ITV

Tag: Video Advertising Bureau

  • Online majors are biggest spenders on TV, says a global report

    Online majors are biggest spenders on TV, says a global report

    MUMBAI: Some of the biggest tech giants are the biggest spenders on TV.Figures from around the world show the extent to which online businesses are now investing in TV advertising.

    For example, in Australia in 2017, Google spent sixtimes as much on TV advertising, reaching A$11.3 million and Apple increased its ad spend by 17.4 per cent to A$20.2 million. Amazon backed its Australian launch with a TV ad investment of A$3.2 million, and Uber increased its TV spend with a first investment of A$3.4 million, according to Nielsen Adex,.

    Using comScore data in the US, the Video Advertising Bureau found that online businesses see an immediate and significant lift in web traffic once they launch TV campaigns – data from 14 online businesses showed the lift ranged from 11 per cent to 1,075 per cent. Studies from around the world have proven the impact that TV advertising has on online activity. A study in France by SNPTV found that organic traffic to a pure players’s website increases by 66 per cent during a TV advertising campaign.

    The global figures were compiled by The Global TV Group, an informal grouping of TV broadcasters’ and sales houses’ trade bodies in Europe, the US, Canada, Australia and Latin America. Findings show that from Brazil to Germany, brands such as Amazon, Zalando, Netflix, Expedia and Airbnb are building their image, reputation and sales through the reach and influence of TV.

    The investment trend demonstrates the strong relationship between TV and online, with viewers armed with Internet-connected devices able to respond to TV advertising immediately.

    According to Google Australia and New Zealand marketing director Aisling Finch,”Like most marketers, we use a range of channels to achieve campaign objectives. We know that audiences engage with content across different platforms at different times, and marketers do the same. For campaigns such as the launch of Google Home we used a combination of radio, TV, cinema, print, outdoor and online channels including search, YouTube and social. In this campaign we found the combination of contextual media and creative drove stronger uplift.”

    In Belgium, during 2016, TV represented a 62 per cent share of the online business sector’s media investments. The Rocket Internet group, the second biggest spender, which owns companies like HelloFresh and Home24, spent a total of €6,072,463 in 2017 on TV advertising.

    Online businesses’ TV ad spend grew by 17 per cent in Brazil between 2015 and 2017. When including the e-commerce players owning physical stores, the increase is almost 20 per cent. In Canada, online businesses represent one of the fastest growing sectors in TV advertising. Online businesses have doubled spend on TV over the past five years, with spend in 2017 topping $105 million.

    Over a 3-year period (2015 to 2017), Airbnb’s TV ad spend increased by 44 per cent. Expedia and Amazon show even more impressive figures with an increase of 65 per cent each. In Italy, online businesses invested a total of €95,653,000 in TV in 2017, representing a 10.7 per cent increase compared to 2015 whereas in Netherlands, e-commerce advertisers increased their TV investment by 26 per cent between 2015 and 2017 to become the fourth biggest category of TV-advertisers. 200 e-commerce advertisers invested €300 million gross in TV in 2017. The highest TV investor was the German booking site Trivago with a gross investment of €25 million. Spain saw Amazon’s TV ad spend go from €106,990 in 2015 to €11,006,360 in 2017, more than 100 times the investment in 2015. Google’s investment in TV went from €40,250 in 2015 to €603,620 in 2017, 15 times more.

    In United Kingdom, online businesses including brands Amazon, Trivago, Google and Purple Bricks invested a total of £682 million in TV advertising in 2017, up from £590 million in 2015. Despite cuts in other categories due to ongoing economic uncertainty, online businesses, which in 2016 became the biggest spenders on TV in the UK, remained steadfast in their TV investment.

    United States of America in 2017, saw digital-native companies including brands like Amazon, Expedia, Wayfair and eBay spend over $5.9 billion US dollars on TV, representing a 10 per cent increase over 2016.  Within this spend is a group of 50 “direct-disruptor” newcomer brands, including Gwynnie Bee, Peloton and Leesa – who only recently began investing in TV but now collectively spend over $1.3 billion US dollars in TV annually.

    The positive trend is set to continue in 2018 as more e-commerce brands around the globe put their trust in TV advertising to strengthen their image, drive traffic and generate return.

    Video Advertising Bureau president and CEO Sean Cunningham said, “We’ve been analysing digital-native companies since 2014 and found that those who turned to a heavy reliance on TV early in their company’s history saw substantial benefits.”

    n a more recent study, featuring various case studies, the VAB looked into how TV drives business outcomes for disruptor brands. For example, expanding brands saw an average increase of 188 per cent in their search volume as they increased their TV investment.

