Online video’s not getting the ad dollars
Study: Spending still falls far short of time spent with the medium
April 17, 2015
Of course, most people expect it to happen eventually.
But right now, digital video’s ad dollars remain wildly out of whack with time spent with the medium.
That’s according to a new report from eMarketer, which examines the percentage of ad budgets devoted to TV and online video, compared to the amount of time people spend with them.
It finds that 10.9 percent of time spent with media is spent on digital video, up from 7.3 percent in 2013. But spending doesn’t mirror time spent. Digital video accounts for just 4.4 percent of all ad spending, up from 2.4 percent in 2013.
By contrast, TV gets a disproportionate share of ad dollars compared to time spent.
The report finds 36.4 percent of media time spent goes to traditional TV, down from 39.6 percent two years ago. But 40.2 percent of all ad spending goes to TV, down a bit from 42.2 percent in 2013.
“Advertisers continue to trust TV despite its limitations, and despite a proliferation of digital alternatives,” says Paul Verna, senior analyst at eMarketer.
The average person spends one hour and 16 minutes with digital video each day, according to eMarketer, up from 21 minutes in 2011.
Mobile accounts for most that, at 39 minutes, including an average 22 minutes per day on tablets.
Still, digital video can be tricky for advertisers. While it has a broad reach, with many people watching lots of different content, it does not have the mass reach of television.
That is, while YouTube has a huge number of people watching videos each day, they don’t all watch the same ones. One YouTube video may reach just a fraction of the audience even the lowest-rated broadcast shows draw.
Plus, advertisers are more familiar with TV. Many trust what they know and are reluctant to switch to new media, even when media buyers are pushing them.
At some point, spending on digital video will come to reflect time spent more closely. But that time could still be a long way out.
“The resilience of TV comes partly from inertia, but also from marketers’ concerns that digital video ads aren’t always viewable or watched to completion. Until the digital advertising industry overcomes these hurdles, dollars will continue to flow disproportionately to TV,” Verna says.