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Mobile Video Advertising Strengthens TV Media Investments


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Mobile Video Advertising Strengthens TV Media Investments

  1. 1. Mobile Video Advertising Strengthens TV Media Investments
  2. 2. Executive Summary While TV remains a trusted mass market media with the broadest reach, video consumption on mobile devices is becoming an integral part of how marketers and agencies connect, engage and convert customers. This first-of-its-kind study from BrightRoll and Nielsen shows how mobile video advertising can be an effective complement for TV advertisers trying to reach increasingly fragmented audiences and improve ROI.
  3. 3. Television has been and remains the primary advertising vehicle for the world’s largest brand marketers. As the mobile space has matured and consumers have devoted more time to both mobile devices and TV, the marketing community has seen new opportunities to influence behaviors. As consumers have increasingly engaged with digital video on mobile devices, brand marketers are considering complementing their TV investments with mobile video to put their message where consumers are spending their time. Today, consumer media viewing habits are changing more rapidly than ever before. Consumption of sight, sound, and motion continues to set records on TV, dominates the desktop and is growing on mobile devices. Brand marketers are considering unprecedented media investments to reach these consumers, whose attention has become harder to capture as their media consumption fragments. Marketers want the most from their media investments, and now they have more outlets across which to optimize. BrightRoll commissioned Nielsen to examine media efficiency across TV and mobile video in a first-of-its-kind study. The results of this study provide suggestions on how to execute multi-screen campaigns cost effectively and with better results. Consumption of sight, sound, and motion continues to set records on TV, dominates the desktop and is growing on mobile devices. The results of this study provide suggestions on how to execute multi-screen campaigns cost effectively and with better results. Television: Record-setting ad consumption Desktop: Ad consumption domination Mobile: Growing ad consumption
  4. 4. The Changing Face of Media Consumption The challenge of effectively reaching customers is complicated by changes in consumer viewing habits, including a significant evolution to multi-screen viewing. Understanding this shift is important to ensuring brand advertising budgets generate the maximum return on investment for advertisers and agencies. TV penetration is unmatched, as over 95 percent of AmericanhouseholdsownaTV.1 TVadbudgetsarethe largestforanymediasegmentwithaforecast$68billion spend in 2014 in the U.S., according to eMarketer.2 While TV remains the “first screen,” video consumption on mobile devices is increasing at record levels. reports that online video consumption across mobile devices is accelerating rapidly, with smartphone increases of 73 percent and tablet increases of 42 percent year over year (Q1 2013 vs Q1 2014).3 eMarketer states that U.S. mobile advertising grew to $9.69 billion in 2013 and is projected to reach $17.73 billion by the end of 2014. The number of U.S. mobile and connected TV viewers will reach a staggering 204.6 million by 2017.4 The dramatic shift in consumer behavior has encouraged many brand marketers to rethink their media buying strategies to put their message where target audiences are spending time. SOURCES 1 Forbes, Fifty Essential Mobile Marketing Facts 2 eMarketer, June 2014 3 U.S. Digital Video Benchmark Adobe Digital Index Q1 2014 4 eMarketer, August 2013 2012 2013 2014 2015 2016 2017 2018 $3.88B $0.89B $2.19B $1.76B $2.06B $1.81B $1.81B $1.31B $3.18B $1.68B $2.66B $1.59B $2.21B $1.67B TV Digital Video US TV vs. Digital Video Ad Spending Annual Increases, 2012–2018 Online video consumption growth in smartphones and tablets Tablets are also taking market share with 42% year over year growth.3 42%Smartphones are rapidly gaining popularity with 73% year over year growth.3 73%
  5. 5. US Global Mobile Advertising Growth Source: MediaPost, July 2014 year-over-year share growth for US mobile +57% projected U.S. mobile and connected TV viewers by 2017 204.6MM US mobile advertising is projected to reach $17.73B by the end of 2014 Over 95 percent of American households own a TV 4 billion 8 billion 12 billion 16 billion 20 billion 2013 Actual $17.73B 2014 Projected $9.69B +82.9% increase
  6. 6. Telecom (Adults 18–49) Financial Services (Adults 18–49) Auto (Adults 25–54) CPG (Females 25–54) TV only BrightRoll Mobile Incremental Audience 72.8% +12.7% 71.6% +9.9% 71.9% +9.5% 71.0% +11.9% First-Of-Its-Kind Multi-Screen Efficiency Study Nielsen, the leading global information and measurement company, was commissioned by BrightRoll, the leading independent programmatic video ad platform, to develop a study to demonstrate how brand marketers can put their media dollars to work most effectively through a combination of TV and video advertising served to mobile devices. The study uncovered how brand marketers can optimize their ad spend amidst the rapidly changing media consumption habits of their target consumers. Leveraging Nielsen’s data and simulation capabilities, the study focused on four major verticals: CPG, auto, financial services and telecom. The goal of the study was to determine how the pairing of mobile and TV advertising can build incremental reach for brand advertisers and improve cost efficiency. Nielsen’s research shows that a combination of TV advertising supplemented with video ads served to mobile devices can help marketers reach those consumers whose attention is spread across multiple screens. Findings from the study indicate that a marketer’s reach for a desired target consumer may rise as much as 12.7 percent (in the CPG vertical) when TV advertising is aligned with video advertising served to mobile devices. Furthermore, reallocating 15 percent of a brand’s TV budget to mobile, reduces the cost per target rating point (TRP)* by as much as 13.7 percent. Findings from the study indicate that a marketer’s reach for a desired target consumer may rise as much as 12.7 percent when TV advertising is aligned with video advertising served to mobile devices. *Target Rating Point (TRP) is one percent of the specifically targeted audience, not the total audience, being reached by an advertisement. Incremental brand reach using mobile
