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Newspapers Still Dominate Local, But TV And Radio Growth Rates Zoom Ahead: Borrell

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Local newspapers sites still generate the highest ad revenues among traditional media, at an estimated $3.7 billion, but local radio and TV sites’ growth rates are double, a report from local media analyst Borrell Associates, with help from BIA Financial, predicts. Aside from the worsening economy and chaos on Wall St., newspapers’ growth is hindered by its limited diet of display ads and the usual pool of marketers they tend to rely on for the print side. But the report also shows that newspapers, along with local TV and radio, are still relatively strong versus internet companies not tied to traditional media. That said, the rise of TV and radio will continue to cut into newpapers’ local dominance.

TV and radio to grow rates double newspapers’: From 2002 to the end of this year, local newspaper sites’ growth rate is expected to have amounted to 33.5 percent gains, compounded annually. Local TV and radio station sites, during this same period, are projected to have grown 67.2 percent and 69.9 percent on that same basis. That’s also ahead of what Borrell calls “pure-play” internet companies like *AOL*, *Yahoo* and *Google*, which don’t have a traditional ad spend side. The pure play category is anticipated to have grown 40.5 percent every year through the end of 2008. But because of newspapers’ head-start and cross-selling opportunities, their value will still dominate.

Lots more after the jump

Display’s decline hurts newspapers: Newspaper online revenue growth is below overall local online spending growth. Also, the rate of growth in newspaper online ad revenue is declining. Borrell attributes this to newspaper sites