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Programmatic Is Coming to Local TV: 2016 Mid-Year Update

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The insight report “Programmatic Is Coming to Local TV: 2016 Mid-Year Update” examines the promise of programmatic advertising in local TV. It explores how the adoption of programmatic in the national TV market holds clues to what will drive programmatic ad buying at the local level.

This report features interviews with a panel of industry experts drawn from agencies, data firms and platform companies. Read this report to examine the efficiency programmatic can bring to the buying and selling of TV inventory and identify potential impediments to success.

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The potential of programmatic advertising in local TV is detailed in the 28 page paper, “Programmatic Is Coming to Local TV: 2016 Mid-Year Update.” The report focuses on the area of programmatic advertising in local television by incorporating information about national TV, where there currently is strong activity.

According to the report, BIA Advisory Services expects no more than one to two percent of the local spot television market (estimated by BIA to be worth $21.9 billion) to trade programmatically in 2016. However, the firm’s analysts believe that can ramp relatively quickly, if local follows the example set by the national television market.

To examine the opportunity of programmatic for local TV, the paper features interviews with a panel of industry experts from agencies, data firms and platform companies. They offer insight and analysis to examine impediments to the success of programmatic TV:

  • Lack of transparency
  • Potential for sales channel conflicts
  • Concerns about reach and frequency unduplicated across channels
  • Data and universe standardized definitions

The report also highlights current programmatic platforms including: 4C, Acxiom, AdMore, AudienceXpress, Cadent Network, Clypd, comScore (Rentrak), Epsilon, Experian, Mediaocean, NCC’s Audience Plus, Nielsen, One by AOL (formerly AdapTV), placemedia, Rocket Fuel, Sinclair Broadcast Group, TiVo/TRA, The Trade Desk, TubeMogul, Videa, Videology and WideOrbit.

Panel of Experts Interviewed in the Report:

  • Barry Lowenthal, President, The Media Kitchen
  • Brad Danaher, Director, Television Partnership, Experian Marketing Services
  • Brett Adamczyk, Vice President, Business Development and Strategy, Videa
  • Chris Raleigh, Chief Commercial Officer, placemedia
  • Dot DiLorenzo, EVP, Director of Planning, U.S. International Media
  • Eric Mathewson, CEO, WideOrbit
  • Hamid Qayyum, SVP, Sales, 4C
  • Judd Rubin, Vice President, Revenue Development, Strata
  • Kyle Fohlin, Director, Business Development, Publishing and Media, Epsilon
  • Nick Troiano, CEO, Cadent
  • Rob Weisbord, COO, Sinclair Digital Group
  • Russell Zingale, President, Eastern Region, U.S. International Media
  • Ryan McArthur, EVP, Quantum 11
  • Steve Walsh, EVP, Local Television, comScore
  • Val Napolitano, EVP, Programmatic, Hubbard Broadcasting

Report authors:

  • Rick Ducey, Managing Director, BIA Advisory Services
  • Mitch Oscar, Director of Programmatic TV Strategy, USIM and Executive Industry Adviser, BIA Advisory Services

“We’ve seen a pattern in the national television market where programmatic has experienced explosive growth in the past year. 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.”

Rick Ducey, report author and managing director, BIA Advisory Services

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