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Many Ad Agencies Don’t Plan on Using Programmatic Ad Spending on Local TV

December 3rd, 2015 | Read more articles from 2015 or Visit the News Archive
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Originally appearing at eMarketer

Agencies are investing in programmatic ads on a range of media, including television. But many ad agency professionals say they are still not planning to allocate any programmatic spending to local TV.

Percent of Programmatic Ad Spending that US Ad Agency Professionals Will Allocate to Local TV*, Nov 2015 (% of respondents)

According to November 2015 research by Strata, more than two-thirds of US ad agency professionals said they will allocate no programmatic ad spending to local television, including spot and cable TV.

Some 18% of respondents said they will allocate 10% to 20% of programmatic ad spending to local TV. Three percent said they will allot 20% to 40% and 11% of respondents said they will budget 40% to 60%. Only 1% said they will allocate more than 61% of programmatic ad spending to local TV.

Channel/Format Where US Marketers See the Most Opportunity for Programmatic Advertising, Feb 2015 (% of respondents)

While more marketers are advertising programmatically, it’ still early days for TV. More marketers are advertising programmatically on mobile and the desktop, with video along with other display formats, including social media and native. This is a wide range of popular digital ad formats, and real-time bidding and other programmatic buying methods have been available for longer.
In fact, February 2015 research by RBC Capital Markets and Advertising Age revealed that just 8% of marketers said they see the most opportunity for programmatic advertising on TV. One-third of respondents said that mobile is the channel where they see the most opportunity for programmatic advertising and one in five said they saw the most opportunity with video.

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