DPAA’s survey reveals that 59% of planners expect television’s share of media dollars to decline, other screens’ shares to rise.
NEW YORK, August 20, 2015 – The Digital Place Based Advertising Association’s (DPAA) annual survey of media planners identifies the disruption and decline of television, mobile opportunities and the rapidly growing focus on programmatic as key trends in the rapidly changing advertising landscape. The study indicates these changes will fuel the growth of digital place-based (DPB) media over the next several years.
Television in Decline
More than two-thirds (68%) of media planners rated TV high in effectiveness today, but just under one-half (49%) believe TV will be as effective in three 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%). These results suggest the DPAA’s “Video Everywhere” strategy continues to align with planners’ outlooks. Sixty percent of those surveyed regard video everywhere, i.e., integrated multi-screen 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 emphasize their potential synergy and compatible executions with mobile.
Rise of Programmatic
Nearly nine out of 10 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.
Other Noteworthy Findings
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.
- 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.
- The three primary reasons planners gave for including DPB in their media plans were geotargeting (62%), reaching a specific audience (57%) and connecting with consumers on the path to purchase (50%). Notably, the sharpest increase for including DPB was for video everywhere/video agnostic planning, up to 20% from 9% in 2014.
Barry Frey, president & CEO, DPAA, said, “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. This is an exciting time for our sector.”
Results of the study will be presented at the DPAA’s eighth annual Video Everywhere Summit in New York on November 3.
About the Study
Three-hundred-ten planners employed at full-service, media services and digital ad agencies participated in an online survey conducted May 11-20, 2015.
About DPAA (www.videoeverywhere.com)
Founded in 2006, the Digital Place Based Advertising Association (DPAA) represents leading digital place-based networks by promoting their integral role in the “video everywhere” ecosystem. On behalf of its members, DPAA fosters collaboration between agencies and digital place-based networks; provides standards, best practices and industry-wide research; and promotes the effectiveness of digital place-based advertising. Digital place-based media is defined as networked digital video screens containing programming and advertising, reaching consumers on their daily journeys in places where they dwell. The DPAA is a Video Everywhere AssociationTM. Its eighth annual Video Everywhere Summit will be held in New York on November 3, 2015. The Summit is a must-attend event for any marketing, agency and digital place-based network executive seeking actionable insights into the rapidly changing video advertising marketplace.
Braff Communications LLC