Two-thirds of Radio Stations Have No Digital Dedicated Sales RepsL: Survey

INSIDERADIO
January 13, 2015

Perhaps it’s something in the radio DNA where multitasking runs from the general manager’s office to the engineering department. When it comes to digital sales, radio stations remain the least likely media platform to have a web-only account executive. That’s according to Borrell Associates’ annual cross-media study of sales departments. Borrell found 64% of radio stations don’t have a dedicated digital rep. That’s more than twice the 30% of television stations who said the same thing while local newspapers are evenly split. Even so, Borrell says there’s been a significant change in attitude in broadcasting during the past several years. In 2009, when the firm did its first survey, just 11% of radio stations had digital sales reps. Today, more than three-times as many stations do (36%). “The growth among broadcasters appears to be with stations that are hiring their very first digital-only rep,” says a newly-released report. Borrell says the vast majority reported having only one or two full-time digital salespeople. Its survey shows how the typical radio cluster has 2.2digital-only AEs, which trails television (3.1) and newspaper (3.6). Borrell calculates radio has one digital rep for every 10.6 salespersons. That is twice the ratio as both TV and print. And the firm says the typical digital-only rep has a lower starting salary, averaging $37,000, than an on-air salesperson. It estimates a more experienced digital salesperson averages $48,300 in annual pay.

Borrell: dedicated staff still equals more digital dollars. Borrell Associates president Gordon Borrell has been pushing radio stations and other media outlets for years to hire salespeople who do nothing else but market digital properties. His reasoning is pinned on revenue figures, and the latest report says it’s an argument that still passes muster. The typical media outlet with web-only account executives had $216,750 in digital revenue in 2014. That compares to $54,800, or one quarter of that, for those outlets that don’t. But in its just-published report, Borrell cautions that a bigger digital staff doesn’t necessarily translate to larger digital revenue. But its survey does definitely show digital-only reps have “far higher” confidence in the product they’re selling. Townsquare Media is one of the largest companies that’s embraced a digital-only staff with at a minimum a digital salesperson and a digital content person in each market. “They’re focused on education, best practices and integrating digital into solutions for clients where applicable,” EVP/chief digital officer Bill Wilson recently told Inside Radio. Is it paying off? The company doesn’t release digital-specific revenue but it reported its other media and entertainment division revenue, which includes live events and digital, was up 43% during the third quarter.........