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
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Special Presentation for Arbitron clients May 31, 2012
Benchmarking Radio’s Digital Revenues
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About this presentation
The following presentation was made by CEO Gordon Borrell during a webinar on May 31, 2012.
© 2012 Borrell Associates Inc.
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About Borrell Associates
The Digital Revenue Stream: How Big?
Benchmarking
Digital Perceptions
Q & A
Today’s Agenda
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Range of clients
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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
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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
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Benchmarking
Annual Report • 10th year • 5,756 companies
Specific reports for: • Television Bureau of Advertising • Local Media Association • Individual media companies • Arbitron
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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
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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
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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
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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?
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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
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Q & A
Download this presentation at
www.borrellassociates.com/radiobenchmarks Gordon Borrell, CEO Phone: 757-221-6641 [email protected]