Want to Shift Ad Dollars Out of TV Into Web Video? Good Luck With That | DigitalNext: A Blog on Emerging Media and Technology – Advertising Age


Forget online video. the big opportunity for advertisers are tv’s “dark networks.”

With the upfront looming, and increasing pressure to be innovative, many advertisers and agencies today are in a headlong race to shift and diversify their TV ad budgets, taking greater advantage of multiplatform-platform “video.” And why not? TV advertising is expensive and campaign reach is declining thanks to audience fragmentation.

However noble and well-intentioned, however, the expectations of many of these advertisers and agencies are unrealistic, particularly those calling for 10% to 20% budget shifts out of TV into digital video. That’s because, you see, 97% of all video viewing in the U.S. still occurs on TV. Yes. Whether the data is from Nielsen, Pew or eMarketer, all agree that only a small fraction of video viewing in the U.S. today occurs on devices other than the TV.

Clients can say that they want to spend 10% to 20% of their “video” budgets on platforms other than TV — but saying it doesn’t make it so, or even possible, particularly if audience reach matters and you want to demonstrate any sense of cost-effectiveness. Here is why:

The problem with web video

While much talked about as a media channel, web video still has its share of challenges, especially around scale, content quality, ad load, usage concentration and price. Web video today represents only 2% to 3% of all video viewed in the US, and more than one-half of that is on Google’s YouTube. Most of the video content here, 80% or more, isn’t the kind of studio-produced “quality” programming that brand advertisers demand for their media placements (and forget about how much of it occurs in day-parts that many shun).

Ad loads are also only 10% to 20% of conventional TV, meaning it’s very hard to accumulate significant media weight fast. And a small portion of web audiences consumes most web video — 20% of Americans consume 80% or more of all web video viewed — and, ironically, that 20% are heavy TV viewers too. On average, they watch six times more TV than web video each day, meaning they are already being reached with a lot of frequency by most TV advertisers.

See on adage.com



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