Retrans, Digital Fees Boost Local TV Ad Base

In the coming years, local TV advertising growth will grow between 2.5% and 4% per year, doubling that pace during strong Olympic and political advertising seasons.

A report from BIA/Kelsey on local media projects that local TV advertising growth will be increasingly supported from retransmission and digital revenue additions. For example, it expects 20.6% compound growth of retransmission revenue over the next five years. In 2012, retrans revenue totaled $2 billion.

Much of the activity -- as well as strong balance sheets and access to cheaper debt -- has helped boost TV station group stock prices in the recent year, 185% higher through the first three quarters of 2013.

Looking at the entire local media category -- some 55 companies -- stock prices rose 64.9% -- versus a broader measure of overall public companies, the S&P 500 Index, which gained 15.6% during the first nine months of 2013.

BIA/Kelsey estimates that local media spending will total $132.7 billion for 2013 -- with local TV taking in 14.9% of the market. The largest share continues to be direct mail at 27.2%, and newspapers at 16.1%.



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