BIA Financial Network & Borrell Associates Report:
What’s A Web Site Worth? Valuation Metrics For Local Web Sites
BIA Financial Network teamed with Borrell Associates to analyze
local Web site revenues, expenses and growth trends. The results
have been published in a report entitled, “What’s A Web Site
Worth? Valuation Metrics For Local Web Sites”.
What emerged from our research was another strong indication of the
fundamental changes taking place in the media industry: local
Web sites generate important value for their owners, especially
for owners that have positioned their sites for growth in key
high-demand advertising categories such as e-mail, streaming
video and paid search.
Some of these local Web sites are worth
between $300 million and $450 million, and even small sites are
seeing values in the low millions of dollars.
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Credit: BIA Financial Network and Borrell Associates
The median
value of a local website varies by what type of company runs it,
and its growth potential. Newspaper sites have higher values
because of higher revenues, but TV, pure-play and radio sites
gain some lift because of greater growth potential. The chart
represents 2007 estimates. |
In 2008, the oldest newspaper, radio, TV and “city.com”
websites turned 14-years-old, evolving from interesting experiments to
financial saviors for their parent organizations. With many sites
generating millions in revenue and profits and delivering a strong
potential for continued growth, there is speculation and interest in how
these sites should be valued and the opportunities they will bring to
their parent companies.
The report also provides value magnifiers for websites,
which include market penetration, sales organizations, revenue sources,
media leverage, performance benchmarketing, and URL valuation.
For more information, call 800.331.5086 or email
info@bia.com.
