Local TV advertising revenues are expected to be $16.2 billion in 2021, down 13% from $18.6 billion during the 2020 election year, but stronger than previously expected, according to a revised forecast from BIA Advisory Services.
In its original November forecast BIA said it expected local TV spending of $15.7 billion, a 16% drop.
BIA now says expects local TV advertising to rebound to $19.3 billion in 2022, a 19% gain
BIA says that the local TV figures include $1.5 billion from digital platforms in 2021, up from $1.4 billion in 2020, and $1.7 billion in 2022.
OTT in particular is growing 16% this year--faster than mobile--as more consumers take advantage of streaming services on their TV screens, BIA said.
Overall BIA raised its forecast for total local ad spending in all media $142.4 billion, up 4.8 billion from its original forecast in November.. That includes traditional media revenue of $77.7 billion and digital media revenue of $64.7 billion.
“There’s an acceleration in the market that couldn’t be accounted for last fall,” said Mark Fratrik, senior VP and Chief Economist, BIA Advisory Services. “The economy is growing and we’re observing money being spent to reach audiences through various media.”
The revised forecast also sees a 5.6% increase in overall compound annual growth in U.S. spending in local ad markets and expects the amount to reach $157.1 billion in 2022 and $162.1 billion in 2023.
Digital media’s share of spending will first leapfrog to 51%t over traditional media by 2023
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Jon has been business editor of Broadcasting+Cable since 2010. He focuses on revenue-generating activities, including advertising and distribution, as well as executive intrigue and merger and acquisition activity. Just about any story is fair game, if a dollar sign can make its way into the article. Before B+C, Jon covered the industry for TVWeek, Cable World, Electronic Media, Advertising Age and The New York Post. A native New Yorker, Jon is hiding in plain sight in the suburbs of Chicago.