In today’s fast-paced world, where everything happens in the blink of an eye, advertisers are constantly searching for the most effective way to place their brands in the spotlight. While often videos on Facebook and YouTube are opted for as a quick, cheap and easy solution for brands to reach consumers, new research now indicates that in the long run, these do not provide the greatest return on investment (ROI) for advertisers’ marketing campaigns.
This week’s egtabite features TV2’s pioneering research, presented at egta’s 2019 DigitalNext meeting, which shows how addressable TV gives marketers a substantially higher campaign ROI (than YouTube and Facebook) when considering the criteria of view-through, viewability (pixels served) and screen size.
Methodology
Existing ROI studies looking at digital video – meaning everything from VOD, YouTube and Facebook video to addressable TV – give inconsistent ROI results with a substantial spread. Sometimes the results are very good and sometimes the results are quite disappointing.
Christian Godske, Head of Commercial Product Development at TV2 Denmark, explains that this discrepancy with regards to performance has a lot to with the quality of the video exposures.
TV2’s sales house – along with GroupM research agency Business Science – conducted an econometric modelling meta-study to look at the impact of quality by taking into consideration factors such as the completion rate of an ad, viewability (pixels served), and the different devices used – all based on already available media agency data.
The goal of the study was to see if the quality of video campaigns had an impact on the measured ROI across 10 clients that used Facebook, YouTube and addressable TV and whether taking quality into account would explain video advertising with respect to sales. In other words, getting closer to a more consistent impact of video advertising.
Results
The TV2 ROI study conducted on digital video has three key takeaways:
The quality of ads plays a crucial role in the impact while view-through (completion rate) is the most important parameter affecting a campaign’s ability to deliver ROI. This study addressed the quality concern and came up with applicable figures for the Danish video ad market;
On TV2’s addressable TV offer, the view-through rate is 99%, thus driving a consistently high ROI, substantially bigger than both YouTube (37% of completion rate) and Facebook (5 % of completion rate), confirming that consumers very rarely complete a Facebook video ad.
Although addressable advertising is significantly more expensive than online campaigns from a CPM rates point of view, it is clear that – apart from the higher quality of ads – it drives sales to the point of outshining the lower cost of digital advertising. In other words, even after factoring in the price difference, addressable TV’s ROI is significantly better than the one of online video campaigns. In fact, in Denmark the starting price of addressable TV is more than double that of linear TV, 5-6 times higher than Facebook and 2-3 times higher than YouTube video. Even though Facebook has a much cheaper CPM on the impression level Facebook CPM is much more expensive on the completed ad level. The low CPM of Facebook video is not low enough to make up for the even lower completion rate of the ads and the impact it renders.
Finally, addressable TV, just like traditional television, has a scale potential and delivers a high ROI.
However, for most clients addressable TV is still a supplement to “normal” TV advertising.
“With addressable TV we have combined the best from two worlds – the quality of TV advertising with digital targeting and ad delivery – which very well resonates with the market”, Godske concludes.
OTHER CASE STUDIES
RAI PUBBLICITÀ, SHISEIDO, AND DOUGLAS USE TV, BRANDED STORIES, AND SKINCARE SCHOOLS TO EDUCATE CONSUMERS
2. 12. 2024Context This initiative aims to debunk false myths about beauty and skincare that often spread on social media and disorient consumers. The two brands offered tangible action to help consumers make an informed beauty choice. Shiseido, the Japanese giant brand renowned for its historic skincare and cosmetic know-how and innovation, has partnered with Douglas, a… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
RTL GERMANY’S ADDRESSABLE TV INNOVATION: DYNAMIC CREATIVE ADS FOR REWE GROUP’S INDIVIDUAL REGIONAL RETAILER MARKETING
28. 11. 2024Context REWE aimed to replace conventional paper brochures with a more sustainable communication method using digital sales channels while retaining the benefits of traditional flyers. They focused on Addressable TV (ATV) as an additional sales channel, complementing the existing digital solutions. The challenge was accurately displaying ads based on location, and showing digital flyers with… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
ESTRELLA AND NETFLIX’S NEW YEAR’S HEIST CAMPAIGN ON ATRESMEDIA
