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Video Ad Spending vs TV Ad Spending 2014 by Augustine Fou
 

Video Ad Spending vs TV Ad Spending 2014 by Augustine Fou

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Advertisers should shift more of their ad spend from TV to digital, more quickly to take advantage of the metrics, measurability and improved ROI.

Advertisers should shift more of their ad spend from TV to digital, more quickly to take advantage of the metrics, measurability and improved ROI.

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    Video Ad Spending vs TV Ad Spending 2014 by Augustine Fou Video Ad Spending vs TV Ad Spending 2014 by Augustine Fou Presentation Transcript

    • Augustine Fou- 1 - Dr. Augustine Fou http://linkd.in/augustinefou May 2014 Video Ad vs TV Ad Spending 2014
    • Augustine Fou- 2 - Executive Summary Branding dollars spent on TV ads today should shift to online video ads for the following reasons: • Online video ad load is 5% while TV ad load is 23-30% • Users pay more attention to, and skip less, online videos • Advertisers can pay only for ad views that users don’t skip - TrueView (guarantees they watched entire ad) • Online videos can measure interaction and follow-on actions – true[X] • Online videos are proven more effective on all recall metrics
    • Augustine Fou- 3 - Device Reach / Time Spent
    • Augustine Fou- 4 - Device Reach Source: Experian 2014 Digital Marketer Report
    • Augustine Fou- 5 - Device Time Spent Source: Experian 2013 Digital Marketer Report Mobile phone, home computer, and work computer time spent exceeded television time spent in 2013 report
    • Augustine Fou- 6 - % of Video Time Source: Nielsen Cross Platform Report March 2014
    • Augustine Fou- 7 - Consumer Media Time 2014 TV – 4.5 hrs per day Internet – 2 hrs per day Video – 26 mins per day Source: Nielsen Digital Consumer Feb 2014
    • Augustine Fou- 8 - Time Spent with Video Implies 0.5 hrs (30 mins) per day
    • Augustine Fou- 9 - Time Spent with Video 1,067 minutes per month is the same as 17.8 hrs per month or 36 mins per day
    • Augustine Fou- 10 - Time Spent with Video 1.0 hrs (55 mins) per day implies 30.0 hrs per month
    • Augustine Fou- 11 - Ad Load Comparison
    • Augustine Fou- 12 - Video Ad Load 5%
    • Augustine Fou- 13 - 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- 14 - TV Ad Load 23 - 32%
    • Augustine Fou- 15 - 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- 16 - DVR Owners Watch 23m Source: Nielsen Dec 18, 2013 DVR owners watch 23 mins of 30 minute episodes Source: Netflix
    • Augustine Fou- 17 - DVR Penetration 7 in 10 Source: LRG via MarketingCharts Dec 2013
    • Augustine Fou- 18 - Key Metrics (March 2014 data) Total ad minutes March 2014 = 10.86B Total video minutes March 2014 = 200B Total unique viewers March 2014 = 187.8M Ad Minutes per Unique Viewer = 58 mins per user Ad Mins per Unique Viewer per Day = 2 mins
    • Augustine Fou- 19 - TV vs Digital Comparisons
    • Augustine Fou- 20 - In 2013 Digital marketing was $42B Broadcast TV was $40B Cable TV was $34B TV vs Digital Ad Spend Augustine Fou- 20 - Source: IAB Full Year 2013 report
    • Augustine Fou- 21 - TV is $69B Digital is $48B TV vs Digital Ad Spend TV DigitalPrint Radio Out-of-Home $8 (5%) Other $2 (1%) $75 billion 42% $43 billion 24% $32 18% $17 10% Display $8 billion 19% Search $18 billion 43% Video $3 (7%) Mobile $4B$3B display search 17% Other $5 11% Lead Gen $2 (4%) • classifieds • sponsorship • rich media Source: IAB Full Year 2013 report Augustine Fou- 21 - branding performance $34B$40B broadcast cable
