That’s the key highlight of a new advertising forecast from BIA/Kelsey that finds spending on “local video to target local audiences” will grow from $32.6 billion in 2016 to $37.6 billion by 2021.
Most of this growth will come from digital video and local TV.
However, BIA/Kelsey finds, this digital growth could be tempered as programmatic becomes more of a reality in broadcast and MVPD video platforms, with a portion of the video forecasted-spend being directed to linear video platforms.
“The innovation being displayed in local TV and programmatic is becoming more widespread,” said Rick Ducey, BIA/Kelsey’s Managing Director. “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 road maps. 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.”
The findings come from a new BIA/Kelsey report, Programmatic is Coming to Local TV in 2017. The report examines the economic potential of local programmatic TV and its current state. It also includes an assessment of the local programmatic TV space at the start of 2017.