Local TV stations are set to make millions from online advertising in 2007, according to a new study released by television trade organization TVB.
The second annual “Benchmarking the Local Website Marketplace” study, performed by Borell Associates, revealed that local TV stations increased their ad revenue by as much as 41%, $399 million, in 2006, and projects that number to hit $618 million by the end of 2007.
According to the report, more and more local stations are using the Web as a publishing platform for video and are reaping the benefits in the process. Borell recommends that local broadcasters rethink the idea of “mass media,” and consider spinoff websites that may not necessarily contain the same branding as the regular station.
“What was once viewed as cotton candy now seems to be a vital nutritional supplement to broadcasters’ health,” reads the study.
In 2006, local TV stations owned 7% of the online ad market, while market share from newspaper and radio station websites dropped. Stations in smaller markets commanded a higher percentage of their online markets than those in larger, more competitive markets.