BIA/Kelsey Forecasts TV Station Ad Revenues to Grow by 7.5% in 2010,
Driven Largely by Political Advertising and an Improving Economy
Intense Political Races in Ten States Expected to Lift Station Revenues
CHANTILLY, Va. (April 29, 2010) - Although the television industry
took a significant revenue hit in 2009, BIA/Kelsey predicts this year
will see a 7.5 percent increase as combined over-the-air station income
will hit $17 billion, compared with last year’s $15.8 billion.
In its first edition of the quarterly "Investing
In Television® Market
Report," BIA/Kelsey, adviser to companies in the local media space,
attributes the improvement largely to political advertising and the
changing economy.
The "Investing in Television Market Report" now
provides comprehensive listings of all digital television stations
and apportions revenues to them. This includes full-power stations
and their final position allocations now that the digital conversion
has passed. According to the report, BIA/Kelsey expects television
revenues in 10 states to increase by close to 8 percent or more, due
to hotly contested political races. Those states include Arkansas (8.5
percent), Pennsylvania (8.5 percent), Texas (8.48 percent), Ohio (8.48
percent) and Colorado (8.43 percent). 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 provides research,
trending and analysis across 12 media categories.
“We
feel the industry is taking a positive turn and should now focus squarely
on improving its revenues by identifying sources of income from multicasting,
online and mobile,” said Mark Fratrik, vice president, BIA/Kelsey. “Broadcasters
should be expanding their businesses into related areas where they’ll
find their audiences and be able to give advertisers greater reach.”
The chart below shows television station revenues from 2004-2009
and BIA/Kelsey’s projections through 2014.
BIA/Kelsey’s upcoming conference, Digital
Strategies for Broadcasting 2010, May 17-19
in Jersey City, New Jersey, will focus on the
hundreds of millions of dollars broadcasters
are poised to earn from the digital services
that are transforming the industry, with a
particular emphasis on Web sites, mobile applications,
emerging technologies, integrated platforms
and multicast.
“Television broadcasters
have the opportunity to make this a very transformative
year if they leverage their properties with
the technologies their viewers are embracing,” said
Rick Ducey, chief strategy officer, BIA/Kelsey. “We
are gathering some of the top innovators in
the industry to discuss and illustrate advancements
that will change the broadcast experience.
DSB2010 will also serve as a forum to meet
potential new partners and exchange ideas among
peers.”
Colleen Brown, president and
CEO of Fisher Communications, will keynote
day two of DSB2010, speaking on how broadcasters
can leverage their inherent strengths to capitalize
on new digital opportunities. Brown will explain
how Fisher has developed a number of creative
ways to better serve local consumers and advertisers
through Web-enabled channels, including its
ambitious hyperlocal program.
In addition,
more than 30 other speakers are scheduled to
present, including Lisa Bishop, vice president
of Internet operations and new media, Gray
Television Group; Rob Weisbord, regional group
manager and director of digital interactive,
Sinclair Broadcast Group; and Steve Lanzano,
president, Television Bureau of Advertising.
The program will include panels on reinventing
local television, where local TV will be in
five years from a financial perspective, creating
revenues from new platforms, and how to make
cross-platform deals and partnerships.
Conference
sponsors include Localeze and Shooger. Association
partners for this event are Association of
Directory Publishers (ADP), Great Outdoor Network
(GON), International Classified Media Association
(ICMA), NAB Show, New York State Broadcasters
Association (NYSBA), Radio Advertising Bureau
(RAB), Television Bureau of Advertising (TVB)
and Yellow Pages Association (YPA). Conference
media partners are Inside Radio, NetNewsCheck.com
and Radio-Info.com. Additional details and
registration information is available at http://www.bia.com/dsb2010.
Investing in Television
A comprehensive profile of all 210 television
markets (plus Puerto Rico) and television market
projections through 2014 are available in the
first-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 on the BIA website 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,
in addition to 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 of 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
email 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 at http://blog.bia.com/bia/ and http://blog.kelseygroup.com/,
and it can be found on Twitter through http://twitter.com/BIAKelsey.
