1.
Online Video Advertising Metrics and
its Effect on Traditional Television
Emily Gouveia – Digital Metrics – Fall 2014
PAST
Metrics Used Were
Basic & Top Level:
Impressions, clicks,
brand perception
surveys
2012:
Online video only
accounted for 7.9%
of total digital spend
with $2.89 billion.
TV totaled 40.3% of
all global ad spend,
while all Internet
advertising (not just
online video) was
merely 18%.
PRESENT
Metrics Now Allow
for More Insights:
Views, clicks, CTR,
drop off rate,
retention rate,
viewable CPM
2014:
$5.89 billion spent on
online video ads,
adding up to 11.7%
of total digital spend.
Companies are
moving up to 25% of
their TV budget to
their online video
budget. TV ad spend
is decreasing at a
slow pace.
FUTURE
Development:
As technology
evolves, TV will adopt
metrics and targeting
capabilities similar to
online video ads.
2018:
Online video ad spend
is predicted to reach
$12.27 billion in
2018.
Total online video ad
spend is predicted to
surpass the total
amount spent on TV
as early as 2018,
with the amount of
digital inventory and
demand increasing.
What to Expect:
Online video advertising and traditional television advertising will begin to merge into a
platform-agnostic “video” path, with the possible adoption of programmatic approaches by
linear television advertising. Local broadcasters have already begun creating partnerships
with DSPs that allow advertisers to run video ads anywhere on television, online and mobile.
This is a sure sign of the merge of television and online video to come.