Local TV Ads Forecast To Rise 8% In 2014

Traditional local TV station advertising revenue in 2014 will score solid high-single-digit percentage gains versus the year before -- with growing digital advertising adding to its revenue totals.

BIA/Kelsey says traditional TV station advertising will land at $19.9 billion at the end of 2014 -- up from $18.4 billion in 2013, a 8.2% gain. Digital advertising sales for TV stations will grow by 14% to $800 million.

TV stations' strong growth can be largely attributed to the usual every-other-year higher political advertising/Olympic games spending. "This year, there will be a significant uptick in ad revenues driven by political ads in hotly contested states," stated Mark Fratrik, senior vice president and chief economist, BIA/Kelsey.

Looking at the year-ago local TV advertising categories, BIA/Kelsey says automotive dealers were at $3.5 billion; wireless telecommunications, $772 million; hospitals, $652.7 million; and full-service restaurants, $558.3 million.

Estimates are that digital advertising revenue will continue to see higher percentage growth -- while traditional TV advertising sales will have every-other-year ups and downs.

In 2015, traditional TV sales are forecast to dip to $19.4 billion; rising in 2016 (a big presidential election/Olympic year) to $21.3, dropping to 20.8 billion in 2017, and increasing to $22.1 billion in 2018.

Digital advertising for TV stations will increase in $100 million increments over the next four years to $900 million in 2015, $1 billion in 2016, $1.1 billion in 2017, and $1.2 billion in 2018.



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