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In this episode of “Behind the Numbers,” hosts Marcus Johnson and Bryan Yeager speak with two advanced TV experts to get a sense of the industry’s progress and future: Walt Horstman, president of programmatic TV platform provider AudienceXpress and Gerard Broussard, founder and principal of media consultancy Pre-Meditated Media and author of eMarketer’s July report on TV advertising (eMarketer PRO customers only).
Kicking things off, Yeager talks about the biggest global TV event of 2016: the Summer Olympics in Rio. He speaks with eMarketer researcher Corey McNair, who predicted 150% growth in digital video viewership worldwide compared to the 2012 London Games. Based on early post-Olympic viewership data McNair found, digital viewing vastly exceeded his expectations. In its first three days, the Rio Games surpassed all streaming that occurred during the totality of the London Games. The finding underscores how the Olympics are an important benchmark for changing media consumption patterns on a global scale.
Despite this clear shift to digital, traditional TV remains a big part of the media mix. eMarketer estimates that TV will command more than one-third of US adults’ average daily time spent with media, as well as close to 40% of total ad spending this year.
But according to our guests, Horstman and Broussard [conversation starts at 4:55], growth in nonlive, digital and mobile viewing, combined with more granular audience data and automation capabilities, is transforming TV and the advertising that supports it.
Horstman and Broussard cover a lot of ground about the state of advanced TV advertising during the discussion:
eMarketer forecasts that US addressable TV spending will more than double in 2016 to reach $890 million, but that equates to just 1.3% of all TV ad spending in the country.
That might seem like a small number, but Horstman and Broussard both agreed that advanced TV advertising is growing more rapidly than they initially thought it would. Horstman specifically noted that only around $5 billion to $6 billion of the $70.6 billion TV ad inventory pie is eligible for addressable advertising, making its progress look stronger than when put against the backdrop of total US TV ad spending.
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