TV Stations’ Local Online Ad Revenues Rising Quickly

March 16, 2012

tvbborrell-tv-local-online-ad-revenues-2003-2016-march2012.jpgTV stations’ local online advertising revenue rose to $1.97 billion in 2011, representing more than 40% growth from $1.4 billion in 2010, and double the revenue from 2008, reports TVB in a March 2012 study conducted by Borrell Associates. TV’s online ad revenues are forecast to take another big jump this year, increasing 35% to $2.7 billion, before seeing steady but more muted growth to $2.9 billion next year and $3.2 billion in 2014.

Meanwhile, March 2012 figures from BIA/Kelsey indicate that local TV stations saw a 19% increase in their online revenues to $536 million in 2011, a figure that is expected to increase to $621 million this year and $976 million by 2016.

Total Local Online Revenue Also Up

Meanwhile, the TVB report indicates that total local online advertising revenue grew 20.6% year-over-year in 2011, rising to $16.4 billion from $13.6 a year earlier. This was a notable increase, given that revenues had only risen modestly from 2008 ($12.9 billion) to 2010 ($13.6 billion). Total local online ad revenues are forecast to maintain their upward climb, expected to increase 21.3% this year to $19.9 billion before growing another 14% to $22.7 billion in 2013.

TV Station Share of Total Grows

Broadcast TV stations took 12% share of all local online advertising revenue in 2011, representing a 15.4% increase from 10.4% share a year earlier. Pure play companies held the largest share, at 46.2%, followed by newspapers (24.7%) and directories (12.6%). Radio (1.8%) and magazines/other print (1.7%) held only fractional shares of the total, as did cable/satellite TV (1%).

Majority of Sales From Banners Ads

TV stations derived roughly 70% of their sales from untargeted banner (58.7%) and and targeted banner (11.6%) ads in 2011. Streaming video accounted for 17.1% share of sales, while email (9.7%) and paid search (2.9%) accounted for the remainder. Newspapers derived an ever greater proportion (90.1%) of their sales from banner ads, relying less on paid search and email. For directories, the gap between banner ads (52.5%) and paid search (40.4%) was much narrower, while for pure play companies, paid search accounted for 62.7% of local online advertising revenue.

Overall, paid search held 34.7% share of the local online ad market in 2011, closely followed by untargeted banner ads, at 33.2% share. Targeted banner ads accounted for 11.2% share, but are forecast to rise to 16.2% share, per a Borrell Associates forecast released in November 2011.

Chart-Library-Ad-1

Explore More Articles.

Which Skills Are Important in RevOps?

Which Skills Are Important in RevOps?

9 in 10 RevOps professionals view data analysis skills as being important, a high percentage also don’t believe they need this skill for their job.

Marketing Charts Logo

Stay on the cutting edge of marketing.

Sign up for our free newsletter.

You have Successfully Subscribed!

Pin It on Pinterest

Share This