Riding a strong economic recovery and election-year spending, the local TV broadcast industry in 2022 will rise more than 26% over 2021, according to the BIA Advisory Services estimate.
Speaking at the TVB Forward Conference, BIA founder and CEO Tom Buono said that drivers behind the forecast include a long and significant political advertising season, growth in TV’s digital advertising opportunities, and positive economic signs for key verticals.
Buono said that BIA’s analysts saw a V-shaped recovery in overall local advertising, with a $10 billion dip in 2020 only to return in 2021 to nearly to pre-pandemic levels.
BIA is now estimating a 3.4% compound annual growth range over the five years in its study.
Political advertising will be extremely strong for parts of 2022 and even stronger in 2024, BIA says. New York City, Los Angeles, Atlanta, Phoenix, and Philadelphia will be the top five markets for next year’s political advertising.
Most growth in local advertising will be in the digital realm as print publications continue to decline. OTT (over-the-top) TV advertising is predicted to nearly double from $1.17 billion in 2021 to more than $2 billion in 2024.
READ MORE: Bolstered by a Political Year and the Economy, BIA Forecasts Local Broadcast TV Ad Revenues to Increase By 26.5 Percent in 2022 (BIA Advisory Services)
This makes cross-platform sling even more important, Buono says.
He also says that, in 2020, key verticals such as leisure, recreation, auto, and retail were hit especially hard but are recovering in 2021. Looking ahead to 2022, areas increasing their ad budgets could be supermarkets, wireless carriers, quick service restaurants, and hospitals.
There’s more on the forecast on the BIA Advisory Services website.