A new BIA Kelsey report says that local TV stations is still seen as one of the best ways to reach viewers and advertisers, despite a more competitive landscape.
“Although local television will experience new challenges, its overall position remains strong and valuable to the media marketplace,” said Mark Fratrik, chief economist at BIA/Kelsey. “For certain advertising groups, it continues as an important local platform. Still, the industry must continue building out digital channels to reach local communities and deliver valuable access points for advertisers.”
Local TV’s $21.9 billion in advertising revenue share was second only to the $36.9 billion spent on direct mail.
The report shows that by 2020, local stations will still get the largest piece of the local video advertising pie.
One revenue source unique to local stations, retransmission consent, is expected to grow at a rate of 17.3 percent through 2020.
Another interesting tidbit in the study is that local TV gets more than one-third of the auto sector’s $16.7 billion advertising money.