BIA Finds Broadcasters Showing Progress in Transition to Internet Revenue Development; $805 Million Collectively Represents 7.3% of All Local Online Advertising Dollars In 2008

CHANTILLY, Va.--(EON: Enhanced Online News)--According to new research from BIA Advisory Services broadcasters are showing signs of progress by developing Internet revenue for their stations. Based on industry-wide surveys conducted by BIA, through public company documents, and discussions with industry owners and insiders, BIA estimates radio and televisions stations collectively drove approximately $805 million in online dollars, equal to 7.3 percent of the $11 billion local online advertising money spent in 2008, as reported by BIA subsidiary The Kelsey Group.

“While online-only companies had to start from scratch, broadcasters have the opportunity to reach their audience on and offline to build audiences and appeal to advertisers.”

This breaks down to $342 million for radio and $463 million for television in 2008. BIA projects the broadcasting industry’s online revenue will climb to as much as $1.9 billion by 2013 if the industry continues its transformation to multiplatform solutions.

“We see a compounded annual growth rate of 18.6 percent for online broadcasting advertising over the 2008 – 2013 period,” said Mark R. Fratrik, Ph.D., Vice President, BIA Advisory Services. “Given the challenges facing broadcasting, it’s even more important for broadcasters to continue to step-up their mobile and Internet offerings.”

A chart showing radio and television Internet revenues from 2008-2013 as projected by BIA Advisory Services is available at http://www.bia.com/pr090508-onlinerevenues.asp.

BIA is organizing a conference in May, “Winning Media Strategies,” focusing on traditional media’s financial challenges and how it must transform within the changing media ecosystem in order to survive. Radio and TV operators must recognize and address the changes underway, the impact on advertisers, understand what innovative companies are doing, and who they can partner with in order to become viable media companies in the coming years.

“Media organizations must utilize their tremendous brand equities and relationships with local advertisers to leverage their current offerings into new media platforms and vigorously cross promote them,” said Rick Ducey, chief strategy officer of BIA. “While online-only companies had to start from scratch, broadcasters have the opportunity to reach their audience on and offline to build audiences and appeal to advertisers.”

“Winning Media Strategies” is a three-day program, May 20-22, 2009 in Washington, D.C. Speakers will discuss new technologies, shifting consumer demographics, media usage trends, new competition, and how different business models are driving new revenue to traditional media. Additional details and registration information is available at www.bia.com/WMS.

About BIA Advisory Services, LLC

BIA Advisory Services, LLC, a subsidiary of BIA Financial Network, provides research, data, analysis, and financial and strategic consulting to media, telecommunications, technology, directory publishing, and local search companies. BIA Advisory Services includes: The Kelsey Group, experts in traditional and online local media and advertising; BIA Research, providers of competitive and comparative market information and analysis through data services, specialized reporting, engineering studies and mapping; and, BIA Consulting, specialists in business intelligence and corporate growth strategy, and the nation’s leading communications appraisal and valuation firm. Additional information is available at www.bia.com. BIA’s blog is located http://blog.bia.com/bia and the company can be found on Twitter http://twitter.com/BIAfn.

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Internet revenue, online revenue, broadcasting, BIA Advisory Services, Winning Media Strategies, The Kelsey Group, financial analysts