Digital place-based advertising is booming, from in-store signage to Times Square’s vibrant billboards. Photo: Getty Images
It’s certainly no secret that the media world is in the midst of unprecedented changes. There was a time when “change” in media meant television emerging as a challenger to radio, the evolution of black and white TV to color, the advent of cable television networks, and so on. The changes generally came one at a time, and fairly slowly at that. They were relatively easy for media professionals to digest.
Not so today. The media world is in a continuous and massive state of upheaval, moving at warp speed.
This is particularly true in the world of video, where TV—still a powerful medium, to be sure—is now far from the be-all for securing desired levels of video impressions. According to Nielsen, traditional television viewing has decreased from the prior year across the majority of demographics.
MoffettNathanson reports that the pay TV industry lost an estimated 556,000 subs in Q2 2015, and that commercial ratings for cable channels have been down every month since May 2014. And Americans are now spending almost five and a half hours a day viewing screens … without even turning on a television! At the same time, Kinetic USA reports Americans now spend an unprecedented 70 percent of their time out of the home.
So the conundrum is this: TV is moving in a negative direction, yet we know that video remains the most powerful form of ad messaging At the same time, with consumers out and about more than ever—what’s a media planner to do?
Online is one solution to make up for lost video impressions, but it’s far from perfect as ads are being neutered by blocking technology, challenged by viewability issues and bot fraud. Plus, Nielsen indicates only 18 percent of online video viewers are accounting for 94 percent of total consumption, offering limited consumer reach.
In the digital place-based (DPB) media world, we believe we have a key element of the video impression solution, and recent revenue growth data strongly supports this claim. According to data from the certified public accounting firm Miller, Kaplan, Arase, the growth rate for digital place-based far outpaced most major media for the first half of 2015. DPB media revenue grew by 14.3 percent, the sector well on its way to equaling or surpassing estimated revenue of $1.02 billion for 2015, as forecast earlier this year by MyersBizNet.
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