Marketers to Turn to Local Radio/​TV

Local TV and radio stations play an important role in the ad market. Though some analysts downplay the influence of these traditional media formats for the future, the National Association of Broadcasters  (NAB) has issued a new report underscoring their broad reach. With projections outlined through 2015, NAB analysts see local media companies continuing to thrive as they create jobs and deliver those all-​important messages for merchants.

Data provided in the new NAB report relies on BIA/​Kelsey figures for both local TV and radio stations. In both cases, these numbers portray a stable and growing industry.

TV station revenue should look something like this (the online component appears in parens):

  • 2011 $17.5 billion ($551 million)
  • 2012 $19.3 billion ($638 million)
  • 2013 $18.37 billion ($720 million)
  • 2014 $19.9 billion ($802 million)
  • 2015 $19.5 billion ($896 million)

In the 5 year period, TV station revenues will grow by 11.4%. Online revenues, at 3.1% of the total in 2011, should reach 4.6% by 2015.

For radio, the growth outlook is even more solid:

  • 2011 $14.6 billion ($494 million)
  • 2012 $15.3 billion ($569 million)
  • 2013 $15.9 billion ($638 million)
  • 2014 $16.6 billion ($703 million)
  • 2015 $17.2 billion ($783 million)

The radio numbers suggest that operators can anticipate slightly higher growth rates than their TV counterparts with overall projected revenue jumping 15.1% in the 5 year period. Despite that growth rate,  BIA/​Kelsey analysts expect the online revenue portion, currently at 3.4%,to  increase to about 4.6% of industry revenue by 2015.

NAB President and CEO Gordon Smith points out that “broadcast innovation that includes mobile DTV and multicasting should be given an opportunity to succeed.” In addition, analysts say that  “the primary role of broadcast television and radio is reducing the cost of product information through advertising.”

After studying these numbers, it is likely that TV and radio station owners will commit resources to new media formats that allow marketers to reach busy consumers as they secure their positions as leaders in the local media market.

[Source: Commercial Local Radio and TV Broadcasting. Woods & Poole Economics. 2011. Web. 30 Jun. 2011] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.