BIA’s CEO Addresses Key Projections, Trends and M&A Opportunities for Local Television at TVB Conference
CHANTILLY, Va. (November 21, 2024) – Tom Buono, founder and CEO of BIA Advisory Services, shared insights on the future of local advertising at the annual TVB Forward Conference in NYC. In a presentation to broadcast executives, Buono revealed shifts in ad spending patterns, key business categories investing in local television, and the prospects of mergers and acquisitions in the broadcast industry in 2025.
BIA’s local television advertising forecast – which rolls up linear TV, TV Digital, and Connected TV (CTV)/Over-the-Top (OTT) – projects local revenue will reach $21 billion in 2025, a 3.6 percent increase from 2024 when examining the industry without political advertising. CTV/OTT is the largest growing segment of local television, bolstering the industry’s digital growth.
“Our review of this year’s spending and our latest forecast for 2025 indicates a pivotal moment in local advertising, with digital media continuing its robust growth trajectory,” said Buono. “While traditional television viewing remains resilient, the surge in streaming services is reshaping the media landscape.”
Television and Digital Convergence
BIA’s analysis reveals an evolving television landscape where traditional and digital platforms are increasingly interconnected:
- Traditional TV over-the-air (OTA) revenue continues to demonstrate stability at approximately $16.5 billion (with political) in 2024, though its overall share of wallet has declined from 11.4 percent to 9.6 percent from 2019 to 2025.
- TV Digital (i.e., owned and operated mobile apps & websites) grew steadily from 2019 to 2024. CTV experienced rapid growth during this same timeframe.
- Legal Services is the largest category spender for local TV at $1.85 billion across TV OTA, TV Digital and CTV/OTT.
“The local broadcast television ecosystem is evolving beyond traditional metrics,” Buono said. “We’re seeing local broadcasters successfully adapt their strategies to encompass both conventional and digital delivery methods, creating more diverse revenue streams.”
One of the key categories for local television, automotive, is projected to maintain a dominant advertising position in local television with Tier 1 – Automotive Manufacturers (OEMs) spending $1.1 billion, Tier 2 – Local Automotive Dealers Associations spending $863.7 million, and Tier 3 – New Car Dealers spending $750.1 million.
Another key consideration for local television in 2025 will be the new administration. Buono anticipates the Trump Administration and its nominee for FCC chair, Brendan Carr, will foster a more business-friendly environment for mergers and acquisitions. This shift could empower broadcasters to explore strategic ventures and partnerships, bolstering their position against streaming and tech giants. Additionally, if the new administration addresses Big Tech’s market dominance, broadcasters may gain a more level competitive playing field.
U.S. Local Advertising Forecast
BIA’s U.S. Local Advertising Forecast for 16 media, including local broadcast television, and 96 business sub-verticals is available for all 210 local television markets and is based on a proprietary forecasting methodology of the local advertising marketplace. The nationwide forecast can be purchased here and local market forecasts can be accessed by subscription to BIA ADVantage, BIA’s local advertising intelligence platform. For subscription details, email sales@bia.com.
About BIA Advisory Services
BIA Advisory Services is the leading authority for data-centered insights, analysis, strategic consulting, and valuation services for the local media industry.Since 1983, BIA has been a valuable resource for traditional and digital media companies, brands and agencies, the financial and legal community serving media and telecom, as well as the FCC and other government agencies. Today, we offer comprehensive local market advertising intelligence in our BIA ADVantageTM service to help clients discover the path to their best opportunities. Learn more about our offerings at http://www.bia.com.
Media Contacts:
MacKenzie Lovings
(703) 802-2991
mlovings@bia.com Robert Udowitz
(703) 621-8060
rudowitz@bia.com
