A new BIA/Kelsey report says local video ad sales are expected to hit $37 billion by 2022.
Progress in advanced TV and the industry’s commitment to new methods that will improve interactivity and the viewer experience will help with the ascent of local video advertising in 2018. The market is expected to rise to $32.6 billion this year and will reach $37.1 billion by 2022, according to BIA/Kelsey’s new report, “Advanced TV: Executive Views on Industry Progress & New Directions.”
BIA/Kelsey defines “advanced TV” as linear TV platforms including automated TV, programmatic TV, addressable TV, OTT, smart TV, connected TV, and with the recent FCC approval of Next-Gen local TV standards, ATSC 3.0.
“Local TV must become more competitive to maintain growth in a market where local ad spending is migrating to digital ad platforms, driven by the secular trend of increased people-based marketing,” said Rick Ducey, BIA/Kelsey managing director and the report’s co-author. “Advanced TV could be a viable solution because it brings data-infused audience targeting beyond just gender and age and delivers analytics between TV ad exposure and subsequent consumer behaviors. Eventual success will come down to continued efforts in developing and transitioning to new automated workflows.”
As examined in the report, growth in the market for local video impressions and related ad spending comes from the mobile and digital (i.e., desktop and tablet ad platforms) categories. Marketers plan to increase their spending in these categories because of the ability to develop and measure data-infused video campaigns that can target video audiences on an individual basis using segmenting attributes. To remain competitive both within the TV station category, and certainly with digital competitors, local TV looks to the various types of advanced TV solutions to provide similar, powerful capabilities.
“Our goal for our report series on Advanced TV is to track progress and report on successes, challenges and new opportunities. We are also delivering industry forecasts that provide context for the opportunity and deliver business intelligence for decision making,” said Ducey.