BIA/Kelsey: Outlook for TV Station Revenues in 2010.

Based on encouraging indications that advertisers are returning to local television and a stronger than expected primary election year, BIA/Kelsey, adviser to companies in the local media space, has raised its outlook for the television industry in 2010. In its second edition of the quarterly “Investing In Television® Market Report,” BIA/Kelsey projects the industry will have overall revenues of $18.1 billion, a 10.9 percent increase from 2009. Revenues from online sources are expected to hit $648 million this year, representing a 25 percent growth over last year. BIA/Kelsey anticipates less dramatic positive changes in the latter half of 2010 compared with the third and fourth quarters of 2009, since the second half of last year was stronger than the first.
 
“There’s growing affirmation that local stations are seeing advertisers return. We see this as recognition that television is still the best method to reach large local audiences, whether the message is for a product, cause or campaign,” said Mark Fratrik, Ph.D., vice president, BIA/Kelsey. “This positive sign should help the industry invest in its infrastructure and position it for growth this decade.”
 
Fratrik also noted that 2010 demonstrates the television industry can sustain itself in non-presidential election years. Since 1998, non-election even-numbered years have maintained sustainable growth rates, starting with 6.3 percent that year. Four years later and coming off a recession, 2002 posted a 10.2 percent increase, while 2006 television revenues increased by 8.5 percent.
 
“This year holds promising revenue increases due to the unexpected competitive primary election environment, with more than expected Senate and congressional races,” said Fratrik. “This makes up for the economy not being as strong as we all would hope.”
 
The chart below shows actual television station revenues from 2008 and 2009 and BIA/Kelsey’s projections through 2014.

To view chart CLICK above on ‘More Images’.

For more information at http://www.bia.com