Media Industry Leaders Present Local Television Advertising Forecasts at TVB Forward 2019 Conference
BIA Advisory Services Issues New Forecast for OTT; TVNewsCheck Issues Annual Spot Forecast
Chantilly, VA, September 26, 2019 – BIA Advisory Services and TVNewsCheck today announced advertising forecasts presented at TVB Forward 2019 – Local Broadcast Television’s Annual Conference in New York City.
BIA Advisory Services OTT Revenue Forecast
BIA Advisory Services tracks the billions of advertising dollars that flow into local media. The firm has recently expanded their forecast to include local OTT advertising. The firm estimates that 2019 will generate $857 million in revenue, increasing nearly 148% to $2,125 million by 2024.
“OTT offers a considerable opportunity for broadcasters to grow revenue,” said Tom Buono, Founder and CEO of BIA Advisory Services. “As consumers shift their viewing habits, it’s an opportunity to extend the value of traditional over-the-air content. We’ve added OTT to our forecast to track this growing area and scope the revenue opportunity.”
BIA’s OTT ad forecast focuses on the local activation of OTT video impressions on Connected TVs. This ad inventory can be both competitive and complementary, in the case of TV groups, for local linear TV ad budgets including local TV and local cable.
BIA defines OTT advertising as locally targeted advertising included on streaming video that is delivered to TV sets via Internet connections.
Mark Fratrik, Chief Economist and SVP at BIA Advisory Services, expanded on the firms’ coverage of OTT saying, “The industry has reached a stage where there are several existing and emerging OTT players that have a high growth potential. By partnering with them, broadcasters can drive new revenue by delivering their valuable content and diverse audiences. I believe we’re at the tip of the opportunity and we’re working closely with OTT firms to analyze revenue opportunities.”
In early October, BIA will release their U.S. Local Advertising Forecast for 16 media, including OTT. BIA Advisory Services forecast is available for all 210 local television markets and is based on a proprietary forecasting methodology of the local advertising marketplace. Forecast data is delivered by the local advertising intelligence dashboard, BIA ADVantage.
TVNewsCheck Forecast – Local Broadcast TV Advertising
According to a consensus of TV station groups surveyed by TVNewsCheck in a September 2019 survey, TV spot revenue, including political, will decrease by 16.6% in 2019. Core advertising, which excludes political, will fall 1.4%.
Looking ahead to 2020, the survey consensus says that total spot will jump 19%, thanks to a surge in political advertising.
"The double-digit growth is all the more remarkable given the story in core. It will fall, on average, 1.3%, according to the survey, due mostly to dwindling dollars from automotive, retail and quick service restaurants and displacement by all the political ads,” says Harry A. Jessell, editor of TVNewsCheck.
SVP Data Products & Marketing
BIA Advisory Services
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