A new BIA/Kelsey study says that enhancing station ratings with third-party "Big Data” about viewers’ buying interests “adds substantially to the local TV value proposition” by permitting targeted advertising that would mean local TV broadcasters could become "more competitive with digital pure-play platforms and would see greater revenue growth in better monetizing their broadcast audiences.”
Stations Need Better Ratings, Targeted Ads
So, how much is a local TV ratings point actually worth these days?
And just how much money are TV stations leaving on the table when they distribute programming on Facebook?
Two tough questions, to which BIA/Kelsey says it has answers.
According to new research based on comScore ratings, it says, a ratings point for adults 25-54 in the market, averaged over the top six English-language stations, is worth $12.8 million a year.
That works out to about 23 cents per minute.
Of course, the research found that the smaller the market, the lower the value of that ratings point. In Kansas City, it’s worth $1.1 million a year, and in Madison, Wis., it’s $500,000.
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In terms of time, that’s 12 cents a minute in Kansas City and 13 cents a minute in Madison.
Given the figures, BIA/Kelsey says, broadcasters and marketers have a “stake in accurate audience measurement.”
And, it says, enhancing the ratings with third-party “Big Data” about viewers’ buying interests “adds substantially to the local TV value proposition” by permitting targeted advertising.
With better measurement and targeted advertising, it says, “local TV broadcasters will become more competitive with digital pure-play platforms and would see greater revenue growth in better monetizing their broadcast audiences.”
BIA/Kelsey also looked at broadcasters’ digital media revenue.
This year, it will account for just 5% of TV stations’ $20.9 billion in advertising revenue from digital. Part of the problem is stations’ failure to monetize the audiences they create when they distribute their content on social media, and the lost revenue adds up.
The research estimates that the value of the audiences they bring to Facebook at $61.7 million a year in Los Angeles, $10.7 million a year in Kansas City and $2.35 million a year in Madison.
“Local TV’s social audiences are an undervalued asset in the local market — by both TV operators and marketers,” it says. “An essential point to see is that local TV operators have a path to doubling their digital revenue growth simply by monetizing the audiences they already create on Facebook.”
To download the full report, click here.
Comments (4)
Kaylor Blakley says:
August 7, 2017 at 4:22 pm
Yes they do. And we can provide actionable sponsored ads to any video platform, location, and viewer, in real-time based on that viewer’s unique affinity, daypart, geographic data, demographic data and “psychographic” data, all through our app based Network with global viewership. So, not only does the broadcaster get targeted advertising, but a worldwide audience to boot! What a deal! http://spincasttv.com/
Cheryl Thorne says:
August 7, 2017 at 11:59 pm
The dilemma is the amount of Local News stations do and it’s inability to capture the needs of the viewer any longer .In some cases, it’s 6-7 hrs per day ..What happens when 20-25% of your on air schedule is not wanted?? No amount of Targeted ads will help this industry unless a drastic change takes place ..and it won’t…. it cant…
Cheryl Thorne says:
August 8, 2017 at 12:03 am
Also, the problem is only 5% of stations revenue comes from digital. has not changed in 10 years despite all the movement in this category by advertisers to spend $$ in digital..Sorry to say the ship has sailed and it’s not returning for the stations in this boat!!! C minus students dominate local TV stations and run most broadcast groups!!
Jayson Siler says:
August 10, 2017 at 6:48 am
Most stations really don’t want to know who’s watching their locally produced content. Why? Because with few exceptions, it skews old and downscale economically. It’s much more expedient to hide behind “broad” demos that assume that all eyeballs are of equal value to any given advertiser. Obviously, that’s simply not the case. Local digital is winning because it’s “granularity” offers advertisers the opportunity to target potential consumers that simply aren’t watching that much locally produced TV content anymore.