Local TV revenues will climb modestly this year -- partly due to the Winter Olympics and mid-term political elections.
Total TV revenues from traditional advertising, digital advertising and retransmission fees will grow 5.8% to $27.7 billion versus the year before, according to local media research consultant BIA Advisory Services.
Traditional local TV advertising will rise 5.8% to $18.2 billion -- a gain of $1.1 billion -- while digital advertising will increase 6.3% to $1.1 billion, adding $70 million. Retransmission fees will grow 4.2% to $8.4 billion -- up $340 million.
TV advertising revenues typically spike every other year, due to Olympics and political ad spending. The 5.8% hike this year would be less than 2014 -- the last time the Winter Olympics and mid-term elections were held -- when it grew 8.9%.
Still, there is positive news: Mark Fratrik, senior vice president/chief economist at BIA Advisory Services, stated: “Of all media, television still dominates in political years, even as campaigns integrate more digital advertising into their overall strategy.”
BIA projects a 4.9% decline in total TV station revenues in 2019, but forecasts they will be 7.4% higher in 2020, when the Summer Olympics/presidential election is held. That increase in revenues would be down from the 11.3% hike in 2016, the previous Summer Olympics/presidential election.