Local TV Ad Spend Share Plummets Since 2017

New data from Guideline paints a stark picture of the declining influence of local television in the U.S. advertising landscape, as broadcasters intensify their push to eliminate ownership caps they argue have weakened their competitive position. 

The report reveals that local TV’s share of total media spending has dwindled to just 6% through June 2025, a dramatic drop from its 13% share in 2017, effectively losing more than half its market presence in less than a decade. This steep decline underscores the seismic shifts in the media buying ecosystem, driven by the meteoric rise of digital platforms and evolving consumer behaviors.

In stark contrast, digital video has surged to dominate the advertising market, capturing 50% of total media spending in the first half of 2025, up from just 15% in 2017. Network television, while still significant, has also seen its share erode, falling from 72% in 2017 to 44% in 2025, according to Guideline’s findings. 

These trends reflect broader structural changes in the industry, as advertisers increasingly allocate budgets to digital and social media platforms that offer targeted reach and measurable outcomes, leaving traditional broadcasters scrambling to adapt.

The decline in local TV’s market share comes as broadcasters advocate for regulatory changes, specifically the removal of ownership caps that limit the number of stations a single entity can control in a given market. These caps, they argue, hinder their ability to compete with tech giants and streaming platforms that face no such restrictions. Consolidation, they contend, would enable economies of scale, allowing broadcasters to invest in content, technology, and innovation to reclaim lost ground. However, some industry analysts caution that consolidation alone is unlikely to reverse the sector’s advertising revenue challenges, which are rooted in deeper shifts in audience behavior and advertiser priorities.

Guideline’s dataset, which tracks spending patterns among the largest U.S. advertisers, highlights another vulnerability for local TV: its heavy reliance on a narrow set of product categories. Four sectors—Automotive, Entertainment & Media, Financial Services, and Technology—account for a whopping 69% of local TV ad spending. This concentration leaves broadcasters particularly exposed to fluctuations in these industries. 

In 2025, all four categories have posted double-digit year-over-year declines in local TV ad investments, exacerbating the sector’s woes. Specifically, Automotive spending has dropped 15.7%, Entertainment & Media is down 20.4%, Financial Services has fallen 19.3%, and Technology has declined 20.7%. These declines reflect broader economic pressures, shifting marketing strategies, and a growing preference for digital channels that offer greater flexibility and analytics.

The contraction in local TV ad revenue comes at a time when broadcasters are grappling with cord-cutting, the rise of streaming services, and changing viewer demographics.