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Branding Dollars Shift from TV to Digital Video by Augustine Fou
 

Branding Dollars Shift from TV to Digital Video by Augustine Fou

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Budgets continue to shift from traditional TV advertising to online video ads -- for a variety of reasons. Brands realize that video ads can reach similarly large audiences and also provide far more ...

Budgets continue to shift from traditional TV advertising to online video ads -- for a variety of reasons. Brands realize that video ads can reach similarly large audiences and also provide far more detailed metrics about whether users saw or acted upon the ads (compared with TV).

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    Branding Dollars Shift from TV to Digital Video by Augustine Fou Branding Dollars Shift from TV to Digital Video by Augustine Fou Presentation Transcript

    • Augustine Fou- 1 - Branding Dollars Shift from TV to Digital Dr. Augustine Fou http://linkd.in/augustinefou acfou @mktsci .com December 2013
    • Augustine Fou- 2 - TV Ad Load 23 - 32%
    • Augustine Fou- 3 - Network TV Ad Load 30% ads • For every 30 minute episode, there are about 9 mins of ads (or 10 – 12 ads ) – used How I Met Your Mother as proxy 32% ads • For every 60 minute episode, there are about 19 mins of ads (or 20 – 24 ads ) – used 24 as proxy
    • Augustine Fou- 4 - Cable TV Ad Load 23% ads • For every 30 minute episode, there are about 7 mins of ads (or 8 – 9 ads ) – used Spongebob Squarepants as proxy 30% ads • For every 60 minute episode, there are about 18 mins of ads (or 16 – 18 ads ) – used In Plain Sight as proxy
    • Augustine Fou- 5 - Video Ad Load 5% (Mar 2014 Data)
    • Augustine Fou- 6 - Video Minutes and Ads Source: comScore April 2014 press release Viewers watched 1,067 minutes of online video in March 2014 (17.8 hours/mo or 36 mins per day) Video ads were in 61.6 percent of all videos viewed and 5.4% of all minutes spent viewing video online March 2014 Data
    • Augustine Fou- 7 - Video Ad Views Exploded Source: comScore Feb 2014 via Marketing Charts Very likely the increase was not all due to human views
    • Augustine Fou- 8 - Video Ads Reach/Frequency Source: comScore, Dec 2013 via MarketingCharts Nov 2013 reach = 56% frequency = 155 ads /mo
    • Augustine Fou- 9 - 9.4 ads per video for long form videos of 20+ minutes 1.3 ads per video for videos of 5-20 minutes 0.66 ads per video for videos of <5 minutes Number of Ads per Video Source: tnooz.com Feb 2013
    • Augustine Fou- 10 - Viewers Skipping Exactly All TV Ads
    • Augustine Fou- 11 - DVR Owners Watch 23m Source: Nielsen Dec 18, 2013 DVR owners watch 23 mins of 30 minute episodes Source: Netflix
    • Augustine Fou- 12 - DVR Penetration 7 in 10 Source: LRG via MarketingCharts Dec 2013
    • Augustine Fou- 13 - 4 in 10 TV Viewers Won’t Act Source: Viamedia via MarketingCharts July 2013
    • Augustine Fou- 14 - 7-9% Actually Watch TV Ads Source: Avid/Ovum via MarketingCharts July 2013
    • Augustine Fou- 15 - Video Ad Budgets Shifting from TV
    • Augustine Fou- 16 - Where are video ad budgets coming from? TV, print, and display ad budgets An October 2013 survey from Adap.tv and Digiday polled digital and marketing professionals to get a bead on the state of the video ad industry. They found that online advertising budgets were most often growing at the expense of TV broadcast budgets, according to brands. In fact, 31% of brands that responded were planning to shift their advertising budgets away from broadcast television and into online video, while 30% planned to take money away from display advertising for online video. Video Ad Budgets from ... Source: Adap.tv and Digiday via MarketingCharts October 2013 33% New budget 31% From Broadcast TV 30% From display ad budgets
    • Augustine Fou- 17 - Video Ad Formats (length) Source: tnooz.com Feb 2013
    • Augustine Fou- 18 - Display ad eCPM $1.06 March 2013 Mobile ad eCPM $0.72 March 2013 Video ad eCOM $9.99 March 2013 Video Ad CPMs Source: Turn, October 2013
    • Augustine Fou- 19 - Video Ads Better than TV Ads • Video ads have 2x message recall than TV ads • Video ads have 2x brand recall • Video ads are 50% more likeable • Video ads have 50% more general recall Source: IAB/Nielsen via AdWeek May 2013
    • Augustine Fou- 20 - Perceptions of Video Ads Source: BrightRoll via eMarketer May 2013 Agency execs correctly perceive video ads to be most comparable to display ads and TV ads (for branding purposes)
    • Augustine Fou- 21 - Related Articles State of Online Video Ads By: Augustine Fou, December 2013 Why Digital Kicks Traditional By: Augustine Fou, March 2012 Video Ads Destroy TV Ads By: Augustine Fou, April 2012 Mythbusting Advertising By: Augustine Fou, June 2012 Augustine Fou- 21 - How Display Fraud Works By: Augustine Fou, May 2013 How Click Fraud Works By: Augustine Fou, November 2013 The Magnitude of Digital Ad Fraud By: Augustine Fou, November 2013 The Biggest Lies of TV Advertising By: Augustine Fou, May 2012
    • Augustine Fou- 22 - Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing advertising across all channels. Using insights and fast-feedback loops from digital, we can not only target brand ads better, but we can shift towards more detailed measurement and ROI.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT '95) AT AGE 23 @acfou ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou
    • Augustine Fou- 23 - APPENDIX
    • Augustine Fou- 24 - Video Minutes and Ads Source: comScore June 2013 Viewers watched 1,250 minutes of online video in May 2013 (20.8 hours/mo or 42 mins per day) Video ads accounted for 27.9 percent of all videos viewed and 2.6% of all minutes spent viewing video online
    • Augustine Fou- 25 - Video Ads Per Month Source: comScore, Dec 2013 via MarketingCharts Nov 2013 26.8B video ads per month