• Study: Online Video Ads Complement TV Ads

    Departing from the typical industry party line that online video needs to shift ad spending away from TV, today YuMe and Nielsen are announcing results of a new study showing that online video advertising is actually complementary to TV advertising and that the two should be paired to optimize results. The proposition is that with an integrated "TV 2.0 media planning" approach, advertisers get the best of both worlds: TV's unparalleled reach and online video's interactivity and engagement.

    In the study, YuMe layered a concurrent $500K online video campaign onto a $2.6M September 2011 TV flight for a consumer packaged goods advertiser. YuMe allocated the online spend using Nielsen's TV/Internet Fusion panel in order augment the TV buy. The key findings included:

    - Improved reach - For the target 35-54 age demo, 6M+ people were reached via the online campaign that weren't by the TV campaign, a 7% lift.

    - Enhanced frequency - With the online video addition, those exposed to the campaign 3+ times rose by 31% and those exposed 6+ times rose by 52%.

    - Reduced cost per impression - Since the online video campaign cost per point was 57% of the TV campaign, by blending the two, the overall campaign's effective CPM was reduced by 11%. Even though the $500K online campaign was less than one-sixth of the TV campaign, it increased GRPs by 34% above the TV plan.

    - Improved recall - Brand recall and message recall rose 36% and 44% respectively when the online video campaign was added to TV, underscoring the benefits the combined campaign had on brand lift.

    Stepping back, these are the first study results I've seen that make the "online video as complementary spend" argument and at an intuitive level, I think the logic makes sense (I'll offer my usual caveat here about taking industry-sponsored research with a grain of salt however). Online video is a different medium with different user behavior than TV. So media plans should be able to be constructed where online video complements TV.

    I think the challenge is that this will take real work and mind-set change by agencies and the learning curve involved inevitably means some will dual campaigns will hit and some will miss. Another open question is that as online video consumption migrates to connected TVs over time, will campaigns blend together more organically?

    From an online video content provider's perspective, TV 2.0 media planning is beneficial. Rather than fighting a zero-sum game where online video only wins as TV loses, the complementary approach could expand the pie for all. And for advertisers, learning how to better leverage online video advertising is critical. To the extent others in the industry further substantiate the logic of combined campaigns, there will be stronger momentum for this approach.

    The full white paper explaining the study and results is here.
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