• by Jack Loechner , Staff Writer @mp_research, July 1, 2003

Internet Presence Lures New Advertisers to Local TV

According to a study by media research firm Borrell Associates, reported by Daisy Whitney in tvweek.com, online advertising has become a catalyst for TV stations to generate new broadcast dollars.

"TV stations as a whole generated about $72 million in online advertising revenue in 2002, about 4 percent of the total $1.65 billion pie spent in local Internet advertising, said Gordon Borrell, president of Borrell Associates. "About one-quarter of the 157 stations surveyed were using their Internet sites specifically to lure new-to-TV advertisers, such as real estate and employment recruiting."

Whitney writes that NBC is one of the station groups leading this trend and expects to generate at least $35 million in Internet ad sales across its 14 owned-and-operated stations this year, up from about $25 million last year. More important, NBC owned stations will bring in this year an additional $70 million to $80 million in new broadcast revenue, either from increased share on existing deals or from entirely new advertisers, said David Overbeeke, executive VP and chief information officer for NBC.

Internet revenue is a drop in the bucket compared with the broadcast dollars that stations draw, but its significance is strategic, Mr. Borrell said. "TV stations are incredibly dependent on local ad dollars because of the drop in network revenue."

You can find out more here.