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A significant advertising milestone has been attained in the US following publication of figures which show that total internet advertising revenues exceeded those from broadcast television for the first time last year. The psychologically important figure was revealed by the Interactive Advertising Bureau based on data compiled by PricewaterhouseCoopers, which showed a surge in spending on mobile ads which hit $48.2bn in 2013 – a 17 per cent increase on 2012. Every sector of internet advertising registered growth but most actually lost market share due to the sheer dominance of mobile.
Randall Rothenberg, CEO of IAB said: “The news that interactive has outperformed broadcast television should come as no surprise. TV advertising as a whole (including broadcast and cable) retains the lion’s share of spending however, raking in a combined $74.5bn. After years of losing audience and revenue, local television news appears to have settled into a kind of equilibrium.
The turnaround for ABC, CBS, Fox and NBC stations in the three key time slots for news extended the more grudging progress they made in 2010, when they lost audience at a much slower rate than the year before. A closer look at individual sweeps periods offers a clue to at least one reason behind the improvement — there has been higher interest in the news. NBC affiliates, in particular, are fighting an uphill battle to retain their late news audience in the face of sharply lower ratings for the prime-time network shows that lead into their newscasts. While local stations may take some heart from the apparent recovery of late and early evening newscasts, the longer-term outlook is troubling. The other trend, besides very early morning news, has been the addition of news in nontraditional time slots such as midday and following the network news at 7 p.m. Fox affiliates still haven’t been able to gain much traction with the morning newscasts they air opposite network programs on ABC, CBS and NBC, either. Once again in 2011, local news on independent stations showed bigger audience gains, on average, than news on stations affiliated with one of the big four broadcast networks (ABC, CBS, Fox and NBC). Stations affiliated with ABC, CBS and NBC gained audience in most time slots in 2011, but the largest gains were in nontraditional time periods where fewer network stations air news. The average audience for news on Fox affiliates also increased in all but two time slots in 2011, but much like other network-affiliated stations, Fox saw the largest gains in time periods with the smallest viewership. While it is not possible to draw conclusions from this limited data, it appears that the network affiliates may be poaching audience from each other.
One lingering concern for all local television stations is that viewership could hit the skids again once the economy fully recovers. Indianapolis station WTHR grew its Facebook fan base from 8,000 to 100,000 in seven months by requiring its staff to be active on the social media site. Local television revenues typically fall in non-election years due to lower demand for political advertising, and 2011 was no exception. Still, the industry is more stable than it was five years ago, when ad sales and audiences cratered.
Most of the revenue decline from 2010 to 2011 was due to the predictable drop in political advertising, but other factors were also at work. Stations expect the automotive sector to bounce back in 2012 because it has been so weak for so long, said TVNewsCheck’s Jessell.  If car sales pick up as expected, local TV stations should see better earnings. Television remains the biggest recipient of total advertising dollars spent on any single medium. At the same time, though, competition for local spot advertising with nonbroadcast TV distribution systems intensified in 2011. Local stations have a wider reach than cable and satellite systems, since 100% of the viewers in any given market can receive over-the-air signals. In theory, commercials on subscription services could be targeted much more precisely than broadcast ads, right down to the zip code. The technology is still being tested but has potential, said Gordon Borrell, chief executive of Borrell Associates, a firm that studies local online ad buys. As expected, almost every ownership group reported lower revenue at their local stations for the third quarter of 2011 compared to the same period the year before.
While some advertisers have ramped up online spending at the expense of legacy media, Goldstein sees little threat to television from the internet when it comes to political ads because local TV remains the best way to reach large numbers of uncommitted voters.
The local TV windfall from this growth in television advertising may not be as big as some observers expect, however.
Another factor is that local stations increasingly have to compete for local advertising with cable channels, where advertisers can even more precisely target whom they reach, given the niche demographics of each channel. Those local broadcast stations that do benefit from campaign cash may have the problem of too much of a good thing. A growing but still relatively small source of revenue for local stations comes from the fees cable and satellite systems pay them to carry the local channels.
Estimates indicate that retransmission revenue has doubled in just two years and will continue to grow, although the rate of growth will slow. Another reason that network affiliates have been so aggressive about increasing retransmission revenue is that they cannot keep it all. Stations also might be more willing to hand over a larger chunk of their retransmission revenue to the networks if the fee agreements are negotiated differently.
