Digital Media Taking Billions Away From TV
Billions Of Ad Dollars Going Towards Digital Media, Online Video In 2014 Alone
While the battle for online video supremacy continues between YouTube and Facebook, both giants are collectively working towards one powerful trend: the billion dollar shift of ad dollars from TV to digital media and online video. Advertising Age recently published new research from Standard Media Index (SMI) illustrating how billions of national TV spend had been repurposed towards digital media equating to a net loss of $1.7 billion. This trend is the latest amongst many that points directly to the growing shift of major marketing and ad dollars towards digital media (specifically online video) and conversely, quickly away from traditional TV advertising.
As companies head into the later half of 2015, here are a few notable industry trends to help marketers and advertisers best plan their digital media spend:
- In response to YouTube's 60% increased watch time (2015 Q2), analysts at Jefferies & Co. noted "online video ads could be a $17 billion opportunity in USA alone by 2017, and YouTube looks best positioned to benefit" (via Reuters).
- At VidCon 2015, YouTube CEO Susan Wojcicki shared that the video publishing platform "reaches more 18-49 year olds than any other cable network in the US" (via Forbes).
- Wall Street Journal reports on end of 2014 Nielsen TV study: online video jumps 60% whereas TV viewing for 18-24 year olds continues to drop double digits, down 17% in 2015 Q1 (via MediaPost).
- All from Mary Meeker's digital trend report: Snapchat generates 2 billion video views per day. Single events like Coachella can generate 40 million views to Snapchat Live Stories. Facebook gets 4 billion video views per day. "Watching video games like it's TV is becoming a top entertainment choice."
- In partnership with Pixability, Google's Agency Blog recently published trends from the Top 100 brands. Standout stats include a doubling of branded content views in last 12 months and a near 50% increase in brand channel subscriptions. According to Google, "brands are now adopting similar content strategies as some of our most successful creators on YouTube."
- Nielsen data reports traditional TV viewing for 12-17 year olds declined drastically to 18 hours each week (down from 21) just in 2015 Q1. As such, many traditional TV networks are quickly pioneering digital divisions or YouTube influencer strategies (WSJ) in order to stay relevant (via VentureBeat).
Examples Of Major Traditional TV Advertisers Shifting To Digital Media
In light of the aforementioned trends, increasingly more brands are proactively choosing to develop their online video presence via sponsored advertising, branded content, and/or marketing with prominent digital influencers to quickly grow their views and brand awareness.
Here are a few examples of companies who have traditionally advertised on TV but are now venturing into custom content creation on new and emerging social publishing channels and networks:
Dr. Pepper - the soft drink beverage giant recently partnered with several Viners for a multi-platform marketing campaign.
Toyota - running inside Snapchat's localized Live Story feature, Toyota is the first car brand to leverage the online video platform's geo-targeted ad format.
Companies Utilizing Vloggers To Maximize Digital Ad Spend
In a targeted effort to best connect with consumers and build brand affinity, both TV networks and major companies are partnering with top video bloggers ("vloggers"), YouTubers, and other digital influencers. Nike, Mercedes-Benz, and J. Crew have partnered extensively with YouTuber Casey Neistat for several online video campaigns. Major TV advertiser, CoverGirl, was one of the first to team up with beauty vlogger Ingrid Nilsen to expand and augment their brand offerings online. VidCon 2015, the world's premier industry conference for online video, marked the first time where a major TV network (Nickelodeon) held open casting auditions specifically targeting digital influencers. Both Universal and Marvel began promoting their movies by creating short form web content with prominent YouTubers (see Terminator YouTube Chronicles, Ant-Man + Trainwreck)
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August 4, 2015 By Evan