The television industry in the US is expected to see lower-than-expected revenues of $15.6 billion in 2009 that will make for a 22.4% decline for the year, according to a new report from BIA/Kelsey.
The significant drop begins a leveling-off of TV industry revenues, to the mid-$10 billion level – a level not seen since the mid-1990s – through at least 2013, reports MediaBuyerPlanner.
Next year, TV revenues will increase slightly, to $16.1 billion; $130 million will come from online advertising, BIA/Kelsey said. Online revenues will continue to increase at double-digit levels, and are expected to hit $1 billion by 2013, according to the forecast.
Growth Markets Suggest Local Remains Viable
While most US markets performed poorly in 2009, BIA/Kelsey forecasts that some will manage to post positive numbers in 2010. Those expected to increase next year include:
- Philadelphia (+6.5%)
- Pittsburgh (+5%)
- Las Vegas (+5%)
- Chicago (+4.5%)
- St. Louis (+4.5%)
- Hartford-New Haven (+4.5%)
“While television’s numbers are tapering down due to audience erosion from other media delivery options, we continue to see that local TV remains a valuable way to reach relatively larger audiences, critical for mass communications in political campaigns,” said Mark Fratrik, Ph.D., VP of BIA Advisory Services. “Online revenues are expected to grow as stations get more sophisticated in the way they sell to advertisers and integrate their mobile and internet offerings with their broadcasting operations.”
The Television Advertising Bureau recently reported that broadcast TV ad revenues sank 22.6%, to $8.8 billion in Q309, compared with same period in 2008. It also?noted that 22 of the top 25 television advertising categories were down in the third quarter of 2009.
ZenithOptimedia predicts TV advertising will see 4.6% growth next year.