Majority of TV Dollars to Soon Be Traded Programmatically, Advertisers Predict

May 11, 2017

This article is included in these additional categories:

Advertising Trends | Data-driven | Personalization | Programmatic & RTB | TV Advertising | Video

There’ll be an inflection point in TV buying in the near future, a majority of TV and digital video advertisers predict. In fact, some 64% of decision-makers surveyed by Videology and Advertiser Perceptions [download page] believe that within the next 3-5 years more than half of TV buying industry-wide will be done programmatically.

Digital video is on its way already, per the report, with respondents estimating that 31% of their current budgets are spent programmatically and forecasting an average of 41% to be traded this way next year. (For its part, eMarketer last year forecast that 60% of digital video ad spending in the US would be transacted programmatically in 2016.)

The same issues will need to be confronted with TV as with digital video, though: increased brand-safety risks along with greater scrutiny on challenges such as viewability and fraud.

Nevertheless, as TV and video buying increasingly become integrated – in terms of both internal advertiser buying structure and holistic campaign planning – there will be a push towards more use of addressable TV and data-enabled TV (see definitions below). The core driver of this shift is improved targeting and less waste, according to the report, with these far-and-away considered the biggest benefits provided by advanced TV advertising.

Separate data released by Videology [pdf] shows that demand for advanced TV continues to grow on the Videology Platform, with spend up by 60% year-over-year in Q1.

About the Data: The results are based on a survey conducted in early February 2017 among 156 marketer and agency contacts from the Advertiser Perceptions Media Decision Maker Database and third-party databases as needed. Respondents were required to: be involved in digital or TV advertising decision-making; have purchased digital video in the past 12 months / plan to purchase next 12 months or TV DM; and have at least $1 million in total ad spend over the past 12 months.

Respondents were fairly evenly split between agencies (52%) and marketers (46%). Media involvement included digital desktop/laptop (93%), digital mobile (94%) and TV (linear or advanced – 69%). Average past-12 month ad spend was $29.2 million.

Definitions provided in the report:

  • Data Enabled TV (DETV) as: Linear TV that has first-party and third-party data layered over television viewing data, resulting in more efficient delivery against a strategic consumer target.
  • Addressable TV as: Linear TV advertising that, through the use of data, can reach consumers at the household level, rather than the program, network or daypart level.
  • Advanced TV as: A general term that encompasses both data-enabled and addressable TV.

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