But broadcasters garner just 6% of $4.9 billion spent in local online advertising compared to 41% by newspapers.
TV stations more than doubled their Internet revenues to $283 million in 2005, but their take accounts for only 6% of the $4.9 billion in local online advertising, according to an annual benchmark report by local media consultancy Borrell Associates.
Overall, local online advertising increased a whopping 79% to $4.9 billion in 2005, the report says.
TV stations sites lag far behind newspaper sites, which enjoy a 41% share on the local online market.
TV Web sites still contribute less than 1% to stations’ total gross revenues, compared to 11% for their newspaper rivals.
“Best-practices” stations fared better in terms of revenues and market share, albeit in smaller markets. Nearly 6% of stations with revenue-generating Web sites reported more than $1 million in gross Internet revenues last year. Eleven percent more will join the million-dollar club if they meet their 2006 budgets, according to the survey.
The top 10 TV-run Web sites get an 8%-18% share of all locally spent Internet advertising.
“After years of dabbling and discussion, local TV executives finally acted on the Internet opportunity,” said chief researcher Gordon Borrell. “They formed national online sales initiatives like WorldNow’s Local Media Network, crafted online units such as Fox Interactive Media, hired Internet savvy executives from the newspaper industry and redoubled their online sales efforts.”
Automotive advertising was most often listed as the strongest category for TV stations, generating 25% of their online revenue compared to 18% in 2004. However, stations have been unsuccessful convincing auto dealers to use video on the Web, with the 437 sites surveyed generating less than $75,000 from video-based online auto ads.