BIA/Kelsey Reports Local Television Revenues Rose 23.2% to $19.4
Billion in 2010, Driven by Political Campaigns and National Advertising
Online and digital revenues projected to reach $890 million by
2015
CHANTILLY, Va. (April 29, 2011) -
The local television industry experienced 23.2
percent 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, Ph.D., 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:
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 percent. 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 percent 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.
For information on becoming a DSB client, contact Steve Passwaiter at (703)
802-2973 or spasswaiter@bia.com.
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.biakelsey.com,
on the company’s Local
Media Watch blog and on Twitter at http://twitter.com/BIAKelsey.
