Report: Digital radio revenue will jump 22 percent

Digital advertising accounts for under 5 percent of ad sales for radio stations, but it is growing at a fast pace from that small base.

Radio digital revenue is expected to grow 22 percent in 2014 to $520.1 million, marking the first time it surpasses the half-billion mark, according to a Borrell Associates report for the Radio Advertising Bureau.

In 2013 digital ad sales grew 15 percent to $426 million, with the average station bringing in $166,490 in digital revenue. Digital accounted for about 3 percent of total station sales, according to the report.

Despite the solid growth, station managers see plenty of room for improvement. The study found 92 percent of station managers believe their sales teams need more digital sales training, and 62 percent believe sales reps talk to the wrong buyers when selling digital.

Among the stations tracked by Borrell, fewer than 2 percent report no online revenues. That number was 90 percent in 2002.

Tags: borrell, borrell associates, digital radio sales, radio, radio ad sales, studies