BIA: TV, Radio To Double Online Rev By 2014
Digital revenue at TV and radio stations will roughly double over the next five years, according to the BIA/Kelsey's 2010 U.S. Local Media Annual Forecast, both in raw dollars and as a percentage of their stations' overall revenue.
The growth rate for local digital advertising will outstrip the growth rate for broadcasts dollars, at 17.8 percent annually vs. 2.8 percent overall.
- TV stations will see online and mobile revenue grow from $500 million last year to $1.2 billion in 2014, and will grow from 3.2 percent of station revenues to 7 percent.
- Radio stations will see online and mobile revenue grow from $400 million last year to $800 million in 2014, and will grow from 3 percent of overall revenue to 5 percent.
"Broadcasters must evolve to participate in more areas of the media ecosystem," said Rick Ducey, BIA/Kelsey's chief strategy officer. "This means developing the right multiplatform and multiple revenue stream strategies, which in turn requires new workflow, partnerships, business models and resources.”
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BIA/Kelsey released the breakdown in advance of its Digital Strategies for Broadcasting 2010 conference, which will be held in May.