‘Robust Recovery’ Seen in Broadcast Ad Market in Fourth Quarter

Mar 24, 2011  •  Post A Comment

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%.”

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