The growth of digital advertising revenue for local TV and radio will outpace overall ad spending for those media between 2009 and 2014, according to a BIA/Kelsey study released yesterday.
Digital revenue from mobile and Web platforms will grow at a 17.8 percent compound annual rate to $2 billion compared to total ad revenue, which will grow 2.8 percent to $34.3 billion.
By 2014, local TV digital ad revenue will reach $1.2 billion and represent 6.5 percent of the segment's total $18.3 billion in revenue, up from 3.1 percent in 2009. Radio digital revenue will reach $800 million, representing 5 percent of the category's $16 billion total, and up from 2.9 percent last year.
"Broadcasters must evolve to participate in more areas of the media ecosystem," said Rick Ducey, chief strategy officer for BIA/Kelsey. "This means developing the right multiplatform and multiple revenue stream strategies, which in turn requires new workflow, partnerships, business models and resources."
Though the BIA/Kelsey forecast shows total revenue increases for both radio and TV between 2009 and 2014, those media are still playing catch-up to 2008, when TV revenue totaled $20.6 billion and radio totaled $16.8 billion.
In 2010, TV revenue is expected to increase 4.3 percent to $16.8 billion -- with digital revenue hitting $600 million, a 20 percent increase. Radio revenue will inch up 1.5 percent to $13.9 billion -- with digital revenue increasing 25 percent to $500 million.
