The revised estimate is a 17% increase over the 2009 total for stations. It sees a 8% drop next year due to the lack of political ad money.
BIA/Kelsey: 2010 Local TV Rev To Hit $18.5B
Politics and automobiles gave the over-the-air local television industry a much needed revenue injection in 2010, leading BIA/Kelsey, adviser to companies in the local media space, to raise its estimate for the year to $18.5 billion, a 17 percent increase from 2009.
In the fourth edition of the quarterly Investing In Television Market Report, BIA/Kelsey also forecasts an 8% decrease in local television revenues in 2011, a more pronounced decline due to this year’s unusually robust political campaign season.
Top markets with revenue increases of 22 percent or more in 2010 include: Denver; Tampa-St. Petersburg-Sarasota, Fla.; West Palm Beach-Ft. Pierce, Fla.; Chicago; Indianapolis; Cleveland; and Philadelphia.
“We have become more bullish for the local television markets over the next decade, particularly as political advertising will continue to be significant in the even-numbered years, when we can expect heated campaigns to take place,” said Mark Fratrik, VP, BIA/Kelsey.
“This year was an affirmation that local television is still vital to any ad campaign, and we anticipate that this won’t go unnoticed by the larger nationwide retailers,” he added. “Additionally, television broadcasters are making significant progress in enhancing their off-air revenue sources, particularly online, through hyperlocal sites and mobile applications. The blend of traditional media with the targeting of online and mobile media creates a powerful opportunity for revenue generation.”