SALESFUEL TODAY

TV Ad Revenue Rebounding

by | 2 minute read

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. Tele​vi​sion​broad​cast​.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.
January 4, 2011 Media Usage Tags: , ,