Broadcast Network Digital Ad Revenues Soaring Past One Billion Dollar Mark

While digital extensions of broadcast network television are clearly evolving into relevant revenue streams for the networks and program studios, they are taking a back-seat in this year's Upfront negotiations. Even from the back seat, digital teams at both networks and agencies are navigating a steep upward track as digital becomes a meaningful revenue and profit center. This year, broadcast network digital advertising revenues are crashing through the billion dollar mark, growing year-to-year from $750 million in 2010 to a projected $1.125 billion in 2011, according to the latest Jack Myers Media Business Report economic forecasts. With digital layered into some 2011-2012 Upfront negotiations, the revenues become even more significant. 2012 digital advertising revenues generated by the broadcast networks are projected to increase another 60% to $1.8 billion. Digital's share of total broadcast network advertising revenues are projected to grow from only 3.1% in 2009 to 9.0% in 2012, on their way to fully one-quarter of all ad revenues by 2020. Cable network digital ad revenues are forecast by Myers to increase 22.5% in 2011 to $830 million and grow another 25% in 2012 to $1.04 billion.

Jack Myers Media Business Report incorporates into the network data only the share of Hulu and other third-party digital revenues that actually accrue to the networks. Separate forecasts for Online/Digital Originated Video Advertising reflect accelerated growth. The charts below are based on exclusive Jack Myers Media Business Report data and forecasts.

Jack Myers Media Business Report      
Media, Advertising and Marketing Economic Health Report  
2010-2020          
BROADCAST NETWORK ADVERTISING REVENUES
(000,000)          
  TOTAL % TRADITIONAL % DIGITAL %
  REVENUES CHANGE $ CHANGE $ CHANGE
2010 18,486 6.5% 17,736 5.4% 750 40.0%
2011 19,305 4.4% 18,179 2.5% 1,126 50.0%
2012* 20,074 4.0% 18,270 .5% 1,801 60.0%
2013 21,065 5.0% 18,544 1.5% 2,521 40.0%
2014 22,348 6.1% 19,008 2.5% 3,341 32.5%
2015 23,659 5.9% 19,483 2.5% 4,176 25.0%
2016 25,078 6.0% 20,067 3.0% 5,011 20.0%
2017 26,432 5.4% 20,669 3.0% 5,763 15.0%
2018 27,537 4.2% 21,083 2.0% 6,454 12.0%
2019 28,264 2.6% 21,293 1.0% 6,971 8.0%
2020 29,410 4.1% 21,826 2.5% 7,584 8.8%
SOURCE: Jack Myers Media Business Report 2011      
*Based on our current expectations for Upfront cost-per-thousand growth, we may be
revising upward our advertising revenue forecasts for traditional advertising growth in 2012.
             

Jack Myers Media Business Report    
Media, Advertising and Marketing Economic Health Report
2010-2020        
ONLINE/DIGITAL ORIGINATED VIDEO ADVERTISING REVENUES
(000,000)        
  TOTAL %      
  REVENUES CHANGE      
2010 350 55.0%      
2011 525 50.0%      
2012 920 75.0%      
2013 1,563 70.0%      
2014 2,501 60.0%      
2015 3,752 50.0%      
2016 5,628 50.0%      
2017 7,597 35.0%      
2018 9,497 25.0%      
2019 11,871 25.0%      
2020 14,245 20.0%      
SOURCE: Jack Myers Media Business Report 2011    
           

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