Local TV revenues trend down
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share thisLocal television stations saw their revenue from advertising sales drop by $3.5 million in 2008 to $56 million, down from $59.5 million in 2007, according to a report issued by BIA Financial Network Inc., a Virginia-based market research firm.
It marked the second year in a row that local stations saw revenues fall. In 2006, revenues from advertising hit a six-year high with stations collecting a combined $62.4 million.
The BIA report tracked the six-year period from 2003 to 2008.
Revenues for 2008 proved all the more disappointing because it was an election year, typically when ad spending is at its highest, said Mark R. Fratrik, Ph.D., vice president, BIA Advisory Services.
"Television has the benefit of political advertising every other year and, in an even year, they have the Olympics," Mr. Fratrik said. "However, in markets that were not (presidential) election battleground states, you had double digit decreases instead of single digits. Pennsylvania was fortunate that it was a battleground in both the primary and the general."
Excluding 2006, annual TV advertising sales in the market averaged $58.47 million from 2003 to 2007.
Top-rated WNEP-TV, the local ABC affiliate, raked in an estimated $27 million last year, which accounted for 48.2 percent of the total local revenue, down from 50.1 percent in 2007. WBRE-TV, the local NBC affiliate, had an estimated $11.5 million, or 20.5 percent, of the advertising revenue, down slightly from 20.6 percent in 2007.
WYOU-TV (CBS) earned an estimated $9.4 million, or 16.8 percent, up from 15.5 percent in 2007.
WOLF-TV (Fox) took in $5.5 million last year for 9.8 percent, up a bit from 2007.
WSWB-TV (CW) got $1.9 million (3.4 percent); WQPX (ION), $400,000 (0.7 percent); and WQMY-TV (My Network) at $300,000 (0.5 percent), brought up the rear in 2008.
A major problem for local television was that carmakers and retailers put the brakes on ad spending, which severely hurt revenue, Mr. Fratrik said.
"Car advertising went through the basement. It dropped out," he said. "Auto advertising is the largest category of all for local television with some generating 35 percent of revenues from national and local dealers."
Already this year, advertising dollars from the auto industry have fallen 52 percent nationally and 28 percent locally, according to the Television Bureau of Advertising.
Total advertising revenue for local stations is forecast to be $46.8 million this year and $47.1 million in both 2010 and 2011.
"Indications are that revenues won't soon bounce back," Mr. Fratrick said.
STACY BROWN, a Times-Tribune Lifestyles writer, writes about media every week. Contact him at sbrown@timesshamrock.com.
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