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
Dr. Augustine Fou
http://linkd.in/augustinefou
acfou @mktsci .com
December 2013

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TV Ad Load
23 - 32%

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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

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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

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Video Ad Load
5% (Mar 2014 Data)

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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

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Video Ad Views Exploded
Source: comScore Feb 2014 via Marketing Charts
Very likely the increase
was not all due to
human views

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Video Ads Reach/Frequency
Source: comScore, Dec 2013 via MarketingCharts
Nov 2013 reach = 56%
frequency = 155 ads /mo

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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

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Viewers Skipping
Exactly All TV Ads

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DVR Owners Watch 23m
Source: Nielsen Dec 18, 2013
DVR owners watch 23 mins
of 30 minute episodes
Source: Netflix

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DVR Penetration 7 in 10
Source: LRG via MarketingCharts Dec 2013

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4 in 10 TV Viewers Won’t Act
Source: Viamedia via MarketingCharts July 2013

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7-9% Actually Watch TV Ads
Source: Avid/Ovum via MarketingCharts July 2013

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Video Ad Budgets
Shifting from TV

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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

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Video Ad Formats (length)
Source: tnooz.com Feb 2013

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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

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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

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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)

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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

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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

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APPENDIX

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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

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Video Ads Per Month
Source: comScore, Dec 2013 via MarketingCharts
Nov 2013 26.8B video ads per month