It is critical for the local television business to offset the impending decline in retrans revenue, as forecasted by Securities analyst Marci Ryvicker of Wolfe Research, by increasing advertising revenue.
Marci Ryvicker, managing director of market analyst firm Wolfe Research, urges local and national television broadcasters to tread cautiously in streaming and to consider putting more focus on developing promising new advertising opportunities.
TVB's Forward conference emphasized two building blocks for growing traditional revenue channels, as well as ATV, dominated: the need to keep revving up the transition to transacting advertising using impressions, rather than GRP-based ratings; and the need to get the full industry on board as quickly as possible with the new ATSC 3.0 broadcasting standard.
The electoral map is changing, said Steve Passwaiter, who tracks political spending for the research firm Kagan CMAG at the TVB Forward Conference- some states long thought of as battlegrounds may not be in 2020 while others long thought of as locks for the Democrat or Republican candidate may be in play.
“The use of impressions takes the friction out of buying local TV and combining it with other platforms,” said TVB's Hadassa Gerber.
Political advertising spending on local broadcast is expected to rise 12.3% to $3.2 billion, according to a new forecast from Kantar/CMAG.
“We’re committing to use total audience impressions across all of our markets,” said Hilton Howell, Jr., executive chairman and CEO of Gray, in accepting his award as B&C Broadcaster of the Year during TVB's Forward conference.
Wall Street media analysts, Marci Ryvicker at the TVB Forward conference on where the TV industry is heading: rising retransmission consent revenue could ultimately harm the industry, but ATSC 3.0 is a huge plus, long term.
BIA Advisory Services presented at TVB Forward 2019 their estimates that 2019 will generate $857 million in OTT revenue, increasing nearly 148% to $2.13 billion by 2024.
TV's total growth is pegged to political advertising, while the drop in core will be due mostly to dwindling dollars from automotive, retail and quick service restaurants, according to station groups and industry watchers surveyed annually by TVNewsCheck.
Hilton H. Howell Jr., executive chairman and CEO of Gray Television, is B&C’s Broadcaster of the Year.
“In our current multiplatform world, everything is now being sold on an impressions basis except linear TV,” says TVB President Steve Lanzano. “We want local TV stations and the ad agencies to be able to sell and buy that way, too. We have been working with the buying agencies for some time behind the scenes and now we are going public.”
© 2016, Television Bureau of Advertising, Inc. All rights reserved. Republication and redistribution of this report in total, other than by TVB members or its authorized agents or designees, without written permission is strictly forbidden. Any republication, in whole or in part, must include credit to TVB and its sources. Terms of Use.
Web Site Designed by Personify Corp