Online Ad Market to Grow for TV Station Operators

The online ad market might look like the Wild West to outsiders. Search companies, social media operators and national portals are all competing for ad revenue at both the local and national market. Industry analysts have questioned whether operators of small media concerns in TV or print can make the shift to the online arena and begin earning ad revenue to make up for what they may be losing in the traditional media space. A new report from Borrell Associates shows there’s good news for this market.

The Borrell report, commissioned by TVB, shows that TV stations grew their online sales to $1.4 billion in 2010. These revenues mark an increase from 3.5%, 3 years ago, to 6% of the total for last year.  The even better news for station operators is the 17% growth rate predicted in this sector for 2011.

Gordon Borrell, CEO of Borrell Associates, links the positive projections to the growing interest of video advertising online, a format that is quite familiar to TV station operators.

As the transition to higher digital revenue continues, Borrell analysts caution that TV stations should focus on the following:

  • Expand beyond the pre-​roll video ad format into other forms of video advertising to stand out against the competition
  • Train and retrain sales personnel to become experts in new and old media

Now that TV stations have grown the online revenue source to a significant figure, look for operators to adjust their offerings and sell competitively to move past other media companies.

[Source: TVB: Station Web Ad Sales Up 14% in 2010. TV Newscheck​.com. 3 Feb. 2011. Web. 16 Feb. 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.