The Media Financial Management Association and Borrell Associates says you are, by not focusing on digital when calling on local businesses. A new study called, ?Benchmarking Local Media?s Digital Revenues? focuses on the 36% of all advertising placed in local markets across the U.S. In 2013, according to Borrell?s research, the amount spent by local businesses was $97.3 billion of a total $268.7 billion. Of that amount, $24.7 billion went to digital media, representing one-fourth of all local advertising spent.
Borrell says the market is on track to increase local digital ad spending by 42%, to $35.2 billion this year. The research firm is projecting additional growth rates of 44% in 2015 and 37% in 2016, which would mean nearly half of all local ad dollars will be spent on digital platforms within the next two years.
The study says one of the challenges facing radio is that 50% of current local digital media spending is going to ?pure-play? Internet media enterprises. Borrell says, "digital media sales as a percentage of total ad revenue currently stands at 12% for print media and 6% for local broadcasters." The survey says slightly more than one-fourth (27.5%) of a local newspaper?s or broadcaster?s existing customers are also buying digital products as part of their ad spend with the media outlet. "This finding highlights the huge opportunity for selling digital media services to the three-in-four existing customers that aren?t currently buying digital media."
Gordon Borrell will be disscussing the study in a webinar being held by The Media Financial Management Association Tuesday, September 16 at 2:00 Eastern.
(8/22/2014 2:25:37 PM)
This makes my head hurt. The post says radio is leaving dollars on the table by not focusing on digital. But, there is no ROI for local digital advertising. Only 6% of digital goes to local broadcasters (and radio gets a small % of that). The post ends with "the huge opportunity for selling digital marketing services." That is an entirely different business model and requires a dedicated digital marketing staff. Ask Entercom & Mid-West Broadcasting. They're trying it now.
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