opportunities continue to grow for those who are pushing the digital limits with online and mobile initiatives." Farber, by the way, will keynote RAIN Summit West April 7 in Las Vegas. Please see more information here.

The new report is called "Benchmarking: Local Radio Stations’ Online Revenues," and is available to RAB members here. The RAB and Gordon Borrell will present the findings with a free webinar Thursday, March 7 (more info here).

Read more in NetNewsCheck here.

After a tough 2011, Borrell predicts growth for local radio's online ad revenue

Tuesday, April 3, 2012 - 12:05pm

Borrell Associates says "pureplay" Internet radio generated $206.3 million in streaming audio advertising in 2011, significantly topping broadcasters' $67.4 million. And while Borrell Associates’ new Benchmarking Local Online Media: 2011 Revenue Survey predicts radio will double its streaming audio revenue in 2012, it'll still be only half of what "only-online" radio does.

Borrell says streaming audio ads represented 22% ($67.4 million) of broadcasters’ 2011 online revenue. 

Local stations didn't have a great 2011 online. While the online advertising market grew overall, local radio's share of the pool didn't keep up. While the rest of the online media industry grew 20.6%, says Borrell, radio grew only 6.1%, giving them less than 2% of 2011's $16.4 billion total.

That said, Borrell is looking for radio to turn it around, with a nearly $410 million 2012 in local online ad sales, for a 35% increase over 2011.

(See Borrell's predictions from November here. We also recently reported on BIA/Kelsey's 2011 local online ad revenue recap here.)

Borrell Associates CEO Gordon Borrell will both participate in the "Charting Digital Audio Ad Dollars" panel, and present a "POV" (see story in today's issue) at our upcoming RAIN Summit West in Las Vegas (more here). Read more on the Borrell study here.

Borrell forecasts radio's online ad revenue will surge 85% next year; online audio ad take to double

Wednesday, November 16, 2011 - 12:00pm
A Borrell Associates report predicts that U.S. radio’s total online ad revenue will grow 85% next year, reaching $539.4 million. And for the first time, online audio advertising will bring in more dollars for radio than on-site display ads, Borrell says.
 
Online audio ads were just 1.7% of total online spending this year. But that's forecast to more than double next year, to 3.2%. Given the shifting proportion of online listening towards pureplay webcasters (especially Pandora, see today's top story), while broadcasters can expect to bring in $159 million for the audio ads they stream in 2012, online-only radio should book $418 million (more than twice radio's take).
 
Of course, local broadcasters should have the advantage over pureplays when it comes to local online sales. And to take advantage of that, Borrell says the key will be mobile.

Borrell Associates

"While traditional local online ad spending will grow double-digits again next year," Inside Radio writes, "the real sizzle to this advertising steak is now found in mobile spending.  Borrell Associates forecasts 88% of all local online advertising will viewed on tablets, smartphones or GPS-enabled laptops by 2016." Borrell predicts local mobile advertising will spike 66% in 2012 to $4.3 billion.

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