Radio has the second largest local ad sales force but only the fifth largest number of salespeople trained to sell digital ads. While radio listeners are more likely than average to use computers and mobile devices, exposing brands to radio only boosts online browsing by 52%. Currently, 75% of radio stations make less than $500,000 in digital sales annually, but the top performers earn 8-10 times more than their peers by giving interactive managers freedom to build new digital businesses.
2. About this presentation
The following presentation was made by CEO
Gordon Borrell at the RAIN Summit West pre-NAB
show in Las Vegas, Nevada, on April 15, 2012.
Š 2012 Borrell Associates Inc.
3. Total Local Ad-Sales Force
Radio has
www.borrellassociates.com
the second-
largest ad sales
force.
Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012
4. Local Sales Reps Selling Online Ads
www.borrellassociates.com
âŚbut the fifth-
largest âdigital-
readyâ sales
staff.
Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012
5. Local Sales Forces -âDigital Readyâ
Only 25%
www.borrellassociates.com
of radio
sellers are
trained
and ready
to sell
digital
products.
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
6. Forecast
Radioâs Online Performance for 2012 But
overall
share is
www.borrellassociates.com
+35%
tiny.
How $16.4b Was Shared in 2011
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
7. Radio Listeners are More Connected
Radio listeners are up to 48%
www.borrellassociates.com
Index to U.S. more likely than the average
U.S. consumer to use a PC,
laptop or mobile device.
Source: Scarborough Research/Arbitron, 2011
8. Exposure to
www.borrellassociates.com
Radio Boosts
Brand Browsing
By 52%
Average Uplift in Brand Browsing Across 32 Campaigns
Source: RAB U.K. Radiio Multiplier Effect, 2008
10. 75% of
Radio
www.borrellassociates.com
Clusters
Made
< $500k
in Digital
Sales in
2011
Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
11. Top
Performers
www.borrellassociates.com
Beat Peer
Averages
8x to 10x
in 2011
Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
12. Thoughts
ď Advertisers are desperate for a digital education
ď Radioâs sales force could be the perfect solution
ď Radioâs listeners are rarinâ to go
ď Some stations are leading the way
ď But they understand one little secretâŚ
13. Recommendation
The only way to unlock that potential is to give
interactive managers the freedom to use radioâs
strengths to build a new business, rather than
force them to work with radioâs assets.
14. Thank you!
Gordon Borrell, CEO
Phone: 757-221-6641
Email: gborrell@borrellassociates.com
Twitter: goborrell