borrell arbitron webinar may 31 2012 distribution copy
DESCRIPTION
This presentation was made by Gordon Borrell on May 31, 2012 during a webinar sponsored by Arbitron. It describes the findings of Borrell Associates' research into nearly 3,000 radio stations' digital sales efforts.TRANSCRIPT
Special Presentation for Arbitron clients May 31, 2012
Benchmarking Radio’s Digital Revenues
About this presentation
The following presentation was made by CEO Gordon Borrell during a webinar on May 31, 2012.
© 2012 Borrell Associates Inc.
About Borrell Associates
The Digital Revenue Stream: How Big?
Benchmarking
Digital Perceptions
Q & A
Today’s Agenda
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Range of clients
Research Components Advertisers
Spending: Database of 23 million advertisers Receipts: Database of 5,700 online media companies Verification & Forecasting: Annual surveys of 10,000+ businesses
Consumers Scarborough, Claritas Ongoing surveys of web users
Arbitron Survey Revenue Data
2,338 local radio stations/640 clusters Voluntary participation Surveyed from Dec. 2011-February 2012
Perceptions 288 stations Online survey + follow-up phone interviews
Benchmarking
Annual Report • 10th year • 5,756 companies
Specific reports for: • Television Bureau of Advertising • Local Media Association • Individual media companies • Arbitron
The Digital Stream: How Big?
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Strong Growth Ahead for Local Online
© 2012 Borrell Associates Inc. All Rights Reserved.
$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
11.2% CAGR
+21%
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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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Total Local Ad-Sales Force
Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012
Radio has the second-
largest ad sales force.
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Local Sales Reps Selling Online Ads
Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012
…but the fifth-largest “digital-
ready” sales staff.
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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
Advantage: Radio
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Radio Listeners are More Connected
Source: Scarborough Research/Arbitron, 2011
Index to U.S.
Radio listeners are up to 48% more likely than the average U.S. consumer to use a PC,
laptop or mobile device.
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Exposure to Radio Boosts Brand Browsing By 52%
Average Uplift in Brand Browsing Across 32 Campaigns Source: RAB U.K. Radiio Multiplier Effect, 2008
Radio listeners are 52% more likely to use the Internet to browse for a brand online.
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Hands-on-the-Keyboard Phenomenon
Benchmarking
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What Radio Clusters Made in 2011
Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
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Market Share of Locally Spent Digital $
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Market Share of Locally Spent Digital $
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Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
Per-Station Revenue by Market Size
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Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
Per-Cluster Revenue by Market Size
Digital Perceptions
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94%
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
Perceptions of Audio Streaming
94%
45%
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Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
Obstacles to Selling Digital Products
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Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
What Might Remove Barriers to Selling?
Observations
Radio is doing a relatively poor job in online sales …Yet radio has several advantages Three things might make a big difference: Educating advertisers Training sales staff Hiring digital specialists
Q & A
Download this presentation at
www.borrellassociates.com/radiobenchmarks Gordon Borrell, CEO Phone: 757-221-6641 [email protected]