Wednesday, October 1, 2014, 11:35 AM ET|Posted by Will Richmond
BrightRoll has released a new study, conducted by Nielsen, which concludes that mobile video advertising provides cost-effective incremental reach to TV advertising. Nielsen found the following incremental reach with mobile video ads in 4 verticals it studied: CPG (12.7%), Auto (11.9%), Telecom (9.5%) and Financial Services (9.9%).
Underlying the incremental reach benefit of mobile video is Nielsen's estimate that once a brand hits 60% or more of its target audience with TV advertising, there's a point of diminishing returns, making incremental reach very expensive.
With the rapid adoption of mobile devices and the fragmentation of viewing, especially among younger, harder to reach audiences, Nielsen concluded that reallocating a portion of a brand's TV ad budget expands reach and does so much more cost-effectively than remaining fully allocated to TV.
Of the 4 examples Nielsen provided, the one with the most dramatic improvement in cost per target rating point ("TRP") was for a CPG brand targeting females 25-54. If 15% of the TV spend were shifted to mobile video, it would result in a cost per TRP of $41,949, which is 13.7% lower than the $48,641 cost per TRP if only TV were used.
The other 3 examples of cost per TRP reduction when 15% of the TV spend was shifted to mobile video were: 9.9% for Telecom (targeting adults 18-49), 8.7% for Financial Services (targeting adults 18-49) and 6% for Auto (targeting adults 25-54). In all cases, the additional reach was primarily achieved through exposure to lighter TV viewers.
Despite these cost and reach benefits of mobile video advertising, BrightRoll noted that standards for mobile video tracking and measurement are still immature and therefore holding back adoption. Nielsen expanded its Online Campaign Ratings to mobile measurement just this past July.
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