In the first release from a new study Mark Ramsey Media just conducted among radio industry thought-leaders, managers expect a dramatic rise in the fraction of their overall revenue that will derive from digital sources.
The study was conducted by telephone in November and December, 2014, among more than 100 top-50 market radio General Managers, Sales Managers, Digital Executives, and Program Directors. It’s Mark Ramsey Media’s first annual “Pulse” study that measures attitudes of radio industry managers.
While it should come as no surprise that digital is perceived as ever-more-important among radio managers, the magnitude of the increase is stunning.
Today, 60% of these managers acknowledge that 5% or less of their overall revenue comes from digital – and 37% say it’s “less than 3%.”
But that tiny proportion is likely to change in the next five years, these managers say.
31% say that “more than 15%” of their revenue will come from digital sources five years from today – that represents a massive increase from the 8% of respondents who say they’re getting “more than 15%” today.
So a relatively small fraction of overall revenue is driven by digital today, but radio managers see that fraction growing dramatically in the next five years.
And since “digital revenue” means all digital sources: Streaming, display, integrated, etc. – do broadcasters have plans in place to navigate this massive transition?
Is your group investing for the future your own managers anticipate?