Years of refining digital strategies paid off for the radio industry in 2020, as digital ad revenue hit $1.1 billion. This accounts for more than 14% of total ad sales, according to research released Friday by the Radio Advertising Bureau and ad-tracking firm Borrell Associates.
Local radio stations saw digital sales increase nearly 12%, with growth forecast to accelerate 18% this year, the report says.
“The due diligence the radio industry has put into expanding its digital platforms and advertising offerings over the last few years contributed mightily to the 2020 bright spot of digital growth,” RAB President and CEO Erica Farber said. “As broadcasters continue to super-serve their listeners and advertisers, RAB is poised to help in the conversation with its business and professional development offerings to meet the innovation and opportunities ahead in 2021.”
“The pandemic actually delivered a gift to the radio industry last year,” Borrell Associates CEO Gordon Borrell said. “Stations saw very clearly how digital products can be a linchpin, especially when core-product sales are challenging. Digital kept the conversation going.”
“The radio salesperson has transformed into a trusted marketing consultant for their advertisers. With a pulse on the local market and deep knowledge of both radio and digital landscapes, they have the ability to offer the right marketing mix to ensure successful campaigns. The RAB-Borrell Digital Benchmarking Report re-enforces the fact that radio and digital are better together,” said Marketron SVP Product, Jimshade Chaudhari.
The annual report showed that the average station made $290,150 in digital revenue in 2020, and the average market cluster made $1.3 million. The average revenue for the top five performers ranged from $2 million for top-performing clusters in the smallest of markets, to $17.8 million in the largest.
The findings are a part of RAB and Borrell’s ninth annual report, “Defying the Gravity of 2020, Radio’s Digital Sales Rise 11.8%.” It is being released today to RAB members. It analyzes online ad revenue from 3,621 radio stations, as well as survey responses from 944 local radio buyers and a survey of 238 radio managers.
Among the findings:
“The due diligence the radio industry has put into expanding its digital platforms and advertising offerings over the last few years contributed mightily to the 2020 bright spot of digital growth,” RAB President and CEO Erica Farber said. “As broadcasters continue to super-serve their listeners and advertisers, RAB is poised to help in the conversation with its business and professional development offerings to meet the innovation and opportunities ahead in 2021.”
“The radio salesperson has transformed into a trusted marketing consultant for their advertisers. With a pulse on the local market and deep knowledge of both radio and digital landscapes, they have the ability to offer the right marketing mix to ensure successful campaigns. The RAB-Borrell Digital Benchmarking Report re-enforces the fact that radio and digital are better together,” said Marketron SVP Product, Jimshade Chaudhari.
The annual report showed that the average station made $290,150 in digital revenue in 2020, and the average market cluster made $1.3 million. The average revenue for the top five performers ranged from $2 million for top-performing clusters in the smallest of markets, to $17.8 million in the largest.
The findings are a part of RAB and Borrell’s ninth annual report, “Defying the Gravity of 2020, Radio’s Digital Sales Rise 11.8%.” It is being released today to RAB members. It analyzes online ad revenue from 3,621 radio stations, as well as survey responses from 944 local radio buyers and a survey of 238 radio managers.
Among the findings:
- Confidence in stations’ digital strategies reached an all-time high in 2020
- Eighty percent of stations offer digital sales training at least once a month
- Eighty-one percent of stations are offering some form of digital services in addition to digital advertising
- Nearly two-thirds of radio sellers try to include digital offerings in every sales pitch
- More than half of stations flipped their sponsored events in 2020 to virtual events
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