2023
Local TV Advertising
Trends
2023 will be a unique year for local TV advertising. While projections from experts show a downward trend for OTA ad revenue, the forecast is flat if you look at the numbers without including the record-breaking political spending in 2022.
The Forecast for Local TV Advertising for 2023
Let’s start with the numbers from BIA Advisory Services with projections that include and exclude political ad revenue from 2022.
Total local U.S. ad revenue:
$165.7 billion
- With political, it’s a 0.5% decrease.
- Without political, it’s a 4.8% increase.
Traditional media revenue vs. digital media revenueÂ
- 51% vs. 49%
- Ad budgets are becoming less concentrated on the biggest platforms, shifting money to traditional media.
The 2023 Economy: Uncertain with Opportunities
What will the economy look like in 2023? The only thing for certain is uncertainty. There are mixed signals.
Positive Economic Signs
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The job market is still growing and healthy while unemployment stays low.
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223,000 jobs added December 2022
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Unemployment rate: 3.5%
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Corporate profits are up.
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GDP grew 2.6% in Q3 2022. 
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Inflation is slowing. 
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New legislation, the CHIPS and Science Act, places manufacturing as on the rise for 2023. 
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Infrastructure bill funding will open more job opportunities in trades. 
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Holiday shopping numbers for 2022 outperformed 2021: 7.6% increase for Nov. 1 to Dec. 24
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The dollar is up 15%, a 20-year high.
Concerning Economic Factors
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Interest rates are rising.
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Supply chain issues still impact the auto market.
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Costs of materials and raw goods remain high.
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There are predictions of a mild recession.
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Consumers’ savings accumulated during the pandemic are becoming depleted.
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Credit card balances are rising: 15% year-over-year increase in Q3 2022
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The housing market will cool as mortgage rates stay high while inventory remains flat.
The economy of 2023 is a mixed bag, but there is a significant opportunity to grow advertising revenue.
Tactics and Verticals:
Local TV’s Best Opportunities in 2023
OTT Poised for Growth with Lots of Local Opportunity
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OTT had an exceptional year at the local level in 2022 because of politics, making it more accessible and expected.
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Projections show a 12.3% increase, but it’s an underutilized category in the local arena.
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There is excess inventory, and Netflix’s new ad-supported streaming increases it further.
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It’s an opportunity for local TV sellers to position this as an attractive complement to OTA to expand reach and targeting.
Maximizing TV OTA Revenue
With OTA spending remaining flat or decreasing, optimizing every spot you sell is vital. Traditional sales structures aren’t growing top-line revenue. Turning to data and dynamic pricing maximizes revenue in any environment.
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Focus on supply and demand of spots with real-time avails.
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Price based on data instantly.
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Save time and boost revenue.
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Streamline the sales process.
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Consolidate platforms for increased efficiency.
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Access reporting on seller performance and campaigns.
Slide to compare dynamic pricing
Increasing the Reliability of Campaigns with Pay for Performance
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This model of local TV ad spot selling delivers the impressions (performance) agreed upon between the station and advertiser.
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The burden of ratings and impressions projection is on the broadcaster, not the buyer.
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Projections are more accurate, eliminating makegoods.
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Increasing the reliability of campaigns makes advertisers and sellers happy.
Recruitment Advertising: Need for Workers Expected to Increase
Recruitment advertising should stay strong in 2023, as the job market is still candidate driven. An advertiser’s biggest need may be employees rather than customer acquisition. Some key areas where you should focus efforts are:
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Health care 
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Transportation 
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Education 
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Trades 
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Manufacturing  
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Restaurants  
Verticals to Watch
These industries will increase spending in 2023.
Education: Teachers and Students Needed
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Post-secondary education involves traditional students and adults looking to reskill and upskill.
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Four-year college enrollment is down, decreasing by 9% since 2012.
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Adults are re-enrolling in college, trade schools or other programs to make career changes.
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Trades desperately need a new generation of workers, with institutions offering these programs ready to fill classroom seats.
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The lack of teachers is alarming: 36,500 positions remain unfilled, and 163,500 jobs are currently held by those who aren’t fully certified.
Auto: Bouncing Back
Spending will pick up in late 2023 after inventory normalizes.
How auto advertising can adapt:
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Spotlight EVs.
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Promote other lines of business: used cars, service centers, detailing services and rentals.
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Highlight the experience of the car buyer versus leaning on incentive advertising.
Sports Betting and Casinos: Money to Bet
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Economic forces may tighten discretionary spending; however, the category remains eager to welcome gamblers online or in person.
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It’s a localized ad category, giving local media companies the advantage.
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Online gambling will spend more than $50 million on local TV OTA.
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Sports betting apps will spend in cycles for customer acquisition and retention.
Other OTA Big Spenders
Pharma
$67M
Performing arts
$37M
Restaurants
$28M
Hospitals
$21M
The Evolving Local Business Profile: New Businesses to Target
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New companies are emerging that are smaller and leaner and operate differently than traditional local businesses.
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6.2 million high-propensity businesses (those deemed most likely to succeed) have opened since 2020.
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Smaller budgets and new business owners will need your market expertise to guide them toward broadcast and digital tactics.
How Will You Leverage 2023 Local TV Advertising Trends to Drive Revenue?
Hit the ground running in 2023 by finding the opportunities while tempering uncertainty. Keep these closing tips in mind:
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Give sellers back time to prospect and pitch with technology that streamlines linear selling.
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Maximize the value of your inventory with a dynamic pricing tool.
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Ensure sellers can access real-time avails within a sales platform, eliminating the need to use traffic systems.
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Increase efficiency by integrating business systems.
Explore how Marketron can supply the technology to transform daily sales operations from headaches into seamless workflows.
