Advanced TV will help push the local video advertising market from $32.6 billion this year to $37.1 billion by 2022, according to BIA/Kelsey's new report.
BIA/Kelsey’s definition of advanced TV includes automated TV, programmatic TV, addressable TV, OTT, Smart TV, Connected TV, and ATSC 3.0 next-gen TV standards.
"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, in a statement. "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."
RELATED: U.S. local TV ad revenues will total $20.8B in 2018: BIA/Kelsey
BIA/Kelsey says that growth for local video impressions and related ad spending comes from the mobile and digital (i.e., desktop and tablet ad platforms) categories. The firms expects marketers will increase spending in these categories because they can now develop and measure targeted video campaigns.
BIA/Kelsey late last year predicted that local television advertising revenues could total $20.8 billion in 2018.
The firm said TV ads will account for more than 60% of the local video advertising market, but that revenue growth within the local video advertising segment will come from local mobile video (growing to more than $1 billion) and local online video (increasing to more than $2 billion).