Report: Interactive Ad Revenue Growth to Slow

November 7, 2008

One bright spot for broadcasters in the current economic catastrophe has been the growth of income from local TV Web sites, which have enjoyed massive growth in views of pages and video clips.

Disappearing ad dollars has already led to slower growth on some Web ventures even as traffic increases. But a new report says that gravy train will slow even more in 2009.

Borrell Associates, a researcher based in Williamsburg, Va., forecasts that local broadcasters’ interactive ad revenue will rise just 9 percent in 2009—to $13.9 billion—down from a whopping 47 percent growth rate expected for 2008.

“Local media companies projecting double-digit and even triple-digit increases in their interactive budgets next year will have a very difficult time meeting those expectations—especially if they rely on banner ads,” the study’s executive summary says.

The complete report is available for purchase from Borrell Assoiciates.



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