  • Broadcasters, cable cos, distributors form new Video Advertising Bureau

    Broadcasters, cable cos, distributors form new Video Advertising Bureau

    MUMBAI: The Cable television Advertising Bureau (CAB) has paved the way for the Video Advertising Bureau (VAB).

     

    CAB, which was founded in 1980, has dissolved and been replaced by VAB comprising 110 broadcast and cable networks and the 11 multichannel video programming distributors (MVPDs) to form a single voice to promote the power of video advertising.

     

    The VAB’s goal in uniting nearly all broadcast and cable networks with MVPDs is to raise the bar on research, data and analytics, and expand the market for advertising in professionally produced video content.

     

    “Our industry is changing rapidly, however one constant is the unquestionable power of television to reach consumers with advertiser messaging. By broadcasters, cable networks and distributors coming together in this unprecedented way, VAB members will share expertise and insights, put forward original research and push toward a common goal of elevating television’s leadership in driving product sales and brand affinity for clients,” said Discovery Communications ad sales president and inaugural VAB co-chair Joe Abruzzese.

     

    VAB members produce and sell the overwhelming majority of video content, and likewise command the vast majority share of viewer attention. This attention advantage manifests across all screens – TV, desktop, laptop, tablet and smartphone – totaling 80 per cent (140 hours) of the 175 hours/month Americans devote to the universe of ad-supported TV, Google/YouTube, AOL, MSN, Yahoo and Facebook.

     

    “The time has come for the TV industry to be represented holistically with the power of the content superseding the differences in distribution. This will clearly advance the share of voice for the industry and support the initiatives that will provide incremental value to advertisers as technology, data and consumer choice change the dynamics of the medium,” said Group M chief investment officer Rino Scanzoni.

     

    The VAB’s top priority is commissioning research on two levels – quantifying the primary role that ad-supported TV plays in generating consumer sales traffic, and clarifying attribution in the modern media mix.

     

    “We are proud to work alongside our expanded membership of broadcasters and cable networks at the Video Advertising Bureau to expand the thought leadership on best practices and insights for marketers. Our collective goal is to help our clients make stronger connections with consumers where they watch, when they watch, and on any device,” added Time Warner Cable Media EVP and COO and inaugural VAB co-chair Joan Gillman.

     

    Content over distribution

     

    VAB members are creating the next ways for advertisers to capitalize on the attention advantage, from data platforms to addressable TV advertising. In unison, the innovations can refine the state of the art of video advertising.

     

    “There is no substitute for quality content in the presence of valuable data and insights. It only makes sense to expand this organization’s focus to reflect the rapidly changing premium video environment and strengthen the research it can provide to content creators and advertisers regardless of platform — it doesn’t matter where the content is consumed, it only matters that it’s great,” said NBCUniversal chairman, advertising sales and client partnerships Linda Yaccarino.

     

    The more ways viewers can get video, the more they continue to choose premium TV content. According to researcher GfK’s 2014 UK-US SVOD study, TV content accounts for 88 per cent of all streaming activity in the US.

     

    “The media landscape is changing rapidly but one thing remains a constant: premium TV content is still the most powerful environment for advertisers. We are committed to helping our clients leverage this content effectively across multiple screens, and are pleased to be joining other broadcast and cable networks in this important initiative” said CBS Television Network president, network sales Jo Ann Ross.

     

    Cross-screen commitment

     

    Leading the VAB will be the executive team that has run CAB for the past 12 years, during which time cable ad revenues have grown by 80 per cent. Sean Cunningham will be president & CEO; Chuck Thompson will be EVP, whereas Danielle DeLauro will be SVP strategic sales insights. Together they will give advertisers one source for the best research, insight and perspective on video advertising. Importantly, this will include new primary research on the impact of TV advertising.

     

    Cunningham said, “More than ever, consumers are tuning in to premium, multiscreen TV content – at a moment’s notice, at arm’s-length, on the best available screen. Advertisers instinctively know this world-class video initiates the sales cycle. The VAB will lead the charge to prove it.”

     

    “We congratulate the CAB and the broadcast community as they converge to become the VAB. Multi-screen TV content is among marketers’ most important assets. The creation and evolution of the VAB will further marketers’ sophistication, insights and understanding of these assets as they seek to improve their marketing and media management and more successfully build their brands and business results,” said Association of National Advertisers president Bob Liodice.