• by Wayne Friedman , April 20, 2010

TV stations' Web businesses fared better than newspapers' declining digital efforts in 2009, but TV is still behind in overall advertising share of media dollars.

According to new data from the Television Bureau of Advertising -- by way of media researcher Borrell Associates -- TV station's digital businesses rose to 8.7% share in 2009 from 8.3% in 2008.

Although newspapers dipped year-to-year, they still have almost three times the share of TV, with newspapers now at 23.6% share, down from a 27.7% in 2008. Newspapers had around a 44% share six years ago.

This year, TVB says stations' Web business will continue to rise -- 21% to $1.391 billion. But in 2011 and 2012, things will slow down, rising 13% to $1.578 billion; and then a 7% gain to $1.684 billion, respectively.

Helping out TV stations, according to Borrell, were TV Web sites, which reduced dependence on display advertising with mobile and video advertising gaining ground.

Borrell Associates says this is a similar pattern that occurred with newspaper online sales, which "stalled out after saturating their current advertiser base." Newspapers posted just over $3 billion in digital revenues, as part of the overall $13.4 billion in local online advertising in 2009.

Borrell says growth in local digital advertising will now start to plateau. Next year, it estimates the entire market will be $15.9 billion; 2012 will see $16.1 billion; and 2013 will grow to $16.4 billion; with 2014 holding at $16.4 billion.

"We are now approaching a very mature market," says Gordon Borrell, CEO of Borrell Associates. "There is just too much competition." He estimates the current 14% share of local digital advertising against local advertising's overall $93 billion total will top out at about 18% in a few years.

Borrell says "pure play" local digital advertising platforms continue to retaining their dominant share -- now at 51.9% in 2009, up from 47.2% in 2008. Newspapers are second with a 23.6% share; directories are at 10.6%; followed by TV at 8.7%; magazines at 2.3%; radio at 1.7%; and other, at 1.2%.