The level of television station transactions increased between 2013 and early 2014, due to the success of larger groups’ retransmission consent negotiations and the upcoming reverse auction to be held by the FCC. While M&A activity declined in late 2014 and into early 2015, recent combinations late last year and early this year of several television groups have led to increased concentration on the national level.
Among the many findings of the report are:
Local TV ranks second in terms of U.S. local advertising revenue share at $21.9 billion. Direct mail is No. 1 at $36.9 billion, newspapers is third at $17.4 billion, closely followed by online at $17.3 billion and radio at $15.4 billion.
Local news is key programming for stations, drawing national and local advertisers via audiences with higher education and income levels.
Over-the-air advertising revenues will grow 12.1% in 2016 due to political advertising.
Online/interactive ad revenue is growing steadily — it will account for 6.4% of total revenue by 2020.
Local TV stations get nearly 35% of the $16.7 billion in total advertising spent by the automotive sector.
Local TV stations will receive more than $543 billion in restaurant advertising in 2016.
Between 2016 and 2020, local TV will receive a growing share of mobile advertising, up to 14.9%.
By 2020, local TV stations’ advertising revenues will remain the largest portion (63.6%) of the local video ad marketplace.
Retransmission consent revenues are expected to grow at a 17.3% compound annual growth rate through 2020.