TV Stations To Post 12.6% Rise In 2016 Ad Revs; 13.3% Gain In Online/Digital

 

•  by Wayne Friedman, May 9, 2016, 5:36 PM

In the midst of a big election year -- and Summer Olympics to come -- U.S. TV stations are poised to see strong double-digit percentage rises in over-the-air advertising revenues in 2016.
TV station advisor BIA/Kelsey forecasts this to total $20.8 billion, up 12.1% over 2015. By way of comparison, BIA/Kelsey says local TV over-the-air revenues sank 7.2% in 2015 versus 2014.

This year, local TV stations' digital/online revenues will rise by around the same rate as-over-the air TV -- up 13.3% to $1.0 billion.

 

During the last Presidential election year -- 2012 -- local TV stations were estimated to have taken in $20.3 billion in over-the-air advertising (13.4% over 2011) and $600 million in online/digital advertising (a 20% hike over 2011).

 

BIA/Kelsey says this year, East Coast TV stations will see an 11.1% gain, versus a 7.9% decrease in 2015. Southern TV markets will rise 12.6% in 2016; after a 6.0% decline last year. Western TV stations will grow 11.9% versus a 9.6% fall in 2015.

 

Midwest markets will see the greatest climb -- up 14.6% versus a 7.2% drop a year ago. Southwest markets will rise the least -- up 8.4% in 2016. Southwest TV stations witnessed the smallest decline of any region in 2015 -- down 4.5%

 

Mark Fratrik, senior vice president and chief economist, BIA/Kelsey, stated: "The election and the economy, driven by stronger employment figures and continuing low interest rates, are helping push local TV ad revenues above expectations this year."