Monday, June 1, 2015

Marketron: Radio Sees Revenue Growth Ahead

Marketron, the media industry's provider of advertising software solutions, serving 7,000 radio stations across the United States, just released the results of their inaugural May Report.

The May Report is a survey of Marketron's c-suit intended to provide a snapshot of where the industry stands at mid-year and where it's headed. It was conducted for the first time in May and will be repeated annually as an industry benchmark going forward.

In summary, the report shows optimism about the state of Radio amongst its leaders, some reporting minor shifts in listener and revenue streams over the past 12 months with a significant shift forecasted in the coming year.

When asked about their outlook for revenue growth over the next 12 months, 74% of respondents replied that they saw revenue for their company growing slightly to significantly in the next year. Similarly, respondents described the outlook as "better" (44%) nearly 2 and 1/2 times the rate as those describing the next year as "worse" (18%).

Descriptions of changes in listening habits over the past 12 months seemed modest in comparison to trends reported elsewhere. Only 48% of Radio leaders stated that they felt listenership in their stations had changed over the past year. They also stated that the mix of revenue sources was relatively equal to that of a year ago.

Jeff London
Looking ahead however 92% predicted a shift to listenership from streaming both of station driven streams and pureplay providers like Spotify and Pandora. Not surprisingly broadcasters are looking at a shift in their revenue streams going forward. Universally they expect more revenue in the next year from Digital display (63%), Streaming (53%), and mobile sources (60%).

"Broadcasters are bullish on their future," stated Jeff London, Marketron's SVP of Client Services. "While I was surprised by the lack of change reported currently, it's clear that our customers see this industry on the cusp of listener habit changes and a resulting shift in revenue mix."

When asked to comment anecdotally on unforeseen shifts this year versus what was expected, many radio leaders mentioned the winter weather, decline in retail sales, and disappearance of national dollars.

"We feel well positioned with our technology roadmap to meet the shifting demands of our customers’ business going forward,” said Tony Gaughan, Marketron's Chief Technology Officer. “Whether it’s our Orders 360 product to meet shifting revenue sources, or our programmatic platform to address declines in national business, we feel our customers will be well equipped for the coming years."

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