Online video ads, complement not cannibalise TV advertising

Editor ©RapidTVNews | 26-01-2012

The online platform has always been treated with suspicion by the traditional TV industry seeing it as a way for ad dollars to be spirited away but research from YuMe and Nielsen appears to suggest that online instead acts as a complementary platform.

Indeed the TV 2.0 operating system provider and the TV ratings research claim firm that their study proves that with the online platform media planning can extend reach, achieve higher brand recall, and be more cost effective.
That is to say, reach, frequency, and recall increase substantially even as the CPM rate decreases and that planning across both media as part of a single holistic campaign delivers an impact and return on investment which dramatically exceeds that of TV alone.
In the study, YuMe used Nielsen TV/Internet Fusion to assess the impact of a $500,000 online video ad buy for a PHD client’s $2.6 million TV flight. The flights ran concurrently throughout September 2011. Results show that a $500,000 spend on the Connected Audience Network, YuMe’s premium, in-stream video ad network, increased reach against the targeted 35–54 age demographic by 7 percentage points. In addition, more than 6 million people in the target demographic were not reached by the TV schedule alone, and were picked up only when online video was added to the schedule.
Another key finding, and one that taps into the huge demand for second screens, was that content present on multiple media extends reach: YuMe online video increased reach for the targeted 35–54 age demographic again by 7 percentage points when complemented by a TV flight. In addition, nearly 9 million people were exposed to the campaign on multiple screens. The average frequency across screens increases with the number of respondents exposed to the PHD campaign three or more times increased by 31% while those exposed to the campaign six or more times rose by 52%.
Although less than one-sixth the cost of the TV schedule, the $500,000 spend invested in the YuMe Network was claimed to have driven an increase of 34% in gross rating points (GRPs) from the original TV schedule. YuMe says that the efficiency of the online video spend was nearly double that of the concurrent TV spend and the cost per point (CPP) was reduced by 11%.
“We know our consumers are watching multiple screens throughout the day and sometimes watching more than one screen at a time,” said Kelley Train, PHD. “Because of this fact, we are constantly pushing our media to be more about reaching the right audience versus the platform in which the ad is being delivered.”
Ultimately YuMe believes that as consumers diversify their entertainment activities across an array of connected devices, it becomes more difficult for advertisers to maximise reach on a single platform. It suggests that by complementing a schedule of TV ads with a concurrent online video flight, advertisers can reach consumers whether they are watching TV or online video to increase scale and reinforce the brand’s message.
“TV and digital ad planners can no longer operate in a vacuum in which online video advertising remains a silo apart from TV spend, because it fails to account for the fact that audiences are no longer stationary,” added Ed Haslam, Vice President of Marketing for YuMe. “Dual-platform campaigns offer demonstrable value and greatly outperform a TV-only campaign while improving overall cost efficiency.”