Ducey gabbcon 25 apr2017

Guiding Media. Inspiring Innovation. Leading Local.
Audience Buying and Local TV
NAB Show
April 24, 2017
Rick Ducey
Managing Director
BIA/Kelsey
@rducey

2© 2017 BIA/Kelsey. All Rights Reserved. | 2© 2017 BIA/Kelsey. All Rights Reserved. |
1.DataandtechnologychangingLocalTV.
2.NationalTVisleading[bleeding?]edge.
3.FourtrendsinData+LocalTV.
Themes for this session

3© 2017 BIA/Kelsey. All Rights Reserved. |
$30 Billion Increase in Ad Spend to Reach Local Audiences
$101.1 $98.6 $99.6 $98.2 $100.2 $98.6
$44.2 $50.2 $57.2 $63.8 $70.4 $76.3
$145.2 $148.8
$156.8 $162.0
$170.6 $174.9
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
$200
2016 2017 2018 2019 2020 2021
Traditional Media Digital Media Total Media
US$Billions
Source: BIA/Kelsey
Note: Numbers are rounded.
2016-2021
CAGRs:
Total Media
CAGR 3.8%
Online/Digital Media
CAGR 11.5%
Traditional Media
CAGR -0.5%
The overall growth comes from digital and data-driven audience buying.

Source: BIA/Kelsey, 2017
Sizing the Market for Local Video Advertising
$5B in growth driven by digital video platforms. How will linear TV respond?
$21.9 $20.9 $22.2 $22.0
$24.2 $23.6
$7.1
$6.9
$7.3 $7.0
$7.6 $7.3
$1.4
$1.8
$2.1 $2.4
$2.7 $3.1
$1.6
$1.7
$1.7 $1.8
$1.8 $1.9
$0.7 $1.0
$1.2 $1.4
$1.6 $1.8
$32.6 $32.1
$34.6 $34.7
$38.0 $37.6
$0
$5
$10
$15
$20
$25
$30
$35
$40
2016 2017 2018 2019 2020 2021
Local Television Local Cable Local Online Video OOH - Video Local Mobile Video
US$Billions

Maribeth Papuga
Executive-in-Residence
BIA/Kelsey
Stacey Schulman
EVP Strategy, Analytics and Research
Katz Media Group
Marketers and agencies may miss
important signals without building
in local mindset and conditions.

$50.3 $52.4 $53.7 $56.4 $57.9 $60.9
$34.7 $33.0 $33.3 $32.0 $32.8
$34.6
$56.3
$61.2 $62.7
$67.9
$69.7
$73.4
$0
$20
$40
$60
$80
$100
$120
$140
$160
$180
2015 2016 2017 2018 2019 2020
Billions
SMB Advertisers Non-SMB Local Advertisers National Advertisers
National Increasing Local Activation by $17.1B by 2020
National brands seek growth opportunities with increased local activations.
Source: BIA/Kelsey, October 2015
+$17.1B
+5.45% CAGR

BIA/Kelsey Advanced TV Research Program: Data + Local TV
TubeMogul

“Advanced TV” can mean anything
from programmatic TV to
addressable TV to interactive TV to
AVOD, etc.
In the end, it’s all about the data.
(ExpertDataExecutive)
BIA/Kelsey Advanced TV Executive Interview Series

Trend #1: Data-Driven Audience Targeting
Moving beyond gender/age and from CPPs to CPMs in local TV.
▪ Marketers and agencies demand more than gender/age data audience
measurement at local level.
▪ The current mix of gender/age persons and richer data at the household level is a
start but the market wants more in this direction.
▪ Marketers want deeper data to include attitudes and values; planned and past
purchases; demographics; geotargeting.

We have surfaced opportunities to
reach audiences in new programs,
dayparts and networks and helped
clients discover new value in
underutilized assets.
(ContextualAudienceNetworkExecutive)

Trend #2: Household Targeting
At the local market level, there is no system offering targeting to households.
▪ Cable buys may be based on the DMA but can deliver only their subscribed homes
footprint within these DMAs.
▪ Household level targeting is the current targeting standard. Marketers want to see
this move to individuals.
▪ Even higher hurdle, for cross-platform marketing need to work on identity matching
by device and platform.

Our clients find addressable TV
campaigns justify the CPMs.
(ContextualAudienceNetworkExecutive)

Trend #3: Data Quality and Transparency
Data, data everywhere . . .
▪ Varying data quality and data modeling, governance, architectures, integration and
quality assurance are important issues.
▪ Duplication of panel data across providers licensing same data creates concerns.
▪ Concerns over “people-based data” versus “modeled data” – marketers obviously
want to get as close to the person as they can.
▪ Ultimately, three big issues are the costs, quality and governance of data.

The place where programmatic TV
is beginning to show impact is
through DSPs. We will see more
data-based buying but a big issue is
what sellers will guarantee against
those numbers.
(ProgrammaticTVPlatformExecutive)

Trend #4: Workflow Integration
For Local TV, workflow automation and integration is front and center.
▪ The Local TV community wants to see more automation and integration within and
between buy/sell platforms to achieve efficiency at scale.

We have seen a growing demand
for direct data integrations instead
of pass-throughs. Targeting
guidance, back-end analytics still
matter.
(AddressableTVPlatformExecutive)

Key Take Aways
1. Data-Driven Audience Targeting Comes to Local TV.
2. In local TV markets, buyers want to see solutions for household targeting across the full market.
3. More work needed in data transparency, governance, quality, accreditation.
4. At the moment, the Local TV market is more focused on automation and workflow integration. The rise of data infusion in the
buying/selling process is on its heels though.

Complimentary Copy of Our Recent Report
Email me at rducey@biakelsey.com and mention GABBCON

Questions & Comments:
© 2017 BIA/Kelsey. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and
other civil or criminal penalties under federal law. BIA/Kelsey disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result
from the use or interpretation of this information.
Guiding Media. Inspiring Innovation. Leading Local.
Rick Ducey
Managing Director
rducey@biakelsey.com
@rducey
@biakelsey

Ducey gabbcon 25 apr2017

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