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CHANTILLY, VA.—As BIA/Kelsey looks down the road of local video advertising, it is seeing a healthy growth as a result of progress in Advanced TV and an industry commitment to improving interactivity and the viewer experience. The “Advanced TV: Executive Views on Industry Progress & New Directions” report forecasts that the local video advertising market will grow to $32.6 billion in 2018 and will reach $37.1 billion by 2022.
BIA/Kelsey’s report is defining “Advanced TV” as linear TV platforms; this includes automated TV, programmatic TV, addressable TV, OTT, Smart TV, Connected TV and ATSC 3.0.
The report indicates that growth in the market for local video impressions and related ad spending comes from the mobile and digital categories. Per the report, marketers plan to increase their spending in these categories because of the ability to develop and measure data-infused video campaigns that can target video audiences on an individual basis using segmenting attributes. Local TV is looking to advanced TV solutions to provide the capabilities to match mobile and digital.
“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 at BIA/Kelsey and report co-author. “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.”
The full report, which includes interviews with industry executives, is available here.