Mobile Video Advertising Strengthens TV Media Investments
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Mobile Video Advertising Strengthens TV Media Investments
Executive Summary
While TV remains a trusted mass market media with the broadest reach,
video consumption on mobile devices is becoming an integral part of
how marketers and agencies connect, engage and convert customers.
This first-of-its-kind study from BrightRoll and Nielsen shows how mobile
video advertising can be an effective complement for TV advertisers trying
to reach increasingly fragmented audiences and improve ROI.Television has been and remains the primary advertising vehicle for the world’s largest brand marketers. As the mobile space has matured and consumers have devoted more time to both mobile devices and TV, the marketing community has seen new opportunities to influence behaviors. As consumers have increasingly engaged with digital video on mobile devices, brand marketers are considering complementing their TV investments with mobile video to put their message where consumers are spending their time. Consumption of sight, sound, and motion continues to set records on TV, dominates the desktop and is growing on mobile devices. Today, consumer media viewing habits are changing more rapidly than ever before. Consumption of sight, sound, and motion continues to set records on TV, dominates the desktop and is growing on mobile devices. Brand marketers are considering unprecedented media investments to reach these consumers, whose attention has become harder to capture as their media consumption fragments. Television: Desktop: Mobile: Record-setting Ad consumption Growing ad ad consumption domination consumption Marketers want the most from their media investments, and now they have more outlets across which to optimize. BrightRoll commissioned Nielsen to examine media efficiency across TV and mobile video in a first-of-its-kind study. The results of this study provide suggestions on how to execute multi-screen campaigns cost effectively and with better results. The results of this study provide suggestions on how to execute multi-screen campaigns cost effectively and with better results.
The Changing Face of
Media Consumption
The challenge of effectively reaching customers
is complicated by changes in consumer viewing
habits, including a significant evolution to
multi-screen viewing. Understanding this shift is US TV vs. Digital Video Ad Spending
important to ensuring brand advertising budgets Annual Increases, 2012–2018
generate the maximum return on investment for
advertisers and agencies.
$3.88B
2012 $0.89B
TV penetration is unmatched, as over 95 percent of
American households own a TV.1 TV ad budgets are the $1.81B
largest for any media segment with a forecast $68 billion 2013 $1.31B
spend in 2014 in the U.S., according to eMarketer.2
$2.19B
2014 $1.76B
While TV remains the “first screen,” video
consumption on mobile devices is increasing at $2.06B
record levels. CMO.com reports that online video 2015 $1.81B
consumption across mobile devices is accelerating
rapidly, with smartphone increases of 73 percent $3.18B
2016
$1.68B
and tablet increases of 42 percent year over year
(Q1 2013 vs Q1 2014).3 eMarketer states that U.S. $2.21B
mobile advertising grew to $9.69 billion in 2013 and is 2017
$1.67B
projected to reach $17.73 billion by the end of 2014.
The number of U.S. mobile and connected TV viewers 2018 $2.66B
will reach a staggering 204.6 million by 2017.4 $1.59B
The dramatic shift in consumer behavior has TV Digital Video
encouraged many brand marketers to rethink their
media buying strategies to put their message where
target audiences are spending time.
Online video consumption growth in smartphones and tablets
73%
Smartphones are rapidly
42%
Tablets are also
gaining popularity with taking market share
73% year over year with 42% year over
growth.3 year growth.3
SOURCES
1
Forbes, Fifty Essential Mobile Marketing Facts 3
CMO.com U.S. Digital Video Benchmark Adobe Digital Index Q1 2014
2
eMarketer, June 2014 4
eMarketer, August 2013US Global Mobile Advertising Growth
$17.73B
20 billion
+82.9% US mobile advertising is
increase
projected to reach $17.73B
by the end of 2014
16 billion
$9.69B
+57%
12 billion
year-over-year
8 billion
share growth for
US mobile
4 billion
2013 2014
Actual Projected
Source: MediaPost, July 2014 Over 95 percent of
American households
own a TV
204.6MM
projected U.S. mobile
and connected TV
viewers by 2017First-Of-Its-Kind Multi-Screen Efficiency Study
Nielsen, the leading global information and measurement company, was commissioned by BrightRoll,
the leading independent programmatic video ad platform, to develop a study to demonstrate how
brand marketers can put their media dollars to work most effectively through a combination of TV and
video advertising served to mobile devices.
