The number of TV stations sold rose in 2017, but the value of those deals fell, according to a new report from BIA/Kelsey.

A total of 107 TV stations were sold in 2017, compared with 97 the prior year. Nine of those station deals came in December.

The value of the TV station deals was $4.68 billion, down from $5.28 billion in 2016, BIA/Kelsey said.

Related: Tegna to Buy Two Midwest Television Inc. Stations for $325M

For 2018, BIA/Kelsey noted that the Federal Communications Commission relaxed regulations regarding local ownership of local TV stations and looser rules on television-radio-newspaper cross-ownership.

“While there is some question as to whether some or all of these new regulations will be challenged in the courts, there is some optimism that this relaxation will lead to an increase in station trading activity,” BIA/Kelsey said.

Read more at broadcastingcable.com.

Almost half of the growth in local video ad spending during the next five years will go to digital platforms, including local mobile video, local online video and out-of-home video, according to a new study on advanced television advertising published last week by BIA/Kelsey industry analysts.

The growth in digital platform advertising approximately matches the expected growth in local cable TV advertising during the period, the report, "Advanced TV: Industry Views on Progress & New Directions," concluded.

BIA/Kelsey's local ad forecast, compiled during July research, envisions $7.1 billion growth in local cable ad spending next year compared with $5 billion for local online, mobile and out-of-home video spending. In 2021, local cable ad growth will amount to $6.9 billion, while the combined local digital platforms will tally $6.7 billion.

The report -- the fifth in the company's series analyzing local digital video advertising platforms -- predicts that by 2021, local digital "ad activation" will represent 43.6% of local ad spending versus 56.4% for "traditional" video media. That's a significant jump from today's 33.2%/66.8% split.

In dollar terms, the study predicts that all local linear TV and digital video combined platforms will grow from $31.9 billion in 2017 to $37.3 billion by 2021. The broadcast TV segment will grow $2.7 billion and the cable/MVPD segment will grow by $200 million (see chart).

"We are seeing very interesting innovation in cross-platform solutions, audience targeting, local data management platforms and a drive toward more accountability in media campaigns," according to the BIA/K analysis. "These innovations may bend current trend lines in the media mix if linear video can become competitive."

BIA/K's report focuses on the increased use of data-enhanced audience targeting via addressable, contextual audience networks, over-the-top, connected TV and programmatic TV platforms, all of which the company said "continue to innovate, and bring change in the national and local TV markets through technology, data, and new forms of automation and efficiency."

The report includes extended interviews with six media and technology executives, including Steve Silvestri, vice president of advanced advertising at Discovery Communications; he oversees the 18-month-old Discovery Engage platform that leverages custom and syndicated data segments for the company's networks.

"The [Engage] platform has consistently showcased its ability to mine high value programs across the Discovery portfolio that may have been previously unconsidered, but now afforded through selling title optimization," Silvestri explained. "Most of our advertisers are purchasing audiences deeper across our portfolio and expanding their network consideration set."

He said that while a "traditional buy" might include four to six networks, an "Engage buy can run to eight or nine networks."

"Through test and control anonymized ad exposure analysis, Engage has proven out lift metrics using transactional data, foot traffic rates and brand surveys," Silvestri added.

The other organizations cited in the BIA/K report are AudienceXpress, Discovery, FreeWheel, Sinclair Broadcast Group, TiVo and Tremor Video.

"As marketers and agencies want more cross-platform campaign planning, activation and evaluation, these tech stacks and business processes must work better together," said Rick Ducey, managing director, BIA/Kelsey and a principal author of the report. "Capital investment, innovation and change is coming to the local TV marketplace," he added citing the perceived values of data-driven audience targeting and advanced TV solutions.

Ducey also pointed out that "advanced TV" has moved beyond its earlier focus on "interactive TV applications" and "addressably-delivered" ads, in which a commercial was delivered to a pre-designated, targeted household. He characterized advanced TV as now comprising "data-enhanced audience targeting via addressable, contextual audience networks, OTT, connected TV and programmatic TV platforms."

The BIA/K report cites "new forms of automation and efficiency" as the key components of Advanced TV, including include platforms, workflow and data.

Cable's share of local video ad spending will drop from 22% this year to 18% by 2019, akin to the decline that local broadcast TV channels face as their ad revenue share falls from 64% to 58% during the same period, according to the new "U.S. Local Media Forecast 2015" that research firm BIA/Kelsey  unveiled this week. Local online video advertising will attract most of the diverted ad spending, with its share growing from 9.6% this year to 18.7% in 2019, according to the analysis.

Local cable advertising, which BIA/K pegs at $6.9 billion this year, will drop slightly in 2015 and then teeter upwards for a few years, settling at $7.4 billion in 2019.  [See chart.]

Throughout the media world, the next few years will see a "steady shift toward digital media," the BIA/K report concludes.  Today's ad spending split between "traditional" media (77%) and digital media" (23%) will migrate to a 65%/35% split by decade's end.

"We expect the pace of growth in the overall local advertising marketplace to moderate through 2019, resulting in a 3% compound annual growth rate," said Mark Fratrik, chief economist at BIA/Kelsey. The standout will be the online/digital advertising sector.  Fratrik expects revenues in that category to see a 12.2% CAGR through 2019, compared with essentially flat revenues for traditional advertising (-0.5% CAGR) during the same period.

Reflecting current changes in advertising economics, BIA/Kelsey has lowered its overall local ad spending forecast for 2014 (including all media) to $137 billion, down from its original $138 billion forecast.  The company expects "a slight increase" to $139.3 billion next year, "reflecting a slightly stronger U.S. economy."

Online/digital will account for more 25.2% of total local media revenues in 2015, BIA/K's study predicts. "Mobile local" and "local social" (including "search") will lead the growth in this sector.  BIA/Kelsey foresees:     

• Mobile local ad revenues will grow from $4.3 billion in 2014 to $6.6 billion in 2015
• Local social media revenues will grow from $2.5 billion in 2014 to $3.6 billion in 2015.  

• Local search revenues will grow from $7.1 billion in 2014 to $7.2 billion in 2015
• Local display revenues will grow from $4.3 billion in 2014 to $4.9 billion in 2015
• Local online video revenues will grow from $2.3 billion in 2014 to $3.0 billion in 2015

BIA/Kelsey released its forecasts during its "Leading in Local" conference in New Orleans this week.

Ad forecaster BIA/Kelsey predicts that local media revenue will grow 1.6% to $139.3 billion by 2015, fueled by strong growth in the online/digital segment.

In its new U.S. Local Media Forecast 2015, BIA/Kelsey estimates that online/digital will account for about 25.2% of total local media revenue in 2015, rising 13.1% from $31 billion this year to $35 million in 2015. According to BIA/Kelsey, mobile local and social local categories will drive growth in the online/digital segment, with mobile up 53% to $6.6 billion from $4.3 billion in 2014; local social media revenue up 44% to $3.6 billion from $2.5 billion in 2014; and local search revenue up 1.4% to $7.2 billion in 2015;. Rounding out the sector, local display revenues will grow from $4.3 billion in 2014 to $4.9 billion in 2015; and local online video revenues will grow from $2.3 billion in 2014 to $3.0 billion in 2015.

"We expect the pace of growth in the overall local advertising marketplace to moderate through 2019, resulting in a three percent compound annual growth rate," said Mark Fratrik, chief economist, BIA/Kelsey in a statement. "Growth in online/digital advertising revenues will remain strong, with a 12.2 percent CAGR through 2019, compared with essentially flat revenues for traditional advertising (-0.5 percent CAGR) during the same period."