Advanced TV Solutions Are Changing Local Market Advertising, According to New FreeWheel Survey
October 10 2019 - 12:30PM
Business Wire
Agencies specializing in local media planning
and buying expect media spend on advanced TV to increase more than
on any other medium over the next 12 months.
Automation and programmatic buying are also
trending upwards.
Today, FreeWheel, A Comcast Company (Nasdaq: CMCSA), announced
the results from a survey of its Strata platform users — most of
whom are specialists in local media planning and buying — focused
on understanding changes in their advertising strategies in the
increasingly fragmented media landscape. Results showed that these
agencies are looking at data-driven and advanced TV solutions to
help clients reach their customers in new ways.
“Data and automation are no longer the sole domains of national
brands. It’s clear that all advertisers are now embracing the power
of advanced advertising solutions to grow their businesses,” said
Joy Baer, General Manager, FreeWheel Advertisers. “Over the past
few years, FreeWheel, and many other ecosystem players, from tech
companies to distributors, have focused on bringing more automated,
audience-based solutions to the local market, and our survey shows
that these solutions are resonating with local marketers and their
agencies.”
In terms of advanced TV* specifically, buyers of local and
regional advertising still see high value in traditional local and
cable TV, but their interest in advanced TV solutions is
strong:
- 79% are “extremely or very interested” in using advanced TV, a
percentage almost as high as local TV and cable (87%)
- 78% expect their spending on advanced TV to increase over the
next 12 months – the highest percentage for any medium in the
survey, including digital video, mobile, digital display, local TV
and cable
- Clients in retail (21%), healthcare (15%) and auto (13%)
represent the largest spending categories on advanced TV.
*Advanced TV is defined as set-top box video on demand (STB
VOD), over-the-top (OTT), addressable TV, advanced linear TV and
streaming full-episode players (FEPs).
The survey revealed that the top three reasons cited by local
and regionally focused agencies for using data-driven,
audience-based TV advertising solutions were 1.) delivering hard to
reach audiences; 2.) reducing wasted impressions delivered out of
target; and 3.) improving cost efficiencies. Slightly more than
half of those surveyed (53%) found it easy or extremely easy to
effectively measure attribution on advanced TV, 10 percentage
points higher than for network TV and cable (43%), but still
placing behind the digital media channels.
Progress is also evident in terms of automation. The shift
toward data-driven and audience-based buying, coupled with media
fragmentation, generally requires greater automation to transact
efficiently. As a result, the agencies surveyed are seeing the
benefits of automating their buying processes across both digital
and linear channels. Even local TV and cable – traditionally very
manual buying channels – are beginning to embrace automation: More
than a quarter of agencies (29%) now say their processes for buying
local are completely or mostly automated.
Moreover, 91% of agencies surveyed said that they now use some
form of programmatic buying – a specific area of automation. When
Strata conducted a similar survey of users in 2017, approximately
65% were using some form of programmatic buying, with the majority
saying that they used programmatic for 10 to 20% of their media
buying.
The rise of programmatic and audience-based buying requires the
use of data. While 55% of the agencies surveyed believed their
current data management capabilities were “good or excellent,” the
remainder saw room for improvement. In terms of agency structure,
almost 7 out of 10 agencies (68%) said their digital and
traditional TV planning and buying processes are now “somewhat or
completely integrated,” approximately one-third (32%) said these
processes are “completely separate or occasionally overlap.”
The survey was executed via an online survey of 430 Strata
platform users (roughly 25% of the company’s client base) from June
13 to July 1, 2019. While Strata users buy all forms of media,
every agency who responded to this survey is a buyer of local and
regional advertising – often as their primary focus.
About FreeWheel
FreeWheel, A Comcast Company, empowers all segments of The New
TV Ecosystem. We are structured to provide the full breadth of
solutions the advertising industry needs to achieve their goals. We
provide the technology, data enablement and convergent marketplaces
required to ensure buyers and sellers can transact across all
screens, across all data types and all sales channels, in order to
ensure the ultimate goal – results for marketers.
With offices in New York, San Francisco, Chicago, London, Paris,
Beijing and across the globe, FreeWheel, A Comcast Company, stands
to advocate for the entire industry through the FreeWheel Council
for Premium Video. For more information, please visit
www.freewheel.tv, and follow us on Twitter and LinkedIn.
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version on businesswire.com: https://www.businesswire.com/news/home/20191010005690/en/
Elaine Wong 929-388-9098 elaine_wong@comcast.com
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