    • Augustine Fou- 22 - TV Ad Spend Growth Source: Kantar Media, Dec 2013
    • Augustine Fou- 23 - Digital video is 7% of digital ad spend Digital Video Format Share Augustine Fou- 23 - Source: IAB Full Year 2013 report
    • Augustine Fou- 24 - U.S. Video Ad Spending U.S. Video ad spending to reach $6B in 2014 Source: eMarketer March 2014
    • Augustine Fou- 25 - Video Ad Views Exploded Source: comScore Feb 2014 via Marketing Charts
    • Augustine Fou- 26 - 60% Video ad CPMs are in the $8 - $12 range Video Ad Global eCPM Source: Turn, October 2013
    • Augustine Fou- 27 - Using their databases, they came up with a 2013 average CPM for online, in-stream video ads of $23.03. That seems on the high side in my opinion and they say it is 38% higher than the average 18-49 CPM for prime time cable TV. Meanwhile, network TV was almost double that of online in-stream video ads at $44.11. Network TV CPMs Source: SQAD via ReelSEO March 2014 Network TV $44 CPM In-stream Video $23 CPM Cable TV $15 CPM
    • Augustine Fou- 28 - Broadcast TV $20 cpm Cable TV $18 CPM Radio $5 cpm Magazines $20 Newspaper $35 Out of Home $4 Internet $11 Direct mail $40 CPM Comparative Media Costs Cost per Thousand (CPM): Cost to reach 1,000 users or impressions Source: OAAA, 2011 Augustine Fou- 28 -
    • Augustine Fou- 29 - Video Ad Formats (length) Source: tnooz.com Feb 2013
    • Augustine Fou- 30 - Percent of digital allocated to video ads - 14.5% auto - 12.3% Entertainment - 11.1% retail - 9.2% CPG - 6.9% financial Percent of Digital to Video Source: AdoTube via MarketingCharts March 2013
    • Augustine Fou- 31 - Users Pay More Attention to Online Video Ads than TV Ads Source: May 2011 report from YuMe and IPG Media Lab
    • Augustine Fou- 32 - Why TrueView is Awesome • Advertisers only pay if ads are NOT skipped (pay for the 15%) • Ads are on Youtube, which has the industry-leading LOWEST amount of fraud and highest amount of real human audience
    • Augustine Fou- 33 - Dr. Augustine Fou – Chief Digital Strategist “As more users shift their consumption online, TV advertisers should more rapidly shift ad spend to digital video as well, to achieve a variety of benefits and advantages such as more real-time feedback and conversion metrics.” 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- 34 - APPENDIX
    • Augustine Fou- 35 - Time Spent with Media TV - 134 hrs/mo (4.5 hrs/day) Browser/Apps on Smartphone - 34 hrs/mo (68 mins/day) Internet on Computer - 27 hrs/mo (54 mins/day) Watching Video on Internet - 7 hrs/mo (14 mins/day) Source: Nielsen Digital Consumer 2014
    • Augustine Fou- 36 - Source: Experian Marketing Services Mobile still has a long way to go before it can compete with television for time spent, however. Consumers today spend just over an hour a day using their mobile phones, or seven hours and 50 minutes a week, but they spend more than three times that watching television. In fact, nearly one-in-six adults watch more than 40 hours of television in a typical week. Time Spent (per week) Source: Experian 2014 Digital Marketer Report
    • Augustine Fou- 37 - Time Spent on Internet USA 7.6 hrs /day
    • Augustine Fou- 38 - TV Time Trends (down) Nielsen Cross Platform Report, March 2014
    • Augustine Fou- 39 - YouTube Reach
    • Augustine Fou- 40 - Time Spent TV vs Internet In 2013 share of time spent per day in Digital (314 mins or 5.2 hrs) exceeded share of time spent on TV (271 mins or 4.5 hrs)
    • Augustine Fou- 41 - Time Spent TV vs Internet
    • Augustine Fou- 42 - Time Spent TV vs Internet Time spent online exceeded time spent watching TV on TV since 2009