Local Media Watch

<< Return to Blog

BIA/Kelsey Forecasts Local Video Market Set to Grow $5.4 Billion by 2021

by | Jun 16, 2017 | BIA, Blog, Broadcast, CTV/OTT, Local Advertising Forecast, Mobile-Social

BIA/Kelsey’s announced at Vidweek’s Programmatic Summit and in its new insight report, The Rise of Advanced TV Platforms, that its updated (June 2017) local video forecast calls for linear and digital video platforms to grow by $5.4 billion from $31.9 billion in 2017 to $37.3 billion by 2021.

Details within this forecast reveal that linear television (broadcast TV and cable) will holds its own accounting for 82% of overall local video spend. However, linear video will enjoy just over half (53%) of this growth (broadcast TV increases $2.7 billion and Cable/MVPD by $200 million). The remaining growth in local video ad spend will go to digital platforms including local mobile video, local online video and out-of-home video spending.

As agencies and marketers become more sophisticated in their use of data science to develop strategic profiles of their consumers, they are looking to reach comparable custom audience segments in their media campaigns. While media buyers have strong capabilities in data-driven audience buying in digital media, most of their video spend goes into platforms without these capabilities. Buyers are looking for this to change and the industry has been struggling to roll-out compelling solutions. This trend toward data-driven audience buying, i.e., moving beyond gender/age, is transforming the local video industry.

Given the explosion of data-driven platforms and initiatives permeating the media ecosystem and trade headlines, BIA/Kelsey is expanding its coverage to include burgeoning advanced TV verticals defined as platforms utilizing technology and data infusion to help marketers and their agencies more effectively target consumers. The latest report in the series on this topic, The Rise of Advanced TV Platforms: Programmatic TV, Addressable TV and Contextual Audience Networksexamines three different parts of the advanced TV ecosystem:  addressable TV, programmatic TV and a grouping this report defines as “contextual audience networks” (CAN).

More details about the report can be found here. Full access to all our coverage of advanced TV is also available within our advertising dashboard, BIA ADVantage.