BIA/Kelsey Reports Local TV Revenues Down 7.8% in 2011; Presidential
Election and Increase in Online Expected to Boost Numbers to $20.3
Billion This Year
Mobile and online accelerating by 45% CAGR in the next five years
and returning the industry to revenues last seen in 2006.
CHANTILLY, Va.. (May 1, 2012) – BIA/Kelsey, adviser to companies
in the local media industry, reports today that local television over-the-air
revenues in 2011 dipped 7.8 percent from the previous year, due primarily
to the economy and the odd-year election cycle, according to the first
edition of its quarterly Investing
In Television® Market Report.
In 2011 stations took in $17.9 billion in over-the-air revenues, compared
with $19.4 billion in 2010. In 2011 local television stations earned
$535 million from online sources, an 18.7 percent jump compared with
$450 million in 2010. In 2012 combined over-the-air and online revenues
are forecast to rise to $20.3 billion, based on the presidential and
other elections, overall improved consumer spending, and growth in
online ad spending. In terms of transactions, BIA/Kelsey reports the
industry saw an uptick in transactions in 2011 over 2010, with 50 station
sales totaling $1.1 billion.
“Local advertising industry revenues typically rise and fall
depending on the political year,” said Mark Fratrik, vice president
and chief economist, BIA/Kelsey. “Advertising income for local
television is trending upward and showing signs of rebound, with a
good first quarter for many publicly held television companies. Still,
the 2012 over-the-air television advertising market is not what it
was 11 years ago.”
The chart below includes BIA/Kelsey’s five-year forecast
for the local television industry:
According to BIA/Kelsey’s U.S.
Local Media Forecast (2011-2016)
and local market ad spending analysis, Media
Ad View Reports, the local
advertising ecosystem continues to be dominated by traditional media,
with television’s share at 13.9 percent in 2011 and projected
to grow to 14.3 percent in 2016.
Click to expand/collapse graphics:
Rick Ducey, BIA/Kelsey’s managing director and program director of Video
Local Media, sees local television continuing to get a significant boost
from online revenues. This edition of the Investing In Television® Market
Report forecasts mobile and online video ad revenues will experience an overall
five-year compound annual growth rate (CAGR) of nearly 45 percent. Based on
BIA/Kelsey’s
five-year projections, by 2016 local television stations will have combined
revenues of $22.8 billion, a return to 2006 income levels, due in large part
to digital offerings.
“Local television stations are establishing increased expertise in packaging,
pricing and selling cross-platform and multi-device ad-supported content services
for their viewers,” Ducey said. “We anticipate greater utilization
of smartphones and tablets for engaged audience experiences with local streaming
video content including news, weather and sports monetized both by advertising
and sponsorships.”
Investing In Television®
A comprehensive profile of all 210 television markets (plus Puerto Rico) and
television market projections through 2016 are available in the first-quarter
edition of Investing
In Television® Market Report, published by BIA/Kelsey
and the 2012
Investing In Television® Ownership Report. Individual television
market
reports are now available on demand with station competitive and performance
information including BIA/Kelsey's estimated advertising revenues, technical
data, ownership and acquisition information, and more. BIA/Kelsey also publishes
investment reference guides and provides data services for the television and
radio industries.
Media Ad View Reports
Covering 12 media, 12 ad categories and more than 93 subcategories, BIA/Kelsey’s
Media
Ad View reports track local advertising spending by media for the most
recent year and for five years out (2011-2016) for every local market. Markets
are organized by the 362 Core Based Statistical Areas (CBSAs) or TV/Radio markets.
For more information on BIA/Kelsey’s Investing In publications or Media
Ad View reports, call (800) 331-5086 or email info@biakelsey.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 http://www.biakelsey.com,
on the company’s Local
Media Watch blog and on Twitter at http://twitter.com/BIAKelsey.
For more information contact: Robert Udowitz
For BIA/Kelsey
(703) 621-8060 rudowitz@biakelsey.com
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Company Information
BIA Advisory Services (BAS) is doing business as (d/b/a) BIA/Kelsey. BAS is owned by BIA Financial Network. For more information on this parent company and for a list of affiliated companies, please click now.
