Decline of TV, programmatic mark advertising trends


Michelle Clancy

| 24 August 2015

More than two-thirds (68%) of media planners rated TV high in effectiveness today, but just under a half (49%) believe TV will be as effective in three years.

This is according to the Digital Place Based Advertising Association's (DPAA) latest survey, which indicates that the disruption and decline of television, mobile opportunities and the rapidly growing focus on online video and programmatic ads are the key trends in the rapidly changing advertising landscape.

These changes will fuel the growth of digital place-based (DPB) media over the next several years.

While television is in decline, planners expect other screens' shares of media budgets to rise over the next three years: mobile (+86%), online (+67%), DPB (+34%).

A full 60% of those surveyed regard video everywhere, ie, integrated multiscreen campaigns, as important in delivering advertising impressions, with 84% saying they will be important in three years. The planners said that DPB screens will more than double (56% vs. 27%) in importance to the video everywhere strategy in three years' time.

In addition, even though DPB and mobile are often thought to complement each other, there was a sharp drop in the percentage of planners who indicated they would fund a DPB buy out of mobile (22% this year vs. 12% last year). This suggests that DPB networks have an opportunity to emphasise their potential synergy and compatible executions with mobile.

Meanwhile, nearly nine out of ten planners (88%) said they are buying programmatically for all brands they work on today. Among this group, 28% of their total media spend is being bought programmatically. Three years from now, they expect this figure to grow to 48% of budgets. Only 23% of planners said they are aware that DPB can be bought programmatically, but 67% said they would be more likely to recommend DPB as part of media plans given its availability in programmatic buying systems.

Slightly more than half (50.4%) of planners said their recommended media plans included DPB in the past 12 months, up from 45.9% in 2014. And, national TV outpaced local TV as a potential source of budgets for DPB buys, by a margin of 20% to 15%, suggesting that a substantial number of planners regard DPB as more of a national medium than they do traditional outdoor.

"This study provides quantifiable verification of what we have been witnessing over the past couple of years; namely, that video agnostic/video everywhere planning and programmatic are where media plans are heading, and that digital place-based media stands to gain tremendously because of these trends," said Barry Frey, president and CEO of DPAA. This is an exciting time for our sector."