Is Online Video Advertising More Effective Than TV Advertising?

By Susan Burke

At a recent ANA Brand Management committee meeting, a presenter from Nielsen IAG shared the following information:

• A piece of creative running on a site such as Hulu.com (or ABC.com, NBC.com, CBS.com, etc.) delivers more effective advertising in terms of brand and message recall, than the same piece of creative running on TV. (Click here to see the snapshot and presentation.)

This nugget of information spurred a great deal of discussion in the meeting. Some attendees agreed with this finding, while others argued against it. To me, it makes sense that an ad running on an online video site has more of an impact than one on TV for a few reasons:

1. Conditioning: If I happen to be watching live TV, I will generally take the garbage out, channel surf, or leave the room during a commercial break. Most of us know how long the average commercial break is, so we are usually able to time our return to the couch perfectly.
2. DVRs: As I said in my first point, “If I happen to be watching live TV”—this activity happens rarely. Commercials are generally skipped, thanks to my DVR. However, you can’t fast forward through an online video ad.
3. Appreciation: When an ad is shown during an online video, I often find myself feeling grateful to the advertiser. Their sponsorship of the program means that I can watch it at my leisure, so I don’t mind viewing a 30 second spot in return.
4. Captive Audience: When commercial breaks occur during an online video, they are much shorter than a television commercial break. Therefore, I’m more likely to watch the ad, as opposed to doing something else during it. I can pause or mute the ad, of course, but I’ll still have to play it at some point if I want to finish the show.
5. Recall: My recall of an ad played during an online episode of a TV show is generally stronger than my recall of an ad played during the televised episode. This is because there are generally fewer total commercials during an online video.

While I think there is still a purpose to television advertising, I also believe that online video advertising is an avenue that many advertisers should explore more thoroughly. Online video isn’t going anywhere, so it’s time to embrace it.

Comments

[Mike Sieber]

Another big advantage to doing online video ads is the sharing factor. The web makes it so easy to share content, so if an ad or offer is really good, there's a high probability that it will get passed around like virtual word-of-mouth.