  7. 7. Nielsen estimates that for marketing campaigns to capture more than 60 percent of its target audience, brands often spend more than $707,000 per reach point (i.e., cost per point). Further, it’s not surprising for brands to spend $1,389,000 or more to acquire one incremental reach point after 70 percent of consumers have been reached. This dramatic increase in incremental cost per point indicates that marketers often hit a point of diminishing returns once they hit the 60 and 70 percent thresholds. $1,400,000 $1,000,000 $600,000 $200,000 Percent reach on TV 10 20 30 40 50 60 70 Cost Per Point Increase Methodology The study, conducted by Nielsen, was commissioned by BrightRoll’s research department. The study was conducted on four omnipresent verticals: Consumer Packaged Goods (CPG), auto, financial services and telecom. Data was aggregated from multiple sources including Nielsen NPM panel, Nielsen EMM panel and Nielsen Monitor­Plus. TV TRP and incremental reach point analysis were calculated via Nielsen NPM and Monitor­Plus data. Mobile TRP was calculated utilizing BrightRoll data. Telecom: Cost per TRP Adults 18–49 Financial Services: Cost per TRP Adults 18–49 Auto: Cost per TRP Adults 25–54 CPG: Cost per TRP Females 25–54 $48,641 $46,536 $44,296 $41,949 $42,335 $41,106 $39,707 $38,152 $40,073 $39,072 $37,902 $36,571 $43,981 $43,303 $42,429 $41,358 TV only Shift 5% to mobile Shift 10% to mobile Shift 15% to mobile
  8. 8. Reach Fragmented Audiences with TV and Mobile Video Today’s marketers live in a different world than just 10 years ago. As consumption of media expands across multiple screens, it’s become harder for marketers to execute against these channels in a manner that is cost effective. As video consumption on mobile devices continues to accelerate, complementing TV buys with an incremental investment in a mobile video advertising strategy will result in a more efficient use of a marketer’s advertising dollars. Moreover, once marketers hit the 60 and 70 percent thresholds in reach, there is a point of diminishing returns for their TV buy. Mobile video advertising creates new and more efficient opportunities to reach audiences that choose to consume content on mobile devices. As such, reallocating a portion of a brand’s TV budget to a mobile ad platform will increase incremental reach. Advances in mobile technology continue to benefit consumers and change the way they consume media. Marketers have an opportunity to benefit from these changes in consumer attention as well. Based on the insights from this study, it is clear that complementing TV with smart video advertising executions will make brands’ and agencies’ advertising dollars work harder. Millennials Lead Changes in Consumption Millennials and Hispanic Millennials are exhibiting significant changes in how they consume media. Millennials, whose use of smartphones is at a near-constant rate, are one of the largest population segments in the U.S., totaling about 77 million. In the second- quarter of 2014, 85% of Millennials aged 18-24 own devices, an increase from 77% in the second quarter of 2013. The credit reporting and consumer data firm Experian says that 43 percent of Millennials are “mobile dominate” when it comes to digital media consumption. Drilling down into the demographic data reveals an even more dramatic insight - 58 percent of Hispanic Millennials watch videos on their smartphone. Smartphone phone and television consumption by age range 5 Experian, May 2014 Smartphone Video Television 19% 8% 13% 34% 45% 25% 38% 18% 18–24 25–34 35–54 55+
  9. 9. What’s Next? Although consumers have embraced video consumption on mobile devices, one of the biggest impediments to marketer adoption has been a lack of industry standard tracking and measurement in mobile video. To address this issue, BrightRoll has been actively involved in establishing standards for mobile measurement, including being a beta participant of Nielsen Online Campaign Ratings. Nielsen Online Campaign Ratings identifies and provides consistent measurement of consumers exposed to mobile ad campaigns. As standards are established and adopted, marketers will soon be able to measure their mobile campaign delivery to target audiences.
  10. 10. United States | Europe | Canada Copyright ©2014 BrightRoll, Inc. For more case studies, whitepapers and videos about BrightRoll and the programmatic advertising space, please visit our resources page. BrightRoll is the only independent and unified programmatic video advertising platform for reaching audiences across the web, mobile and connected TV. The company powers digital video advertising for the world’s largest brands, including 85 of the top 100 US advertisers and 18 of the top 20 advertising technology companies. The platform enables advertisers to reach 4 in 5 video viewers online and consistently ranks among the top two video ad platforms in ads served. As a result, BrightRoll technology collects and analyzes hundreds of billions of data points monthly enabling real-time decisions that drive ROI for advertisers. of AdAge 100 85 10 largest DSPs 15,000 websites 6,000 mobile web & apps 100+ leading video service partners in data, research, creative services, and technology and infrastructure. 25/50 of toppublishers Top 15 agencies 18 of 20 top ad networks MOBILE WEB & APPS DESKTOP EXCHANGES SSPs PRIVATE M ARKETPLACE BRANDS AD NETWORKS ATDs AGENCIES ADVERTISERS PUBLISHERS PARTNERS