- The digital place-based media industry's first in-depth white paper on programmatic buying and selling has been released to members of the Digital Place Based Advertising Association.
The Digital Place Based Advertising Association commissioned and oversaw creation of the report from Prohaska Consulting following a series of meetings with advertisers, agencies and members. The in-depth analyses and work identifies opportunities for the sector in the programmatic buy/sell ecosystem and an in-depth road map on how to capitalize on them.
The report predicts that 30-40% of digital place based ad sales will be conducted programmatically within three years, generating $15-20 million annually in incremental revenue for networks. Overall, Prohaska Consulting sees a 15-20% annual expansion of digital place-based’s $1.02 billion in revenue over the same period, an acceleration of the strong growth of 14% recorded by Miller Kaplan for the first half of 2015 versus the same period in 2014.
"Programmatic's tremendous potential for our industry and the roadmap for us to get there have been clearly enunciated in this in-depth white paper,” said Barry Frey, President & CEO of Digital Place Based Advertising Association. “The forecast supports what we found in 2015 in our annual Survey of Media Planners, when two-thirds of respondents said they would be more likely to include DPB in their media plans if inventory were available in programmatic buying systems. Now it's up to all of us in the industry to execute so we – digital place-base networks, agencies and clients -- can benefit from the opportunity that lies before us."
"From our vantage point, there is little doubt that programmatic will emerge as a significant component of the digital place-based media advertising ecosystem,” said Michael Lieberman, chief operating officer, NA, tenthavenue. “And, when it does, we expect that digital place-based will be evaluated alongside other screens in a more video agnostic fashion, which bodes well from a revenue growth standpoint. The DPAA white paper will help accelerate the process by bringing key issues to the forefront and mobilizing the industry to find solutions."
The report says there are several key steps the digital place-based industry must take to capitalize on leveraging programmatic practices, including continuity of measurement and standards, transparency of how the programmatic monies flow from buyer to seller and who takes what fees in the process.
Opportunities are already being explored by companies like Nielsen, whose roll-out of its Digital Place Based/Cinema Fusion data enables media planners to compare the value of digital place-based and cinema with other media channels such as TV and digital video.
"Prohaska Consulting believes that most media agencies will evolve toward planning and buying TV/Video from a single bucket," the report says. "The digital plus video audiences of DPAA companies, with some adjustments, are a good fit for the 'one screen to many viewers' distribution channel that traditional TV has dominated, estimated at $67 billion in revenue for 2015."