Soft Scatter Will Continue; TV $$ Moving to Digital and Programmatic -

By The Myers Report Archives
Cover image for  article: Soft Scatter Will Continue; TV $$ Moving to Digital and Programmatic -

Sixty-three percent of corporate marketing executives with responsibility for television advertising budgets say they anticipate their scatter television advertising budgets in the next six months will be flat or less than last year, according to a new survey conducted by MyersBizNet. Executives also project significant increases in the shift of budgets from network TV to digital video, and anticipate growing commitments to programmatic/automated media purchasing.

Among the marketers, 26.5% expect scatter budgets to increase slightly and 6.0% to increase somewhat, while only 4.5% say they expect scatter budgets to grow significantly. Media agency TV and multiplatform media buyers and planners generally agree with the expectations of their clients, with 59% projecting scatter budgets will be flat or down; 24% projecting slight increases; 13.0% saying scatter budgets will increase somewhat; and only 4% expecting significant increases.

Scatter budgets will be flat or down among advertisers covering most target demographics with particular softness among marketers targeting affluent consumers and adults 55+. The strongest categories (although only slightly more positive) include entertainment, financial services, and health/pharma, with home/home services generating the most positive outlook. Automotive scatter network TV advertising is projected to be somewhat more positive than during the 2013/14 season.

The MyersBizNet survey was conducted among 565 client and agency decision-makers identified by TV networks as having a meaningful role in the national TV buying and planning decision. The study was conducted in conjunction with the annual MyersBizNet Advertisers' Perceptions Survey on National TV Value and Sales Organization Performance. More than 80 national TV organizations were evaluated in the survey and results will be reported in the next several weeks. (Scroll down for details on digital video and programmatic.)

SURVEY: In the next 6-months, my company/clients anticipate our scatter television
advertising spending compared to last year will be:
  TOTAL MEDIA AGENCY ADVERTISER
Less than last year 15.2% 15.7% 20.6%
Flat  44.3% 43.2% 42.6%
Slightly more 23.8% 23.6% 26.5%
Somewhat more 12.4% 13.6% 5.9%
Significantly more 3.7% 3.7% 4.4%
Much greater 0.5% 0.2% 0.0%
Source: MyersBizNet 2014 Advertisers' Perceptions Survey of 565 Advertiser and Agency Executives
       

Yes, TV Budgets are Flowing to Digital Video

Ninety-three percent of advertisers plan to increase the amount of digital video media they buy as an alternative to network television in the next 12 months. Even among agency TV-only buyers and planners, 85% anticipate increases in digital video ad budgets. MyersBizNet is able to project that digital video investments will grow at an accelerated rate, with 40% of marketers projecting their digital video advertising purchased as an alternative to network TV will increase significantly or greatly in the next 12 months.

By comparison, 30% of media agency executives with multi-platform responsibility forecast significant/great increases, while only 12% of TV-only buyers and planners anticipate significant/great increases in digital video spending. Digital video expenditures are expected to increase across all demographic targets and business categories. As MyersBizNet has reported, however, a significant share of advertisers' digital video investments are made with the networks themselves.

SURVEY: In the next 12-months, my company/clients plan to increase the amount of digital video media
we buy as an alternative to network television, by the following amount:
  TOTAL AGENCY  AGENCY ADVERTISER
    TV-ONLY MULTI-PLATFORM  
Decrease 0.9% 0.5% 0.0% 4.3%
Flat  11.9% 14.1% 8.9% 2.9%
Increase Marginally 15.3% 17.9% 8.9% 14.3%
Increase Slightly 24.2% 28.2% 14.9% 17.1%
Increase Somewhat 28.1% 26.9% 37.6% 21.4%
Increase Significantly 16.1% 11.5% 18.8% 37.1%
Increase Greatly 2.8% 0.8% 10.9% 2.9%
Source: MyersBizNet 2014 Advertisers' Perceptions Survey of 565 Advertiser and Agency Executives
         

Video Programmatic/Automated Spending Accelerating

Only 20% of marketers say they anticipate no increase in their video media purchased through automated/programmatic trading in the next 24-months, with 28% projecting significant or great increases. Among agency multi-platform buyers/planners, only 13% expect no increases in programmatic/automated video advertising, with 30% forecasting significant or great increases.

Growth in trading desk activity is projected across all categories, with greater advances expected in automotive, financial services and home services. It's especially notable that even agencies' TV-only buyers and planners, typically the last group to meaningfully support programmatic initiatives, are bullish on the future of automated and programmatic TV media purchasing.

SURVEY: In the next 24-months, my company plans to increase the video media purchased through
programmatic/automated trading by the following amount:
  TOTAL AGENCY  AGENCY ADVERTISER
    TV-ONLY MULTI-PLATFORM  
Decrease 1.2% 1.0% 2.0% 1.4%
No increase 18.2% 20.0% 10.9% 18.6%
Increase Marginally 16.1% 17.9% 11.9% 12.9%
Increase Slightly 24.6% 24.6% 25.7% 24.3%
Increase Somewhat 20.0% 21.0% 19.8% 14.3%
Increase Significantly 17.2% 14.9% 20.8% 22.9%
Increase Greatly 2.7% 0.5% 8.9% 5.7%
Source: MyersBizNet 2014 Advertisers' Perceptions Survey of 565 Advertiser and Agency Executives
Full methodology and details are available to MyersBizNet members upon request.
         
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