market realities in new york: cross-platform …...market realities in new york - cross-platform...

1 © 2019 BIA Advisory Services. All Rights Reserved. | 1 © 2019 BIA Advisory Services. All Rights Reserved. |

Market Realities in New York: Cross-Platform Competition

Rick Ducey BIA Advisory Services

October 16, 2019

Presenter

Presentation Notes

Image source: https://pixabay.com/illustrations/interaction-social-media-abstract-1233873/

2 © 2019 BIA Advisory Services. All Rights Reserved. |

Market Realities in New York - Cross-Platform Competition Our Panelists: We’ll Cover Local Ad Forecast, Radio and Digital, TV and OTT

Jared Willig SVP Digital Strategy & Ops

Townsquare Media

Alan Wolk Co-Founder/Lead Analyst

TVREV

Mark Fratrik SVP/Chief Economist BIA Advisory Services

Moderator Rick Ducey

Managing Director BIA Advisory Services

https://nabny19.mapyourshow.com/8_0/sessions/#/searchtype/sessiontrack/search/NYSBA%20Digital%20Leadership%20Academy%20/show/all


Who’s going cross-platform? Audiences, Buyers…and Media

Cross-Platform Realities


Audiences are shifting away from linear media like radio and TV.

The bad news about cross-platform


Two-Thirds of 12+ Population (189M) Listens to Online Audio


Radio broadcast-only (excluding digital) versus Digital Audio ad-supported and ad-free

Adult 18+ Digital TSL Will Top Radio Next Year


Broadcast Networks’ Nielsen Ratings on Downward Glidepath

https://www.adweek.com/tv-video/as-linear-ratings-continue-to-slide-buyers-say-those-viewers-will-never-return-to-tv/

https://www.adweek.com/tv-video/as-linear-ratings-continue-to-slide-buyers-say-those-viewers-will-never-return-to-tv/


Advertisers can reach these viewers an average of 11 days/month for 2:01 hours.

CTV Streaming Reaches 59% of Adults in the New York DMA

Source: Nielsen Local Watch Report, Aug 2019


Target hard to reach segments, reduce waste, CPM efficiency. Linear TV losing out.

Three-Quarters of Agencies Spending More on Advanced TV

Source: https://www.freewheel.com/wp-content/uploads/2019/10/FreeWheel_Advertisers_2H2019_Agency_Survey.pdf

https://www.freewheel.com/wp-content/uploads/2019/10/FreeWheel_Advertisers_2H2019_Agency_Survey.pdf


Buyers can leverage linear and digital media for better targeted incremental reach and frequency. Buying gets smarter.

The good news about cross-platform


Amazon, Facebook, Apple, Alphabet (Google), Microsoft Plunk Down Big $$$ for TV

Amazon spent $434.8 million on TV ads through July 15 of 2019 yea

https://tvrev.com/amazon-leads-tech-giant-tv-ad-spending-and-its-not-even-close/

https://tvrev.com/amazon-leads-tech-giant-tv-ad-spending-and-its-not-even-close/


Linear TV drives 8x more impressions; digital adds +16% incremental reach.

Linear TV Impressions with Digital Generates More Reach


Geofenced campaigns can be cross-platform via radio broadcast and digital activations

New tech for radio would permit over-the-air zoned broadcasting


BIA Local Ad Forecast October Update



About BIA’s U.S. Local Advertising Forecast

BIA Advisory Services continuously monitors the local media marketplace. We build a forecast that brings together these media for a holistic view of the U.S. local advertising picture (definitions are provided).

This 2020 forecast represents our main yearly update. Quarterly updates will capture ongoing developments and analytical assessments.

The forecast includes: Executive summary provides a nationwide assessment of the local media market.

Forecasts for 10 segments (Direct mail, local video, mobile, online/interactive, radio, newspapers, out-of-home, social, directories and local magazines.)

Forecast publication date: Monday, Oct. 21, 2019.


1. We gather proprietary and secondary information as available by segment.

2. We generate preliminary forecasts by segment and discuss them with leaders in our key media — online, mobile, Yellow Pages, TV, radio, etc.

