gordon borrell's address to texas assoc. of broadcasters aug. 8, 2012
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Texas Association of Broadcasters Convention and Trade ShowAugust 8, 2012
Let’s Get Real:How Much Digital AdvertisingIs REALLY Out There?
About this presentation
The following presentation was made by CEO Gordon Borrell at the Texas Association of Broadcasters Convention and Trade Show at the Renaissance Austin Hotel on Aug. 8, 2012
© 2012 Borrell Associates Inc.
What You’re About to Witness… Advertising
Online spending data: Info on 23 million advertisers Online revenue data: Info from 5,700 media companies Verification/Forecasting: Annual surveys of 40,000+ local businesses
Consumer Usage Scarborough, Claritas Ongoing surveys of web users
Media company strategies More than 1,100 clients
Benchmarking Annual Report
• 10th year• 5,756 companies
Specific reports for:• Arbitron• Television Bureau of Advertising• Local Media Association• Individual media companies
The Digital Stream: How Big?
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Local Online: Stream of Dollars Keeps Flowing
$2.0 $2.1
$4.2 $5.5
$8.2
$12.9 $13.4 $13.6
$16.4
$19.9
$22.7
$24.8 $26.6
$27.9
$-
$30
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f
$ in Billions
+21%
11.2% CAGR
Mobile Ad $
© 2012 Borrell Associates Inc.
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Radio’s Online Performance
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
+35%How $303 million stacks up
against $16.4b 2011
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TV’s Online Performance
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
+35%How $2.0 billion stacks up
against $16.4b 2011
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‘Digital Ready’ Local Sales Forces
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
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Gross Online Revenue Per Sales Rep
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
Broadcast sites that have a digital-only sales staff enjoy 2x to 3x digital ad
revenue per rep.
How Much Do Sites Make?
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What RadioClustersMade in2011
Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
Three-fourths of radio clusters made
< $500,000
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Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
Per-Cluster Revenue by Market Size
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Inc. What
TV SitesMade in2011
Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
More than two-thirds of TV stations made
< $1 million
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Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
TV Site Revenue by Market Size
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Share of Locally Spent Online Advertising for 5,700 Media Companies
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Share of Locally Spent Online Advertising for 5,700 Media Companies
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Share of Locally Spent Online Advertising for 5,700 Media Companies
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How Much is Out There?
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Source: Borrell Associates Inc.; www.adspending.com
Market: Austin
Online media buys now account $101 million in local ad spending in the Austin TMA. This 20.9% share now surpasses newspapers and all
other media.
Competing Media Share Estimates:
• A local daily newspaper: 5% -10% share.• A local TV station: 1% to 4% share.
• A local radio cluster: 1% share.
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Source: Borrell Associates Inc.; www.adspending.com
Market: Sherman
Online media buys now account $12 .3 million in local ad spending in the Sherman-Ada TMA. This
18.5% share is the second highest among all media.
Competing Media Share Estimates:
• A local daily newspaper: 1% -3% share.• A local TV station: 1% to 6% share.• A local radio cluster: <1% share.
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Ad Spending in Texas DMRs
Source: Borrell Associates Inc.; www.adspending.com $ in Millions
Get Ready for Digital Marketing Regions (DMRs)
The Mass Media Mindset
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Print Yellow Pages
Print Magazines
Print Newspapers
Radio
Online Devices*
Television
0.02
0.30
0.42
1.65
2.22
4.67
Sources: Veronis Suhler Stevenson, eMarketer; 2012.
(hours per day)
* Includes non-work time spent using computers, smart phones, or tablets.
Average daily time spent
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Print Yellow Pages
Print Magazines
Print Newspapers
Online Devices*
Television
Radio
$0 $2 $4 $6 $8 $10 $12 $14
$12.48
$2.29
$2.25
$0.73
$0.35
$0.31
In $ Thousands
Ad revenue per minute spentwith each medium—all adults
Sources: Veronis Suhler Stevenson, eMarketer; 2012.
* Includes non-work time spent using computers, smart phones, or tablets.
A minute of your time is worth…
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Source: SEC Documents, company statements, Inc. Magazine, B. Riley & Co., Borrell Associates Inc., 2011
Top 20 LocalOnline MediaCompanies
Biggest Mistakes Chasing after shiny new things Thinking this is a mere brand extension Not knowing the size of the pie Comparing yourselves against other broadcasters
Questions? Gordon Borrell, CEOPhone: 757-221-6641gborrell@borrellassociates.com
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