Local TV's Online Revenues Soar

LOCAL TV’S ONLINE REVENUES UP 41% IN 2006
[SOURCE: tvnewsday, AUTHOR: ]
The growth in local television’s online advertising hit 41% in 2006 and the outlook for 2007 projects local online advertising to grow by as much as 55% across local markets, according to a new survey released by TVB. During 2006, local television stations sharpened their focus on the Internet, increasing their online ad revenues to $399 million. By the end of 2007, the report predicts, that figure could hit $618 million. The survey shows that many stations are using the Web as a publishing platform, taking aim at their newspaper and yellow pages rivals by offering classified and directory advertising and have gained nearly a point of share in the past year (“no small feat in the high-growth environment of local online advertising,” the report says). Several stations captured more than 15 percent of all locally spent online advertising in 2006. The survey showed that a total of seven categories comprised half of all online ad categories, and in particular, real estate, health, high-tech and automotive dominated. The report recommends that local broadcasters: 1) rethink the mass-media mentality with an eye toward viewing the Internet as a mass of niches; 2) hire a dedicated sales force; 3) give strong consideration to launching a real estate section; and 4) consider spin-off sites that may not be branded to the station. "[W]hat was once viewed as cotton candy now seems to be a vital nutritional supplement to broadcasters’ health."
http://www.tvnewsday.com/articles/2007/02/07/daily.13/

* For more see http://www.tvb.org

MOST US ADVERTISERS NOW SPENDING ON NEW MEDIA: SURVEY
[SOURCE: Reuters]
Nearly 90 percent of all U.S. companies polled in a new study will use part of their marketing budgets to advertise in new media like video games or virtual communities. The survey by the American Advertising Federation underscores the shift in advertising spending away from television, magazines and, particularly, newspapers, which have suffered badly from declining circulation as more media choices have become available. More than 12 percent of respondents said they would spend as much as 40 percent of their budget on experimentation and new media, according to the survey released this week. About half of the respondents picked newspapers as the media category most in need of innovation, and indeed publishers have pressed to strengthen their online presence with more content like blogs and video.
http://today.reuters.com/News/newsArticle.aspx?type=technologyNews&storyID=2007-02-07T195923Z_01_N07434189_RTRUKOC_0_US-ADVERTISING-SURVEY.xml&W...