Digital profit margins are rising at radio

In what may be a first for an advertising conference, Borrell Miami brought a group of media finance execs together to talk about digital ad products from the bean counter’s perspective. Topics covered included digital profitability (it’s growing), sales commissions (they’re lower than for linear media) and digital’s revenue contribution (going up and up).

Revenue from Hubbard Radio’s 2060 Digital agency made up 12% of total company revenues in 2019 and 11% of expenses. In 2024, digital is expected to generate 23% of revenue, almost doubling in five years while expenses are expected to be 17%. “We're finding the revenue growing at a faster pace and expenses lagging the revenue growth,” said Steve Goldstein, president, 2060 Digital. “So not only is it profitable, but we’re also finding ways to create efficiencies and grow revenue faster than expenses.”

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