Borrell's June 5 Radio Ink Convergence Presentation

Message to Radio Industry:
Wake Up, Kick Ass & Take Names
June 5, 2012 Convergence 12, Santa Clara Convention Center

About this presentation
The following presentation was made by CEO
Gordon Borrell at the Radio Ink Convergence
conference at the Santa Clara Convention Center on
June 5, 2012.

© 2012 Borrell Associates Inc.

Research Components
 Advertisers
 Spending: Database of 23 million advertisers
 Receipts: Database of 5,700+ online media companies
 Verification & Forecasting: Annual surveys of 10,000+ businesses
 Consumers
 Scarborough, Claritas
 Ongoing surveys of web users
 Media companies
 More than 1,100 clients

www.arbitron.com

Benchmarking
 Annual Report
• 10th year
• 5,756 companies
 Specific reports for:
• Television Bureau of Advertising
• Local Media Association
• Individual media companies
• Arbitron

Local Online: Stream of Dollars Keeps Flowing
$30
$27.9
$26.6
$ in Billions

$24.8
$22.7
+21% $19.9

$16.4

$13.4 $13.6
$12.9

$8.2

$5.5
$4.2
$2.0 $2.1
Mobile Ad $

$-
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012f 2013f 2014f 2015f 2016f

Radio’s Online Performance

+35%
How $303 million stacks up
against $16.4b 2011

Source: Borrell Associates Inc. Digital Sales AE Survey, Nov. 2011-Jan. 2012

Total Local Ad-Sales Force
Radio has
www.borrellassociates.com

the second-
largest ad sales
force.

Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012

‘Digital Ready’ Local Sales Forces


Local Sales Reps Selling Online Ads

…but the fifth-
largest “digital-
ready” sales
staff.

Source: U.S. Bureau of Labor Statistics, Borrell Associates Inc., January 2012

Gross Online Revenue Per Sales Rep


Motivation to Sell Digital Products
90% say good to

outstanding

50% say good to
outstanding


Understanding Marketing Trends
70% say good to

outstanding

50% say good to
outstanding


Obstacles

to Selling
Digital
Products


What Three-fourths of
Radio

radio clusters made
< $500,000
Clusters
Made in
2011

Source: Borrell Associates Inc.; Borrell/Arbitron Benchmarking Report, April 2012

Per-Station Revenue by Market Size


Per-Cluster Revenue by Market Size


N = 2,274 Radio Sites


N = 130 Cable Sites


N = 130 Cable Sites
N = 678 TV Sites


N = 130 Cable Sites
N = 678 TV Sites
N = 587 Pureplays


N = 130 Cable Sites
N = 678 TV Sites
N = 587 Pureplays
N = 820 Newspapers


Average daily time spent

Television 4.67

Online Devices* 2.22

Radio 1.65
(hours per day)
Print Newspapers 0.42

Print Magazines 0.30

Print Yellow Pages 0.02
* Includes non-work time spent using
computers, smart phones, or tablets.
Sources: Veronis Suhler Stevenson, eMarketer; 2012.

A minute of your time is worth…
Radio $0.31

Television $0.35

Online Devices* $0.73 Ad revenue per minute spent
with each medium—all adults
Print Newspapers $2.25

Print Magazines $2.29

Print Yellow Pages $12.48

* Includes non-work time spent using $0 $2 $4 $6 $8 $10 $12 $14
computers, smart phones, or tablets. In $ Thousands
Sources: Veronis Suhler Stevenson, eMarketer; 2012.

Top Local
Online Media
Companies:

Dominated
by Commerce

Source: SEC Documents, company statements, Inc. Magazine, B. Riley & Co., Borrell Associates Inc., 2012

A Peek at One Top 10 Market

Source: SEC Documents, company statements, Inc. Magazine, B. Riley & Co., Borrell Associates Inc., 2012

Radio Listeners are More Connected
Radio listeners are up to 48%
more likely than the average

Index to U.S.
U.S. consumer to use a
PC, laptop or mobile device.

Source: Scarborough Research/Arbitron, 2011

Radio listeners are 52% more
likely to use the Internet to
browse for a brand online.

Exposure to

Radio Boosts
Brand Browsing
By 52%

Average Uplift in Brand Browsing Across 32 Campaigns
Source: RAB U.K. Radiio Multiplier Effect, 2008

Hands-on-the-Keyboard Phenomenon

If radio were on par with
newspapers, it could
generate $1.7 billion more
online revenue.


Obstacles
The Owner

Your GM

Your Tech Guy

Your Sales Manager
Your PD

Observations
 Radio is doing a relatively poor job in online sales
 Yet radio has several advantages
 Three things might make a big difference:
 Educating advertisers
 Training sales staff
 Hiring digital specialists

Biggest Mistakes
 Chasing after shiny new things
 Thinking this is a mere brand extension
 Not knowing the size of the pie
 Comparing yourselves against radio

Thank You!
Download this presentation at

www.borrellassociates.com/RICV

Gordon Borrell, CEO
Phone: 757-221-6641
gborrell@borrellassociates.com

Borrell's June 5 Radio Ink Convergence Presentation

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Borrell's June 5 Radio Ink Convergence Presentation