You can always count on change to be top of mind in the broadcast industry. The field transformed, pivoted and adapted during the past two years. So, what does the future hold? Managing director at BIA Advisory Services, Rick Ducey, sat down with Marketron’s vice president of marketing, Bo Bandy, to discuss broadcast trends at NAB 2022 on this episode of Beyond Impressions.
The conversation on broadcast trends kicked off with the topics of political advertising and online sports betting. “We’re forecasting $8.4 billion for local advertising. OTA is great for reach, digital for targeting, and CTV combines both,” Ducey explained.
While political ad revenue is cyclical, online sports betting is perennial money. Ducey noted, “It’s a new category that will keep growing, and we’re watching it closely.” The states that legalized it are reaping the benefits, especially OTA TV and radio, as most digital advertising platforms don’t allow it.
The next topic was OTT and CTV. It’s different from video display, playing like traditional TV commercials but on any device. CTV is specific to smart TV sets, making it both a competitor and complement to linear TV. “Lots of industries love CTV because it has the OTA brand safety and targeting capabilities,” Ducey remarked.
Streaming platforms that house these ad types were also a trending topic at NAB 2022. The field is becoming more saturated, still coming off the increased consumption during the pandemic. Netflix even lost subscribers, while CNN+ left the space after only a few weeks. “There’s going to be failures and aggregations. The CNN+ miss was a misalignment of the streaming demographic and the news demographic,” Ducey explained.
Finally, Ducey offered some insights on NextGen TV, noting it has a demand and supply side. For stations to use it as a revenue generator, they’ll need to be able to reach audiences for dynamic ad insertion. “Agencies are saying that it needs 50% penetration in the market before it’s viable,” Ducey said. It’s not there yet, but it’s coming and will be a key piece for stations’ O&O (owned and operated) inventory.
To hear more from Ducey, watch the episode.