Radio Digital Revenue Breaks $1B Barrier
• Radio’s digital ad revenue blasted through the billion-dollar plateau for the first time, now accounting for 10% of total advertising revenue for the industry, according to research just released by the Radio Advertising Bureau and ad-tracking firm Borrell Associates.
Local radio stations grew revenues 25% in 2019 and are forecast to see growth of 29% this year, the report says. Digital revenue is now growing faster for the radio industry than it is for any other media segment that is also selling digital advertising. The annual report showed that the average station made $299,213 in digital revenue in 2019, and the average market cluster $1.3 million. The average revenue for the top 5 performers ranged from $664,651 for top performing clusters in the smallest of markets to $17.1 million in the largest.
“As radio continues to gain renewed interest by advertisers and the media buying community, they are recognizing radio’s assets beyond broadcast,” stated Erica Farber (pictured), RAB President & CEO. “This report underscores the importance of being a well-trained and knowledgeable radio professional and the RAB continues to deliver the digital training and professional development required for radio sellers to best serve their clients.”
Gordon Borrell, CEO of Borrell Associates, remarked, “The radio industry is carving out large chunks of the digital advertising pie from other print and broadcast competitors who also sell digital marketing to local businesses. Our latest survey of radio managers shows that they have stronger and more positive attitudes toward digital media. That’s a very good thing, because our survey of ad buyers also shows that radio’s most at-risk customers are the ones who aren’t being offered a digital package by their sales reps.”
These findings are a part of the RAB and Borrell’s 8th annual report, Digital Sales Skyrocket, Hitting $1 Billion, which was just released to RAB members at RAB.com. A live webinar featuring the survey results presented by the RAB and Gordon Borrell is available for free to RAB members and survey participants. To register for the webinars, visit rab.com/webinars.
