TV is still more efficient than online video

Posted: May 16, 2013 in TV, Video
Tags: , , , , , ,

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I went to the online video event which was put on by Adap.tv yesterday. It was certainly insightful and the panel were very open and clear about what they were looking to achieve and where the channel is going.

The only disappointing element I found was that it was heavily focused towards publishers moaning about how much revenue they want to make from online video and discussing about a common currency. I think the online video space especially publishers really need to step back a bit and think about the role which online video has within the wider selection of media channels, advertiser demand and actual impact of online video and where this sits in relation to impact from TV.

Marco from Vivaki touched on the fact that online video suppliers and publishers have given up trying to fight for the TV spend and it’s not a case of one or the other and more of a case of complimenting TV. Let’s look at this possibility in more detail:

1. This would indicate that advertisers have tried online video in high volumes by turning off TV whilst the online video ads have been running and the impact hasn’t been the same – if it was or better, advertisers would not have thought twice about investing in online video at high volumes vs. TV over the past few years. Just to confirm that we only have to look at Youtube volumes to understand that there is inventory aplenty across the www.

2. Complimenting TV would mean taking a fraction of what was the original vision of taking a significant chunk of TV spend

3. If by delivering small volumes of online video, this would be hard to measure because 1. We all know that online video will never work on a post click basis and 2. We know that in order to view any movement on brand search / bottom line acquisitions, then you need to deliver high volume because otherwise an economics system would find it hard to pick up the online video activity especially as there are so many other factors which create noise.

What I’d like to see are case studies or a concerted effort to work with clients to find out how impact differs vs. TV and also in terms of complimenting broadcast TV. Advertisers are not short of TV supply and when thinking of the main KPIs of a business which is to deliver a positive ROI, if they have extra budget why move it to online video when you can simply drive more TV ratings which would deliver a healthier ROI than online video.

Tim from BskyB mentioned that he’d like CPMs of around £60 to £70 for online video which is ludicrous without having a thought for what the advertiser would get out of it impact wise. I’m expecting publishers who are greedy to find that advertisers can find users in the right environment at the right time across thousands of other premium publishers at a fraction of the cost thanks to Adap.tv. I think it’s fabulous that Adap.tv have come up with the market leader at this early stage and it’ll be interesting to see how the impact value weighs up with broadcast TV or with any other digital channel.

If online video impact is considerably less vs broadcast TV, could this simply be down to consumer experience and someone who watches video online wants to watch exactly what they want and will not accept anything to get in their way, yet when you look at broadcast TV, you tend to have more than one person watching TV with no ability to forward ads on a 40” or so Samsung HD TV. Either way, it’s an absolutely crucial step which needs to take place soon and large spend across online video may not be unlocked until live TV is adserved and streamed through your 40” HD TVs.

Online video is double the price than TV when looking at the in target CPM (which is crazy alone and indicates that the online video CPMs really do need to come down) but the level of impact / value online video delivers to clients in the form of revenue is still unknown and until this key element has been unlocked, the online video spend potential will remain locked up.

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