A new study by the Interactive Advertising Bureau (IAB) and Nielsen provides strong evidence that shifting television advertising dollars to online advertising drives positive results.
In “A Comprehensive Picture of Digital Video and TV Advertising: Viewing, Budget Share Shift and Effectiveness,” it is reported that a 15% shift in media spending away from television and toward online drives increases in brand recall, reach, and the effectiveness of that reach.
Furthermore, combining online advertising with television advertising drove even better results. Online video ads that run before television ads lead to a 33% increase in brand recall over television advertising alone. Online display ads that run before television ads drive a 25% increase in brand recall. In other words, timing your media buys so consumers see your messages online before they see them on television is an important piece of the puzzle when it comes to increasing returns on your advertising investments.
Some of the key findings from the study include:
- When 15% of ad spend is shifted to digital from television, consumer packaged goods brands (CPG) experienced a 3.4% increase in reach.
- When 15% of ad spend is shifted to digital from television, non-CPG brands experienced a 6.2% increase in reach.
- When 15% of ad spend is shifted to digital from television, brands experienced more reach at lower costs per point ($63.0K vs. $67.6K) and CPMs decreased ($12.31 vs. $13.82).
The report also reveals statistics specific to online video advertising that can help media buyers make the right choices for brand advertising. For example, ads shown during full-episode online video content generated a 39% higher brand recall than ads shown during full-episode programs on television. In fact, digital ads shown during both short-form video and full-episode video content drove higher brand recall, general recall, message recall, and ad likability than television ads.
And despite what you might think, ad receptivity is quite good no matter when an ad is played with online video content. Here are the overall findings related to online video ad receptivity:
- The average streaming video viewer watches ads for 20 seconds. The average completion rate for these ads is 87%.
- Mid-roll ads generate the highest completion rates (99% for short-form video and 89% for long-form/full-episode video).
- Pre-roll ads generate the second highest completion rates (79% for short-form video and 81% for long-form/full-episode video).
- Post-roll ads generate the lowest completion rates (71% for short-form video and 79% for long-form/full-episode video).
You can follow the link to view the complete report, which makes a compelling case for shifting up to 15% of your media buying budget from television to online, particularly online video, and for modifying the timing of your ad runs.
Image: Ayhan Yildiz
Latest posts by Susan Gunelius (see all)
- 1 out of 2 U.S. Online Shoppers Make Mobile Purchases in 2013 - May 23, 2013
- 3 out of 4 Mobile Consumers Prefer Free Content with Ads Over Paid Content - May 21, 2013
- Yahoo Considering Tumblr for Acquisition - May 17, 2013
- Yahoo! Tries to Regain Cool Factor with Younger Audiences - May 15, 2013
- 2 out of 3 U.K. Smarphone Users are Mobile Shoppers - May 14, 2013