US stations accelerate digital advertising investment
| 25 June 2014
US TV stations are spending a larger portion of their tune-in budgets on digital advertising than they were a year ago, with these gains coming at the expense of radio, cable, out-of-home and other types of media.

Indeed, according to the mixpo 2014 tune-in advertising report, up to 90% of stations plan to use some form of online advertising in 2014 and 86% will use video to do so. The survey found that spending on digital advertising as a portion of total advertising budget in the key US local station sector grew by 33% from 2013 to 2014 driven by decreases in radio, cable TV and out of home.

Three-quarters of broadcasters believe social ads are critical or very important to driving ratings while 58% of broadcasters indicate that mobile advertising is critical or very important for increasing viewership.

The survey also found that the biggest challenges with digital advertising remained consistent year-over-year with most stations mentioning both "measuring and evaluating campaign effectiveness" and "determining the cost-benefit of digital advertising" as the top challenges with online tune-in advertising. When it came to measuring the effectiveness of different types of media, 86% of respondents indicated that they could measure the effectiveness of traditional media well, relying on such standard metrics as reach, frequency and GRPs. A slightly higher 90% of respondents believed they could measure the effectiveness of digital media well, relying primarily on engagement rate to assess the effectiveness of digital ads.