BIA/Kelsey: Local Video Ad Spend to Rise $5B by 2021

The company's latest forecast says the growth will be driven by local TV and digital

Spending on video ads targeting local audiences is expected to grow $5 billion to $37.6 billion by 2021, driven primarily by local TV and digital, according to BIA/Kelsey’s latest forecast.

The report, released Thursday, however, says digital growth could be tempered as programmatic advertising becomes a bigger part of the mix for both broadcast and pay-TV services—which could redirect a greater portion of video advertising to linear platforms.

“The innovation being displayed in local TV and programmatic is becoming more widespread," Rick Ducey, managing director, BIA/Kelsey said in a statement. "Our latest research reveals the landscape of programmatic players is growing more complex as companies offer more cross-platform and cross-functional solutions. These developments are being supported by new alliances and partnerships, mergers and acquisitions, and sophisticated product roadmaps.  When you step back and examine the possibilities, any movement of local TV toward programmatic buying and selling will significantly impact the amount of spending and could win more spending that might have gone to digital.”

Thursday’s report, the second part of BIA/Kelsey’s “Programmatic Is Coming to Local TV in 2017” study is based on five key factors including data-driven audience targeting, household targeting; data quality and transparency; workflow integration, and ATSC 3.0.

You can find more information here.

(Photo via Pictures of Money's FlickrImage taken on Sept. 9, 2016 and used per Creative Commons 2.0 license. The photo was cropped to fit 3x4 aspect ratio.)