A Borrell Associates survey of publicly reported media companies at midyear found that television stations had enjoyed the highest growth rate in online advertising of any medium, with Belo stations up 19%, Scripps up 26% and Gray up 47%.52 While that success may be mostly due to the fact that they started at a much lower level than other media, it is evidence that some television ownership groups have finally recognized the potential of online sales. The moribund market for buying and selling local television stations showed new signs of life in 2011. One reason the market picked up was that buyers got a better handle on what stations are really worth, said Harry Jessell, editor and co-publisher of TVNewsCheck.
While the current rules have limited big media mergers, they haven’t kept stations across the country from entering into contractual agreements to share resources, sales staff and even facilities. The change in the makeup of local news staffs is reflected in the number of stations, especially in larger markets, that now employ multimedia journalists, people who shoot, report, write and edit their own stories. What happened in Tucson was just the latest cost-saving move by station owners seeking to keep news on the air but to spend less doing it.
Scripps Television ramped up its spending on news, especially for investigative journalism, adding reporters and producers at several of its stations. As news pops up in more and more time slots, the average number of hours of news on local television stations continues to grow. Midday newscasts made a comeback at some stations in 2011, even though news in that time slot has shown little evidence that it can grow an audience. In a few markets, stations are beginning to offer local newscasts on their second digital channels. One other trend that is more clearly growing is news sharing, or providing content to other media outlets once possibly seen as competitors. The implication of the increase in news time and the availability of news on additional stations is that viewers have more distinct local TV news options to choose from. Hofstra’s Robert Papper said the study’s conclusions are limited because in most of the markets studied an existing newsroom was eliminated. What is harder to calculate is the impact on the journalism of having less time to work on each story because of the demands of constant production and the growth in the number of hours of news. More than two-thirds of local stations surveyed in 2010 said they take a three-screen approach to news production, sharing it on TV, online and on mobile devices.
Some local stations already have tapped new audiences and new revenue streams with mobile apps and social media. Social media also became a more important platform for many local TV stations during severe weather in 2011. There are indications that local TV’s use of social media will grow even more, partly due to collaboration with outside vendors. In the meantime, broadcasters are looking for other ways to offer video that is as mobile as the audience. The ability to watch live, local television on handsets could have a substantial impact on the future of the industry.


The Big 3 networks still garner the largest share of viewers at any given time of day a fact which is not likely to change in the immediate future. The One Show, established by the One Club, the world's foremost non-profit organization devoted to elevating creative work in the industry worldwide, remains the pinnacle of achievement by providing a showcase of the world's best work, and by inviting collaboration among individuals who are actively developing outstanding work. Honda offers a full line of reliable, fuel-efficient and fun-to-drive automobiles for American car buyers through approximately 1,000 independent U.S.
Honda has the longest-lasting cars1 of any mainstream automotive brand in America, and has been producing automobiles in America for more than 30 years, currently operating 18 major manufacturing facilities in North America. Eighty-six per cent of UK advertising agencies purchased digital video inventory in 2012, with 62 per cent listing brand awareness as a primary goal, according to a research report by Adap.tv and Admonsters. This past year, digital advertising online and via mobile crossed the $40 billion mark for the first time ever, according to the Internet Advertising Bureau. Since 2004, the average growth rate has been 18 percent. It’s important to note that, while web and mobile advertising revenues beat out broadcast TV for the first time, broadcast + cable advertising revenues still dwarf the digital take.
The top 10 companies in the mobile and online ad space have almost three quarters of all the ad revenue, the IAB said. Unfortunately, the IAB could not break out which companies are in those top 10, since companies report their revenue figures in confidence. That concentration has remained fairly stable for the past decade, even as the ad world has expanded by a factor of six, fluctuating only between 69 and 74 percent. Financial services made up 13 percent of revenues, automotive was 12 percent, and telecom accounted for nine percent of the total digital ad spend. Search is down from 46 percent in 2012 to 43 percent in 2013, while display is down two percentage points from 21 to 19 percent.
