Television networks may have initially felt threatened by the emergence of video on demand (VoD), but a new poll proves that advertisers are willing to work with both platforms for the greater good.
Insight from multi-screen ad tech firm Collective and its 2014 Online Video Advertising Report show that over half of media buyers (55%) are viewing the connection of TV and VoD as a priority in their marketing efforts.
A similar proportion (56%) are planning on increasing their VoD spend by over 25% in the next six months and, as more companies push for its further collaboration with TV, Collective believes there is scope for the partnership to grow throughout 2014 and beyond.
Estimates from the report value the average VoD campaign spend at £56,000 per annum, indicating an increase of £6,000 on the figure from last year. It is believed that 25% of media buyers are including VoD on over 90% of their plans and have a clear idea for the type of data they need to power a campaign.
Nearly half of the group (49%) cited audience demographic and behavioural data as the most important information for targeting consumers through VoD ads. A total of 20% were found to be applying considerable focus to context targeting, while the view-through rate - or the number of display ad impressions clocked after exposure to a campaign - was revealed as the most important metric for judging success.
Commenting on the findings, Simon Stone, commercial director at Collective, said: “View-through rates are now currency for buyers in measuring the success of campaigns and the quality of video inventory they are buying.
“The importance place on CTR has dwindled since the last time this survey was carried out with a greater emphasis now being placed on the level of engagement and unique reach that online campaigns can deliver.”
He added that brands are looking to connect TV and VoD with a view to choreographing messages “seamlessly across screens”.
The digital future?
Collective is not the only analyst which has picked up on the partnership of TV and on-demand media services.
Speaking at Performance Marketing Insights: Europe, Sri Sharma - founder of Net Media Planet - covered the connection between TV and digital advertising in his talk on ‘The Digital Future’.
With references to TV’s relationship with PPC and ad services on TV social app Zeebox, you can view Sri’s full presentation on SlideShare. Alternatively, take a look at PerformanceIN’s recent article on some of the points raised in Sri’s talk.