Local radio stations have been working to incorporate the digital platform into its arsenal of options for listeners and advertisers alike. Overall, online ad revenues have increased for local radio stations, but how does that compare to terrestrial radio revenues?
MediaPost reports that experts are suggesting a 14% increase from 2012 for online ad revenue for local radio stations. The Radio Advertising Bureau arranged the report, and Borrell Associates lead the study. In 2012, online ad revenues reached almost $371 million, and estimates place the end of 2013 seeing revenues of up to $420 million.
While traditional ad formats were decreasing in value for radio stations, there has been growth in other formats like social media, audio, video, and email. Approximately 20% of all digital revenue came in the form of streaming audio ads.
Digital continues to grow in radio; however, it is important to note that it remains a small portion of overall revenue. Local radio stations’ online ad revenue only contributes 2.5% of total earnings.