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Advertising revenue on the rise

Analysts forecast TV ad revs up 14% to almost $20 bil

Advertising revenue for TV and radio is expected to rebound strongly this year.

After a big decline in 2009, ad revenue for TV is anticipated to increase by 14.3% from $17.3 billion to $19.8 billion, according to biz research firm SNL Kagan.

Total revenue, including coin from retransmission fees, is expected to hit $20.9 billion this year, with $25.4 billion projected by 2016.

SNL Kagan also predicts a 6.4% uptick in radio ad revenue to $17.1 billion this year, from $16 billion in 2009. By 2016, the radio ad market should be closing in on $20 billion.

The research firm attributes this year’s gains to rising ad rates, the recovery in the auto industry and the strong demand for political advertising.

“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.

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