Broadcast industry tech provider Marketron has observed a significant milestone in digital advertising, having processed more than $400 million in local digital advertising revenue through radio since launching its measurement capabilities in 2020.
Processing comes through the company’s radio-designed digital platform, Marketron NXT, uniquely designed for radio’s need for local media advertising sales. Marketron also found users reported an average increase of 20% in sales activity, 76% in order volume, and a 37% close rate, surpassing the industry benchmark of 20%.
A recent study by Marketron, along with the Radio Advertising Bureau and Borrell Associates, revealed digital revenue for radio increased by 6.8% in 2023, reaching $1.9 billion. Since 2020, the industry’s Compound Annual Growth Rate has been 6.4%, combining digital and core radio revenues.
In 2022, radio stations reported $1.8 billion from digital sales, marking a 21.1% increase from 2021. Digital sales accounted for 21% of total ad revenue in 2023, with earnings varying from $82,835 in small markets to $1.2 million in larger markets. The report also noted that local radio successfully captured significant digital revenue from other media competitors in 2023.
Looking ahead, the industry is on track to surpass the $2 billion mark in digital revenue in 2024, representing one-fifth of all radio ad revenue.
Marketron CEO Jimshade Chaudhari said, “It’s a testament to our commitment to help radio (or broadcast) customers grow their revenue. Digital advertising now accounts for 21% of radio station revenue, and it’s growing. Local media companies can compete with anyone and earn those digital dollars with our product and services. We’re proud to be part of their growth trajectory, ensuring they are contenders for any advertiser’s digital business.”
SVP of Sales Todd Kalman commented, “Digital advertising is an essential product line for radio stations. Providing them with the best technology, training, coaching, and solutions ensures they can thrive in today’s local media environment. We’ve witnessed hundreds of stations launch digital with our products and quickly win the business of local advertisers. It’s effective, scalable, and simple.”
They must have counted in pesos as nobody uses NXT….