The Radio Advertising Bureau and Borrell Associates have released new data that says digital revenue hit $1.1 billion for radio in 2020, an increase of 12% over 2019. They are also predicting digital will grow another 18% in 2021. The $1.1 billion accounts for 14% of radio’s overall ad revenue.
The annual report showed that the average station made $290,150 in digital revenue in 2020, and the average market cluster made $1.3 million. The average revenue for the top five performers ranged from $2 million for top-performing clusters in the smallest of markets, to $17.8 million in the largest.
“The due diligence the radio industry has put into expanding its digital platforms and advertising offerings over the last few years contributed mightily to the 2020 bright spot of digital growth,” RAB President and CEO Erica Farber said. “As broadcasters continue to super-serve their listeners and advertisers, RAB is poised to help in the conversation with its business and professional development offerings to meet the innovation and opportunities ahead in 2021.”
“The pandemic actually delivered a gift to the radio industry last year,” Borrell Associates CEO Gordon Borrell said. “Stations saw very clearly how digital products can be a linchpin, especially when core-product sales are challenging. Digital kept the conversation going.”
The findings are a part of RAB and Borrell’s ninth annual report, “Defying the Gravity of 2020, Radio’s Digital Sales Rise 11.8%.” The full report is available to RAB members on RAB.com: Click here. A live-video presentation featuring the survey results will be presented by RAB and Gordon Borrell at noon CT on Wednesday, February 10. RAB members and survey participants can register for free here.