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Mobile Benefits as Advertisers Take a More ‘Holistic Approach’ to VideoA new BIA/Kelsey Insight Paper examining the economic potential of local programmatic TV as well as the growth of the local video ad marketplace suggests that local video could grow into a $37.6 billion marketplace by 2021.

This fresh ad forecast reveals that spending on local video to target local audiences will grow by $5 billion from $32.6 billion in 2016 and potentially to $37.6 billion by 2021.

“Most of this growth will come from digital video and local TV,” according to BIA/Kelsey. “This digital growth could be tempered as programmatic becomes more of a reality in broadcast and MVPD video platforms, with a portion of the video forecasted spend being directed to linear video platforms.”

The 44-page report includes interviews with a panel of industry experts from key companies, including: AdMore, Cox, Empower, NCC Media, Nielsen, TubeMogul, and Turner.

Programmatic and TV is a big topic in the report and is critical, according to Rick Ducey, a managing director at BIA/Kelsey.

“The innovation being displayed in local TV and programmatic is becoming more widespread,” said Ducey. “Our latest research reveals the landscape of programmatic players is growing more complex. When you step back and examine the possibilities, any movement of local TV toward programmatic buying and selling will significantly impact the amount of spending and could win more spending that might have gone to digital.”

The paper includes an assessment of the local programmatic TV space at the start of 2017 and analyses five key factors that must be addressed for continued successful expansion, including data-driven audience targeting, HH targeting, data quality and transparency, workflow integration, and ATSC 3.0 standardization (ATSC 3.0 is the new standard for local broadcast TV and will offer new data capabilities for targeting audiences).

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