MONTEREY, CA – TV and radio station advertising revenues are poised for recovery, with 2010 ad revenues expected to climb 14.3% and 6.4% respectively, according to new projections from SNL Kagan.
The research firm said Monday that 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.
TV station ad revenue (including on-line) is projected to reach US$19.8 billion in 2010, up from US$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 US$20.9 billion in 2010, a number that the company predicts will grow to US$25.4 billion by 2016.
After dropping 17.7% to US$16.0 billion in 2009, SNL Kagan says that radio station ad revenue will recover to US$17.1 billion in 2010, the highest annual increase since 2003. This figure includes on-line ad spend for stations, which is projected to gain 15.0% to US$552 million. National spot and local ad revenues are expected to gain 17.0% and 4.3%, respectively, and radio station ad revenue is projected to reach US$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 senior analyst, Robin Flynn, in the press release.
