06.19.2008 03:30 PM
Kagan Projects Strong Revenue Growth for Western DMAs
TV markets in California, Arizona and Nevada are expected to generate the most revenue growth over five years, according to research from Kagan.

Overall, TV revenues are expected to rise at a compound annual growth rate of nearly 4 percent between 2007 and 2012, “despite a 2007 decline of 8.5 percent generated by the writers“ strike and advertising migration to the Internet,” Kagan stated in the announcement of its report, “Radio/TV Station Annual Outlook.” TV revenues are expected to rise nearly 9 percent this year on the strength of political advertising.

With regard to individual markets, the Charlottesville, Va., media research firm put Las Vegas, Nev., at the top of the list, projecting a CAGR of 6.2 percent from 2007 to 2012. San Diego, Calif., was pegged at No. 2 with a projected CAGR of 6.1 percent. Los Angeles was third, with a projected CAGR of 5.7 percent, while Phoenix, Ariz., came in at 5.6 percent, as did the San Francisco designated market area.

In the Great Lakes states, slow retail growth and auto industry layoffs are expected hold broadcast TV revenues to a CAGR of 2.7 percent, 2007-12. Central Southern states, particularly those affected by Hurricane Katrina, are expected to peg slow growth, with a projected CAGR of just under 3 percent.

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