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© 2016 eMarketer Inc.

For more information on this subject, see the related report at

Programmatic Video and TV: Audience-Centric Buying Fuels Ad Investment

Lauren T. FisherSenior Analyst

November 30, 2016

http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2001824


Three TV and digital stats that matter:

5h 14mAverage time spent per day with TV and digital video among

US adults, 2016

$71.3B vs. $10.3B

US ad spending, TV vs. digital video, 2016


Programmatic Video Advertising


Programmatic Advertising: A form of advertising in which the buying, selling or fulfillment of the ad is done via automation or some other technology-driven method.Digital Video Advertising: Includes ads that appear before, during or after video content in a video player.


This year, three-fifths of all US digital video ad dollars will transact in this manner


Maintaining control of such buys is still a top priority

“We are seeing premium publishers recognizing the power of using data to find coveted audiences in different ways other than targeting on content or shows. However, they are mostly looking to do that in more private and more direct settings.”

—Lauren Wiener, President, Buyer Platforms, Tremor Video


Mobile will be a primary driver of growth over the next two years


Other accelerants of growth include:▪Improvements to digital

issues of ad quality, such as fraud and viewability▪Growing opportunity in

connected TV/OTT


Programmatic TV


Programmatic TV Advertising: The use of software platforms to automate the buying or selling of TV advertising distributed through cable, satellite or broadcast networks.


Growth of programmatic TV will be slow and steady, but it will still be a multibillion-dollar industry by 2018


Targeting is the core driver of programmatic TV


In the near term, most programmatic TV ad spending will go to addressable TV


National Networks

Local/VOD

Addressable

After addressable, local becomes the next frontier, with national inventory the final and biggest piece of the puzzle


Broader automation of national ad inventory is a longer-term forecast

“[Enabling national inventory] requires a business arrangement between the network and operator. Those discussions are complicated and will take a lot of time and negotiations.”

—Michael Bologna, President, Modi Media, GroupM


Added factors expected to move this transition along include:▪Increased use of advanced TV targeting/data overlays▪Perceived pressures due to audience fragmentation

across digital video and time-shifted viewing▪Technology and measurement


Thank You

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