Local Radio Stations’ Online Revenues Report, 2016, the 4th annual benchmarking report, a comprehensive study conducted by Borrell Associates on behalf of the Radio Advertising Bureau, showed that the average market cluster generated 11.4% higher revenues from digital in 2015 and made $951,756 in digital sales last year, with the average station making $231,210.
With forecast growth of 14%, the report said, digital advertising will account for 6.5% of station revenue by the end of 2016, a full point above what it was in 2015.
“Digital continues to be radio’s fastest growing sector. Stations that are laser focused on increasing revenue beyond their core broadcast business are experiencing the benefits,” stated Erica Farber, President and CEO, RAB.
The study found that only 16% of radio managers believe that radio sales suffer because reps are selling digital advertising.
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%.
82% of the participants in the study “believe there is strong potential” in the interactive space.
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