Borrell & Associates is out with an extensive report on digital advertising and where the dollars are going. The new data shows that spending on digital advertising has tripled, while digital’s share of the total advertising pie has doubled. So where does radio fit into all this new data? Let’s take a look.
In Borrell’s new report called, ‘Benchmarking Local Media’s Digital Revenues’ radio took in about $900 million in digital ad revenue in 2018. When compared to other traditional media, that’s not so good. TV added $2 Billion, newspapers added $3.8 Billion and Yellow pages added $1.8 Billion. By the end of 2018, local businesses spend $126.3 Billion in advertising, $67.4 Billion went to digital. That’s a 63% share.
An important note. The report also says, and this is somewhat disturbing, that radio’s overall ad revenue was $10 Billion in 2018, down from just under $12 Billion in 2013. And that declining trend is expected to continue through 2023.
The average radio station took in about $256,000 in digital revenue in 2018 according to Borrell. The average market cluster generated $1.1 million. Average revenue ranged from $48,258 in small markets to $688,000 in large markets.
Don’t believe the hype that local advertisers are souring on Facebook. Borrell says that 74% of local ad-buyers believe Facebook was moderately to extremely effective. And 85% of local ad agencies rated Facebook moderately to extremely effective. From 2013 to 2018, newspapers, magazines, yellow pages and direct mail lost 19 points in market share to digital. Now Borrell says TV and Radio can expert to feel the pain. Between 2013 and 2018 Radio and TV advertising lost about 8 points in market share to digital. Borrell says that will continue through 2023. “It’s broadcast media’s turn to feel the disruption. Since 2012, Internet access speeds have increased six-fold, transforming the digital audience from readers into listeners and viewers.”
Get Borrell’s entire 52-page report HERE.