Align TV with Mobile Video for Greater Reach and Impact
October 15th, 2014 | ACA Team,
By Guy Yalif, VP of Global Marketing, BrightRoll, Inc.
TV has long been the primary advertising vehicle for the world’s largest brand marketers. As the mobile space has matured and consumers have devoted more time to watching short and long-form mobile video content, the marketing community has seen new opportunities to influence behaviors. However, this shift in consumer media viewing habits has made it even more difficult for marketers and agencies to connect, engage, and convert these harder-to-reach audiences.
Fragmentation in consumer viewing habits has created challenges for brand marketers to effectively reach customers. Given this trend, brand marketers are considering unprecedented media investments to reach these consumers. It’s clear that a deeper understanding of this shift is important to ensuring brand advertising budgets generate the maximum return on investment for advertisers and agencies.
Recently, BrightRoll commissioned Nielsen for a first-of-its-kind study which examined media efficiency across TV and mobile video. The study examined how US brand marketers could put their media spend to work more effectively through a combination of TV and mobile video advertising. Because of mobile video’s strong growth in Canada, there are a number of similar implications for Canadian marketers.
In the US, TV penetration is unmatched, as more than 95 percent of American households own a TV. TV ad budgets are the largest for any media segment with a forecast US$68 billion spend in 2014 in the U.S., according to eMarketer. While TV remains the “first screen,” video consumption on mobile devices is increasing at record levels.
CMO.com reports that online video consumption across mobile devices is accelerating rapidly, with consumption via smartphone increasing 73 percent and via tablet 42 percent year over year (Q1 2013 vs. Q1 2014).
In the US, mobile growth is strong, but in Canada the growth is even more pronounced. Respondents to IAB Canada’s 2013 Survey have forecasted that Internet Ad Revenues will grow 13% by the end of 2014, rising to C$4 billion in total in Canada. This forecast includes 10% growth in French language ad revenues, which are budgeted to increase to C$740 million. Overall, mobile advertising grew by 177 percent to C$443 million.
In the same study, the internet’s share of total advertising revenue in Canada, including online and mobile, grew from 28 percent in 2012 to 31 percent in 2013, while television’s share moved down slightly from 31 percent to 30 percent.
As consumers are increasingly engaging 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 increasing amounts of time.
The BrightRoll study showcases that brand marketers can put their media dollars to work more effectively and better reach cross-screen audiences through a combination of TV and mobile video advertising. The goal of the study was to determine how the pairing of mobile video and TV advertising could build incremental reach for brand advertisers and improve cost efficiency.
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, as video consumption on mobile devices continues to accelerate, complementing TV buys with an incremental investment in a mobile video advertising strategy will reduce brand marketers’ incremental cost per target rating point (TRP). TRP’s could drop by as much as 13.7 percent when 15 percent of budgets are deployed on mobile video.
Nielsen estimates that for some marketing campaigns, brands that want to capture more than 60 percent of its target audience often spend more than US$707,000 per reach point (i.e., cost per point). Indeed, it’s not surprising, for those same brands can spend US$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 these marketers often hit a point of diminishing returns once they hit the 60 and 70 percent thresholds.
The significant shift and fragmentation of consumer media consumption has created opportunity for Canadian marketers. By complementing TV with mobile video advertising, brands and agencies can extend their reach, connect with consumers wherever they are watching video, and pay less for those connections.
To learn more about how mobile video advertising strengthens TV media investments, join us at the BrightRoll Video Summit in Toronto on October 29. Register here.
Guy Yalif
Guy Yalif is Vice President of Global Marketing at BrightRoll where he leads corporate marketing and communications, product marketing and strategy, and demand generation. He is responsible for building the BrightRoll brand and fueling continued growth for the company. Most recently, Guy served as head of global product marketing at Twitter, where he worked closely with TV networks, brands and agencies on the changing TV landscape. Before Twitter, Guy spent seven years at Yahoo product management and marketing organizations serving advertisers large and small in search, display, video, mobile, and web presence.