CHANTILLY, VA. May 8, 2009 –
According to new research from
BIA Advisory Services broadcasters are
showing signs of progress by developing Internet revenue for their stations.
Based on industry-wide surveys conducted by BIA, through public company
documents, and discussions with industry owners and insiders, BIA estimates
radio and televisions stations collectively drove approximately $805 million
in online dollars, equal to 7.3 percent of the $11 billion local online
advertising money spent in 2008, as reported by BIA subsidiary
The Kelsey
Group.
This
breaks down to $342 million for radio and $463 million for television in
2008. BIA projects the broadcasting industry’s online revenue will climb to
as much as $1.9 billion by 2013 if the industry continues its transformation
to multiplatform solutions.
“We
see a compounded annual growth rate of 18.6 percent for online broadcasting
advertising over the 2008 – 2013 period,” said Mark R. Fratrik, Ph.D., Vice
President, BIA Advisory Services. “Given the challenges facing broadcasting,
it’s even more important for broadcasters to continue to step-up their
mobile and Internet offerings.”
The
chart shows radio and television Internet revenues from 2008-2013 as
projected by BIA Advisory Services.
BIA is
organizing a conference in May, “Winning
Media Strategies,” focusing on traditional media’s financial challenges
and how it must transform within the changing media ecosystem in order to
survive. Radio and TV operators must recognize and address the changes
underway, the impact on advertisers, understand what innovative companies
are doing, and who they can partner with in order to become viable media
companies in the coming years.
"Media
organizations must utilize their tremendous brand equities and relationships
with local advertisers to leverage their current offerings into new media
platforms and vigorously cross promote them," said Rick Ducey, chief
strategy officer of BIA. "While online-only companies had to start from
scratch, broadcasters have the opportunity to reach their audience on and
offline to build audiences and appeal to advertisers."
“Winning
Media Strategies” is a three-day program, May 20-22, 2009 in Washington,
D.C.
Speakers will discuss new technologies, shifting consumer demographics,
media usage trends, new competition, and how different business models are
driving new revenue to traditional media. Additional details about the
program
and registration information is available at
www.bia.com/WMS. For more information, call 800.331.5086 or email info@bia.com.
