Companies are Reinvesting in Local Spot TV Ads

BY Rachel Cagle
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Just as TV viewing habits and advertisements changed when the COVID-​19 outbreak began, they’re changing again as the country opens back up three months later. Particularly, according to a report by Nielsen, local spot TV ads are beginning to make a comeback.

About one in five (21%) respondents to SalesFuel’s State of Media Sales 2020 study estimated that the U.S. economy would begin recovering in June and it seems as if they were correct. As states begin opening back up, local businesses are eager to reach out to their customers using local spot TV.

By the end of March 2020, local spot TV ad units had fallen by 13% (from 1.817 million to 1.579 million), according to Nielsen. During the week of April 27, these ad units rose by 5% (back up to 1.657 million).

Not all markets are on the upswing from a local spot ad perspective, but a majority are, indicating a strengthening business environment for many regions,” reports Nielsen. Specifically, marketers in 101 of the top 132 markets in the U.S. increased their use of local spot TV ads during the week of April 27.

After a dramatic decline in advertising during the COVID-​19 outbreak, business types such as physical culture (for example, gyms) and amusements, events and miscellaneous entertainment have begun slowly reinvesting in local spot TV ads. The following business types were in full rebound mode during the last week in April as these increases show:

  • Hotels and Resorts: experiencing a 37% increase (after a 85% fall during the outbreak)
  • Auto Dealerships: 31% (-39%)
  • Public Utilities: 28% (-18%)
  • Retail Stores: 8% (-32%)

Businesses are ready to begin advertising to their customers again using local spot TV ads and your clients are among them. AdMall offers many tools for sales reps during this economic recovery, including Local Account Intelligence Reports that can help determine which verticals are most heavily using broadcast TV ads to reach consumers.