BIA Estimates Local Broadcast TV Ad Revenues to Top $23.8 Billion in 2024, Bolstered by Political and Increased Auto and Legal Ad Spending
BIA CEO Addresses Television’s Share of the Local Advertising Marketplace for Key Ad Spending Verticals…
CHANTILLY, Va. (March 26, 2014) – For the fourth consecutive year, Hubbard Radio’s all-news station, WTOP, remained the country’s top revenue producer in 2013, according to the first edition of BIA/Kelsey’s Investing In Radio® Market Report, a quarterly report published by BIA/Kelsey, adviser to companies in the local media industry. The Washington, D.C., station, which operates beyond the traditional over-the-air model, took in $63.5 million in advertising revenues, as overall industry revenues remained near 2012 levels at $14.8 billion.
“WTOP is morphing into a digital media company by providing access to its audience in many different ways beyond over-the-air,” said Mark Fratrik, senior vice president and chief economist, BIA/Kelsey. “Their approach is serving them well and their model demonstrates that as the industry continues to adopt a multi-platform approach, it will engage audiences and sustain growth.”
The top four highest-revenue radio stations appeared in the same list in 2012. New York’s WLTW moved up from seventh to the fifth spot, with $45 million in billings. Los Angeles station KBIG leapt from 13 in 2012 to seven, with $44.5 million in revenues. Four of the top 10 stations have an all-news format. WFAN in New York, with $43 million in ad sales, is the only sports/talk station in the top 10.
In 2013, overall radio revenues from over-the-air were $14.3 billion, with online generating $570 million. BIA/Kelsey forecasts both sources of income to continue growing at a slight pace over the next few years, reaching $16.7 billion in 2018, on par with what over-the-air produced on its own 10 years ago.
A complete profile of every Arbitron-rated market, with historic and projected demographic and financial statistics, is available in the 2014 first-quarter edition of “Investing In Radio® Market Report,” which is now available for purchase. It also includes station competitive and performance information, including 12-plus total day Arbitron ratings for the past eight ratings periods, BIA/Kelsey’s estimated advertising revenues, technical data, ownership and acquisition information and more details for every market. Information in the Investing In books is also available in Media Access Pro™, a data and analytical service that delivers comprehensive information on the radio, television and newspaper industries.
BIA/Kelsey’s forecast methodology is based on actual estimates of local online market advertising revenue totals. Estimates are solicited from local radio stations and knowledgeable local market experts. To provide an accurate review of the advertising marketplace, the model does not include revenues of e-commerce sales through daily or weekly deal campaigns or any retransmission consent.
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BIA/Kelsey advises companies in the local media space through consulting and valuation services, research and forecasts, Custom Advisory Services and conferences. Since 1983 BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at http://www.biakelsey.com, on the company’s Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey). Stay connected by subscribing to the firm’s bi-monthly newsletter.