Local TV Advertising Share Plummets

Local television has long been a staple of American advertising, providing regional businesses with a reliable platform to reach local audiences. For decades, broadcast stations enjoyed a dominant position in media spending, with advertisers valuing their ability to reach broad, engaged audiences during prime-time programming and local news slots.

However, the landscape has shifted dramatically over the past eight years. From 2017 to 2025, local TV’s share of total media spending has dropped from around 13% to just 6%, reflecting a rapid erosion of its market dominance as advertisers increasingly favor digital channels.

The growth of digital video, streaming platforms, and social media has transformed the way audiences consume content. Viewers are moving away from scheduled programming, opting instead for on-demand entertainment that can be accessed anytime, anywhere.

Connected TV (CTV) and over-the-top (OTT) services now allow advertisers to deliver highly targeted campaigns with measurable results, an advantage that local TV struggles to match. Digital video’s share of ad spending has surged from 15% in 2017 to 50% in the first half of 2025, highlighting the extent to which the industry has pivoted toward platforms that provide granular audience insights and engagement metrics.

The decline in local TV revenue has put pressure on regional broadcasters to innovate and adapt. Some stations have adopted streaming initiatives, launched apps, or developed digital-first advertising solutions to stay competitive. Others are leveraging data analytics to help advertisers better understand viewership patterns and optimize ad placements. Yet, despite these efforts, traditional broadcast stations face a steep uphill battle, competing not only with national networks but also with an expanding ecosystem of digital platforms offering dynamic, interactive ad experiences.

Advertisers themselves are adapting to this shift, reallocating budgets toward programmatic digital campaigns, social video, and targeted OTT placements. Brands increasingly prioritize measurable ROI, audience segmentation, and engagement tracking—areas where local TV has struggled to keep pace. Even so, stations that successfully integrate digital components into their offerings have found opportunities for growth, such as localized CTV campaigns that blend traditional broadcast reach with the precision of streaming.

Industry analysts note that collaboration with tech companies and ad networks could further help local TV regain ground. By integrating programmatic advertising, audience segmentation, and interactive content, regional broadcasters can offer advertisers a blend of scale and precision. This convergence of traditional and digital strategies may redefine the role of local TV in the modern media ecosystem.

Looking ahead, local television faces both significant challenges and potential opportunities. The continued fragmentation of the media landscape means that traditional ad models may not be sufficient to sustain revenue.

At the same time, hybrid strategies that combine broadcast reach with digital targeting, social media amplification, and advanced analytics may offer a path forward. By embracing innovation, leveraging audience insights, and delivering measurable results, local stations can regain relevance in an increasingly competitive advertising landscape. The shift from linear to digital is not just a threat; it is also an opportunity for those willing to evolve with the changing habits of viewers and advertisers alike.