Marketers May Shift 15% of TV Ad Budgets to Online

TV remains the biggest part of the media mix for many marketers. But as consumers spend more time online, enterprises may be wondering how much of their media budget should be shifted from TV  into digital. The latest research conducted by TVonlineadmixNielsen for the IAB answers this question.

Analysts measured consumer recall after they were exposed to TV ads alone and a combination of TV  and online ads in several verticals such as Consumer Packaged Goods (CPG), Automotive, and Telecom. For purposes of this study, about 15% of the media budget was shifted from TV into online.  Doing so resulted in consumers reporting a 53% recall, a 15% higher rate than after they’d been exposed to a TV ad alone.

An ad campaign that runs both on TV and online also allows a marketer to increase reach. In most measured categories, the average incremental reach was 6.2%. This statistic is especially important when it comes to younger consumers. About 40% of video streamers are 18–34 years old and may not be watching much TV. Getting ads in front of these online consumers is an effective way to expand reach.

Researchers point out that marketers should focus on getting their ads into online media because TV viewing is essentially flat. But consumers are spending more time streaming online video. For now, women tend to watch more longer form videos and men watch shorter videos. But men also watch more online video in general.

Consumers have not yet started to complain about online advertising. With an 87% completion rate, marketers may actually have a better chance of reaching streaming video watchers than TV viewers who may be use ad-​skipping technology.

Sherrill Mane, Senior Vice President, Research, Analytics and Measurement, IAB, says, “This study documents that brands need both online media, especially digital video, and TV to reach consumers effectively.

The study also uncovered another benefit to marketers who shift media spending from TV to online – cost. Each market share point gained costs $63,000 in online versus $67,600 on TV. As a result, an average CPM for online was $13.82 for TV but only $12.31 for online.

[Source: A Comprehensive Picture of Digital Video and TV Advertising. IAB​.net. 2013. Web. 4 Mar. 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.