BIA/Kelsey Raises Its Outlook for Television Station Revenues in 2010, as Industry Benefits From Primary Elections and Advertisers Returning to Local TV
Increase in TV station revenue for a non-presidential election year
is highest in a decade
CHANTILLY, VA. June 30, 2010
–
Based on encouraging indications that
advertisers are returning to local television and a stronger than expected
primary election year,
BIA/Kelsey,
adviser to companies in the local media space, has raised its outlook for
the television industry in 2010. In its second edition of the quarterly “Investing
In Television® Market Report,” BIA/Kelsey
projects the industry will have overall revenues of $18.1 billion, a 10.9
percent increase from 2009. Revenues from online sources are expected to hit
$648 million this year, representing a 25 percent growth over last year.
BIA/Kelsey anticipates less dramatic positive changes in the latter half of
2010 compared with the third and fourth quarters of 2009, since the second
half of last year was stronger than the first.
“There’s growing affirmation that local
stations are seeing advertisers return. We see this as recognition that
television is still the best method to reach large local audiences, whether
the message is for a product, cause or campaign,” said
Mark
Fratrik, Ph.D., vice president, BIA/Kelsey. “This positive sign should help
the industry invest in its infrastructure and position it for growth this
decade.”
Fratrik also noted that 2010 demonstrates the television industry can
sustain itself in non-presidential election years. Since 1998, non-election
even-numbered years have maintained sustainable growth rates, starting with
6.3 percent that year. Four years later and coming off a recession, 2002
posted a 10.2 percent increase, while 2006 television revenues increased by
8.5 percent.
“This
year holds promising revenue increases due to the unexpected competitive
primary election environment, with more than expected Senate and
congressional races,” said Fratrik. “This makes up for the economy not being
as strong as we all would hope.”
The
chart below shows actual television station revenues from 2008 and 2009 and
BIA/Kelsey’s projections through 2014.
Click here for a larger image of this chart
Investing In Television
The “Investing
In Television® Market Report”
provides comprehensive listings of all digital television stations and
apportions revenues to them. This includes the 1,600-plus full- power
stations and their position allocations, and the 381 stations that have
secondary multicast program signals.
Comprehensive profiles of all 210 television markets (plus Puerto Rico) and
television market projections through 2014 are available in the
second-quarter edition of the “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.
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.
In-depth
ad spending analysis on local markets, across traditional and interactive
media, is part of BIA/Kelsey’s
Media Ad
View,
a family of reports providing research, trending and analysis across 12
media categories.
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 at
http://blog.bia.com/bia/
and
http://blog.kelseygroup.com/,
and it can be found on Twitter through
http://twitter.com/BIAKelsey.
