Tsk, tsk... Can you believe that almost 75% of major TV advertisers aren't using online video advertising yet? Well, what Kantar Media said was that nearly a quarter of the top brands are using it, but really, it means the same thing. Clearly, they have not yet realized the true power of online video advertising and haven't been reading all the reports about how campaigns with both TV and online video are far more effective. So here's a quick executive summary for those with little time.
In October Kantar Media did a brief study of ads on TV and major online video sites and found that 4100 brands are using one or the other. 23% are using online video and 12% are using both, with just 11% using only online video. On top of that, 77% of brands are using national TV advertising exclusively. It's that last group that I want to talk to. Well, that other 11% also.
I hate to skip the "how the data was collected" portion because we all need to know who collected the data and how. According to the info I got, Kantar media used their own, internal, online video ad tracking service that is:
the industry’s first to monitor actual occurrences and creative for video ads appearing on more than 90 top online video sites.
Kantar Media’s Online Video Measurement service captures pre-roll, mid-roll and post-roll video ads playing within videos shown on over 90 leading video websites... It enables monitoring of video ads by property, brand and creative – allowing clients to view and download the actual video ads – including trend analysis of ad unit volume.
Alright, so it's more marketing pitch and less research perhaps. Since the Online Video Measurement service is being aimed at advertisers so they can optimize their campaigns, it means we have to apply the standard VW Bug-sized grain of salt. Why? Because this wasn't a scientific study where every variable is controlled and calculated and because we have no way to recreate the results without their service. Plus we don't really know what creative they were tracking, what websites it was running on, etc. and it could be just a snapshot or cross-section of the industry as a whole.
TV vs. Online Video
In previous years we always believed that it was going to be a battle for budget - TV vs. Online. But that ended up not being the way things went. It turned out to be overreaction by many, including most TV execs who felt their way of life threatened and were leading a campaign of misinformation.
Now, a sort of truce has been reached between TV and online video. Oh sure, the TV execs are still scrambling to recover, but they've found ways to make that money I'm sure - like packaging up online with TV advertising on the same content, now that much of that content is being pushed out digitally as well as through the airwaves.
Even then, many advertisers don't seem to be on board.
Why You Should Buy TV + Online Video Ad Inventory
I'm not a fan of the massive ad load on TV which is one reason why I don't have a premium cable subscription. Even Hulu is stretching the limits of my patience and I more often go to the source of the content or to Netflix in order to avoid more and more commercials. But I know it's a necessary part of funding those shows and so I'm willing to tolerate a certain level. However, I'm unwilling to tolerate the TV standard levels online.
But I am willing to tolerate certain levels of ads, and since I don't watch standard TV, online video advertising is a great way to reach me, and millions like me in fact. In the last year or two there has been a trend of cord-cutting, dropping premium TV subscriptions and replacing that content online. It means that your TV ads simply aren't reaching the same audience they were in the past. Sure, they're still reaching the vast majority of couch potato America but if they want to hit that all-important, younger, more digital demographic, they're going to need to consider online video advertising.
Brand by Brand
Some brands and verticals are far more integrated with online video than others. For example, Kantar Media cites travel and resort companies having large online only campaigns while restaurants and automotive are using both more often. Who is using TV only more? They forgot to mention that I guess. Partly because they're not really in the business of selling TV advertisements I guess.
Being an online video viewer, I can attest to the number of automotive ads that are placed, especially if we're talking auto insurance. Unfortunately, for them, I don't own a car and so have no need of their services. Geico, State Farm and Progressive all need to do better targeting in that regard. Mercedes, Nissan and BMW all do as well as I'm not in a financial bracket that would see me purchasing any of their products any time soon.
Oddly, better targeting is one of the major pluses for online video, it just seems to not be implemented correctly in the case of these brands.
Why Add Online Video Advertising?
To all those brands who are using TV exclusively, I will point you to several reasons why you should be considering online video advertising as well as TV advertising.
- Online Advertising is raising engagement and interaction levels of consumers.
- Online Video Raises TV Brand Engagement
- Online Video and TV Together are Better
- TV viewing and Online Video Viewing are complementary
- TV-like metrics now exist for online video advertising
- Video Advertising Recall 2x higher than TV
The list of reasons goes on and on and really, I could have given you 100 links. But if you're looking to increase brand awareness, expand brand engagement, want more customers, want to get better advertising ROI and want far more options in how you reach out to your target audience, the proof is in the pudding as they say, online video is here to stay and it's more effective than offline TV advertising.
Now connected TV ads? Well, they might be the missing link and a massive game changer, very, very soon.