More Related Content Similar to Driving Revenue-Generating Strategies Through Information and Insights - NAB Show 2014 (20) Driving Revenue-Generating Strategies Through Information and Insights - NAB Show 20142. 2
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Developing sales, operational and acquisition
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Identify the marketing trends of advertisers
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3. 3
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Overview of Presentation
• Insights from Advertisers and Consumers
• Understanding National Advertising Trends
• Drilling Down into Local Advertising Markets
• Conclusions
6. 6
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The Answer is…
AVERAGE NUMBER OF DIFFERENT
MEDIA USED FOR ADVERTISING &
PROMOTION
Source: BIA/Kelsey LCM Wave 17 (Q3/2013); LCM Wave 16 (Q3/2012).
BIGGEST LOSERS
(IN SMB USAGE):
• Directories
• Cable TV
• Newspapers
• Outdoor
8. 8
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Very Active and its Increasing
Source: Local Commerce Monitor” (LCM – Wave 17), BIA/Kelsey’s ongoing study
of the advertising behaviors of small and medium-sized businesses (SMBs)
Social is becoming a more significant
aspect of their business
10. 10
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Some are Very Satisfied
• 36% of Radio SMB Advertisers rate their
performance on radio as either
Extraordinary or Excellent
12. 12
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Of this Group (that advertise on radio)
• A net 49% expect to increase their advertising spend
over the next 12 months
• 48% frequently track their business leads
• 44% use Radio as their channel to purchase on-line ads
• 62% have a loyalty program
• They get 26% of their business from daily deals and
promotions
13. 13
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Consumer Behavior is also Changing
SOME RECENT FINDINGS:
Consumers use a wide variety of both traditional
and digital media to find and shop for local
services and products
This behavior parallels the fragmentation seen in
use of media by small businesses.
Consumers are making more appointments online
for services like auto, beauty, and healthcare.
14. 14
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Understanding Nationwide
Local Advertising
(The Pie is Bigger and the Competition is a Changing)
15. 15
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Radio got 11.3% of the Local
Advertising Spend in 2013
We estimate Radio generated $15 Billion in Local Advertising
in 2013, with a little over $500 million, coming from on-line/interactive
Radio out of a Total Local Market of $133.2 Billion.
Direct Mail
27.2%
TV
15.2%Newspapers
15.8%
Radio
11.3%Print YP
3.4%
Online
9.1%
Out-Of-
Home
5.6%
Magazines
2.0%
Cable TV
5.3% Internet YP
1.6%
ERPM
1.4%
Mobile
2.1%
16. 16
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But, Online Advertising will Exceed
Radio Advertising by 2017
We estimate Radio will generate $16.9 Billion in Local Advertising
in 2017, with over $900 million coming from on-line/interactive,
out of a Total Local Market of $152 Billion.
Direct Mail
24.6%
TV
15.1%
Newspapers
11.5%
Radio
11.1%
Print YP
1.5%
Online
11.7%
Out-Of-Home
6.0%
Magazines
1.7%
Cable TV
5.8%
Internet YP
1.9%
ERPM
1.9% Mobile
7.1%
17. 17
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The Local Advertising Pie is Increasing,
but Only on the Online Side
$105.3 $106.3 $104.5 $106.4 $104.9 $105.9
$27.9 $31.7 $36.2 $40.7 $46.6 $52.7
$0.0
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
2013 2014 2015 2016 2017 2018
Traditional Online/Digital
US$Billions
Note: Numbers are rounded.
2013-2018
CAGRs:
Total Media
CAGR 3.6%
Traditional
Media
CAGR 0.1%
Online/Digital
Media
CAGR 13.6%
$138.0
Note: Numbers are rounded.
