Nearly 25% of media sales managers who participated in a just-released survey expect to see a revenue increase of more than 10% in 2023.
That’s just for starters, SalesFuel says, in a sign that optimism for the future of the broadcast industry remains high.
The findings are based on the 12th annual State of Media Sales survey produced by SalesFuel in conjunction with BIA Advisory Services.
The survey reflects extreme confidence in broadcast radio and television among those seeking ad buys. In fact, among respondents, there are fewer sales managers and sales reps who say it is getting harder to sell against Google and Facebook — two of the “FAANG” giants broadcast media refers to as “Big Tech.”
While 30% of managers participating in the survey believe it is getting harder to sell against Google and Facebook, this is down from 43% in 2021. While 20% of respondents say the fight will be unchanged, that compares to 29% in 2021.
And, regarding the question of whether it’s getting “harder to generate new business,” media sales reps say they are having an easier time. In 2023, 44.5% of reps say that is the case. In 2021, 57% of reps said it was harder to generate new business.
“We are encouraged by the optimism among media sales managers and reps early on in
2023,” says C. Lee Smith, CEO of SalesFuel. “Considering the expectations for revenue
growth and the fact that the industry is finding ways to compete with the major digital
players, we look forward to supporting the rebounding growth and success of the
industry this year.”
The survey was conducted in February 2023 and includes 496 media sales reps and managers from broadcast TV, cable TV, radio, newspapers/magazines, direct response, and those who have more than 50% of their revenue from digital sources. All were actively employed by media sales companies in the United States; some respondents sell multiple media formats.
POWERED BY PHARMA?
One key finding across all the different types of sales managers includes high expectations for the health care vertical. Commenting on this, BIA VP of Forecasting & Analysis Nicole Ovadia notes, “Our local advertising forecast tracks with what local sellers believe will be a strong year for health care. Our forecast has this vertical growing over 7% this year to top $13 billion. We are also tracking tremendous growth in digital advertising so local sellers are smart to be on top of this shifting ad spend to best position their offers.”
Key highlights of findings by media type:
Broadcast TV:
- 58% of Broadcast TV media sales managers believe the health care vertical will deliver
one of the highest growth rates this year. - Over 56% of Broadcast TV media sales managers say the automotive vertical will deliver
a very high sales growth rate in 2023.
Cable TV:
- 39% of Cable TV sellers expect urgent care centers to deliver significantly more revenue
than last year. - Nearly 48% of Cable TV media sales managers expect a revenue increase of more than
10% in 2023.
Radio:
- 22% of radio media sales managers expect nondealer auto service businesses to deliver
significantly higher revenue growth; compared to 13% of all media sales managers. - 43% of radio media sales managers believe sales to local-direct/franchises and small businesses will increase significantly this year.
Digital:
- 71% of digital media sales managers believe recruiting/employment revenue will
increase significantly in 2023 versus 38% of all sellers. - 43% of digital media sales managers expect physicians to spend significantly more on advertising with them this year, a number that is notably higher than what sales managers in other media formats listed.
Print/Newspaper/Magazine:
- 43% of print media sellers are having a harder time selling against the likes of
Google/Facebook - 33% of print media sales managers expect revenue from event sponsorship advertising to increase significantly in 2023.
Other key findings by business type:
- 36% believe local franchises and small businesses will be significant sources of
revenue increases in 2023. - Whereas just 8% see significantly more ad revenue from major retail accounts
and chains perhaps as a result of larger companies centralizing their media
buying. - And by industry vertical, 40% of media sellers point to home improvement as a
top source of revenue increase for 2023, possibly indicating fewer people plan to
sell their homes this year.
