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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.

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Borrell's June 5 Radio Ink Convergence Presentation

  1. 1. Message to Radio Industry: Wake Up, Kick Ass & Take NamesJune 5, 2012 Convergence 12, Santa Clara Convention Center
  2. 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. 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. 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. 5. The Digital Stream: How Big?
  6. 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. 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. 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. 9. ‘Digital Ready’ Local Sales Forces© 2012 Borrell Associates Inc. Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  10. 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. 11. Gross Online Revenue Per Sales Rep© 2012 Borrell Associates Inc. Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  12. 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. 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. 14. Obstacles© 2012 Borrell Associates Inc. to Selling Digital Products Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
  15. 15. How Much Radio Makes Online
  16. 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. 17. Per-Station Revenue by Market Size© 2012 Borrell Associates Inc. Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
  18. 18. Per-Cluster Revenue by Market Size© 2012 Borrell Associates Inc. Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
  19. 19. N = 2,274 Radio Sites© 2012 Borrell Associates Inc.
  20. 20. N = 2,274 Radio SitesN = 130 Cable Sites© 2012 Borrell Associates Inc.
  21. 21. N = 2,274 Radio SitesN = 130 Cable SitesN = 678 TV Sites© 2012 Borrell Associates Inc.
  22. 22. N = 2,274 Radio SitesN = 130 Cable SitesN = 678 TV SitesN = 587 Pureplays© 2012 Borrell Associates Inc.
  23. 23. N = 2,274 Radio SitesN = 130 Cable SitesN = 678 TV SitesN = 587 PureplaysN = 820 Newspapers© 2012 Borrell Associates Inc.
  24. 24. Content
  25. 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. 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. 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. 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. 29. Advantage: Radio
  30. 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. 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. 32. Hands-on-the-Keyboard Phenomenon© 2012 Borrell Associates Inc.
  33. 33. If radio were on par with newspapers, it could generate $1.7 billion more online revenue.© 2012 Borrell Associates Inc.
  34. 34. Obstacles The Owner Your GMYour Tech Guy Your Sales Manager Your PD
  35. 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. 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. 37. Resource
  38. 38. Thank You!Download this presentation atwww.borrellassociates.com/RICVGordon Borrell, CEOPhone: 757-221-6641gborrell@borrellassociates.com

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