BIA/Kelsey says radio should see online ad revenues grow nearly 11% a year

Wednesday, March 27, 2013 - 3:05pm

BIA/Kelsey projects online ad revenue for radio will grow 10.8% annually over the next five year (while on-air ad revenues will grow only 2.5% a year), hitting $818 million by then. The group's new Investing in Radio Market Report is out today.

Radio earned $491 million online in ad revenues last year, accounting for just over three percent of total revenue (though markets like Boston earned as much as 14.2% online).

The RAB reported radio's Q4 2012 digital revenue at $206 million (up 11%), and overall 2012 digital revenue at $767 million (up 8%) (see RAIN here). BIA/Kelsey recently released its forecasts on local media ad spending (and the digital share thereof) (see RAIN here). The Pew Research center predicted satellite and online-only radio have an even brighter digital ad revenue upside (see RAIN here).

RAIN Summit West will feature two panels, "Profiting from Mobile" and "Jump Start Your Revenue," to examine trends and discuss strategy to maximize digital revenue. More info is here.

Read more about BIA/Kelsey's report today in here.

Local rock radio will survive if it knows "its job to do," Fred Jacobs tells Forbes

Monday, March 18, 2013 - 12:20pm

Forbes asked Jacobs Media president Fred Jacobs how FM rock radio will survive in the new digital world.

Jacbos pointed to "disruptive innovation" authority Clayton Christensen and his concept of knowing the "job to do:"

"The stations that have had the most success – and will likely thrive in the future – are the ones that have a strong grasp on what jobs consumers are hiring them to do." Jacobs said. "Proprietary personalities, a hometown POV, solving local advertiser needs, and serving their communities."

Forbes contributor Michele Catalano points to online-only services' lack of "the human connection" as an Achilles heel, one that broadcasters should focus on to compete. Jacobs agrees.

"We’ve seen research that points to key downsides with Pandora – listeners feel detached from their hometowns and often miss hearing personalities they love."

That said, successful FM stations embrace digital technology for the advantages it affords, "rather than seeing it as a foe," Jacobs says. He cites data showing as much as 15-20% of some FM rock stations' listening coming from online and digital.

Read more at 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.

Marketers says they're eyeing digital more, print and radio less, in 2013

Wednesday, February 20, 2013 - 8:20am

Ad buyers say they're going to be looking to digital media -- especially mobile and social -- at the expense of traditional media like print (and radio) in 2013. This however does not mean, eMarketer reports, that we'll see a huge migration of dollars away from traditional and towards digital this year.

The vast majority (82%) of U.S. marketers in a new study say they expect to "increase their focus" on mobile media, and only slightly less (76%) on social media (broken out separately from "social networking sites").

Those media that will lose marketers' focus the most: newspapers (32% said they expect to focus less), consumer magazines (28%), and radio (24%).

However, "while marketers expressed a clear understanding of the importance of digital media... they also expressed trepidation about the speed at which marketing can now change. Just over half of respondents, 54%, felt that their marketing team was unable to handle new technologies and trends."

Inavero conducted the poll of U.S. marketing professionals from October through November 2012 for staffing firm Aquent and the American Marketing Association (AMA). Read eMarketers coverage here. H/T to the jacAPPS blog.

RAB: Radio's digital revenues grew last quarter, and in 2012 overall

Tuesday, February 19, 2013 - 12:20pm

Radio's digital revenue was part of the good news the Radio Advertising Bureau had for broadcasters on Friday.

The RAB's earnings report shows radio's Q4 2012 was up 4% (highest over the past eight quarters), and full-year spending rose for the third consecutive year. Digital revenue for radio was up 11% ($206 million) in the fourth quarter, and 8% in 2012 overall ($767 million). According to the RAB figures, digital now accounts for about 4.7% of radio's revenue.

RAB president & CEO Erica Farber will keynote RAIN Summit West April 7 in Las Vegas.

The RAB earnings press release is here.

Public radio digital team finds "framework for engaging with the digital audience" in talk radio

Monday, February 4, 2013 - 1:15pm

NPR Digital Services says some of the best practices top talk radio shows employ can be tweaked for social media.

"We often talk about engaging our radio audience online, but that’s only part of the job. We also want to find and nurture a new audience online, including potential fans who don’t know we exist but would love to follow what we do. These two audiences develop in different ways, but a well-considered strategy can grow both audiences and encourage them to participate more often."

Check out the article for some practical tips about sharing promotional announcements, "live tweeting," and more.

Read NPR Digital Services blog here.

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