Local TV stations will make $618 mln off Internet ads in 2007
In 2006 local television stations sharpened their focus on the Internet, increasing their online ad revenues to $399 mln. By the end of 2007, Borrell Associates predicts, that figure could hit $618 mln. TV station share of the local online ad market was 7% in 2006, up from 6% (+17%) in 2005 and 4% (+75%) in 2004. Local newspaper and radio websites share of local ad revenue declined in 2006. Newspaper sites went from 43% in 2005 to 36% in 2006 (-16%). Radio websites went from 4% of local ad spend in 2005 to 2% in 2006 (-50%). Other fast-growing segments are local paid search and e-mail advertising. A key driver of TV station ad growth was video advertising. In 2006, 72% of TV station websites sold video ads, and 80% plan to in 2007. Less than 33% of newspaper sites sold video ads in 2006.