As local television station businesses are forecast to increase their revenue by 5.6% to $27.7 billion in 2018, location-targeted mobile advertising opportunities are exploding.
According to new research from BIA Advisory Services, over-the-air ad revenue may jump 5.8% to $18.2 billion this year. An additional $1.1 billion of this revenue are coming from digital advertising. That’s an increase of 6.3% from 2017.
“We anticipate political advertising will generate significant ad revenue for local television this year, in particular for over-the-air revenue,” explained Mark Fratrik, SVP and chief economist at BIA Advisory Services. “Of all media, television still dominates in political years, even as campaigns integrate more digital advertising into their overall strategy.”
Meanwhile, many stations are expanding their multiplatform ad offerings to deliver content more effectively and reach consumers at multiple points in the ad ecosystem. That is where BIA sees potential for mobile ads. It estimates that location-targeted mobile ad spend will be $22.1 billion this year – $3.1 billion of this will be sold by traditional media outlets such as TV broadcasters.
“Mobile advertising is a smart play for television because it offers a unique opportunity to leverage existing assets such as news and weather through sponsored mobile websites and applications,” said Fratrik. “These types of efforts are important as over-the-top – or OTT- services continue to attract viewers.”