TV Beats Digital in Viewing, Usage; Digital Ad Spend Grows
4 May, 2016By: Doug McPherson
NEW YORK – TV has taken its share of hits during the past couple of years, but it still dominates over digital in one key metric: “average audience per minute,” says the Video Advertising Bureau (VAB), a TV ad trade group.
The VAB says analyzing “average audience per minute” viewing/media usage for all media – for traditional TV and digital media (video and other media usage) – TV accounts for 95 percent of video consumption for all adults, and 88 percent for millennials.
The average audience of multiscreen TV brands (traditional TV and online TV) gets 71 percent of the adult 18-and-older total day audience – 30.1 million. Facebook took in 10 percent (4.4 million), followed by Pandora and YouTube at 5 percent (2.1 million each), and Google with 2 percent (930,000).
The VAB sources comScore MediaMetrix and Nielsen and says it analyzed Nielsen total day TV usage, live-plus-same day program viewing, and comScore’s digital Web site measurement for all visitor activity, including video consumption.
Media analysts have complained that it can be difficult to compare digital video viewing with traditional TV viewing. TV viewing is typically analyzed by “average minute audience,” while digital video viewing is typically measured in “views,” which can be any duration.
Another trade group, the Interactive Advertising Bureau (IAB), reports ad spending on original digital – both desktop and mobile – programming has more than doubled since 2014, and those budgets have come primarily out of television.
The IAB says its survey of 360 advertisers and agency executives in March suggest a significant shift is occurring in the TV/video ad marketplace, released Monday – the first day of its week-long Digital Content NewFronts in New York. The survey found investments in the kind of “original” digital video programming being showcased at the NewFronts rose 114 percent in two years.
Asked where the digital video ad budgets were being funded from, traditional TV budgets were cited as the source for 72 percent of total digital video and 64 percent for “original” digital video.
Other IAB findings include:
- Sixty-eight percent of marketers and agency executives believe original digital video will become as important as original TV programming in the next three to five years
- Respondents said they want to buy digital video that reaches target audiences in high-quality programming and delivers more concrete ROI metrics
- Most buyers plan to spend more overall on all digital video (63 percent) and mobile video (62 percent)
- Original digital video content now accounts for 44 percent of a typical digital video budget – up from 38 percent two years ago
- Native advertising accounts for one-third (32 percent) of that investment
“Marketers and agencies are telling us they clearly see great value in original digital video programming,” says Anna Bager, senior vice president and general manager, mobile and video, IAB. “This study demonstrates that the NewFronts have the ability to move ad dollars. Considering this year’s presenter lineup of top-tier, innovative media companies and content creators, we expect that the event will inspire spend during the marketplace’s two-week period and beyond.”