Local TV ad revenues projected up double-digits in 2008
By Erina Lin, Friday 11 January 2008 at 23:48 :: Advertising :: #1092 :: rss
Local TV revenues, which shrunk over one percent to $22.2 billion in 2007, should go up 11 percent in 2008 due to higher political ad dollars, according to the financial advisory service, BIA Financial Network.
The revenue gain this year will mark a 10-year high for TV station advertising revenue.
In the next few years it will show a fluctuation - BIA projects a three percent decline in 2009, an eight percent gain in 2010 and a 1.4 percent decline in 2011.
"TV station advertising revenues are on a two-year cycle, since they see Olympic advertising and political advertising revenue every other year," BIA stated.
Markets in 2007 with strong growth included Florida, Pennsylvania, Ohio, Virginia, South Carolina, Maine, Iowa, Wisconsin, Colorado, Nevada, and southern California, which all have growth of over 12 percent.
Regions with lower revenue gains of between six percent and eight percent were Vermont, New Hampshire, Massachusetts, Rhode Island, Connecticut, Delaware, Utah, and parts of Montana, North Dakota, Nevada, Kansas, Oklahoma, Michigan and Alabama.
In 2007, sales of 294 stations were valued at an estimated $4.6 billion, compared with 202 sold in 2006 for $18.1 billion.
The top transaction in 2007 was News Corp.'s sale of eight television stations in markets that included Cleveland, Denver, St. Louis, Kansas City and Milwaukee. The second-largest transaction of the year was Lincoln Financial Media's sale of three stations to Raycom Media for $583 million, MediaPost reported.
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