Local TV stations are expected to make more than $1.1 billion for online advertising this year, up 45 percent over 2007, according to a report by Borrell Associates, which offers a similarly bright outlook for online TV and the local web spending in general. The report, conducted on behalf of Television Bureau of Advertising, a local station trade group, gathered data from 534 TV stations from Borrell’s database of 3,096 local web properties.
While Borrell said local TV operators generated $772 million in internet sales 2007, for a growth rate of 72 percent over 2006, this year’s 45 percent slower growth is the result of the law of large numbers – a factor cited in the online space’s reduced growth rate overall. Still, considering most online advertising growth rates are well under the 30 percent highs of the past few years, local’s expected gains are still more than healthy. To put individual TV stations’ online revenue activity within the larger context of a local online ad surge, Borrell is forecasting total local ad growth of $13.01 billion by 2012, with $9.89 billion this year, compared to $7.63 billion in 2007 – a 29.6 percent increase. Some more details from Borrell’s TVB report (not available online) after the jump.
— Ending convergence: In a study on local online advertising in November, Borrell argued that bundling traditional and non-traditional media under one ad sales team had a dampening effect on the growth on internet revenues. Looking only at local TV, Borrell finds that most are adding online-only sales reps in an effort to sell a growing stable of unsold web inventory. The report finds these sales teams have their work cut out for them: “Nearly three-fourths of all TV site inventory is unsold. Looking ahead, TV sites should continue to gain share this year in most markets, topping $1.1 billion in online ad revenue overall.” Additionally, it helps to keep in mind that digital ventures remain a small piece of the broadcast TV puzzle; it
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