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Local TV Ads Dip 8% In ’11, But Trending Up

2011 was not a good year for local TV advertising — dropping nearly 8% versus the year before. BIA/Kelsey says advertising revenue for TV stations’ over-the-air-efforts pulled in $17.9 billion, down from $19.4 billion in 2010.

While local TV stations did improve substantially from their online/digital efforts — up 18.7% — it was not enough to make up the difference. Online ad revenues increased to $535 million from $450 million in 2010.

Better — but not great — news will come during this year, when usual sharp gains from political and Olympic advertising kick in. BIA/Kelsey says both on-air and online revenues will reach $20.3 billion.

Mark Fratrik, vice president and chief economist, BIA/Kelsey, stated: “Advertising income for local television is trending upward and showing signs of rebound, with a good first quarter for many public television companies. Still, the 2012 over-the-air television advertising market is not what it was 11 years ago.”

BIA/Kelsey says television’s share of overall local media will continue to grow — 13.9% in 2011, rising to 14.3% in 2016. The group expects local television to continue to get a “significant boost” from online revenues in the coming years — almost doubling its current ad totals to $1 billion by 2016.

Combined TV and online is estimated to be $22.8 billion by 2016 — nearly the record levels recorded in 2006. Just over-the-air TV will climb to $21.8 in five years.

Overall, local media is estimated to be $151.3 billion by 2016, up from $132.8 billion in 2011.

via MediaPost Publications Local TV Ads Dip 8% In ’11, But Trending Up 05/02/2012.


About Bob Innes

Who am I and what I do best! I am a skilled Sales and Marketing team player known for performing behind the scenes miracles that increase base distribution, improve customer relationship management, exceed annual sales volume,and profitability for Consumer Packaged Goods companies. And I've been doing it for over 15 years. My successful contributions include such clients as Kraft Foods, Mars, Bumble Bee Foods, Unilever, Johnson and Johnson and SC Johnson, and JM Smuckers.


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