Originally featured on BroadcastEngineering.com
Local TV advertising spending up 13 percent in 2010, BIA/Kelsey reports
Spending on local television advertising is up 13 percent over 2009 levels, and local advertising in general is growing slightly faster in 2010 compared with earlier estimates, according to BIA/Kelsey.
The firm's executives told attendees of its Directional Media Strategies 2010 conference in Dallas last week that overall local advertising will reach $133.3 billion by the end of 2010. The figure, published as part of the research firm's mid-year update to the BIA/Kelsey Annual U.S. Local Media Forecast (2009-2014), represents a 2.1 percent increase over 2009, compared with the firm's original estimate of a 0.95 percent decline.
Two media categories that have seen greater than expected growth in 2010 are television, due to stronger political advertising, and online advertising, up 30.2 percent over 2009.
While the rebound is a positive sign for media in general, which struggled mightily during the recession, a solid recovery is not yet at hand. "We don't expect to see meaningful recovery until 2012," said Neal Polachek, president, BIA/Kelsey.
From 2011 to 2014, growth rates are expected to be slightly slower, with the 2014 total local advertising estimate close to what was originally forecast.
BIA/Kelsey's forecast is the foundation for the firm's newest offering, "Media Ad View: Category Report." The report provides a five-year projection of advertising revenues across 12 media categories, including cable TV, direct mail, e-mail reputation and presence management, Internet Yellow Pages, magazines, mobile, newspapers, online, out-of-home, print Yellow Pages, radio and television, and the top 12 advertising categories in markets nationwide.