Survey Says Media Planners Will Shift Budgets from Television to Mobile, Online and DPB Advertising
NEW YORK, NY — A survey of ad spending trends has identified three key drivers influencing how planners will allocate media budgets over the next three years. Key trends include the continued disruption of traditional television viewing, the growth of mobile platforms and programmatic buying.
The annual survey was developed by the Digital Place Based Advertising Association (DPAA), a trade organization dedicated to making it easier for marketers and agencies to plan, buy and evaluate the effectiveness of digital place-based (DPB) media. Digital Place-based (DPB) media, also known as Digital Out-of-Home (DOOH) advertising uses strategically placed, networked digital signage displays to reach on-the-go consumers with highly targeted messages while they are outside their home.
The DPAA’s study used an online survey to poll 310 media planners, from May 11-20, 2015, on their perceptions of the advertising landscape. Media planners participating in the survey were currently employed at full-service, media and digital ad agencies.
According to the DPAA, more than two-thirds (68%) of media planners rated TV high in effectiveness today, but just under one-half (49%) believe TV will be as effective three years from now. A recent Magna Global study found that more than 70% of all advertising spending is still allocated to television. One of the main reasons for this is that buying television is a relatively frictionless transaction—all of the pieces are already in place and most brands are still asking for it.
The shift to mobile is also influencing media planning with an increasing emphasis on multi-screen ad campaigns. According to the DPAA, media planners expect mobile, online and digital place-based networks to take a larger share of media budgets over the next three years, with mobile (+86%), online (+67%), and DPB (+34%). Digital place-based and mobile are often thought to complement each other; however, there was a sharp drop in the percentage of planners who indicated they would fund a digital place-based buy out of mobile.
Nearly nine out of 10 planners (88%) said they are currently buying media programmatically for all brands they work on today. Among this group, 28% of their total media spend is being bought programmatically. Three years from now, they expect this figure to grow to 48% of budgets.
Only 23% of planners said they are aware that digital place-based media can be bought programmatically, and 67% said they would be more likely to recommend DPB as part of media plans given its availability in programmatic buying systems. Several companies are currently working on models to buy DPB programmatically. However, programmatic buying of digital place-based media faces several challenges that include constrained supply. Online media has an almost unlimited supply of available inventory, but that’s not the case with digital place-based media.
Other Noteworthy Findings:
- Slightly more than half (50.4%) of planners said their recommended media plans included digital place-based media in the past 12 months, up from 45.9% in 2014.
- National TV outpaced local TV as a potential source of budgets for digital place-based media buys, by a margin of 20% to 15%, suggesting that a substantial number of planners regard DPB as more of a national medium than they do traditional outdoor. In fact, digital place-based advertising networks reach nearly 48% of the US adult population each month, and DPB media delivers a younger demographic than traditional television.
- The three primary reasons planners gave for including digital place-based media in their media plans were geo-targeting (62%), reaching a specific audience (57%) and connecting with consumers on the path to purchase (50%). Notably, the sharpest increase for including digital place-based media was video agnostic planning, up to 20% from 9% in 2014.
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