Local TV Benefits from Cord Cutting Growth




FamilyCord cutting is continuing to see strong growth, and now local TV stations are starting to see the benefits of that growth.

A recent report from BIA/Kelsey shows that some markets, such as Detroit, are seeing a 19% increase in revenues over 2016 for two big reasons: primaries and, more importantly, advertisers’ desire to reach cord cutters.

“Perhaps no local media is enjoying this year’s protracted presidential primaries and the expected large number of Senate and gubernatorial races more than local television stations,” Mark Fratrik, senior vice president and chief economist at BIA/Kelsey, said in a statement. “The election and the economy, driven by stronger employment figures and continuing low interest rates are helping push local TV ad revenues above expectations this year.”

As more and more people ditch traditional pay TV providers, advertisers are seeing local TV stations as an even better way to reach viewers. Because local stations often carry live sports, news, weather, and other events live advertisers know they are likely to reach cord cutters.

As more advertisers start buying local ad space, cord cutters will win because it will attract new stations to markets offering cord cutters more free content. Although we are still at the early stages of the cord cutting boom it is already driving a major change in how advertisers look to reach every day viewers.

Source: BIA/Kelsey

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