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DPB spending to shift to programmatic

News, 12 February 2016

NEW YORK: US expenditure on digital place-based (DPB) media passed $1bn in 2015 and is increasingly shifting towards programmatic, according to new research.

DPB media is defined by the Digital Place-based Advertising Association (DPAA) as networked digital video screens with content and advertising where consumers have dwell time, and so excludes transit advertising and static images digitally delivered.

The research, conducted by Prohaska Consulting, included in-depth interviews with more than 20 organisations across the ecosystem, including publishers, DOOH buyers and ad tech companies.

This indicated that DPB spending will grow at between 10% and 12% a year with as much as 40% being generated programmatically within three years.

That translates to $15m-$20m annually in incremental revenue for DBP networks, Ad Exchanger noted.

Matt Prohaska, principal and CEO of Prohaska Consulting, suggested that the growth of multi-screen campaigns meant media agencies would increasingly plan and buy video and TV from a single bucket and that DPB media could tap into this trend.

When the DPAA surveyed media planners last year, it found that 60% of respondents thought video everywhere – integrated multi-screen campaigns – was important in delivering advertising impressions, with 67% saying they would be more likely to recommend DPB as part of media plans given its availability in programmatic buying systems.

Prohaska identified four potential buying groups "who could, should and, in some cases, are placing dollars programmatically into DPB media".

These included traditional out-of-home buyers, local and spot TV buyers, national broadcast buyers and digital/programmatic teams.

Barry Frey, president and CEO of the DPAA, was upbeat about the future. "You need a lot of parts to get the car running and now we've got scale," he said.

"There's a lot of money going into mobile and location-based targeting," he added, "but we always say, 'We offer location targeting, but on big, powerful screens'."

Data sourced from Ad Exchanger, Ad Week; additional content by Warc staff