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Stations made less income in 2011 than the year before, but the decline was about what might be expected in a non-election year. The improvement in 2011 was not substantial enough to suggest that local TV news has entered a period of new audience growth, however. The jump in late news ratings was largely due to a 14% increase in viewership in February, when the news was dominated by the upheaval in Egypt and Libya. Interest in news may have boosted viewership in 2011 but only by helping stations draw a larger share of a smaller overall audience. This expansion in news time has been one way to counteract shrinking audiences in more conventional news slots. For the second year in a row, those newscasts lost more audience than news in any other time slot on network-affiliated stations. A study by Nielsen Media Research of stations in Seattle and Portland, Ore., found they increased their late news audience by 3 to 5% by reaching users online, drawing a different demographic. After seeing their revenues bounce back in a big way in 2010, stations expected to make less money in 2011, and they did. Although the economic recovery was good to local television in 2010, as the average revenue for news-producing stations increased more than 13% from the year before, that good news came after a long decline. As part of their agreement to carry channels like MTV or BET, individual cable and satellite systems are allowed to sell time to local advertisers.25 Broadcast still reaps substantially more revenue from local spot ad sales than cable, but cable is closing the gap. Demand for political ads could leave stations with less time to sell to their regular advertisers. Some local station groups managed to reap a substantial reward in 2011 by playing hardball when their agreements with distributors came up for renewal. Up to half of the money they receive from cable providers goes to the networks in the form of reverse compensation.
Currently, station ownership groups have to deal separately with each cable or satellite system, market by market. By contrast, “pure play” companies (those that are online only) gained almost no market share. Many of these stations now have sales staffs dedicated to digital, something they did not have before. This gives television an advantage over other media, said Larry Shaw, Borrell’s vice president of research.
Potential buyers are still uncertain about the economic recovery, he said, and FCC ownership rules still prevent the merger of big station groups. According to a University of Delaware study, these types of arrangements—known as “virtual duopolies”–now exist in at least 83 markets. Papper’s 2010 data shows the overall median at 30, exactly where it was five years earlier.
The effort in local TV station newsrooms is now not simply reporting and producing broadcast news. Some saw their jobs disappear as more stations entered into management agreements with former competitors. Brian Bracco of Hearst Television said: “I think we’re going to be prudent on a cost basis going forward. In 2010, the latest year for which data exist, it hit a record of five hours and 18 minutes each weekday in 2010.
NBC, for instance, abandoned its highly promoted experiment to launch local news and information digital multicast channels in each of the markets where it owns local stations. But a major FCC report released in 2011 said almost a quarter of TV stations air no local news at all.94 And new research found that at least some of the stations that do air local news offer little more than reused material from another station, so that in the end there is actually less original content for viewers to choose from. In the vast majority of cases where one station produces news that airs on another, “stations that never ran news are running it now and offering viewers a convenience,” Papper said.
Well over half the stations surveyed (59%) also cooperate with other local TV stations, newspapers, radio stations or other outlets in news gathering or coverage.
Research from PEJ earlier in the decade found that more time to work on stories was associated with ratings growth. Ten major broadcast groups, which between them own 200 stations, will launch a broader social media effort in 2012 in partnership with ConnecTV, a web and mobile service that allows users to interact with viewers watching the same programs. Some broadcasters expected 2011 to be a breakout year for mobile broadcast television, but it did not happen.
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And while display ads grew six percent in 2013, video-based ads are growing faster, according to the IAB. CPM, or cost per thousand views, was up slightly to 33 percent, while performance-based models like CPA (cost per acquisition) dipped slightly to 65 percent.


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And the overall audience for local TV news grew as stations added newscasts at different times and on additional platforms, including their digital channels.
Fox stations, in particular, are still losing viewers in nontraditional time slots, which is when most of them air local news. Late local newscasts tend to cover more national and international news than early evening newscasts, which leave those topics to the network news programs that are broadcast adjacent to them.
Viewership in that time period has been on the decline for years, and the uptick in 2011 does not appear to constitute evidence of a long-term rebound. In most sweeps periods we looked at in 2011, share outperformed ratings in the early evening and late time slots. The evidence indicates that more viewers are turning on their TVs specifically to watch local morning news programs.
Network-affiliated stations had some success holding on to their news audience in these nontraditional midday and 7 p.m. On average, the independent stations’ combined news audience grew in every time slot except at midday. In a PEJ survey, just 6% of respondents said they relied on a local TV station’s website for weather information, compared to 58% who said they depended on local newscasts for weather.
