BIA/Kelsey Expects Local TV Ad Revenues to End the Year At $18.5
Billion, Up 17% From 2009; Forecasts Decline in 2011
Top markets increased 22% as political and automotive ads set pace
for 2010
CHANTILLY, Va. (Dec. 20, 2010) -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 forecasts an 8
percent 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, Colorado; Tampa-St.
Petersburg-Sarasota, Florida; West Palm Beach-Ft. Pierce, Florida;
Chicago, Illinois; Indianapolis, Indiana; Cleveland-Akron, Ohio; and
Philadelphia, Pennsylvania.
“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, Ph.D., vice president,
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. 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.”
The chart below shows television station revenues for over-the-air
and online from 2008 to 2010 and BIA/Kelsey’s projections through
2014.
In-depth ad spending analysis on local markets, across both traditional
and interactive media, is part of BIA/Kelsey’s Media
Ad View reports, which provide research, trending and analysis across 12 media
categories.
We expect to see more bundling of mobile advertising by digital and
local media companies, in an effort to lower the barriers for adoption
by small and medium-sized businesses,” said Michael Boland, program
director, BIA/Kelsey. “As a result, mobile advertising will move
down market to SMB and mid-market segments, increasing the overall
revenue opportunity and share of geotargeted ads. This down-market
shift will be coupled with large advertiser evolution and adoption
of mobile local ad distribution.”
Investing in Television®
A comprehensive profile of all 210 television markets (plus Puerto
Rico) and television market projections through
2014 are available in the fourth-quarter edition
of “Investing
In Television® Market
Report” published by BIA/Kelsey and the “2010
Investing In Television® Ownership Report.” Both publications are part
of the “Investing In” financial guide series that includes
market trend analysis, demographic and economic
overviews, competitive overviews, technical
data, ownership data, pending and completed
transactions, and Arbitron ratings. Information on these publications
is available at http://www.bia.com/publications_reference_tv.asp. In
addition to the DTV stations, “Investing in Television” continues
to include the lower power and Class A stations
that are operating on analogue signals and
monitors the 381 stations that have secondary multicast program signals
and the 1,600-plus full-power stations.
BIA/Kelsey also provides the “Investing
In Television® Pocket
Guide,” a convenient, abbreviated portable reference guide to
all the television markets. The compact design of the guides allows
readers to rapidly identify key markets and important station details.
BIA/Kelsey also publishes investment reference guides and provides
data services for the television and newspaper industries. For more
information, call (800) 331-5086 or e-mail info@bia.com.
About BIA/Kelsey
BIA/Kelsey advises companies in the local media space through consulting
and valuation services, research, Continuous Advisory Services and
conferences. Since 1983 BIA/Kelsey has been a resource to the media,
mobile advertising, telecommunications, Yellow Pages and electronic
directory markets, as well as to government agencies, law firms and
investment companies looking to understand trends and revenue drivers.
BIA/Kelsey’s annual conferences draw executives from across industries
seeking expert guidance on how companies are finding innovative ways
to grow. Additional information is available at www.bia.com and www.kelseygroup.com.
The company’s blogs are located athttp://blog.bia.com/bia// and
http://blog.kelseygroup.com/, and it can be found on Twitter through http://twitter.com/BIAKelsey.
