Broadcast radio revenues grew 1% in the first quarter of 2012, with revenues derived from digital assets at the helm, according to the Radio Advertising Bureau. Digital revenues for broadcasters grew 10% during the same period, or ten times as fast as spot revenue. Network revenues grew 8% and fueled the growth as well.
“While advertisers continue to capitalize on Radio’s Spot and Network efficiencies, they’re increasingly utilizing local digital capabilities and audience engagement that this medium affords.” said Erica Farber, the newly appointed President and CEO of the Radio Advertising Bureau.
Digital revenue now accounts for more than 4% of radio’s overall revenue. Digital revenue grew 15% in 2011, while spot radio lost 1% and network grew 3%. Digital Revenue is made up of activity generated by websites, Internet/web streaming and HD Radio.
So if you were a car dealer that sold ten times as many efficient hybrid cars as you did station wagons, you’d order more hybrid cars for your lot, right? You’d train your salespeople in the best ways to sell hybrid cars, and you would make sure that everyone knew you had a lot of them. In fact, you would move them right up to the front of your lot. That’s the way broadcasters should be looking at their online and digital products. As the engine that is driving their future…