IAB recently commissioned a report to study how moving ad dollars from traditional TV to digital media outlets affects reach. The results were released this week in the report called “A Comprehensive Picture of Digital Video and TV Advertising: Viewing, Budget Share Shift and Effectiveness.”
It’s a long report, so I won’t list every finding. But I want to highlight two important key findings. First, the study found that shifting 15% of a traditional advertising budget to digital results in a noticeable increase in advertiser reach across all verticals studied. Second, digital video was found to be particularly effective as an advertising strategy. For instance:
- Video ads on both short- and long-form content scored almost double that of TV ads on brand recall, message recall and ad likeability, as well as general recall.
- General recall for ads placed against full episodes viewed online were 39% higher than for ads placed against the same episode on TV.
- brand recall for ads placed on traditional TV was stronger when viewers are first introduced to the brand via digital ads placed against the same content.
As a result, the report’s authors recommend advertisers consider digital advertising BEFORE they begin they start their traditional TV buy, so as to integrate the two more effectively:
“Marketers and media planners clearly need to start thinking about their digital buys – whether video or display – before they forge ahead with a traditional television buy, in order to optimize reach and effectiveness.”
These findings recall an earlier article I read in Forbes by David Cooperstein, where he made the following point:
“Ad targeting brings new revenue opportunities. Good news: One unit of inventory in today’s lightly targeted world can work harder in a targeted video world. More targeting at a higher CPM should lift linear and digital video revenues alike.”
The upshot of all this is that digital and traditional video shouldn’t be at odds with one another in the minds of the strategic ad buyer. One shouldn’t be an afterthought just because it’s less familiar. It’s about all elements of this incredibly valuable chain working together–the devices, the content and yes… the ads.