Digital, Programmatic Deals Drive Increase In Local TV Ads

Traditional local TV advertising will continue to slowly climb over the next few years -- in part due to new digital efforts and gradually rising programmatic deals.

After a dip from 2016’s $21.9 billion, local TV advertising is expected to rise 16% -- from $20.9 million in 2017 to $24.2 million to 2020, according to local media advisory BIA/Kelsey. In 2021, it will drop to $23.6 billion.

Estimates are advertising from current digital platforms for local TV stations continue to rise, totaling around $1 billion -- about 5% for TV total local TV revenue of $21.9 billion.  

The fastest-growing local media segment is mobile video -- which will rise some 250% to 2021 to $1.8 billion from 2016’s level at $700 million. Total local online video -- largely desktop -- will more than double to $3.1 billion in 2021 from $1.4 billion in 2016.

BIA/Kelsey estimates local cable advertising will to remain generally steady over the next five years, rising 6% to $7.3 billion in 2021 from $6.9 billion in 2017. Out of home video will gain 11% to $1.9 billion in 2021 from $1.7 million.



When it comes to local TV station programmatic activity, Rick Ducey, managing director of BIA/Kelsey, says he has only anecdotal evidence estimates, projecting that programmatic for local TV amounts to around 1% to 2% in 2016, rising to 2% to 4% in two years.

Ducey tells Media Daily News: “One of the reasons it is at a low percentage is stations aren’t putting that much inventory into that channel. We are starting to hear about stations opening up more inventory.”

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