Engagement with news programming across all media channels is in a state of change. In the age of misinformation spreading like wildfire on social media, who do viewers trust and turn to for news? Local TV news appears to be the medium of choice. It earns the attention and confidence of audiences across all demographics.
With these attributes, it generates lots of ad dollars for local stations. But how can you increase that revenue with finite inventory?
Let’s look at some recent data on engagement and trust. We’ll then uncover strategies to optimize revenue for these high-demand spots.
Local TV News Sees Increased Viewership
According to Pew Research, local affiliate news stations (ABC, CBS, Fox and NBC) had a jump in viewership for the time slots of late night and evening news by 4% in 2020. Audiences for the midday news (11:00 a.m. to 2:00 p.m.) rose 10%.
Because of that viewership, it’s a significant moneymaker for broadcast TV. BIA Advisory Services expects local TV news to generate $17.9 billion in ad dollars in 2022.
So, why do consumers tune in to local news? It has a lot to do with trust.
U.S. Adults Trust Local News Over National Programming
According to data from Statista, 75% of U.S. adults trust local news, versus 58% having that affinity toward national news. That is slightly down from 2016 but still way above national news sentiment. That trust crosses demographics, as well.
The 55+ crowd has the highest percentage of daily local news watchers; 30% of 35- to 54-year-olds watch, as do 18% of those aged 18 to 34. Further, younger demographics (18 to 29) trust it the most. A newly published survey from TVB regarding media sources and voters indicated that broadcast TV was the most effective medium to reach voters. Local TV news was the most trusted programming type, at 79%, which means it’s a prime spot for political advertising.
Local news combines engagement and trust. Naturally, you’ll want to make the most of these high-demand spots. But are across-the-board rate hikes the best approach? You’ll maximize revenue better with dynamic pricing.
Get More Ad Dollars for High-Demand Spots with Dynamic Pricing
Your local news programming spots are available morning, noon and night, but they are also finite. To expertly maximize revenue for high-demand sports, you need rate management that considers demand and other data.
The best approach is dynamic pricing, or price optimization. You don’t need data scientists, databases or massive spreadsheets to do this. Instead, you can leverage an automated dynamic pricing tool that uses algorithms and does the pricing for you. It looks at demand, timelines and other factors to deliver the right price. You can set up guardrails, such as floor and ceiling rates. However, for this category, you may decide not to cap it. You’ll realize a substantial boost in top-line revenue with this strategy.
Maximize Local News Revenue with Dynamic Pricing
The opportunities to increase rates dictated by data for local news programming are accessible with dynamic pricing. You also have engagement and trust metrics to support its value to advertisers.
To learn more about how dynamic pricing is revolutionizing broadcast sales, watch our on-demand webinar, Yield Management in Broadcast Sales: Why It’s a Powerful Dynamic Pricing Tool.