Friday, May 2, 2008

Radio Companies Still Don't Get the Internet

Radio stations for the most part are just piddling around, thinking they can put up a Web site, put some interesting content on it, promote it and sell banners. They’ll make a little bit of money, but they’re going to leave a huge opportunity on the table.

-Borrell Associates report on the growth of radio stations' websites

The revenues that radio stations are receiving from their websites, which often stream music, are the the only sources of revenue that are growing in the radio business. Yet the Borrell report notes that despite their substantial online movement, "radio stations receive a minuscule portion of the exploding local online ad market." Pureplay internet companies such as Yahoo do a substantially better job of getting local advertising, as do local television station and newspaper websites. The Borrell report suggests that "For radio to become a larger player in the local online ad space, there is increasing evidence that a greater investment in an independent online sales force is needed." It also urges radio marketers to become more sophisticated about the internet and the demands of advertisers in that space.

In Paul Heine, "Web Drives Radio Off-Air," MediaWeek, April 28, 2008.

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