The evolution of Radio’s local ad business
It's about more than your radio station's website, folks.
It's about the radio station that happens to be owned by the owners of the local media company best steeped in digital strategies.
We are thinking about this transformation from the wrong side of the pyramid.
You're the digital business with a radio station, not vice versa.
How does this suggest you should allocate resources and people?
From Media Daily News:
Between 2008 and 2013, local business will undergo an 8% fall from $155.3 billion last year to $144.4 billion in 2013, according to BIA/Kelsey. Within traditional media, the group is projecting a 26% fall. BIA/Kelsey said only the local interactive business will grow steadily over the 2008-13 period. Share of local spending is projected to grow from 9% in 2008 to nearly one-quarter of that market in 2013. BIA/Kelsey said some traditional media will show improvement in 2011, since the economy may improve. But overall, it could only slow the rate of decline. "By the end of the forecast period, the overall size of the local advertising market will be considerably smaller than it was at the end of 2008," said Tom Buono, president and CEO, BIA Advisory Services. "As the shift to online accelerates, and the demand for accountability metrics grows," he says, "there is an increased urgency for traditional media companies to develop and embrace new business models that incorporate digital strategies in order to drive business over the next decade."