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Local Programmatic Advertising 2015-2020

  • ID: 3275687
  • Report
  • 21 Pages
  • Borrell Associates Inc
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When it comes to automated buying and selling, the Internet reigns supreme. So it’s inevitable that advertising will also one day become automated. And while that day is not quite here, it’s coming rapidly.

The programmatic-advertising iceberg showed its tip last year, as 4.7% of all locally placed digital advertising was done through these automated buying-and-selling networks. This year the share will grow to 10%, which means that $5 billion of digital ad-buying at the local level will be handled by computerized bidding. In five years, most targeted banners and streaming video ads will be bought and sold via computerized bidding. The report forecasts that the dollar volume to grow tenfold in that period.

Fully realized programmatic advertising will also begin to make it harder to answer succinctly, “what is “local” advertising?” National brands will be able to pinpoint and message to specific groups of people, including tight geographies. Meanwhile, the one-of-a-kind gift boutique, only able to afford general local advertising, will be able to bring their small-town feel directly to a person sitting in the middle of Manhattan. Furthermore, that Manhattanite actually wants to see that shop’s advertising. What is local anymore?

Does this spell the death of the digital salesman? Hardly. But the role will certainly change as advertisers shift to buying specific audiences across a myriad of sites. Our survey of 154 local digital managers showed that more than two-thirds are already participating in some sort of programmatic network and have already assigned or hired someone to manage the opportunity. There’s a growing demand for full-time programmatic managers who can optimize CPMs and strike an appropriate balance between direct-sold inventory and programmatic.

This report offers a primer on programmatic advertising, details the flow of advertising dollars at the local level, and examines things at the local operations level. It points to continued strong growth as local publishers, once skeptical of the commoditization of advertising inventory, seem to have begun cautiously warming up the programmatic monster. While only 10% have a bad feeling about the potential effect of participating in programmatic networks, 46% have mixed feelings or just don’t know.
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Executive Summary

Chapter 1: Programmatic in Perspective

Chapter 2: Programmatic Poised to Dominate Banner & Streaming Video
Fig. 2.1 By 2020, Programmatic Accounts for 85% of Targeted Banner Purchases
Fig. 2.2 Targeted Banner Ad Spending Becomes More “Local” Over Time
Fig. 2.3 By 2020, Programmatic Accounts for 67% of Streaming Video Purchases

Chapter 3: Programmatic at the Local Level
Fig. 3.1 Percentage of Revenue from Programmatic Sales
Fig. 3.2 Less than Half Employ a Full-time Programmatic Manager
Fig. 3.3 How Staff Size is Changing Due to Programmatic
Fig. 3.4 Types of Programmatic Sales Employed
Fig. 3.5 Percentage of Inventory Sold via Programmatic
Fig. 3.6 Concerns About Programmatic Sales
Fig. 3.7 Perceived Advantages of Programmatic Sales
Fig. 3.8 Average CPM for Programmatic Sales
Fig. 3.9 Average CPM for Programmatic Sales

Conclusions and Recommendations
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