On the heels of Paul’s excellent post yesterday about mobile revenue – specifically from the local angle – comes today’s entry about media ad spending. Last week, Kleiner Perkins Caufield Byers’ killer analyst, Mary Meeker, presented her always amazing Internet Trends 2013 report.
It’s 117 of the most remarkable slides you’ll see that synopsizes what’s happening in the digital space and it will impact your business.
But for those of us with shorter attention spans, just stop at slide #5:
And that sums up the state of the revenue world for radio in one agonizing chart. There’s newspapers, where readership continues to crater, and while revenue is dropping, too, their 6% of consumption translates to 4x in advertising dollars. TV and the Internet are holding steady, while mobile continues to rise. While its 12% of consumption only converts to 3% of revenue, you’ll notice up arrows for both.
And then radio, where the trajectories are going backwards for both usage and revenue generation. It’s hard to explain how they arrive at 10% of revenue, but the bottom line, of course, is that neither stat is good for our business.
The RAB recently reported that radio’s growth has most recently come from digital sources, and yet, some broadcasters have been slow to truly commit to hiring digital reps. A recent study from Borrell & Associates reveals that while digital rep hiring has increased, only 62% of sales managers in newspaper, radio, TV, and yellow pages companies employ digital-dedicated reps. And most of these traditional media outlets have no more than two of these tech-savvy sellers.
This, despite Borrell’s findings that media outlets with digital reps average twice the online revenue of those who don’t.
Let’s hope that in Mary Meeker’s next presentation, radio turns that down arrow around. As Borrell points out, there’s now competition for hiring local digital reps, coming from brands like Pandora, Yelp, and others – a suggestion that we’d better step it up.
Local rules, and no one should be doing a better job of generating local revenue than local radio.
Right?
You can check out Mary Meeker’s entire deck here.
Jacobs Media has consistently walked the walk in the digital space, providing insights and guidance through its well-read national Techsurveys.
In 2008, jacapps was launched - a mobile apps company that has designed and built more than 1,300 apps for both the Apple and Android platforms. In 2013, the DASH Conference was created - a mashup of radio and automotive, designed to foster better understanding of the "connected car" and its impact.
Along with providing the creative and intellectual direction for the company, Fred consults many of Jacobs Media's commercial and public radio clients, in addition to media brands looking to thrive in the rapidly changing tech environment.
Fred was inducted into the Radio Hall of Fame in 2018.
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