News Summary
Local TV advertising is on track for growth in 2025, with revenues estimated to reach $21 billion, marking a 3.6% increase. Factors driving this increase include higher advertising spending from key sectors like legal and automotive industries, alongside a notable shift towards digital and connected TV platforms. The legal sector leads in spending, followed closely by automotive manufacturers and dealers. Despite slight declines in traditional TV market share, the overall landscape remains robust as businesses adapts to the changing media consumption habits of viewers.
Local TV Advertising on the Rise in 2025
In our vibrant city, exciting news is brewing in the world of local TV advertising! According to fresh predictions by BIA Advisory Services, local television advertising revenue is expected to grow by 3.6% to reach a staggering $21 billion in 2025, excluding any political ad spends. That’s right! The future looks bright for your favorite local channels, as exciting changes are on the horizon.
The Why Behind the Growth
So, what’s fueling this upward trend in local TV advertising? Well, the growth can be attributed to a mix of factors, including shifts in advertising spending patterns and significant investment from major business categories like the legal and automotive sectors. It seems these industries are recognizing the unbeatable reach local TV has for engaging with viewers right in their living rooms.
Breaking Down the Segments
Let’s dive deeper! The growth forecast isn’t just for traditional TV but also encompasses TV Digital and the speedy segment known as connected TV (CTV) and over-the-top services (OTT). In fact, CTV/OTT is shining as the fastest-growing segment within local TV advertising. As more folks are tuning in through online platforms, businesses are eagerly following this audience shift.
Who’s Spending Big?
Now, let’s talk dollars and cents. The legal industry is taking the lead as the biggest local TV advertiser, throwing a jaw-dropping $1.85 billion into local TV across all platforms. Meanwhile, the automotive sector isn’t lagging behind either! This category is projected to maintain a solid advertising presence with:
- Tier 1 Automotive Manufacturers expected to spend $1.1 billion.
- Tier 2 Local Automotive Dealers Associations projected to chip in with $863.7 million.
- Tier 3 New Car Dealers forecasting an expenditure of $750.1 million.
Market Shifts and Consumer Insights
Interestingly enough, traditional TV revenue, which for over-the-air channels is holding steady at approximately $16.5 billion in 2024, is seeing a slight decline in market share—dropping from 11.4% in 2019 to an anticipated 9.6% in 2025. Yet, the stability in revenue suggests that while the landscape is changing, there’s still plenty of value in traditional viewing habits.
Additionally, factors like skyrocketing auto insurance rates, driven by climate-related disasters and legal issues, are encouraging more investment in local TV ads. Aggressive legal tactics and third-party funding have been linked to rising costs, especially in states known for high-risk insurance, like Florida and Texas. As consumer trust in auto insurers dwindles, businesses are turning to local TV to build their brand recognition.
Shifting with the Times
Another significant aspect is the increasing demand for seamless online vehicle purchasing experiences, a trend hugely magnified by pandemic-related innovations. The electric vehicle (EV) sector is facing both challenges and opportunities with complicated legal frameworks surrounding direct-to-consumer sales. This evolving landscape is leading to ongoing legislative actions and lawsuits across various states.
What Does the Future Hold?
As this growth unfolds, we can expect even more mergers and acquisitions in the broadcasting sector fueled by newly minted policies and evolving consumer habits. The integration of traditional and digital platforms is also solidifying local TV’s place in the advertising ecosystem.
As we look ahead, the world of local TV advertising is set for an exciting ride! So, stay tuned and keep your eyes peeled for all the action that’s about to unfold. Who knows? Your favorite local ads may just be paving the way for a whole new era of advertising!
