Get ready for a big year in 2008. With heavy election spending on the horizon, the TVB predicts that TV station spot revenues (local and national combined) will jump 9-10% next year. But then, that windfall will be followed by a 2-4% decline in 2009, a non-election year.
"Odd years will always face tough comparisons to even years, when spending on both the Olympics and political ads show up. Spot TV is a two-year business cycle," said TVB President Chris Rohrs in announcing the annual forecast. TVB has focused in recent years on new media opportunities for television broadcasters. With stations all across the country expanding into ad sales for new ventures on the Internet and via cell phones, those new revenues are growing at substantial double-digit rates. TVB expects those dramatic gains to continue in 2009, even as spot business goes into the non-election-year down cycle.
Note: TVB estimates – derived from a consensus of Wall Street and financial analysts, station representative firms, and independent TVB research – represent national averages. Individual firms and stations may produce varied results based on a number of factors, including market size, region of the country, and affiliation. (more details in 09/07/07 TVBR #175)