In Seattle, where KOMO’s late local news viewership skewed 71% female, a majority of the station’s online users were male.
And if projections for 2011 hold, average station revenue from on-air advertising when adjusted for inflation, came within a whisker of a 15-year low. Local spots on broadcast now bring in slightly under twice as much as those on cable, but just four years ago they pulled in almost three times as much. The most competitive Senate and gubernatorial races in 2012 are in small states, Goldstein said, and at least part of what drove spending to record levels in 2010 was that California, Texas and New York — states with big media markets — all had competitive races for governor.
Moreover, the nonstop barrage of campaign ads could irritate viewers, said Harry Jessell of TVNewsCheck.
Stations demanded much higher fees and threatened to pull their channels from distribution on cable systems if they didn’t get their way.
Cable channels, such as CNN or Fox News, get roughly half their revenue from subscription fees (or fees from cable channels passed on to each subscriber) and half from ads. And the networks, which have struggled financially even more than local channels, plan on being more aggressive themselves about this money. The key difference between companies that are growing at double-digit rates and those bumping along with growth under 2% is the presence or absence of an online-only sales force, Borrell noted. Among other things, those rules limit the number of stations a single company can own in a market and whether one company can own newspapers and broadcast stations in the same market. The National Association of Broadcasters argues that these arrangements benefit communities by allowing financially troubled stations to stay on the air and continue offering free programming.
Robert Papper, who conducts the survey, said it’s likely that total employment in the local TV news industry has now returned to the record level set before the recession. What has changed most markedly is the median staff size in the largest markets, up 16% since 2005. Increasingly it is spent translating that reporting into content across multiple platforms. In the smallest markets, more than half the stations rely almost entirely on these solo journalists, but that has been the case for many years. But Scripps hopes that building investigative units will make their stations stand out in a crowded local TV marketplace. That’s exactly the same percentage as the year before, but the amount of sharing was up sharply. But time may be a luxury that local TV newsrooms simply no longer can afford in the age of digital news. It did not budge from the year before, despite an improved economy and clear evidence that today’s news consumers get local information from multiple sources, including smartphones and tablets.  Since virtually every television station that produces local news now has a website, the data imply that the local TV industry remained behind other competitors in 2010 when it came to distributing news on mobile devices. Roger Keating, senior vice president for digital at Hearst Television, one of the groups involved, calls the move a departure for local broadcasters, who up to now have focused on developing their own apps for specific local programs or channels. A coalition of a dozen major broadcast groups is still working on plans to broadcast free digital signals to portable devices. Our in-house studio is equipped to produce broadcast ready video in a variety of formats including HDTV and deliver to the national networks or local affiliates. The One Show's awards ceremony recognizes excellence in advertising in its assessment of global marketing campaigns.
But even so, it’s very concentrated in the hands of industry giants such as Google and Facebook. E-spaces will help you bring your visions to life, your concepts to investors, your products to customers, anddesired results to your bottom line.Our cover-gracing 3D graphics have wowed audiences around the world. Local stations also expanded their online, mobile and social media offerings, but most have not yet generated a substantial audience. In other words, news programs that maintained or even boosted their share of viewers still saw their ratings decline.
Broadcast channels carried on cable were making much less in fees, even though receiving a clear signal for broadcast stations may be part of the reason people will subscribe to a cable or satellite system.
Louis,86 Chicago87 and Indianapolis,88 among others, added an extra-early half-hour of morning news in 2011.
Local radio outlets are the most common partners, involving just under half of the stations surveyed. This Fash world can be used for the home page of a promo web site for any Christmas or children related products. But executives at WXIN are convinced that putting news on the air that early pays off in a couple of ways. Those prime-time newscasts lost 3.9% of their audiences on average in 2011, only somewhat less than they lost the year before. The expected influx of political ads may even have encouraged some stations to add newscasts, Jessell said, so they would have more local advertising time to sell in 2012. This suggests these arrangements have outlasted the experimental stage and are becoming ingrained in the local TV news culture. If fewer people are watching broadcast TV of any sort at evening and late news time, local stations can’t expect to see their audience grow ever larger. First, given that the staff at WXIN was already in place, it cost the station almost nothing to produce; the station made a profit from day one. If your materials are not consistent they are perceived as different brands and there is no accumulation of impressions.
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