$133.2
$140.7 $147.1
$151.5 $158.6
18. 18
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Local Radio is Strong in Key Verticals
Local RADIO advertising is diverse, generating over 10% of its
advertising from five different verticals: Retail (18%), Financial/Insurance
(17%), Restaurants (14.5%), Automotive (14%) and Technology (10%)
- VS -
DIRECT MAIL dominates ad spend by local retail advertising, garnering
over 43% of total retail advertising in 2013
Despite declines in NEWSPAPER circulation, local advertising on
Newspaper was $21 billion in 2013, representing 15.8% of total
advertising and second only to Direct Mail
TELEVISION still dominates the local Automotive advertising vertical, as
well as the local Government/Political/Religion (“GPR”) vertical
BIA/Kelsey’ Media Ad View Plus Forecast
19. 19
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Online Ads are Accelerating in Key Verticals
ONLINE local advertising will exceed $1 billion in 2013 for six
different advertising categories. Top two:
TECHNOLOGY ($2.1B)
RETAIL ($1.8B)
ONLINE and MOBILE are the top growing ad channels. By 2017:
REAL ESTATE will increase its online ad spend to 40.8%
AUTOMOTIVE dealers will focus on video, spending 11.4%
of their $2.4 billion online ad budget on video display
Quick service RESTAURANT category (subset of
restaurants) will increase its online spending from $434.4
million to $618.6 million
20. 20
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Drilling Down in your
Local Advertising Market
(Where the Rubber meets the Road)
21. 21
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The Las Vegas Example: The Market
• Market Rank: 42
• Population: 2.0 million
• 30% Hispanic/10.9% Black/10.2% Asian
• 435,000 men, 419,000 Women Age 25-54
• Retail Sales: $30.5 billion
22. 22
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Las Vegas Radio Competition
• 46 commercial stations; 31 FM, 15 AM
• 20 stations considered viable
• $76.1 million in Radio Revenue ($4.3 million on-line)
• 4 Groups account for 77% of revenue (Lotus-23%, CBS
20%, Beasley 18%, Clear Channel 16%)
23. 23
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But, That is only part of the Story
There was $940 million spent on Local Advertising in
Las Vegas in 2013. Radio got just 8.2% of the Total Spend.
This was less than the Nationwide average of 11.1% and
Direct Mail got 26.2%
TV got 17.7%
Newspaper got 14.9%
Pure On-line got 9.2%
Mobile got 2.2%
24. 24
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Radio’s spend is projected to grow to $86.7 million
in 2017 (slight decline to 7.8%), as the local Las Vegas
Advertising Pie grows to $1.1 billion, and
Direct Mail declines from 26.2% to 23.9%
TV declines from 17.7% to 16.8%
Newspaper declines from 14.9% to 10.9%
while
Pure On-line increase from 9.2% to 12.0%
and Mobile increases from 2.2% to 7.3%***
and More Importantly…
25. 25
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Drilling Down into Verticals…
Radio Advertising’s $9.8 million in Las Vegas
Automobile Advertising in 2013 represented 8.0%
of the $123.0 million spent in Local Advertising
Cable TV
8.8%
Direct Mail
12.2%
ERPM
0.6%
Internet YP
0.6%
Magazines
2.1%Mobile
1.2%
Newspaper
17.4%Online
8.2%
OOH
1.9%
Print YP
1.0%
Radio
8.0%
Television
38.0%
26. 26
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And that…
as the Auto Spend grows to $137.7 million in 2017,
Radio’s share is projected to increase to 9.0% ($12.4 million).
Cable TV
10.6%
Direct Mail
8.8%
ERPM
1.0%
Internet YP
0.8%
Magazines
1.8%Mobile
5.0%
Newspaper
11.8%Online
13.1%
OOH
2.1%
Print YP
0.4%
Radio
9.0%
Television
35.7%
27. 27
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Plus,…
for some reason Las Vegas is not a good market related
to Automobile Advertising since Radio as a whole got 11.4%
in 2013 and this is projected to grow to 13.1% in 2017
Cable TV
8.1% Direct Mail
9.3%
ERPM
1.0%
Internet YP
0.8%Magazines
1.2%
Mobile
4.9%
Newspaper
12.8%
Online
13.0%OOH
2.3%
Print YP
0.4%
Radio
13.1%
Television
33.1%
28. 28
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There are Some Key Verticals to Watch
The decline in Newspaper circulation and advertising
in Las Vegas creates a real opportunity for the local radio
stations to develop sales strategies.
2013 2017
Automobile 17.4% 11.8%
Health Care 14.7% 11.6%
Real Estate 19.2% 5.7%
Retail 18.9% 14.1%
Restaurants 8.8% 7.1%
29. 29
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And Online Spending is Exploding for
Certain Other Verticals in Las Vegas
Search
40.4%
Video
Display
9.5%
Other
Display
7.7%
Classified/V
erticals
42.5%
2013: $3.5 Million
Search
39.5%
Video
Display
13.6%
Other
Display
5.4%
Classified/V
erticals
41.5%
2017: $5.5 Million
Full Service Restaurants
31. 31
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Conclusions
• Changing Consumer and Advertiser Behavior and
Advertising Trends in Other Local Media will Identify
Opportunities and Threats in the Different Business Verticals.
• National Trends are interesting, but Radio Executives must
drill down into what is happening in their Entire Local
Advertising Market (not just the Radio Market)
• Armed with this knowledge, strategies can be developed
and your Sales Force mobilized and positioned for
consultative sales in Targeted Business Verticals.