$805 Million Collectively Represents 7.3%
of All Local Online Advertising Dollars In 2008
CHANTILLY, VA. - May 8, 2009 - According to new research from BIA Advisory
Services broadcasters are showing signs of progress by developing Internet
revenue for their stations. Based on industry-wide surveys conducted by BIA,
through public company documents, and discussions with industry owners and
insiders, BIA estimates radio and televisions stations collectively drove
approximately $805 million in online dollars, equal to 7.3 percent of the $11
billion local online advertising money spent in 2008, as reported by BIA
subsidiary The Kelsey Group.
This breaks down to $342 million for radio and $463 million for television in
2008. BIA projects the broadcasting industry's online revenue will climb to
as much as $1.9 billion by 2013 if the industry continues its transformation
to multiplatform solutions.
"We see a compounded annual growth rate of 18.6 percent for online
broadcasting advertising over the 2008 - 2013 period," said Mark R. Fratrik,
Ph.D., Vice President, BIA Advisory Services. "Given the challenges facing
broadcasting, it's even more important for broadcasters to continue to
step-up their mobile and Internet offerings."
The chart below shows radio and television Internet revenues from 2008-2013
as projected by BIA Advisory Services.
Source: BIA's MEDIA Access Pro(tm)
BIA is organizing a conference in May, "Winning Media Strategies," focusing
on traditional media's financial challenges and how it must transform within
the changing media ecosystem in order to survive. Radio and TV operators must
recognize and address the changes underway, the impact on advertisers,
understand what innovative companies are doing, and who they can partner with
in order to become viable media companies in the coming years.
"Media organizations must utilize their tremendous brand equities and
relationships with local advertisers to leverage their current offerings into
new media platforms and vigorously cross promote them," said Rick Ducey,
chief strategy officer of BIA. "While online-only companies had to start from
scratch, broadcasters have the opportunity to reach their audience on and
offline to build audiences and appeal to advertisers."
"Winning Media Strategies" is a three-day program, May 20-22, 2009 in
Washington, D.C. Speakers will discuss new technologies, shifting consumer
demographics, media usage trends, new competition, and how different business
models are driving new revenue to traditional media. Additional details and
registration information is available at www.bia.com/WMS.