Having worked with television executives for over 30 years, we understand the importance of success against the other in-market television competition.
In many markets, a one share improvement in a key demo, coupled with the associated sales boost, can make a meaningful impact on the bottom line. However, in this rapidly changing advertising environment, there is a bigger opportunity for success.
BIA estimates that the total local advertising spend in the U.S. in 2018 will be $151.2 billion. With the benefit of the Olympics and statewide elections, this represents a 5.2% increase over 2017. We also estimate that local advertising on television will be $20.3 billion, representing about 13.8% of total local advertising. So while 13.8% of local advertising happens In the television industry, 86.2% of local advertising will go to media outside television. And, advertising is shifting, as print product placements decline and online/mobile advertising accelerate.
There are also wide variances in terms of local advertising by vertical. While television does great with auto dealers, garnering about 1/3 of all local advertising, it gets less than 10% with many of the retail, financial services and leisure categories.
If television could get an additional one percentage point of local advertising in these three verticals, television revenue would increase by approximately $600 million. This could mean another $40 million to split between the TV stations in NYC, $15 million in Dallas, $8 million in Denver.
Innovative television executives are utilizing BIA ADVantage to size the verticals in their market, identify those verticals with higher print/lower TV advertising and develop sales strategies to increase their share of wallet in those verticals.