More revenue stats from IB sites

As a follow up to a company blog post (which we reported here), Internet Broadcasting has sent out a press release comparing the revenue performance of its local sites with the competition using data from Borrell Associates. The key stat: IB-affiliated stations had an average of 61% higher revenue from online advertising last year vs. non-affiliated stations — $871,723 vs. $542,275. More data in the release…

Saint Paul, MN (August 13, 2008) — Internet Broadcasting, the leading local Internet solution provider for broadcast publishers and advertisers targeting local markets, today released the results of a custom study from preeminent local research and consulting firm Borrell Associates showing that IB-affiliated TV stations had dramatically greater revenue from online advertising than non-affiliated stations. Among the study’s findings:

* IB-affiliated stations had an average of 61% higher revenue from online advertising last year vs. non-affiliated stations — $871,723 vs. $542,275 for non-affiliated stations.
* IB-affiliated stations had 36% higher average online revenue per household in each market vs. non-affiliated stations — $.71 per household vs. $.52 for non-affiliated stations.
* IB-affiliated stations generate more local online ad revenue in each market — $.53 per household — than non-affiliated stations generate in total online ad revenue — $.52 per household.
* IB-affiliated stations had three times the national online ad revenue per household in each market — $.18 per household vs. $.06 per household.
* IB-affiliated stations had significantly greater online revenue growth projections for 2008 than non-affiliated stations — 48% vs. 35%.

“This study demonstrates that local brands win when working with IB to monetize their web sites,” said David Lebow, CEO of Internet Broadcasting. “Our partners have tremendous revenue pressure in today’s market. Our publishing platform and advertising solutions combine to create meaningful usage and revenue.”

“We’ve always advocated the local media companies not try to tackle the Web on their own,” said Gordon Borrell, CEO of Borrell Associates, “and the results of this study provide solid evidence regarding why that’s so. A partnership with a service provider like Internet Broadcasting helps media companies develop their Web initiatives into a new business line, rather than a new marketing expense.”

“Hearst-Argyle local Web sites aggregate 18MM average monthly unique visitors,” said Roger Keating, Senior Vice President, Digital Media, Hearst Argyle Television. “We have been impressed with how IB’s network has brought national advertisers to our local sites that we otherwise would not have landed. But more importantly, the advertising operations and creative services team at IB has made it relatively easy for our station sites to grow. We get to focus on building compelling content and selling campaigns to local advertisers, and IB’s full service team takes care of the rest.”

The results of the custom study were drawn from the data used to produce “What Local Websites Earn”, a study released by Borrell Associates in May 2008. For more information about the study, visit http://www.stateoflocal.com/2008/08/01/377/.