14. 11. 2024To promote Netflix’s new series Berlin, Estrella teamed up with Atresmedia for an innovative, interactive campaign during Spain’s most-watched TV moment—the New Year’s Eve countdown. The objectives were clear: generate high awareness for Berlin, enhance Estrella’s brand image, and make an impact with a campaign that broke through traditional ad norms. A one-of-a-kind approach In… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
ITV’S GEN AI SOLUTION HELPS BOOST TV ADVERTISING AND SMALL BUSINESS GROWTH
18. 10. 2024In September 2024, ITV launched an innovative solution aimed at making TV advertising more accessible to small and medium-sized enterprises (SMEs). By leveraging the power of Generative AI (GenAI), ITV is expanding its commercial creative production services to remove the perceived barriers associated with the cost of making ads for TV. This innovation allows new-to-TV… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
TV4 MEDIA MANAGER: A NEW ERA OF SELF-SERVICE ADVERTISING SOLUTIONS
17. 10. 2024In June 2024, TV4 launched the TV4 Media Manager, a groundbreaking ad booking system designed to simplify the full advertising process for SMEs and small agencies. This new platform consolidates various advertising opportunities into a single, user-friendly interface, allowing advertisers to plan, book, and track their campaigns with unprecedented flexibility. By enabling targeted advertising based on… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
SHIFTING MEDIA CONSUMPTION, MEASUREMENT STANDARDS, MULTIPLATFORM GROWTH AND THE RELATIONSHIP WITH GLOBAL STREAMERS
20. 9. 2024Laurent Bliaut, Deputy General Director at TF1 Publicité, recently began his tenure as the President of egta, succeeding Walter Zinggl, CEO of IP Austria, to whom we extend our gratitude for his dedicated service. In an interview with our TV Research Manager, Halli Oddsson, Laurent generously shared his thoughts and vision for the near future, discussing the challenges and opportunities… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
SHOP SMART, SHOP GREEN: IP OSTERREICH AND GREEN SHOPPING DAYS COLLABORATION
12. 9. 2024As consumers grow more aware of the environmental and social consequences of their purchases, businesses are increasingly compelled to respond to these evolving values. Companies recognise that aligning with their audience’s concerns is not just a trend but a crucial strategy for long-term success. To meet the growing demand for sustainable options, IP Österreich, the… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
LEADING IN SUSTAINABILITY: ITV’S CLIMATE TRANSITION AMBITION
12. 9. 2024While most media leaders acknowledge the climate crisis as one of the defining challenges of our time, taking effective action as a TV company remains a significant hurdle. In a proactive step within the global media industry, ITV has recently published its Climate Transition Plan, setting a new standard for environmental responsibility in media. ITV… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
FTP OFFERS SUBTITLING ON COMMERCIALS DURING THE OLYMPIC AND PARALYMPIC GAMES
18. 7. 2024FTP: Reinforcing its commitment to social inclusion According to the World Health Organization (WHO), almost 200 million people in the wider European region experience some degree of hearing loss. This is a significant health issue around the globe, and France is no exception, with serious hearing loss affecting nearly 10% of the French population. As… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
CHANNEL 4 INTRODUCES SUBTITLED ADS AND ACCESSIBLE SPONSORSHIP FOR PARIS 2024 PARALYMPICS
18. 7. 2024The most accessible games yet Channel 4 announced that all advertising on its network during the Paris 2024 Paralympic Games will carry subtitles. This enhances Channel 4’s commitment to making its coverage of the Games the most accessible yet. The commitment builds on the previously announced goal to include subtitles on the broadcast of all… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
DPG MEDIA AND GAIA’S UNITED EFFORT TO FIGHT PUPPY MILLS
20. 6. 2024Puppy mills, where dogs are bred for profit with little regard for their welfare, remain a troubling issue. To combat this, GAIA, a Belgian non-profit organisation dedicated to animal rights, partnered with Integreate by DPG Media to launch an impactful media campaign. This campaign not only raised significant awareness but also earned prestigious awards, including… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
DRIVING CREATIVITY: VOLKSWAGEN AND CANAL+ BRAND SOLUTIONS’ TIGUAN CAMPAIGN
20. 6. 2024Tiger + Iguana = Tiguan Showcasing creativity and innovation, CANAL+ BRAND SOLUTIONS and Volkswagen launched an outstanding campaign for the new Tiguan, featuring eye-catching 3D animation. The campaign was executed with the help of Re-mind PHD, its creative department Fuse, the DDB agency, and CANAL+ BRAND SOLUTIONS’ creative entity, CANAL BRAND Factory. The primary aim… Continue reading EGTABITE 256: TV2’S META-STUDY – HOW ADDRESSABLE TV PROVIDES HIGHER ROI THAN YOUTUBE AND FACEBOOK
