Planners See TV's Share Of Ad Spend Declining

Over half of media planners expect TV’s share of ad spending to fall in the years to come, according to a new survey from the Digital Place Based Advertising Association.

Of 310 media planners asked where they saw ad spending trends headed over the next three years, 59% said they expected the share devoted to TV to fall, while spending on other screens -- including mobile and digital place-based media -- is set to rise.

Over the next three years, planners estimated that mobile ad spending will increase by 86%, online spending will rise 67%, and digital place-based media spending will increase 36%. Currently, 50.4% of planners aid they recommended media plans incorporating digital place-based media, up from 45.9% last year.

The DPAA survey also found that programmatic already figures prominently in media planning, with 88% saying they are currently buying ads programmatically for all of their brands. Among planners that are buying ad dollars programmatically, programmatic currently accounts for 28% of their total ad budget, but this is expected to rise to 48% of total budgets three years from now.



Two-thirds (67%) said they would be more likely to recommend digital place-based media that was available through programmatic channels.

The projected decline in ad spending goes hand in hand with a perceived drop in TV’s effectiveness as an ad medium: Whereas 68% of media planners gave TV high marks for effectiveness today, just 49% said they believed it will still be as effective three years from now.

For planners who included digital place-based media in their recommended plans, 62% cited its capabilities for geotargeting, 57% cited its ability to reach a specific audience, and 50% cited its ability to reach consumers on the path to purchase.

3 comments about "Planners See TV's Share Of Ad Spend Declining".
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  1. Ed Papazian from Media Dynamics Inc, August 20, 2015 at 7:08 p.m.

    Erik, I would have asked the sponsors of this study to describe the way this sample was obtained, its cooperation rate and what its composition was----the question being is it a reasonable crossection of all media planners or something else?

  2. Gary LaPage from Push. replied, August 21, 2015 at 10:28 a.m.

    Agreed. It would be nice to see who they talked to.

  3. Howard Zoss from Zig Marketing, August 21, 2015 at 12:12 p.m.

    I'm sure it was an online survey with no stratification aligned to agency media expenditures or postion held.  So, while the trend for broadcast TV dollar erosion will pick up steam due to OTT services and digital, it will take a long time to evolve.    

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