According to the Television Bureau of Advertising (TVB), total spot television advertising revenue to drop off between 2-5% in 2009 from 2008 figures. Online ad revenues for local TV stations, however, are expected to increase 25-35%.
More specifically, local spot TV is expected to decline between 1-2%, while national spot TV is expected to decline between 7-10%.
During the first half of 2008, total spot TV revenue has dropped 5.1%, with automotive advertising off 13.5% from last year’s figures.
With no big events (compared to the Olympics and election-fueled 2008) set to appear in 2009, the revenue horizon looks bleak for traditional TV. However, this could be a major reason that local TV stations gain revenue online next year.
The lackluster year expected for broadcast TV “will allow them to redirect resources to the Internet," said Gordon Borrell, CEO of Borrell Associates.
NBC, for one, continues to establish a large impact on its Web presence, even going so far as to unveil premieres earlier online. These premieres are made available before they are aired to the TV-watching public.
Local TV stations may rather prefer the old model of unveiling episodes online only after they premiere on traditional TV, which is why other major networks have been hesitant to follow NBC’s moves.
Regardless, traditional TV has been forced into adjusting to the huge influence that the Internet has had on consumer consumption. Other networks will most likely bow to the pressure it feels from viewers and risk-taking companies such as NBC, and will make more of its content available for free online, earlier than usual.
Sources:
http://www.newsfactor.com/story.xhtml?story_id=61918
http://www.emarketer.com/Article.aspx?id=1006578
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