BIA Predicts 15% Drop In TV Station Ad Revs

arrow downChantilly,Va-based BIA Advisory Services forecasts a 15% drop, or $3 billion in TV stations advertising revenues for 2009.

Total local and national spot advertising revenues will land at $17 billion by year's-end -- down from $20.1 billion in 2008. Although 2008 was a presidential election and Olympics year, BIA said the marketplace sank 6.6%, caught in the vortex of a rapidly weakening economy.

For a two-year period from 2007-2009, BIA notes the industry has seen an overall 21.2% decline in advertising revenues. From 2004 until 2008, TV station revenues were at $22.4 billion, $21.0 billion, $22.8 billion, $21.5 billion and $20.1 billion, respectively.

Next year, the research firm suggests a slight improvement in ad dollars, up 0.6% to $17.1 billion because of it being a strong election year, as well as the much-anticipated recovering economy.

But the company warned that 2011 will see a decline again, bouncing back to some positive results in 2012. In 2012, it cites, according to the National Associating of Broadcasters' FastRoad, that TV stations could grab an additional $1.1 billion due to growing mobile video programming -- efforts that big TV station groups have been rallying behind in recent months.



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