3. We include third-party and public company reports to adjust and fine-tune forecasts.

4. We tie a bottom-up approach with a top-down approach.

5. We utilize our long-standing industry expertise and knowledge to adjust drivers and key assumptions.

Forecast Methodology Steps to Develop the U.S. Local Advertising Forecast


Total Local New York State Ad Revenue to Reach Nearly $1.5B in 2020

Looking Ahead: Ad Spend Continues Shift to Growing Digital Audiences

42.3%

57.7%

2020

NY State Local Ad Revenue

$15.0 B Local Online/Interactive/ Digital Ad Revenue

$6.3 Billion

Traditional Media Revenue

$8.7 Billion

EXECUTIVE SUMMARY


51.7%

48.3%

New York State Local Advertising Forecast in 2024 Looking Ahead: Online Ad Revenue Crosses 50% of Total Advertising Revenue

U.S. Local Ad Revenue

$17.1 B Local Online/Interactive/ Digital Ad Revenue

$8.7 Billion

2024

Traditional Media Revenue

$8.3 Billion

EXECUTIVE SUMMARY

20 © 2019 BIA Advisory Services. All Rights Reserved. | *Radio online revenue include online revenue from terrestrial and online streaming services.

Traditional Media Maintains Noticeable Share of Local Ad Market in 2020

Note: Numbers are rounded.

NATIONAL & SPECIFIC MEDIA OVERVIEW

Cable 3.8% Direct Mail

24.4% Directories

1.7%

Email 1.0%

Mags Print 0.8%

Mags Online 0.4%

Mobile 16.5%

News Print 9.0%

News Online 4.6%

Online 13.1% OOH

5.7%

Radio OTA 6.9%

Radio Online 0.9%

TV OTA 10.3%

TV Online 0.7%

OTT 0.5%


Local Online/Mobile Cutting Deeply Into Print NY Local Advertising Revenue by Type: 2019-2024


$493.7 $477.2 $462.7 $450.1 $439.0 $430.2

$377.6 $387.4 $377.0 $387.1 $379.1 $393.3

$566.7 $634.2 $695.8 $759.6 $822.5 $882.4

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2019 2020 2021 2022 2023 2024

Mill

ions

Print Other Online/Digital


Local Online/Mobile Cutting Deeply Into Print NY State Local Advertising Share by Type: 2019-2024


34.3% 31.8% 30.1% 28.2% 26.8% 25.2%

26.3% 25.8% 24.6% 24.2% 23.1% 23.1%

39.4% 42.3% 45.3% 47.6% 50.1% 51.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2019 2020 2021 2022 2023 2024

Print Other Online/Digital

24 © 2019 BIA Advisory Services. All Rights Reserved. | *Radio online revenue include online revenue from terrestrial and online streaming services.

Smaller Shares for Some Traditional Media in 2024 Local Ad Market

Note: Numbers are rounded.


Cable 3.3% Direct Mail

19.2%

Directories 0.9% Email 3.0%

Mags Print 0.5% Mags Online

0.5%

Mobile 23.5%

News Print 5.4%

News Online 4.4%

Online 16.8%

OOH 5.2%

Radio OTA 5.6%

Radio Online 1.0%

TV OTA 9.0%

TV Online 0.8%

OTT 1.0%


© 2019 BIA Advisory Services. This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under federal law. BIA disclaims all warranties

regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.


Radio Cross-Platform Realities


Audience-focused digital platforms and radio station audiences are the core

Jared Willig: Local Radio and Building Digital Revenue


Townsquare Media


Television Cross-Platform Realities


Surveying 100+ executives who are reshaping the OTT landscape

Alan Wolk: OTT Video and Cross-Platform Trends

Alan Wolk Co-Founder/Lead Analyst TVREV


What media brands are booking the bucks in NY markets?



BIA does local media ad forecasts for all markets, 16 traditional and digital platforms

BIA Local Ad Forecast and Highlights for some New York Markets



Market Realities in New York - Cross-Platform Competition Our Panelists: We’ll Cover Local Ad Forecast, Radio and Digital, TV and OTT


Townsquare Media

Alan Wolk Co-Founder/Lead Analyst

TVREV


Moderator Rick Ducey

Managing Director BIA Advisory Services

https://nabny19.mapyourshow.com/8_0/sessions/#/searchtype/sessiontrack/search/NYSBA%20Digital%20Leadership%20Academy%20/show/all


Questions and Comments Rick Ducey Managing Director BIA Advisory Services

[email protected]

market realities in new york: cross-platform …...market realities in new york - cross-platform...

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