Local TV Stations Expected to Generate $3 Billion in Digital Ad Revenue

Borrell Study Reports Stations’ Digital Ad Revenue up 15% in 2013

NEW YORK--()--Local TV broadcasters have shifted into high gear with digital advertising efforts, driving an estimated all-time high of nearly $3 billion in new ad revenue for stations this year, according to new research commissioned by the Television Bureau of Advertising (TVB).

The Borrell study encompassed 815 stations and reports that broadcasters grew their digital revenue 15% last year.

“The growth of local broadcast stations’ online and mobile offerings is driving rapid advertiser adoption and is proof positive that digital media is a perfect complement to local television stations’ proven reach and targeting,” said TVB President & CEO Steve Lanzano. “As a result, broadcast-plus-digital packages have become tremendously more powerful than just stand-alone digital media buys.”

The Borrell study has been commissioned annually by the TVB since 2002 and benchmarks local television broadcasters’ aggregate online advertising revenues in all 210 TV markets by total spending as well as ad format type. This year’s study found that stations generate the vast majority of revenue (82%) from two formats – display (banner) ads and streaming-video spots. Both digital advertising formats are experiencing high-growth, indicating that TV broadcasters are in synch with the demands of the digital marketplace.

“When it comes to local media companies transforming to this new ‘digital’ marketplace local TV broadcasters are in a very envious position,” said Gordon Borrell, CEO of Borrell Associates. “Broadcasters have an exclusive on the mass reach and targeting that advertisers want, through a unique combination of the traditional television and digital media platforms. It’s a very powerful package, which is why we’re seeing this growth.”

The report is available on the TVB website. Highlights of this year’s survey include:

  • While banners and video comprised 82% of TV station’s digital sales in 2013, in addition to these traditional digital offerings larger station groups are beginning to sell digital services including Search Engine Optimization, reputation management, website design, ad placement outside the TV station’s site, and email list management
  • Top-performing stations – those that aggressively pursue digital ad sales – are generating five times more digital ad revenue than their peers
  • Many stations have branched out beyond their “owned” media and are selling other media properties’ inventory. Reseller and audience-extension programs now account for 5% of digital revenues, a percentage that’s on the rise.

Additionally, the report looks at trends such as TV stations’ share of local ad spend, year-over-year change, TV performance by market size and TV’s sales performance by ad format type. This year’s report also discusses the growth and importance of mobile.

About TVB

TVB is the not-for-profit trade association of America’s commercial broadcast television industry.

About Borrell

Borrell tracks and analyzes local advertising. Its local-market advertising and marketing expenditures can be accesses at http://www.adspending.com.

Contacts

Abby Auerbach
TVB
212.891.2279
abby@tvb.org
or
Joseph Jaffoni
JCIR
212.835.8500
tvb@jcir.com

Release Summary

Commissioned by the TVB, the Borrell study estimates local broadcast television stations will generate $3 billion in new advertising revenue in 2014 due to rapid growth in their digital platforms.

Contacts

Abby Auerbach
TVB
212.891.2279
abby@tvb.org
or
Joseph Jaffoni
JCIR
212.835.8500
tvb@jcir.com