A new survey of financial executives pulls back the curtain on just how profitable digital revenue is for local media companies. Conducted by Borrell Associates and the Media Financial Management Association, the survey found that the average EBITDA margin was 32.8% and the average gross margin 41.5%. It also found that, while executives expressed high confidence in the calculations, some expenses associated with digital operations were included.
The survey was conducted in late October to early November and encompassed executives at 58 local media companies. It asked questions about margins, the perceived accuracy of the calculations, and how valuable the information is to media operations. Among the findings:
"There’s been a lot of skepticism about the profitability of digital operations at traditional media companies,” said Gordon Borrell, CEO of Borrell Associates. “It’s great to see CFOs are providing insights on the digital profit factor so the industry can gauge a true bottom-line value.”
Findings were published in a 10-page report, “How Profitable Is Digital Revenue,” and made available to MFM members and Borrell clients. A free, open-to-the-public webinar will be held at 11 am Eastern on Tuesday, Nov. 28. Guests include Annotti, Borrell, and Hubbard Radio CFO Dave Bestler. To register, go to https://bit.ly/HowProfitable
Note to media:
You may request a copy of the full report, but because of the proprietary nature of the report we ask that you publish no more than one chart or table. To request a copy of the report, or for interviews or additional questions, contact Joe Annotti at joe.annotti@mediafinance.org or Gordon Borrell at gborrell@borrellassociates.com.
Contact information:
For general information, contact Borrell Associates at 757-221-6641 or info@borrellassociates.com, or the Media Financial Management Association at 847-716-7000 or iinfo@borrellassociates.com.
About Borrell:
Borrell Associates Inc. is the premiere provider of insights and data on local advertising. The research firm has been tracking local advertising for all U.S. markets since 2001 and provides rich market-level data through its Compass interface, licensed by hundreds of companies. The data encompasses every facet of marketing expenditures, including spending on promotions, marketing services, research, public relations, loyalty marketing, and digital services. For more information visit borrellassociates.com.
About Media Financial Management Association:
MFM has about 1,200 members that provides year-round education for television, radio, cable, newspaper, print, digital, and out-of-home professionals, and businesses from the 50 states and the District of Columbia, as well as Puerto Rico, Canada, Europe, and Asia. Its mission is to provide media and entertainment industry financial professionals unique networking and educational opportunities and media-specific information services to enhance their personal capabilities and contribute to their organizations’ success.
