Commentary

ODV: The New TV In Five Years Say Marketers

According to new eMarketer analysis, research released by UBS Investment Bank in April 2015 highlighted a leap in digital video viewership last year, and pointed to a declining traditional TV audience. US digital video viewership rose 32% quarter over quarter in Q1 2015, compared with a decline of 4% for TV viewers. Two-thirds of marketers say original digital video will be as important as TV within five years, predicts the study.

The shift in consumption is spurring changes in how advertisers approach video placements, says the report, and April 2015 polling by Advertiser Perceptions for the IAB found that 67% of US agencies and marketers were moving funds away from TV toward digital video advertising. Respondents were particularly interested in Original Digital Video (ODV) programming, which had increased its share of digital video spending steadily over the past three years, from 34% in 2013 to 40% in 2015.

U.S. Professional Buyer Attitude Toward Original Digital Video (ODV) Programming/Content (% of Respondents)

 

% of Respondents

Attitude

Agree Completely

Agree Somewhat

Total

More likely to place ads with research proving ODV equal or better than TV at generating sales

31%

44%

75%

More likely to place ads on ODV with research proving better than TV at branding

28

47

75

Digital metrics consistent with TV would increase ad dollars on ODV

24

48

72

Compelling ODV programming

22

50

72

ODV programming as important as TV in next 3-5 years

30

37

67

ODV programming equal to TV will take more than 5 years

25

41

66

Would spend more on ODV ads if buys more like TV

22

42

65

Would spend more on ODV ads with more consistency in ad formats across sites

21

44

65

Source: IAB/Advertiser Perceptions, April 2015

75% of advertisers were most likely to take dollars from TV to put toward ODV, says the report. And their outlook on the industry supports their reason for doing so:

  • More than two-thirds of buy-side professionals agreed that ODV programming would become as important as TV in the next three to five years
  • A similar percentage felt the same in terms of importance, but believed the change was further out.

The report concludes that, in order for ODV to bring in the bucks and rise to the same level of importance as TV, providers will need to present research that demonstrates the content’s effectiveness at generating sales and brand awareness. Creating digital metrics the same as those used for television and mimicking the ad-buying process of TV ads could also help boost growth, along with consistency in ad formats, opines the report.

For more information from eMarketer, please visit here.

 

 

The lack of certain metrics—specifically return on investment vs. other media, audience and campaign measurement and viewability—were key obstacles preventing respondents from moving more spending to original digital video ads, further supporting the need for research that lays out hard numbers. Pricing was another top challenge—and one that could be solved if advertisers have the figures to back up their desire to up ODV placements.

For ODV to join the ranks of TV in terms of importance, services will need to present advertisers with research and metrics that prove it’s worth the dollars.

- See more at: http://www.emarketer.com/Article/Advertisers-Focus-on-Original-Digital-Video-Programming/1012430/1#sthash.fpAIfFZU.dpuf

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