April 08, 2001

The Radio Advertising Bureau (RAB) has recently concluded its annual NTR survey to determine how Radio stations across the country are pursuing Non-Traditional Revenue (NTR). RAB analyzes the results of the survey to determine industry needs and trends and develop appropriate programs and services for its members.

According to the survey, 28% of stations have been pursuing NTR for more than 5 years, 25% for 3 to 5 years, 23% for 1 to 2 years, and 24% for less than a year. Seventy-seven percent report that less than 10% of their total revenue is generated from NTR, while for 18%, it is between 11% and 20%.

A significant finding was that 65% of the respondents came from stations in markets with a population under 500,000, supporting the claim that it is not the size of the market that determines NTR success, but the station's approach to it.

Event marketing continues to be the leading source of NTR for most Radio stations, with a whopping 91% of respondents participating in some kind of event marketing. Moreover, 37% stated that three to five annual events generate the majority of their event marketing revenue. When selling an event, 95% of the stations offer sponsorships while 87% offer booth space or signage, 77% provide sampling, followed by 63% who provide couponing.
Cause-Related Marketing was explored by 67% of the stations. Of those stations that offered CRM, 43% supported one to two causes in the last two years, 36% supported 3 to 5 charities, and 21% supported more than five causes in the last 24 months.

When asked about the challenges of NTR selling, an overwhelming 75% of the respondents said time management was their primary concern. Training issues were mentioned by 40% of the survey participants, followed by lack of resources by 34% and lack of leads by 27%.

While offering Radio spots as part of an NTR package is not always required, 50% of the stations indicated that they would never consider an NTR campaign that did not include Radio. Thirty-three percent stated that less than half of the time they offer NTR campaigns that do not incorporate Radio as a marketing element.

"We're very excited about the results of the survey," noted Bill Barr, Vice President, Co-op/NTR Services. "I believe we are seeing an increase in NTR business in our industry and it's obvious that it's happening in all markets."

"Going forward, Radio stations will find ways to develop even more NTR business, reaching out to clients with innovative marketing solutions," said Gary Fries, President & CEO. "The RAB is committed to helping Radio grow its revenue from these new streams."

The Radio Advertising Bureau (RAB) is the sales and marketing arm of the Radio industry with more than 5000 member stations in the U.S. and over 900 additional members in networks, representative firms, sales and international organizations.

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