Advertisers are seeing great value in advertising with online video and embracing the era of connected TV. Are you?
Today I wanted to pose a question: is your media mix weighted appropriately given the changing media consumption landscape? Do you still invest heavily in traditional media like magazines and television? If you're a mass marketer, TV has probably been your "go-to" media for the last 30 years…it can be hard to let go of such a trusty companion. But what if there were more cost-efficient opportunities to gain the same mass reach and impact afforded by TV, without the massive price tag?
No one can doubt the mass reach that television enables, but the truth is the online channel is now beginning to offer that same level of audience reach - but with arguably better engagement. And almost always at a more affordable price point.
Users are also spending more time online than ever before. It depends who's releasing the report (e.g., Nielsen or an online publisher like Yahoo), but some studies show that online media consumption has now surpassed TV viewing. As reported by MSNBC, this is most certainly true of teens and young adults, with time spent online now surpassing time spent watching TV or talking on the phone.
And the advertisers follow the eyeballs. Online advertising has been rapidly encroaching on traditional media's portion of the media mix pie for the last several years. And according to Forrester, spending on online advertising is in fact set to eclipse TV spends by 2016.
Of course, TV is not going away, but it's not a secret that more and more people are turning to the Internet to watch their favorite shows, instead of tuning in via cable.
A 2010 report by Nielsen found that 72 percent of online users were viewing video online. And that was in 2010.
And according to several studies, these online viewers may be more engaged and have higher ad recall than those watching TV commercials. The same report by Nielsen found that premium online video ads had better brand impact metrics than traditional TV ads, including brand recall, message recall, and likeability.
Additionally, a 2012 survey by BrightRoll found that 64 percent of advertisers surveyed said that online video advertising is equally or more effective than ads on television. And 87 percent said that video was more effective than display advertising. NewMediaRockstars.com provides this data and also points out the success of the viral YouTube campaign for Old Spice (I mean, who didn't watch that video?). And apparently it worked - sales reportedly increased by over 100 percent.
In the BrightRoll video report cited above (which incidentally you have to register to access), BrightRoll points out that in years past advertisers have cited the high perceived cost of online video as a reason for not investing as much. However, that was based on comparing online video to other forms of online advertising when making investment decisions. Now, they appear to have shifted dramatically in the way they look at online video - comparing it directly to TV instead of other online ad formats. The result is that cost is no longer an issue.
Based on the rapid uptake of this medium, it's clear that advertisers are seeing great value in advertising with online video and embracing the era of connected TV.
The question is: will you?
Online Video image on home page via Shutterstock.
August 10-12: Revolutionize your digital marketing campaigns at ClickZ Live San Francisco! Educating marketers for over 15 years, our action-packed, educationally-focused agenda covers every aspect of digital marketing. Early Bird rates available through Friday, July 17 - save up to $300! Register today.
Julie is a member of the senior strategy team at Klick Health, focused on online media and digital. Julie initially established and led the media practice at Klick for several years, relinquishing leadership to expand beyond media into additional digital tactics. She brings a wealth of experience in search marketing, digital media, and all facets of digital strategy to bear, helping Klick's clients develop innovative digital solutions. As her role has evolved, so have her contributions to ClickZ, which she has been writing for since 2007.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.