1-18-2012
BIA/Kelsey issued a report yesterday highlighting how awful 2011 was for media stocks and how the shift toward digital continues. The report said, "While the last quarter of 2011 saw a rebound in media stocks, the drop-off had been too significant to overcome." BIA/Kelsey Vice President Mark Fratrik (pictured) says the negative showing had a lot to do with concerns over the health of the global economy and the belief that businesses would cut back severly on their advertising spending. He says 2012 should be better due to a strengthening economy and high expectations for a huge year in political spending. He also sees a big shift toward digital spending
BIA/Kelsey concludes, overall, there is a secular shift toward growth in digital revenues as an increasing component of a fairly flat local advertising economy. As local media companies shift their ownership portfolios along with their sales and product strategies, eventually the results are reflected in share prices, with local media companies more involved in the digital space benefiting most.
With the maturity of digital technologies driving the delivery of content across multiple platforms, advertising opportunities are significantly increasing, and local media firms are starting to book incremental sales. According to BIA/Kelsey's forecast, by 2015 approximately 25 percent of all ad dollars spent in local media will be in digital media augmenting traditional media spending. Increasingly, this will occur in coordinated cross-platform media buying with integrated creative and marketing campaigns.
Launched in 2011, the Local Media Index is a $2.2 trillion market capitalization index offering a directional view of how approximately 60 publicly traded local media companies in the key sectors BIA/Kelsey follows and analyzes are performing relative to the overall economy. The LMI includes public companies tracked by BIA/Kelsey in cable, broadcast television and radio, newspapers, print directories, outdoor and digital/online advertising. The index is updated each Thursday morning on the BIA/Kelsey website and can be found at www.biakelsey.com/LMIndex.
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