5-29-13
Digital revenue is all the rage. In the first quarter of 2013, according to the RAB, radio's digital revenue jumped 9 percent to $179 million. We see the record Pandora revenue numbers every quarter and we know there is money to be made in mobile...just ask Emmis CEO Jeff Smulyan. So, how much of an effort is the radio industry putting into grabbing that digital dollar?
Borell and Associates Senior Research Analyst Greg Harmon released his third report in a series examining how media hires and pays digital account execuitives. According to the study, 11 percent of radio stations have dedicated digital sellers, compared to 44 percent in TV and 57 percent in newspaper. The average starting salary of a digital AE in radio is $32,200 according to the Borrell study. Newspaper pays an average salary of $34,458. Television $42,250. And a Pureplay Internet company pays $54,100. (All are before bonuses and commissions.)
The Borrell study reveals that when a company has a dedicated digital seller, it will average twice the online revenue of those without digital reps. That's because the sales staff exhibits a greater ability to consult with and educate advertisers and has stronger capabilities to understand and sell digital products. But not everyone wants to be part of this digital revenue shift. One radio manager is quoted in the survey saying, ?We should be focusing on our strength, audio advertising, not selling our clients the pipe dream of ?interactivity? that digital has promised but seldom delivers.? It?s a minority opinion, but certainly represents a sibling rivalry occurring in local media families where the cute digital brother gets all the attention."
Hiring digital sales reps is on the upswing again. The first Borrell study in 2009 revealed that 60 percent of respondents had at least one rep whose sole focus was digital products. By 2011, the recession had cut that figure to 46 percent. This latest survey shows 62 percent of sales managers in newspapers, radio, TV, and yellow pages companies reporting that they employ digital-only reps.
The Borrell report examines responses from 220 media managers in the pureplay, newspaper, radio, TV, and directory industries. One-third were from newspaper companies, 56 percent from broadcasting, 12 percent from yellow pages, and 4 percent from Internet pureplays. It includes more than 200 open-ended responses from those managers offering insights and suggestions on digital vs. traditional sales compensation plans.
For more information about this survey, contact Greg Harmon at gharmon@borrellassociates.com
(5/30/2013 7:49:38 AM)
You have to forgive the sales manager. He has spent his career doing marketing the real way by building brands through a powerful medium that probably reaches tens of thousands of people in his market simultaneously. A medium that can make a clients business thought of first and liked the best. Now, he is asked to talk to businesses about how they can get 50 likes on their Facebook page. What does truly building a client's business have to do with that? That's "old school".
Add a Comment | View All Comments Send This Story To A Friend
