TV Ad Revenue Rebounding

Broadcast TV advertising rebounded nicely in 2010. Through the 3rd quarter of last year, both spot and network TV experienced healthy increases over 2009. At the same time, analysts believe that the local TV market will turn in strong performances through 2014.

Nationally, broadcast TV figures showed the following revenue levels through the 3rd quarter of 2010. Growth (loss) percentages from the same period in 2009 appear in parentheses:

  • Spot TV $11 billion (+27%)
  • Network TV $18 billion (+6.6%)
  • Syndication $2.9 billion (-8.3%)

The spending increases for broadcast TV were attributed to familiar business sectors such as automotive, telcom, restaurants, political and financial as well as car/​truck dealers and furniture stores.  With the exception of political advertising, the same groups should drive growth for broadcast TV in 2011.

Local TV ad revenue was estimated to have reached $18.5 billion in 2010. However, analysts believe the local market may drop 8% in 2011. The drop is linked to a expected lack of heated political campaigning and advertising in 2011.  But beyond next year, Mark Fratrik, VP, BIA/​Kelsey, is looking for big increases in local TV ad spending, fueled by politics. The total industry revenue for local TV advertising may approach the following levels in the next several years:

  • 2011 $17.8 billion
  • 2012 $19.5 billion
  • 2013 $19.1 billion
  • 2014 $20.4 billion

TV continues to reach 89.5% of U.S. adults on a daily basis and outperforms its closest media competitor,  the Internet, at 67.5%. But TV media owners realize that the landscape is changing and they’re looking to broaden their revenue stream. For many, this means tapping into online potential. By 2014, BIA/​Kelsey analysts say that mobile revenue will comprise $1.2 billion or 5.9% of total spending on the broadcast TV media format.

[Sources: Ad Spending. TVB​.org. 2010. Web. 4 Jan. 2011; BIA/​Kelsey: 2010 Local TV Rev to Hit $18.5B. TVnewscheck​.com. 20 Dec. 2010. Web. 4 Jan. 2011. Local Political Windfall Precipitates 2011 Slip. Televisionbroadcast​.com. 20 Dec. 2010. Web. 4 Jan. 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.