TV, radio ad revenues poised for rebound

SNL Kagan predicts $25.4 billion in total TV revenue by '16

NEW YORK -- TV and radio station advertising revenues are poised for a strong rebound this year after recession-induced pain last year, according to the latest projections from SNL Kagan. The research firm projects growth of 14.3% and 6.4% in 2010 for TV and radio, respectively.

TV station ad revenue, including online, will reach $19.8 billion in 2010, up from $17.3 billion in 2009, when industry ad revenue declined to hit the lowest level since 1995. TV ad revenue was down 21.3% last year.

Total TV station revenue, including revenue 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.

It is projected that radio station ad revenue will recover to $17.1 billion in 2010, the highest annual increase since 2003. In 2009, radio station ad revenue dropped 17.7% to $16 billion.

Online ads for radio stations are projected to gain 15% to $552 million.

National spot and local ad revenue are expected to gain 17.0% and 4.3%, respectively. SNL Kagan projects radio station ad revenue will reach $19.8 billion by 2016.

"The bounce-back in ad revenues, combined with other positive trends, such as growing digital dollars, have reassured investors, who have bid radio station stocks up 36% and TV station stocks up 26% year-to-date," said Robin Flynn, senior analyst with SNL Kagan.