Local, over-the-top TV platforms will continue to see soaring advertising growth this year -- up 43% in revenues over 2018.
BIA Advisory Services says local OTT platforms will climb to $857 million this year versus $598 million in 2018. In four years, local OTT ad revenues are forecast to more than double to $2.13 billion.
These local OTT advertising projections are defined as locally targeted advertising on streaming platforms delivered to TV sets via an internet connection.
BIA says local OTT platforms will expand local TV stations' advertising revenue base, and that this advertising inventory “can be both competitive and complementary, in the case of TV groups, for local linear TV ad budgets including local TV and local cable.”
According to other analysts, local TV stations' traditional, live, linear TV advertising revenues -- except for strong political and advertising periods every other year -- will continue to show weak-to-little overall growth.
Local TV station advertising is set to decline 11% in 2019 to $17.2 billion in 2019 (from $19.3 billion in 2018), according to a Pew Research Center analysis of Media Access Pro & BIA Advisory Services data. Next year -- a big Presidential election and Summer Olympics year -- it is expected to rise 9% to $18.7 billion.
Local digital advertising is expected to rise to $1.34 billion in 2019 (from $1.18 billion in 2018) and grow to $1.5 billion in 2020.
This year, BIA estimates that all local video -- which includes over-the-air TV, local cable, local online video, out-of-home video and mobile video -- will total $29.5 billion, to comprise 20% of all local advertising.