Updated projections indicate 14.3% ad revenue growth for TV stations and 6.4% for radio stations.
According to updated projections from SNL Kagan, TV and radio station advertising revenues are poised for recovery, with 2010 ad revenues expected to climb 14.3% and 6.4%, respectively. While the massive declines experienced by both industries in 2009 create a favorable year-over-year comparison, increased spending on political and auto advertising, tighter inventory and growing rates are also expected to drive revenues.
The bounce-back in ad revenues, combined with other positive trends, such as growing digital dollars, have reassured investors, who have bid radio station stocks up 36% and TV station stocks up 26% year-to-date
SNL Kagan projects TV station ad revenue (including online) will reach $19.8 billion in 2010, up from $17.3 billion in 2009, when industry ad revenue hit the lowest level since 1995. Total TV station revenue, including that derived from retransmission fees, is expected to reach $20.9 billion in 2010, a number SNL Kagan predicts will grow to $25.4 billion by 2016.
After dropping 17.7% to $16.0 billion in 2009, SNL Kagan projects radio station ad revenue will recover to $17.1 billion in 2010, the highest annual increase since 2003. This figure includes online ad spend for stations, which is projected to gain 15.0% to $552 million. National spot and local ad revenues are expected to gain 17.0% and 4.3%, respectively. SNL Kagan projects radio station ad revenue will reach $19.8 billion by 2016.
“The bounce-back in ad revenues, combined with other positive trends, such as growing digital dollars, have reassured investors, who have bid radio station stocks up 36% and TV station stocks up 26% year-to-date,” said Robin Flynn, senior analyst with SNL Kagan.
This data is available as part of the SNL Kagan Information Service. To find out more, contact sales (at) snl (dot) com or 866.296.3743.
SNL Kagan will be hosting the 27th Annual TV and Radio Finance Summit on Wednesday, June 16 at the Millennium Broadway Hotel in New York City. The Summit will take an unbiased look at the prospects for revenue, growth and transactions across the changing shape of the broadcasting sector. For more information, call 434.951.7786, or go to www.snlcenter.com/radiotv and register today.