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While digital ad spend continues to increase year over year, a few lingering questions still remain – how are we going to view and manage the dollars that are being shifted over from television budget to digital video? Will television teams buy digital video? What does the future of digital video look like?
Television ad spend continues to hold the largest segment of overall spend at just about 40%, however with the omnipresence of video, these dollars will most likely be shifted toward the digital bucket. Online video is changing how video content is consumed, along with the overall advertising experience. Television advertising has been able to maintain its giant status over the past few years with only slight erosion. However, digital video continues to grow in both time spent and videos streamed.
Several companies, including Nielsen, have been focusing on ways to relate the measurement of GRPs to online video so that groups who have been planning television ad dollars are able to adopt the planning and buying structures of online video. Technology platforms such as Brightroll and Adapt.TV are educating both primarily digital and television teams to help them understand what the landscape of video buying looks like.
A recent study conducted with the IAB, Nielsen, Yahoo and Microsoft examined the result of allocating a certain portion of television dollars to digital video. The conclusion of the study proved that shifting up to 15% of ad spend to online provides incremental and effective reach. In fact, according to the study, digital video advertising delivers better ROI for marketers by 62%.
This study also examined the impact sequencing had on consumers, with stronger results when consumers had seen an online ad before they had seen the television ad. Thus, the concept of clustering video into one bucket can very well lead to stronger results for the advertiser. The two methods of video collaborating produced distinguished results, which is what we all want for our clients.
Even though a conclusion hasn’t been made about where exactly video spend needs to fall, it might not even need to be made. As the buying patterns continue to evolve, our pie charts of ad dollar allocations should evolve as well. Video has the potential to become its own sector instead of simply a sub sector of both television and digital. But, we shall just have to wait and see.