Findings Support Effectiveness of Online Video Ad Campaigns in Conjunction with TV Advertising
REDWOOD CITY, Calif. – YuMe, Inc (www.yume.com), the leading video advertising technology company, announced the results of two complimentary studies proving the increasing power of online video for ad campaigns. Taken together, these studies offer a compelling picture of the mainstreaming of the online video audience and how brands can effectively and easily reach more viewers.
In a study of viewers across the YuMe video ad network, Frank N. Magid Associates (www.magid.com) found that not only had use grown substantially over the last 12 months with 66% of respondents reporting increases in usage, but also that the growth would continue at a rapid pace in the coming year. In addition, YuMe’s audience perceived the quality of online video content to be on par with television and cited they could find more exclusive content online than on TV.
As brands consider how to effectively expand their reach and utilize online video, the case study conducted using Nielsen TV/Internet Data Fusion, explores what happens when brands reallocate just 5%, 10%, or 15% of traditional broadcast budgets to YuMe’s network. The results demonstrate that while marketers can reach the majority of their audience through TV, they can improve both the efficacy and efficiency of their television campaigns by adding an online video component.
“Online video is the fastest growing segment of online advertising but it’s a confusing topic for many marketers and brand managers,” said Scot McLernon, Chief Revenue Officer, YuMe. “We worked with both of these esteemed research companies to provide data that would help dispel the confusion around how to weave a cross-platform online video campaign into existing campaigns and future projects.”
A high level summary of the Magid data based on a survey of YuMe’s audience shows how viewing habits, attitudes and audience makeup are changing.
Online Video’s Explosive Growth Will Continue: More than 66% of respondents surveyed on YuMe’s network said they watch more online video now than they did 12 months ago and 48% expect they will continue to watch more in 2011.
Online Video Has Gone Mainstream: Consumers who are watching more online video compared to 12 months ago skew older, female and higher educated.
Online Video Content is on Par with TV: Viewers’ perception of the quality of video content online has improved and 50% of respondents felt they could find more exclusive content online than on TV.
Watching Online Video Is a Daily Routine: 49% of respondents said they watch online video daily, with 7 hours being the mean time spent per week.
Short-form Content Reigns Supreme Online: 70% of respondents said they watch program clips that are shorter than 5 minutes in length.
Scheduled TV Programs are Less Relevant: 60% of viewers watch online video because they can watch it whenever they want.
Online Viewers are More Engaged with Ads: Multi-tasking is more pervasive when watching television ads than when watching online video ads: 58% of respondents said they do things around the house when ads come on TV versus 26% for ads online.
Heavy Online Video Viewers Can’t Be Reached Only with TV: Heavy online video viewers are reducing their television viewing yet they are increasing their online video viewing which indicates it will be even more difficult to reach these viewers via television in the future.
“Reaching heavy users of online video is very important for marketers,” said Mike Vorhaus, President of Magid Advisors at Frank N. Magid Associates. “The YuMe network is clearly an excellent opportunity for advertisers and marketers to advertise to a broad population, including consumers who are relatively light viewers of TV.”
YuMe examined, utilizing Nielsen data, what would happen when a TV budget was partially re-allocated to online video on YuMe’s video ad network. Using an actual budget from January of 2010 for a consumer packaged goods brand, the share-shift study found that a reallocation increased audience reach without increasing cost.
Across the three main demographics targeted by the brand, (Women 18-54, Women 25-34, Men 25-34), the analysis found that as dollars were reallocated from TV to YuMe’s video advertising network, the brand increased its overall reach and gained access to viewers they would not have reached with TV alone. Key results achieved include the following:
– Total campaign reach increased with no additional spend
– Frequency greatly increased with the shift to online, rocketing the percentage of people who saw the ad 3 or more and 6 or more times in all scenarios
– Multi-platform exposure and performance increased dramatically as shift occurred
– Cost per thousand impressions (CPM) decreased significantly across all ad spend reallocation levels (5%, 10%, 15%)
For more on these studies and to download a copy of YuMe’s whitepapers “Online Video and Television Viewing Attitudes and Behaviors” and “Share-shift Analysis – TV + Online Video: The Best of Both Worlds” visit http://www.yume.com/content/insights-papers.
About YuMe
YuMe is a video advertising technology company that makes professional video profitable for publishers and effective for advertisers. Its robust ACE™ technology powers both its premium ad network and its industry-leading advertising management solutions, ACE for Publishers and ACE for Advertisers. YuMe’s premium ad network aggregates the best video content, representing hundreds of premium publishers. As a result, YuMe gives publishers and advertisers unprecedented reach, brand safety, contextual relevance, controlled syndication, and consistent delivery across all digital media platforms–Web, downloads, mobile, and IPTV. YuMe is a privately held company headquartered in Redwood City, CA and backed by Accel Partners, BV Capital, DAG Ventures, Khosla Ventures, Menlo Ventures and Intel Capital. For more information, visit www.yume.com, follow @yumevideo on twitter (www.twitter.com/yumevideo), or become a fan of YuMe on Facebook at www.facebook.com/yumevideo.
