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Most Marketers Not Planning To Spend Programmatic Budget On Local TV, STRATA Finds

December 3rd, 2015 | Read more articles from 2015 or Visit the News Archive
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Appearing at MediaPost

By Felicia Greiff

An eMarketer report showed research from STRATA in which two-thirds of ad agency professionals said they wouldn’t allocate programmatic ad dollars to local TV, including spot and cable TV.

Lauren Fisher, a programmatic analyst at eMarketer, said some dollars are probably in testing because the programmatic medium is still new, and there are issues on the supply side of local TV in getting scale and access in a way that’s meaningful. Overall,  programmatic TV is tricky, she said, because it’s a broad area with many definitions: Is it data-informed audience targeting, or does it include automated buying?

In the STRATA study, 18% of respondents said they would allocate 10% to 20% of programmatic ad spending to local TV; 3% said they would allocate 20% to 40%; 11% said they would budget 40% to 60%; and 1% said they would allocate more than 61% to local TV. The eMarketer report also mentioned Ad Age and RBC Capital Markets research that found marketers see the most programmatic opportunity (33%) in mobile.  

Fisher commented that advertisers want to move into mobile programmatic because there’s momentum there—that’s where audiences are moving. The challenge is how to bridge the divide between the app and the mobile Web experience, as well as delivering a cross-channel, cross-device approach.

“Advertisers are realizing more and more that it’s not about hitting someone on a TV and laptop in isolation,” Fisher said. “It’s really a coordinated effort.”

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