Sales Per $1,000 In Retail Sales

    • 118 posts
    August 3, 2017 11:50 PM PDT

    I realize the question I am about to ask has no definitive answer because there are so many variables.

    In gauging your station's success or determining the potential, is there an accepted figure of dollars radio typically earns per retail sales?  I have seen figures all over the map from $1.90 to $8.40 per $1,000 in Retail Sales. With all the available media, these figures are about as antiquated as you can get.

    I get that a market's potential varies by competition, economic conditions and attitudes as well as how effective the media has performed in the market, including rates charged. I get that what I'm asking is about like the word snow: it could be a flurry or a blizzard or anything inbetween. I'm just looking for some national 'norm'.

    I was looking at a station a buddy of mine was considering purchasing. The market had about $715 million in retail sales. Radio got about 1.68 million in revenue. The station he was looking at had a 4.5 share, good TSLs and was billing about $132,000. Given the audience size versus revenue, I felt it was performing above average. Given this market, about $2.33 per $1,000 in retail sales went to radio.

    Thank you for any input you can share.


    This post was edited by Rebecca Hunt at August 3, 2017 11:58 PM PDT