BIA/Kelsey recently reported that radio revenue is expected to increase overall in 2017, but the CAUTION is in this line from the report: "...But the real growth will come in digital dollars..."
The main reason digital continues to grow is because advertisers want to be where they know people are - the internet. Digital also provides measurable results. These are two things that advertisers are drawn to and suggests that digital advertising will continue to grow.
This is not to say that radio is not an effective source of advertising, because it definitely is effective. BIA/Kelsey senior VP and chief economist, Mark Fratrik stated, “Even with increased audio competition from many different sources, radio is still a formidable advertising platform, gathering over 10% of local adverting dollars,”
Radio has struggle after the Telecom Bill and has not grown as much as expected from this legislation. In many markets around the country, rates have not increased by very much and in some cases rates have even decreased! Adding a solid digital plan to your radio cluster will give you more reasons to be in front of decision makers leading to increased asks and sales.
But the real growth will come in digital dollars
The combination of digital and radio is very powerful and gives clients great branding, followed by direct-to-the-prospect tactics to drive store visits. These two elements combine to give radio clients better results in all fronts leading to store visits and increased sales.
Your digital program does not have to be complicated to be extremely effective at generating top line revenue. For a radio cluster with little to no digital presence, starting with a focused, easy to understand, approach is the best way to immediately make an impact on call volume and top line revenue.
Make sure any program you add gives your stations a robust margin after you have paid your sales team. Paying your team on the "margin" or "profit" of the deal is a flawed strategy that will lead to sellers ignoring your offerings. The Media Store has developed programs that are easy to learn, simple to install and give our partner stations margins of 45% to 62% after paying sales commissions on the full sale amount.
Your digital program does not have to be complicated
Growing your digital at 17% a year means a cluster doing $50,000 now will take nearly five years to reach $100,000 in digital revenue. Digital is exploding and we take a cluster with 5 or more sellers to first year sales of $500,000 or more with half that amount going to the bottom line! This can be easily achieved with an approach that does not take over the entire station's selling effort for weeks like annual sales programs such as Advantage Plan or others.
We initially launch the market with massive action by presenting to your current Key Account as a starting point. We then ad your Target Accounts and next high-level big dollar prospects including high spending digital clients who do not use radio. We do this by adding digital to future presentations to increase current asks dramatically and not trade dollars. 95% of advertisers DO NOT use radio, however, nearly all businesses use digital or want to ad it to their marketing strategy.
Don't be afraid of change, it's here already. Instead, hire us to get the digital dollars being spent in your markets to drive your top line revenue and boost your bottom line profits!