A new report from BIA/Kelsey says that while television stations will experience many new challenges between now and 2020, they will also maintain an important presence in the local media marketplace, remaining a major part of national and local advertising plans.
BIA/Kelsey forecasts U.S. local television station advertising revenues to reach $20.8 billion in 2016, up 12.1% from 2015. In addition, TV station online ad revenues will grow to just over $1billion in 2016, up 13.3% over last year.
According to Nexstar CEO Perry Sook, the digital spectrum represent broadcasters’ “mineral rights” and he believes that most TV stations can be doing more to optimize the value of their digital assets. I suspect that there may be some readers who will disagree. Whether or not you like the analogy, there’s no arguing that broadcast license rights are among the most regulated in this country. I will also say that there are few, if any, other regulated entities that exercise their rights as responsibly as local broadcasters.
TV’s digital executives are finding that making their companies’ digital efforts profitable is a challenging task, with the industry’s success on the TV screen the main stumbling block to finding digital solutions. “They really don’t feel the pain yet,” says Catherine Badalamente, VP of digital media at Post-Newsweek Stations.
Joe Weir, Belo’s VP of digital, in an exclusive interview with NetNewsCheck talks about the TV company’s efforts on multiple digital fronts, including recasting its deals program, producing more video content and forming a digital advertising services company. “Every single day, we get more and more information about the growth of display advertising and the growth of digital,” Weir says.
BIA/Kelsey’s Mark Fratrik will size up the changing local TV revenue outlook as part of a free NetNewsCheck webinar on Wednesday, “Broadcast Strategies: How Digital Can Drive Your Revenue in 2013.”
Mark Fratrik, VP and chief economist at BIA/Kelsey, will detail his forecast of spot TV and TV’s online revenue growth in 2013, during NetNewsCheck‘s Nov. 14 webinar “Broadcast Strategies: How Digital Can Drive Your Revenue in 2013,” sponsored by Limelight Networks. The webinar will offer strategies for transforming local TV’s online and mobile businesses into sizeable revenue streams. Also headlining the webinar will be Lisa Bishop, VP of digital media at Gray Television Group.
While revenue from core local and national spot is on the rebound, broadcasters are pleased that they are also are seeing retrans and digital revenues becoming more significant.