3. THE WORLD IS CHANGING HOW IT BUYS
AND SELLS THE ANNUAL $600B IN
ADVERTISING.
NEW WINNERS AND LOSERS WILL EMERGE FROM THIS TRANSITION.
EVERYTHING OF SIZE WILL BE TRANSACTED DIGITALLY.
11. Let’s Not Throw The Baby Out
With The Bath Water
PLEASE
Can We Not Throw The Baby Out
With The Bath Water
12. THE FUTURE OF
ADVANCED TV
ADVERTISING
National
Broadcast
Networks
69%
what DO buyers want?
Cable
Systems 48%
Local
Broadcast
Stations
61%
Connected
Devices 59%
61% Natl.
Cable
Networks 56% Local
61% Natl.
13. THE FUTURE OF
ADVANCED TV
ADVERTISING
8% will spend between
6–10% of TV budget
programmatically in 2015
14. THE FUTURE OF
ADVANCED TV
ADVERTISING
97% would be
most interested
in buying
:30 with PTV
15. THE FUTURE OF
ADVANCED TV
ADVERTISING
< 1year
how long do you believe it
will take for a significant
portion of your TV spend
to shift from direct
purchased to
programmatic?
16. THE FUTURE OF
ADVANCED TV
ADVERTISING
21% will not spend
TV budget
programmatically next
within 12 months
18. THE FUTURE OF
ADVANCED TV
ADVERTISING
30% say PTV will
maintain or increase
linear prices
19. THE FUTURE OF
ADVANCED TV
ADVERTISING
52% how would you define the
team responsible
for buying
programmatic TV?
20. THE FUTURE OF
ADVANCED TV
ADVERTISING
THE CENTER OF GRAVITY IS MOVING RIGHT >>
PUBLISHER ACTIVATION IO BUSINESS
ARBITRAGE MATURE FORWARD MARKET
SPOT/RTB PURE AUCTION
21. THE FUTURE OF
ADVANCED TV
ADVERTISING
45% currently use
digital media data
to inform television
buying
22. THE FUTURE OF
ADVANCED TV
ADVERTISING
THERE WILL BE NO MOBILE,
VIDEO, REGIONAL, BRAND
OR SPECIALIZED DSPS
The first spot for Bulova in 1941 cost $9
The TV advertising industry has changed a bunch over the years and it is in a state of change again
the definition of what is considered TV or Video is changing
We have moved from a wooden box with tubes to a smart piece of glass that is internet connected – a device that can arguably be considered the future OS of the home
Most video is still viewed on the large screen but more content is being consumed every day on smaller devices
BASED ON THE RESULTS OF THE SURVEY, MOST BUYERS TEND TO AGREE WITH OUR DEFINITION OF PTV
REAL TIME AUTOMATED AUDIENCE BUYING
A large majority of you said Real-time decisioning and the Ability to target wide variety of audience demos were essential for PTV
62% Real-time decisioning
78% Ability to target wide variety of audience demos
Over 50% of respondents also believe that Real time pricing and dynamic ad insertion were essential needs
68% of believe the most important benefit of PTV is to Target audiences more precisely
When we talk about TV inventory – we mostly talk about linear and advanced TV 69% Ntl Broadcast
68% Ntl Cable
61% Local Affiliate Broadcast
59% Set-Top Boxes/Connected TV (eg, Chromecast, Apple TV)
57% Free Over-the-Top (eg, Hulu)
56% Local Affiliate Cable
Interestingly Premium or Subscription Cable (MVPD was least desirable (48%) and this is the most addressable of linear inventory today
Buyers are already moving dollars from nearly every form factor to programmatic today, the last channel to go programmatic was print
Time Inc’s announcement a few weeks back suggests that even print will now be traded programmatically
Over 50% of respondents are buying programmatically today
23% are buy TV
BASED ON THE RESULTS OF THE SURVEY, MOST BUYERS TEND TO AGREE WITH OUR DEFINITION OF PTV
REAL TIME AUTOMATED AUDIENCE BUYING
A large majority of you said Real-time decisioning and the Ability to target wide variety of audience demos were essential for PTV
62% Real-time decisioning
78% Ability to target wide variety of audience demos
Over 50% of respondents also believe that Real time pricing and dynamic ad insertion were essential needs
68% of believe the most important benefit of PTV is to Target audiences more precisely
The two biggest threats to a successful launch of programmatic TV are
DSP’s acting as next generation ad networks (bad for publishers)
35% believe the biggest challenge is changing the status quo and convincing broadcast sellers to make inventory available
Digital buyers applying pure DR thinking to TV
When we talk about TV inventory – we mostly talk about linear and advanced TV 69% Ntl Broadcast
68% Ntl Cable
61% Local Affiliate Broadcast
59% Set-Top Boxes/Connected TV (eg, Chromecast, Apple TV)
57% Free Over-the-Top (eg, Hulu)
56% Local Affiliate Cable
Interestingly Premium or Subscription Cable (MVPD was least desirable (48%) and this is the most addressable of linear inventory today
A combination of brand recall, brand lift and impact on purchase intent
21% will use direct response metrics. A word of caution on this is that we do not try to turn TV into a DR platform – this is by far one of the best branding ad vehicles we have and PTV should not change the way we think about this vehicle
97% :30
91% :15
79% :60
21% :90
Only 12% are interested in long form
27% believe it will be less than 1 year
30% believe it will take more than 2 years
37% will spend between 6-20%
31% will spend 1-5%
7% will spend over 30%
A combination of brand recall, brand lift and impact on purchase intent
21% will use direct response metrics. A word of caution on this is that we do not try to turn TV into a DR platform – this is by far one of the best branding ad vehicles we have and PTV should not change the way we think about this vehicle
46% believe PTV will lower prices
WORD OF CAUTION – this is not likely
When you take a product with scarcity and enhance its value with audience data, the costs will remain the same or increase
52% say it is the digital/video team
32% say TV
There also seems to be consensus that in 12 months time, the percent bought by the TV team will decline to below 30%
64% plan to use this data in the future
Of those using it today 79% have been using this data for less than 1 year
As all advertising form factors become programmatic, agencies and brands will require cross channel attribution and therefore all specialized DSP’s will go away and be replaced with true multi channel solutions that provide views into transparency, expressive bidding and cross channel measurement/attribution
82% of those surveyed felt it was important to to buy programmatic TV inventory alongside digital inventory?
How important is it that connected TV and digital video utilize the same metrics?
93% want consistency in data for connected TV and digital video.
There is a gap that measurement companies need to consider here to help buyers accomplish this goal
1. MOST TV BUYS WILL START WITH PRIVATE MARKETPLACE DEALS AND THEN MOVE TO FORWARD MARKET
(“RTB” TERM GOES AWAY)
2 This room is FULL of the people that control the pace of adoption. 30% OF TV DOLLARS WILL MOVE TO PTV IN THE NEXT YEAR AND WITHIN 3 YEARS SIGNIFICANT PORTIONS WILL BE TRANSACTED PROGRAMMATICALLY
TV IS TRANSFORMING INTO A MARKET WITH Infinite UNBUNDLED Viewer Choices, Global RIGHTS, BOUGHT THROUGH AUTOMATED DSP SOLUTIONS AND DELIVERED WITH FULL ADDRESSABILITY OTT/Internet
