Programmatic Advertising and Local: Assessing the Opportunities for Marketers to Geotarget Campaigns

Guiding Media. Inspiring Innovation. Leading Local.

Local Audience Targeting and Programmatic TV

Opportunities for Brand Marketers in Local Activation

Rick DuceyManaging Director

@rducey

February 23, 2016

© 2015 BIA/Kelsey. All Rights Reserved. |


Putting “local” into contextBrand-to-local trendsProgrammatic TV and local

Discussion Topics




Discussion Topics


Local Defined

BIA/Kelsey definition of local advertising:

All advertising platforms that provide access to local audiences for national, regional, local marketers.

5© 2016 BIA/Kelsey. All Rights Reserved. |


Source: BIA/Kelsey, October 2015

2015 2016 2017 2018 2019 2020$0

$100

$200

$300

$400

103.3225 104.0363 101.9534 102.8658 101.1609 102.8161

38.018 42.6021 47.7504 53.5023 59.2569 66.0492

141.3406 146.6384 149.7038 156.3681 160.4178168.8653

Traditional Online/Digital Total Media

US$

Billio

ns

Note: Numbers are rounded.

2015-2020CAGRs:

TotalCAGR 3.6%

Online/DigitalCAGR 11.7%

Traditional MediaCAGR -0.1%

US$

Billio

ns

Note: Numbers are rounded.

How Big is the Local Ad Market?Digital media growing by $28B in the 2015-2020 period, 11.7% CAGR



Snapshot: Phoenix, AZ Market Spending


Broadcast OTA includes: Over-the-Air Local Television and Local Radio stations.Other Traditional Media includes: Local Cable, Local Magazines, Local Print Newspapers, Local Print Yellow Pages, Direct Mail and Out of Home.Digital includes: Local pure play online, online activities of traditional media companies, Email, Internet Yellow Pages, and Mobile.

2015 2016 2017 2018 2019 2020$0

$325

$650

$975

$1,300

$637,061 $682,616 $673,035 $714,741 $698,314 $753,428

$1,212,314 $1,205,652 $1,189,655 $1,195,453 $1,178,224 $1,186,610

$581,404$661,748

$752,496$855,006

$959,148$1,081,948

Broadcast Media Other Traditional Media Digital Media

Milli

ons

Traditional & Digital Local Advertising in PhoenixPhoenix, AZ Market – Digital Spend Growing from 23.9% to 35.8% of Total Media Spend


Top Ten Billers in Phoenix – It’s Not Just Local Media PlatformsDigital platforms are largely programmatic already, can traditional media compete?

Source: BIA/Kelsey, 2016




Discussion Topics


2015 2016 2017 2018 2019 2020$0

$45

$90

$135

$180

$50.3 $52.4 $53.7 $56.4 $57.9 $60.9

$34.7 $33.0 $33.3 $32.0 $32.8 $34.6

$56.3 $61.2 $62.7$67.9 $69.7

$73.4

SMB Advertisers Non-SMB Local Advertisers National AdvertisersBi

llion

s

National Brands Increasing Aggregate Local Spending $17.1B by 2020National brands are the fastest growing type of advertiser in local.

Source: BIA/Kelsey, October 2015

+17.1B+5.45% CAGR

+10.6B+3.90% CAGR




Discussion Topics


Agencies Showing Some Interest in Local TV and ProgrammaticBut two-thirds will not allocate any programmatic ad spending to local TV


Overall, TV is Not Where Marketers Are Seeing Most Opportunity


The “Secret Society” of Programmatic TVStill, some are seeing the promise of programmatic TV.

Mitch Oscar Director of Programmatic TV Strategy,

USIM Executive Industry Advisor, BIA/Kelsey


BIA/Kelsey’s Expert Panel Discussing Programmatic TVComplimentary on-demand webinar and slide deck, forthcoming report

http://blog.biakelsey.com/index.php/2016/02/18/programmatic-comes-to-local-tv-in-2016/


Programmatic TV Comes to Local Television in 2016Expert Industry Panel on the Issues & Opportunities of Programmatic TV

Brett AdamczykVP Business Development

Videa

Dot DiLorenzoEVP, Director of Planning,

USIM

David PragerVP Strategy and Business

DevelopmentStrata

Steve WalshEVP, Local MarketscomScore/Rentrak

Rob WeisbordChief Operating OfficerSinclair Digital Group

Russell ZingalePresident Eastern Division

USIM


Key Questions We’re Covering in Broadcast/Cable Programmatic TV1. How do you view programmatic TV in terms of compatibility with

your existing traditional planning and buying endeavors?2. What are your key partnerships or initiatives in the programmatic

TV realm? 3. How do you view programmatic TV sales in terms of its

compatibility to your existing traditional selling approach?4. How soon do you think programmatic TV buying will have an

impact on local TV inventory purchasing? 5. What is your opinion on programmatic TV’s acceptance by

advertising agencies? 6. What are the opportunities you see in the programmatic TV realm

for data companies?


USIM as “Programmatic Agency of the Year”

MediaPost’s First Such Award


“By targeting audiences more precisely via addressable and programmatic TV, Zingale says USIM has been able to demonstrate the ROI of TV and avoid wasted reach and frequency that would otherwise occur in national TV, or even spot TV buys.” MediaPost, Jan 19, 2016

MediaPost’s Programmatic TV Agency of the Year - USIMRussell Zingale, President, Eastern Division, US International Media

• Account Case Study:• USIM picked up the Aruba account in 2012.• Aruba was national print, heavy digital. • Couldn't afford TV.• Developed programmatic TV campaign.

• Campaign Highlights:• KPI: Drive visitation to Aruba.• Goal: reach new and different HH affordability.• Local Activations: Top 5 markets.

• Results:• Found that programmatic vs addressable is

cheaper. • Selective with cable, dayparts.• ROI of programmatic TV demonstrated vs

alternatives of traditional age/gender and addressable buys.


BIA/Kelsey’s Value Chain in Local Programmatic TVHow can local programmatic TV serve brand goals?


Audience Extension• Local TV

provides audience extension beyond national TV platforms

Audience Concentration• Programmati

c TV DMPs provide better targeting than gender/age for reaching target audience

Efficiency• Reaching

extended audience and more of them drives buying efficiencies with higher audience concentrations

Cost-Effectiveness• Programmati

c TV buys deliver more of target audience per same spend.

ROI• Final result is

achieving campaign KPIs


Five Take-AwaysBrand to Local Marketing is a Growth Business1. BIA/Kelsey forecasts that total U.S. advertising targeting local audiences will exceed $146B in 2016. Over 40%

of this total will be spent by national brands to localize their campaigns. 2. National brand spending on local activation will grow at a 4.6% CAGR from $61.2B in 2016 to $73.4B by

2020. 3. Spend is shifting overall from traditional to digital media.4. Programmatic platforms offer a way for traditional media to become more complementary to digital media.5. Early experience in local programmatic TV is promising, but still a ways to go to get all the pieces together.


Questions & Comments:Guiding Media. Inspiring Innovation. Leading Local.

Rick DuceyManaging Director

BIA/Kelsey@rducey

[email protected]

Programmatic Advertising and Local: Assessing the Opportunities for Marketers to Geotarget Campaigns

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