SNL Kagan: Ad Revenue to Recover in 2010

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Monterey, CA - Jun 14, 2010 - According to updated projections from SNL Kagan, TV and radio station advertising revenues are poised for recovery, with 2010 ad revenues expected to climb 14.3 percent and 6.4 percent, respectively. While the massive declines experienced by both industries in 2009 create a favorable year-over-year comparison, increased spending on political and auto advertising, tighter inventory and growing rates are also expected to drive revenues.

After dropping 17.7 percent to $16.0 billion in 2009, SNL Kagan projects radio station ad revenue will recover to $17.1 billion in 2010, the highest annual increase since 2003. This figure includes online ad spend for stations, which is projected to gain 15.0 percent to $552 million. National spot and local ad revenues are expected to gain 17.0 percent and 4.3 percent, respectively. SNL Kagan projects radio station ad revenue will reach $19.8 billion by 2016.

SNL Kagan projects TV station ad revenue (including online) will reach $19.8 billion in 2010, up from $17.3 billion in 2009, when industry ad revenue hit the lowest level since 1995. Total TV station revenue, including that derived from retransmission fees, is expected to reach $20.9 billion in 2010, a number SNL Kagan predicts will grow to $25.4 billion by 2016.

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