Local TV ad spend moves to programmatic, too

By Jim O'Neill on Aug 02 2016 at 12:45 PM
Local TV ad spend moves to programmatic, too

A new report from BIA/Kelsey forecasts that about 2% of the local spot television market (estimated to be worth $21.9 billion) will trade programmatically in 2016, but goes on to say that the market could ramp relatively quickly, if local follows the example set by the national television market.

The report, Programmatic Is Coming to Local TV: 2016 Mid-Year Update, contends that significant programmatic ad buying in local television is likely to take off over the next three years, gaining momentum annually.

“We’ve seen this pattern in the national television market as well, where programmatic has experienced explosive growth in the past year,” said Rick Ducey, managing director, BIA/Kelsey. “Local television has a number of complicating factors to sort out in order to accommodate widespread programmatic adoption, beginning with lack of measurement reportage—other than age and gender—different workflow software, and there needs to be integration of TV stations and platforms.”

Programmatic spending in the traditional TV ecosystem trails the amount expected to be spent on digital video ads online via programmatic. eMarketer forecasts programmatic spend on digital video ads to grow nearly 85% to $5.51 billion this year and to hit $7.62 billion in 2017.

Stay tuned.

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