Guaranty Media now provides advertisers access to video production, SEO, reputation management, website creation and maintenance just to name a few. Following a nationwide trend in which other radio companies have expanded into digital platforms, Guaranty is the only media company that offers a complete digital menu of items to their clients.
According to a comprehensive study by Borrell Associates with the Radio Advertising Bureau, the radio industry grew its digital ad revenue 11.4% last year to $550.8 million, and is poised to grow even faster this year. The 4th annual benchmarking report showed that the average market cluster made $951,756 in digital sales last year, with the average station making $231,210. With forecast growth of 14%, says the report, digital advertising will account for 6.5% of station revenue by the end of 2016, a full point above what it was in 2015.
Gordon Borrell, CEO of Borrell Associates, says “… radio industry mobilizing even more… 82% believe there is strong potential in the interactive space… highest ever… 62% believe… sales teams’ ability to sell digital products is solid… 37% believe… digital strategy is headed in the right direction… “
And Erica Farber, President and CEO, RAB, says “… digital… radio’s fastest growing sector… stations focused on increasing revenue beyond their core broadcast business… experiencing the benefits… ”
The study surveyed 250 managers and 2,704 stations on their attitudes toward digital ventures, as well as digital revenues, market share, sources of revenue, methods of billing, and opinions on station strategies. Key points among the findings show that:
One-third of stations surveyed believe their sales reps are talking to the wrong buyers when trying to sell digital products. Three years ago, two-thirds believed that was the case
Only 16% believe that radio sales suffer because reps are forced to sell digital advertising. That’s down significantly since 2014, when more than half felt that way
Conversely, 24% believe that digital sales suffer because reps focus on radio advertising. Three years ago, twice as many felt that way
The average radio cluster received 0.26% of all locally spent Internet advertising. There were some, however, achieving 15 times that – up to nearly 4%
February 15th, 2016