2016 TV Year in Review: Shereta Williams, President, Videa
The below post is part of Found Remote's 2016 Year in Review guest post series and is written by Shereta Williams, President, Videa.
2016 was an exciting year for television, particularly with programmatic TV advertising. The space is constantly changing and dollars continue to flow in the television industry from the investment community. The future of TV appears to be a bright one especially with forecasts such as eMarketer’s projecting that programmatic TV ad spending in the U.S. is expected to reach $4.43 billion in 2018.
The future of programmatic continues to lead adtech discussions and 2017 stands to be a pivotal year. eMarketer also forecasts that programmatic spending will increase by 127.8 percent to $710 million and programmatic spending on TV ads will more than double to $2.16 billion in 2017. Additionally, IPG Mediabrands Magna Global projects that programmatic will represent 17 percent and $10 billion of TV budgets by 2019, up from 4 percent and $2.5 of U.S. TV budgets in 2015.
Here are a few programmatic TV predictions from Shereta Williams, President, Videa, which she believes the industry can expect to see in 2017.
In 2017, there will be an increase in the number of scaled TV buys using automated platforms.
There will be significant activity in use cases and testing in the beginning of the new year; however, as 2017 progresses, the industry will see a greater amount of scaled TV buys using automated platforms. This will occur because the inventory and technology will continue to evolve and mature in terms of frequency and reach.
Traditional measurement companies like comScore will not disappear but will rather be improved and enhanced.
Traditional measurement companies including Nielsen and comScore will continue to mature and will include more spending, behavioral and psychographic data, which will be in addition to demographic and viewing data. While there will be new metric techniques in 2017 to measure and value audiences, traditional types of data providers such as Nielsen will not disappear but instead will continue to progress and be better.
In 2017, more local business will be transacted on CPM.
Common guidelines for programmatic sales will change as scaled inventory is available and publishers and marketers begin to agree on new rules of engagement for this type of sales channel. The different guidelines could be around pre-emptions, posting rates and/or payment terms. In addition, more local business will be transacted on CPM, which will simplify some of the problems around delivery and rules.
The OTT market will progress.
The OTT market will continue to evolve and there will be a greater number of people watching ads non-linearly through an OTT service or app such as Hulu and/or Netflix in addition to linearly through the primary feed. In simpler terms, this means that the total number of people watching television and video content in non-traditional ways will continue to increase.
We expect the above industry trends and predictions to be some of the main themes in both the television and programmatic TV industries narrative in the coming year. What industry trends do you think will dominate the adtech conversations in 2017 as advertisers aim to make their campaigns as effective as possible?