Local TV stations are getting a clue.
In an effort to increase revenues, broadcasters have shifted into high gear with their digital advertising forays. That has led to an estimated all-time high of nearly $3 billion in new ad revenue for stations this year, according to new research commissioned by the Television Bureau of Advertising (TVB).
TVB is the not-for-profit trade association of America’s commercial broadcast television industry.
The study, conducted by Borrell, encompassed 815 stations and reported that broadcasters upped their revenue by at least 15 percent last year.
“The growth of local broadcast stations’ online and mobile offerings is driving rapid advertiser adoption and is proof positive that digital media is a perfect complement to local television stations’ proven reach and targeting,” said TVB President & CEO Steve Lanzano. “As a result, broadcast-plus-digital packages have become tremendously more powerful than just stand-alone digital media buys.”
The Borrell study, commissioned annually by the TVB since 2002, tallies local television broadcasters’ aggregate online advertising revenues in all 210 TV markets by total spending as well as ad format type.
The recent survey found that stations generate the vast majority of revenue (82 percent) from two formats – display (banner) ads and streaming-video spots. Both digital advertising formats are enjoying increased visibility and growth. In addition to revenue gains, it indicates that TV broadcasters are in sync with the changing world of the digital marketplace.
“When it comes to local media companies transforming to this new ‘digital’ marketplace local TV broadcasters are in a very envious position,” said Gordon Borrell, CEO of Borrell Associates. “Broadcasters have an exclusive on the mass reach and targeting that advertisers want, through a unique combination of the traditional television and digital media platforms. It’s a very powerful package, which is why we’re seeing this growth.”
The report is available on the TVB website. It includes highlight of the year’s survey. To see more, go here.