Signs of an ad market recovery are found in two reports surfacing Thursday, Broadcasting & Cable reported.
“Station groups showed ‘robust recovery’ in the fourth quarter, reported the media investment bank M.C. Alcamo & Co., as political advertising combined with resurgent core categories to make for a blockbuster performance,” the story reports.
The bank reported 25.3% revenue growth for the period for local broadcasters.
"The strong political season, coupled with a continued ad recovery in major categories, drove revenue and margin gains throughout the industry," said company President Michael Alcamo. "Political spending crowded out non-political at most major groups, suggesting that a side-effect of the strong political season will be revenue strength in the first quarter of 2011."
In a separate report, TVB announced that local TV ad revenues rose 23.5% for 2010 as a whole.
“In Alcamo’s report, pure-play broadcasters set the pace, as usual,” the story reports. “Fisher Communications showed a 49% increase over the previous fourth quarter, reported Alcamo, while Gray TV was just behind at 47.8%, and Nexstar was strong at 31.2%. Media companies owning station groups showed slightly less growth, due in part to lagging segments of their portfolio, such as newspapers. Scripps was best in class at 36.6%, reported Alcamo, while Media General came in at 28.7% and Post-Newsweek was 28.3%.”