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TVB/Borrell: Station Web Revenue to Climb 17% in 2011

TV station Web revenue looks to grow 17% in 2011, according to a new report from TVB and Borrell Associates. That's on top of 14% growth in 2010, when station Web sites did a record $1.4 billion in revenue, good for 6% of total gross station revenues. 

Local TV's Web revenue was 3.5% of total business three years ago.

"Despite search, despite social networks, and despite national portals' focus on local sales, TV station sites continue to grow in share of the local online ad spend," said Jack Poor, TVB VP of marketing insights.

Borrell Associates released its 41-page "Benchmarking: TV's Online Revenues" study today, based on the Web activity of 630 stations, and TVB conducts a webcast at noon ET today to explain the study's findings to members.

Average station revenues on the Web were $750,000 last year, while the top stations booked over $10 million in online business.

The top local ad-spending categories, according to the report, continue to be general merchandise stores, car dealers and real estate agents--reflecting the efforts of merchandisers to meet up with consumers who are researching major purchases online.

Gordon Borrell, CEO of Borrell Associates, said that a break-out year may be imminent, thanks in large part to video advertising on the Web. "Mobile applications will inject new excitement into an otherwise flattening Web-advertising environment and as TV's most familiar form-video advertising--goes interactive," he says.

After the forecasted 17% growth in online revenues in 2011, TVB and Borrell call for a 33% uptick in the category in 2012.

Michael Malone, senior content producer at B+C/Multichannel News, covers network programming, including entertainment, news and sports on broadcast, cable and streaming; and local broadcast television. He hosts the podcasts Busted Pilot, about what’s new in television, and Series Business, a chat with the creator of a new program, and writes the column “The Watchman.” He joined B+C in 2005. His journalism has also appeared in The New York Times, The Philadelphia Inquirer, Playboy and New York magazine.