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Borrell's June 5 Radio Ink Convergence Presentation

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This is the "shock & awe" presentation given by Gordon Borrell at the Convergence 12 conference in Santa Clara. For the Twitter buzz during this presentation, check out hashtag #RICV.

This is the "shock & awe" presentation given by Gordon Borrell at the Convergence 12 conference in Santa Clara. For the Twitter buzz during this presentation, check out hashtag #RICV.

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  • 1. Message to Radio Industry: Wake Up, Kick Ass & Take NamesJune 5, 2012 Convergence 12, Santa Clara Convention Center
  • 2. About this presentationThe following presentation was made by CEOGordon Borrell at the Radio Ink Convergenceconference at the Santa Clara Convention Center onJune 5, 2012. © 2012 Borrell Associates Inc.
  • 3. 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 Media companies  More than 1,100 clients
  • 4. www.arbitron.com Benchmarking Annual Report • 10th year • 5,756 companies Specific reports for: • Television Bureau of Advertising • Local Media Association • Individual media companies • Arbitron
  • 5. The Digital Stream: How Big?
  • 6. Local Online: Stream of Dollars Keeps Flowing $30 $27.9 $26.6 $ in Billions© 2012 Borrell Associates Inc. $24.8 $22.7 +21% $19.9 $16.4 $13.4 $13.6 $12.9 $8.2 $5.5 $4.2 $2.0 $2.1 Mobile Ad $ $- 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f
  • 7. Radio’s Online Performance© 2012 Borrell Associates Inc. +35% How $303 million stacks up against $16.4b 2011 Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  • 8. Total Local Ad-Sales Force Radio haswww.borrellassociates.com the second- largest ad sales force. Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012
  • 9. ‘Digital Ready’ Local Sales Forces© 2012 Borrell Associates Inc. Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  • 10. Local Sales Reps Selling Online Ads© 2012 Borrell Associates Inc. …but the fifth- largest “digital- ready” sales staff. Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012
  • 11. Gross Online Revenue Per Sales Rep© 2012 Borrell Associates Inc. Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  • 12. Motivation to Sell Digital Products 90% say good to© 2012 Borrell Associates Inc. outstanding 50% say good to outstanding Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  • 13. Understanding Marketing Trends 70% say good to© 2012 Borrell Associates Inc. outstanding 50% say good to outstanding Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  • 14. Obstacles© 2012 Borrell Associates Inc. to Selling Digital Products Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  • 15. How Much Radio Makes Online
  • 16. What Three-fourths of Radio© 2012 Borrell Associates Inc. radio clusters made < $500,000 Clusters Made in 2011 Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
  • 17. Per-Station Revenue by Market Size© 2012 Borrell Associates Inc. Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
  • 18. Per-Cluster Revenue by Market Size© 2012 Borrell Associates Inc. Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
  • 19. N = 2,274 Radio Sites© 2012 Borrell Associates Inc.
  • 20. N = 2,274 Radio SitesN = 130 Cable Sites© 2012 Borrell Associates Inc.
  • 21. N = 2,274 Radio SitesN = 130 Cable SitesN = 678 TV Sites© 2012 Borrell Associates Inc.
  • 22. N = 2,274 Radio SitesN = 130 Cable SitesN = 678 TV SitesN = 587 Pureplays© 2012 Borrell Associates Inc.
  • 23. N = 2,274 Radio SitesN = 130 Cable SitesN = 678 TV SitesN = 587 PureplaysN = 820 Newspapers© 2012 Borrell Associates Inc.
  • 24. Content
  • 25. Average daily time spent Television 4.67© 2012 Borrell Associates Inc. Online Devices* 2.22 Radio 1.65 (hours per day) Print Newspapers 0.42 Print Magazines 0.30 Print Yellow Pages 0.02 * Includes non-work time spent using computers, smart phones, or tablets. Sources: Veronis Suhler Stevenson, eMarketer; 2012.
  • 26. A minute of your time is worth… Radio $0.31© 2012 Borrell Associates Inc. Television $0.35 Online Devices* $0.73 Ad revenue per minute spent with each medium—all adults Print Newspapers $2.25 Print Magazines $2.29 Print Yellow Pages $12.48* Includes non-work time spent using $0 $2 $4 $6 $8 $10 $12 $14computers, smart phones, or tablets. In $ Thousands Sources: Veronis Suhler Stevenson, eMarketer; 2012.
  • 27. Top Local Online Media Companies:© 2012 Borrell Associates Inc. Dominated by CommerceSource: SEC Documents, company statements, Inc. Magazine, B. Riley & Co., Borrell Associates Inc., 2012
  • 28. A Peek at One Top 10 Market© 2012 Borrell Associates Inc.Source: SEC Documents, company statements, Inc. Magazine, B. Riley & Co., Borrell Associates Inc., 2012
  • 29. Advantage: Radio
  • 30. Radio Listeners are More Connected Radio listeners are up to 48% more likely than the average© 2012 Borrell Associates Inc. Index to U.S. U.S. consumer to use a PC, laptop or mobile device. Source: Scarborough Research/Arbitron, 2011
  • 31. Radio listeners are 52% more likely to use the Internet to browse for a brand online. Exposure to© 2012 Borrell Associates Inc. Radio Boosts Brand Browsing By 52%Average Uplift in Brand Browsing Across 32 CampaignsSource: RAB U.K. Radiio Multiplier Effect, 2008
  • 32. Hands-on-the-Keyboard Phenomenon© 2012 Borrell Associates Inc.
  • 33. If radio were on par with newspapers, it could generate $1.7 billion more online revenue.© 2012 Borrell Associates Inc.
  • 34. Obstacles The Owner Your GMYour Tech Guy Your Sales Manager Your PD
  • 35. 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
  • 36. Biggest Mistakes Chasing after shiny new things Thinking this is a mere brand extension Not knowing the size of the pie Comparing yourselves against radio
  • 37. Resource
  • 38. Thank You!Download this presentation atwww.borrellassociates.com/RICVGordon Borrell, CEOPhone: 757-221-6641gborrell@borrellassociates.com