Radio grew its digital ad revenue 11.4% to $550.8 million in 2015.
The average radio market cluster made $951,756 in digital sales last year and the average station made $213,210. Many managers predict another year of double-digit growth this year and it’s likely the average will approach a quarter-million dollars, accounting for 6.5% of station revenue, says Borrell Associates in a report conducted for the Radio Advertising Bureau.
Digital accounted for just 5.4% of station revenue last year, but is growing.
Indicators are up compared with last year’s survey. Eight-two percent believe there’s strong potential in digital “the highest we’ve seen,” according to Gordon Borrell, CEO of Borrell Associates.
Just over 60% of managers surveyed believe their sales teams’ ability to sell digital products is solid — up from 52% a year ago and 37% their digital strategy is headed in the right direction — up from 27%.
The researchers analyzed digital revenue for more than 2,700 stations and surveyed 250 managers.
They found one-third of stations believe their sales reps are talking with the wrong buyers when trying to sell digital products. Two-thirds of managers believed that 3 years ago.