borrell radio & internet newsletter (rain) summit west, april 15 2012
DESCRIPTION
This presentation was given by Gordon Borrell at the RAIN Summit West, a pre-NAB Show conference, on April 15, 2012, at the Las Vegas Hilton. The presentation theme was around the radio industry's big advantage when it comes to the Internet, yet its general inability thus far to capitalize on it. For the audience's reaction, see the tweets referencing @goborrell on April 15.TRANSCRIPT
RAIN Summit WestApril 15, 2012
Radio’s Online Advantage(is being squandered….)
About this presentation
The following presentation was made by CEO Gordon Borrell at the RAIN Summit West pre-NAB show in Las Vegas, Nevada, on April 15, 2012.
© 2012 Borrell Associates Inc.
ww
w.b
orre
llass
ocia
tes.
com
Total Local Ad-Sales Force
Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012
Radio hasthe second-
largest ad sales force.
ww
w.b
orre
llass
ocia
tes.
com
Local Sales Reps Selling Online Ads
Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012
…but the fifth-largest “digital-
ready” sales staff.
ww
w.b
orre
llass
ocia
tes.
com
Local Sales Forces -“Digital Ready”
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
Only 25% of radio
sellers are trained
and ready to sell digital
products.
ww
w.b
orre
llass
ocia
tes.
com
Radio’s Online Performance
Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012
+35%
Forecast for 2012
How $16.4b Was Shared in 2011
But overall share is
tiny.
ww
w.b
orre
llass
ocia
tes.
com
Radio Listeners are More Connected
Source: Scarborough Research/Arbitron, 2011
Index to U.S.
Radio listeners are up to 48% more likely than the average U.S. consumer to use a PC, laptop or mobile device.
ww
w.b
orre
llass
ocia
tes.
com Exposure to
Radio Boosts Brand Browsing By 52%
Average Uplift in Brand Browsing Across 32 CampaignsSource: RAB U.K. Radiio Multiplier Effect, 2008
ww
w.b
orre
llass
ocia
tes.
com
Why? Hands-on-Keyboard While Listening
ww
w.b
orre
llass
ocia
tes.
com
75% of RadioClustersMade < $500kin DigitalSales in2011
Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
ww
w.b
orre
llass
ocia
tes.
com
Top PerformersBeat PeerAverages8x to 10xin 2011
Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012
Thoughts
Advertisers are desperate for a digital education Radio’s sales force could be the perfect solution Radio’s listeners are rarin’ to go Some stations are leading the way But they understand one little secret…
Recommendation
The only way to unlock that potential is to give interactive managers the freedom to use radio’s strengths to build a new business, rather than force them to work with radio’s assets.
