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Report: Local TV Ads Worth $21 Billion by 2017

1 May, 2013 By: Doug McPherson

CHANTILLY, Va. – Media advisor BIA/Kelsey says that by 2017, local TV stations’ traditional TV advertising revenues will rise 12.5 percent to $21.5 billion from $19.2 billion before 2014. This doesn’t include growing digital TV advertising dollars that stations are recognizing – estimated to be $700 million this year and rising to $1.1 billion in four years.

But this year’s ad dollars will be down from the $20.8 billion the industry took in last year, $600 million of which came from online revenues. Political and Summer Olympic advertising was a major reason for the rise in 2012 – a 13.2-percent gain over 2011.

Mark Fratrik, vice president and chief economist, BIA/Kelsey, told Media Post News that last year’s revenues accelerated quicker than anticipated and overall, political advertising was the driving force for television stations, as is typical for a presidential election year. Fratrik says he expects the pace to normalize this year, but continue its upward trend to pre-recession numbers, in part due to online revenues.

BIA/Kelsey predicts a 6.3-percent rise in traditional TV revenues in 2014 to $20.4 billion and a 17-percent rise in online revenue to $800 million.

As for 2016, the next big election and Olympic year, BIA/Kelsey sees a rise to $21.9 billion in traditional TV revenue and $1 billion in TV stations’ online revenue. It will then fall back (as it has done for 2013 versus 2012) the next year, 2017, landing at $21.5 billion.

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