Local broadcasters in the US are adapting to the streaming trend in order to capture shifting ad dollars, according to Tom Cox, President of Premion. They are developing new ad solutions and streaming products to address the growing popularity of streaming. Local broadcasters have an advantage in delivering local demand due to their established, in-market sales forces and strong advertiser relationships. They can compete effectively against cable, which is being impacted cord-cutting, as nearly 40% of US households can only be reached through streaming. Advertisers need to incorporate streaming into their advertising mix as part of a complete TV strategy.
Local broadcasters are investing in distributing highly valued news content on streaming platforms and are licensing their content on other platforms. They are investing in their convergent linear + streaming selling capabilities to compete against cable effectively. Streaming advertising solutions are not constrained traditional linear limitations such as ratings, giving broadcasters more flexibility in targeting audiences.
Premion, an ad-supported streaming company, partners with top-tier premium brands and leverages its targeting and attribution capabilities to deliver locally-focused streaming advertising solutions. Premion sets itself apart with its footprint, local focus, and origins in broadcast. Through its relationships with TEGNA-owned stations and partner Gray’s stations, Premion reaches about 80% of US households. Its product and technology stacks are designed with a local-first mindset, allowing tailored solutions on a local scale.
Local advertisers are facing economic uncertainty and challenges in deciding how and where to market their offerings. They are overwhelmed with the number of available choices. Premion spends significant time educating advertisers about the opportunities and capabilities in the local market.
Over the past five years, streaming attitudes among advertisers have evolved significantly. Local businesses recognized the necessity to advertise on streaming platforms during the pandemic when consumers were staying at home and streaming more content. There has been a significant increase in CTV providers and new entrants in the space, emphasizing the importance of working with a trusted CTV provider with a proven track record, data-driven capabilities, and extensive experience.
Local broadcasters can expect a windfall from the 2024 election, with an expected increase in overall political spending and the share allocated to CTV. Precise targeting capabilities of CTV will incentivize political agencies to direct more of their business towards CTV. Certain key states are expected to witness an unprecedented demand for TV ads in the 2024 elections.
The future of local broadcasting involves key trends such as the continued growth of streaming, the importance of trusted CTV providers, and the need for precise targeting capabilities. Local broadcasters will need to adapt their content and business models to fit the streaming world and continue investing in convergent linear + streaming selling capabilities.
Sources:
– Premion website (no URL provided)
– Campaigns & Elections survey (no URL provided)
