TV Station Ad Revenue to Grow 3 Percent Through 2022, Kagan Says

Retrans, digital becoming bigger share of income
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NEW YORK—Television station ad revenue is expected to grow at a 3 percent compound annual rate over the next five years, according to a new report from Kagan.

Kagan, a part of S&P Global Market Intelligence, said TV stations generated $30.84 billion in revenue in 2016, including advertising and retransmission consent payments. Radio stations generated another $17.7 billion in revenue.

TV advertising revenue is expected to decline 6.5 percent to $21.38 billion in 2017, a non-election, non-Olympic year. But in 2018, ad revenue will increase to $23.43 billion, with the Winter games and mid-term political campaigns.

Kagan said that while political ads will remain important, the TV station business is expected to become less reliant on the traditional spot marketplace, with a bigger share of revenues coming from retransmission and digital, reducing the swings from even and odd numbered years.

This story first appeared on TVT's sister publication B&C