Taking a look at this chart, you get a clear indication that Broadcast is performing behind what we should be regarding Online Ad Revenue. There could be several factors involved in the equation: poor traffic, lack of institutional knowledge, poor sales training and methods, poor content, lack of perception of value by advertisers. The list goes on but suffice it to say that as an industry we have work to do to bring revenues up with our Interactive offerings.
Borrell released this information and MediaPost provide an overview and statement of potential in the industry with "Local Online Ad Spending To Grow 6%"....
"However, for the first time since Borrell began tracking local shares in 2001, pure-play companies lost ground. The second-biggest shareholder -- newspaper companies -- effectively arrested their online share decline in 2008 after losing an average of four points per year since 2005.
"Could it be that the legacy media companies have finally turned their aircraft carriers?" the report's authors ask. "It's possible, especially considering that they have an important asset that the pure-plays don't: an estimated 98,000 feet-on-the-street salespeople who have existing relationships with local advertisers and can cross-sell online advertising products ...And they are adding 'Internet-only' sales reps at a rapid pace."
At the beginning of 2009, this sales force numbered about 9,000 -- up 30% from a year ago.
The importance of online advertising to these legacy media companies intensified in 2008, according to Borrell.
Yellow Pages companies averaged nearly 11% of their gross revenues from online sales, while newspapers saw 7% and radio and TV stations 3.4% each.
This dependence is likely to climb, Borrell predicts, bringing their online ventures into even sharper focus as they found ways to give the pure-play companies a run for their money."
There is the challenge for Broadcast, raise the bar at your property and develop web initiatives to get your share or unfair share of the advertising pie. Developing a Community News and Information Portal, Automall, Business Directory, or Featured Industry Presentation (i.e. Wedding Planner, Home & Garden Virtual Show, etc..). The stations I work for are Beta Testing the Greenlink Networks "Rewards" program for the Radio Industry which looks very promising for our clients and for revenue generation for the properties. Providing clear solutions for our clients will in-turn provide revenue for our properties.