Industry Stocks Heavily Affected by Economy in 2011
| RADIO ONLINE | Tuesday, January 17, 2012 | 2:31pm CT |
|
Stocks of publicly held local media companies performed worse last year than the overall stock market, falling 18.7%, according to BIA/Kelsey's Local Media Index (LMI). The LMI tracks the local media sector, with a market capitalization of $2.2 trillion. 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.
Elements of the LMI that were positive last year and hold equal, if not greater, promise in 2012 include online advertising and search (8%), diversified media (7.8%), broadcast television (6.1%) and radio (2.1%).
"BIA/Kelsey's Local Media Index is showing the values of local media companies can be more volatile to the perceptions about the future of the economy and local ad spending than the S
