A new report by BIA/Kelsey (via MediaBuyerPlanner.com) shows U.S. local ad revenue across all media will see an annual growth rate of 2.2%, reaching $144.9 billion in 2014. The report predicts slowly recovering spending this year and next, with meaningful recovery beginning in 2012.
Digital TV and radio local ad revenue will grow at a much higher rate than overall revenue. Mobile and web platform digital ad revenue in the TV sector is predicted to rise 20% versus an expected increase of 4.3% for local TV revenue. On the radio side, radio revenue will grow 1.5%, while the digital revenue will surge 25%.
The key to harnessing this projected digital growth, according to BIA/Kelsey’s chief strategy officer is that broadcasters must “participate in more area of the media ecosystem.” Multiple platforms equal multiple revenue streams which will be of increasing importance as markets fragment and traditional revenues decline.
Friday, Mar 19, 2010
Michelle OBrien