Web Sites ‘Saviors’ of Local Stations, Report Says

Sep 16, 2008  •  Post A Comment

In the wake of the financial turmoil on Wall Street, local-media research
firm Borrell Associates predicts that Web sites for local television
stations will be their “financial saviors,” in a report released Tuesday.
“Some of them now generate millions in revenue and significant profits, and
have high potential for continued growth,” the report said. “Another strong
indication of the fundamental changes taking place in the media industry:
Local Web sites generate important value for their owners, especially for
owners that have positioned their sites for growth in key high-demand
advertising categories such as e-mail, streaming video and paid search. Some
of these local Web sites are worth between $300 million and $450 million,
and even small sites are seeing values in the low millions of dollars.”
TV Web sites are among the local media properties best positioned for future
growth, Borrell said. In fact, local TV stations will take in $1.2 billion
in revenue from their Web sites this year, up from $770 million last year.
In addition, local radio and TV companies generate about 3% of their
revenues today from digital sales; that number will jump to 5%-6% in
Online video ads will contribute to that growth. Today, streaming audio and
video ads accounts for 19% of local online revenue and will rise to 59% in
2013, Borrell said.

One Comment

  1. Might you send me a email? I’m thinking about placing an ad on this website.

Your Comment

Email (will not be published)