BIA/KELSEY REPORT

Local TV Revenues Rose 23.2% Last Year

Political campaigns and national advertising drove the 2010 total to to $19.4 billion. Online and digital revenues are projected to reach $890 million by 2015.

The local television industry experienced 23.2% growth in 2010 and achieved over-the-air revenues of $19.4 billion, according to this year’s first edition of BIA/Kelsey’s quarterly Investing In Television Market Report.

BIA/Kelsey, adviser to companies in the local media industry, expects 2011 television industry revenues to dip during this non-election year before rising again in 2012. BIA/Kelsey also reports local television stations earned $450 million from digital and mobile advertising in 2010 and estimates that number will climb to $890 million by 2015.

“Last year’s impressive numbers were buoyed by strong political spending and a faster than expected rebound in ad buying by national advertisers wanting to reach local audiences,” said Mark Fratrik, vice president, BIA/Kelsey. “Even with some erosion of viewers, it was a strong demonstration that local television continues to show its value to advertisers by delivering the shoppers, voters, and influencers they want to reach.”

The chart below represents BIA/Kelsey’s five-year forecast for the local television industry:

 

 

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According to BIA/Kelsey’s U.S. Local Media Annual Forecast (2010-2015), the local advertising ecosystem is currently dominated by traditional media, with television’s share at 14.6%. Revenues for the overall local media advertising marketplace, defined by BIA/Kelsey as those media that provide local audiences to all types of advertisers, will grow at a 2.4% compound annual growth rate over the next five years, reaching $153.5 billion by 2015.

“Local television maintains its strength and appeal because of its ability to deliver viewers on specific days and times,” said Rick Ducey, chief strategy officer and program director of BIA/Kelsey’s Digital Strategies for Broadcasting practice. “With continued growth expected in its ability to leverage its over the air brand and continue the conversation with viewers through online, interactive and mobile local media, we see the television industry continuing its positive course through the decade.”

The complete U.S. Local Media Annual Forecast is available to clients of BIA/Kelsey’s Digital Strategies for Broadcasting (DSB) advisory service, which provides the research and analysis on business models, multiplatform strategies, technology, advertising models and industry trends that enables local broadcasters to claim their share of the new local media ecosystem.


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