The local video advertising market is expected to grow to $37.1 billion by 2022 from $32.6 billion in 2018, driven by advanced TV technology, according to a new report from BIA/Kelsey.
Local TV advertising is seen rising from $20.8 million in 2018 to $22.9 billion, with local cable edging up from $6.8 billion to $6.9 billion.
Increases in local video impressions and spending are coming from mobile and digital platforms, the report says. Marketers are putting money into those platforms because they are able to create data-infused campaigns that can target video audience members on an individual basis.
Local mobile is expected to jump from $1.1 billion in 2018 to $1.8 billion in the span.
BIA/Kelsey says that for local stations to compete, they need to look at advanced TV techniques.
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“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, managing director BIA/Kelsey and report 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.”
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 the voluntary rollout of next-generation TV standards, ATSC 3.0.