Local Media's Digital Ad Revenue Soars
Local Media's Digital Ad Revenue Soars
The growth of digital advertising revenue for local TV and radio will outpace overall ad spending for those media between 2009 and 2014, according to a BIA/Kelsey study released yesterday.
Digital revenue from mobile and Web platforms will grow at a 17.8 percent compound annual rate to $2 billion compared to total ad revenue, which will grow 2.8 percent to $34.3 billion.
By 2014, local TV digital ad revenue will reach $1.2 billion and represent 6.5 percent of the segment’s total $18.3 billion in revenue, up from 3.1 percent in 2009. Radio digital revenue will reach $800 million, representing 5 percent of the category’s $16 billion total, and up from 2.9 percent last year.
“Broadcasters must evolve to participate in more areas of the media ecosystem,” said Rick Ducey, chief strategy officer for BIA/Kelsey. “This means developing the right multiplatform and multiple revenue stream strategies, which in turn requires new workflow, partnerships, business models and resources.”
Though the BIA/Kelsey forecast shows total revenue increases for both radio and TV between 2009 and 2014, those media are still playing catch-up to 2008, when TV revenue totaled $20.6 billion and radio totaled $16.8 billion.
In 2010, TV revenue is expected to increase 4.3 percent to $16.8 billion — with digital revenue hitting $600 million, a 20 percent increase. Radio revenue will inch up 1.5 percent to $13.9 billion — with digital revenue increasing 25 percent to $500 million.