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Radio, TV Ad Growth Skews Regional

Revenue growth for TV and radio stations will mostly come form the Central Gulf, Pacific and Mountain media regions, especially in Texas and California, according to SNL Kagan's "Radio/TV Station Annual Outlook."

The report sees radio revenues in rated markets growing at a compound annual growth rate (CAGR) of 3.3% from 2006 to 2011, with unrated markets growing more slowly. Television, with its uneven cycle linked to the Olympics and political campaigns, should get a five-year CAGR of 1.5% for local and national spot ads. "Competition from new media is pressuring broadcasters to better leverage their greatest asset -- their connection with the local community," says Michael Buckley, analyst for SNL Kagan.

"Broadcasters communicate with their local-market constituency better than any other media," says Buckley, "but a fresh stage of monetizing those relations will require greater insight into the local market's growth potential over the next several years."

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