Findings from the study indicate that a marketer’s reach for a desired
target consumer may rise as much as 12.7 percent when TV advertising
is aligned with video advertising served to mobile devices.
The study uncovered how brand marketers can optimize their ad spend amidst the rapidly changing media
consumption habits of their target consumers. Leveraging Nielsen’s data and simulation capabilities, the
study focused on four major verticals: CPG, auto, financial services and telecom. The goal of the study was to
determine how the pairing of mobile and TV advertising can build incremental reach for brand advertisers and
improve cost efficiency.
Nielsen’s research shows that a combination of TV advertising supplemented with video ads served to mobile
devices can help marketers reach those consumers whose attention is spread across multiple screens.
Findings from the study indicate that a marketer’s reach for a desired target consumer may rise as much
as 12.7 percent (in the CPG vertical) when TV advertising is aligned with video advertising served to mobile
devices. Furthermore, reallocating 15 percent of a brand’s TV budget to mobile, reduces the cost per target
rating point (TRP)* by as much as 13.7 percent.
Incremental brand reach using mobile
72.8% 71.0% 71.9% 71.6%
+12.7% +11.9% +9.5% +9.9%
CPG Auto Telecom Financial Services
(Females 25–54) (Adults 25–54) (Adults 18–49) (Adults 18–49)
BrightRoll Mobile
Incremental Audience TV only
*Target Rating Point (TRP) is one percent of the specifically targeted audience, not the total audience, being reached by an advertisement.Nielsen estimates that for marketing campaigns
to capture more than 60 percent of its target
Methodology
audience, brands often spend more than
$707,000 per reach point (i.e., cost per point). The study, conducted by Nielsen, was
Further, it’s not surprising for brands to spend commissioned by BrightRoll’s research
$1,389,000 or more to acquire one incremental department. The study was conducted
reach point after 70 percent of consumers on four omnipresent verticals: Consumer
have been reached. This dramatic increase Packaged Goods (CPG), auto, financial
in incremental cost per point indicates that services and telecom. Data was aggregated
marketers often hit a point of diminishing returns from multiple sources including Nielsen
once they hit the 60 and 70 percent thresholds. NPM panel, Nielsen EMM panel and Nielsen
MonitorPlus. TV TRP and incremental reach
point analysis were calculated via Nielsen
Cost Per Point Increase NPM and MonitorPlus data. Mobile TRP was
calculated utilizing BrightRoll data.
$1,400,000
CPG: Cost per TRP Females 25–54
$48,641
$46,536
$44,296
$1,000,000 $41,949
Auto: Cost per TRP Adults 25–54
$43,981
$600,000 $43,303
$42,429
$41,358
$200,000 Telecom: Cost per TRP Adults 18–49
$42,335
$41,106
$39,707
$38,152
10 20 30 40 50 60 70 Financial Services: Cost per TRP Adults 18–49
Percent reach on TV $40,073
$39,072
$37,902
$36,571
TV only Shift 10% to mobile
Shift 5% to mobile Shift 15% to mobileReach Fragmented
Millennials Lead Changes in
Audiences with TV and Consumption
Mobile Video Millennials and Hispanic Millennials are
exhibiting significant changes in how they
Today’s marketers live in a different world than consume media. Millennials, whose use of
just 10 years ago. As consumption of media smartphones is at a near-constant rate, are
expands across multiple screens, it’s become one of the largest population segments in the
harder for marketers to execute against these U.S., totaling about 77 million. In the second-
channels in a manner that is cost effective. quarter of 2014, 85% of Millennials aged 18-24
own devices, an increase from 77% in the
As video consumption on mobile devices second quarter of 2013. The credit reporting
continues to accelerate, complementing TV and consumer data firm Experian says that 43
buys with an incremental investment in a percent of Millennials are “mobile dominate”
mobile video advertising strategy will result in when it comes to digital media consumption.
a more efficient use of a marketer’s advertising Drilling down into the demographic data
dollars. Moreover, once marketers hit the 60 reveals an even more dramatic insight - 58
and 70 percent thresholds in reach, there is a percent of Hispanic Millennials watch videos
point of diminishing returns for their TV buy. on their smartphone.
Mobile video advertising creates new and more
efficient opportunities to reach audiences that
choose to consume content on mobile devices. Smartphone phone and television
As such, reallocating a portion of a brand’s TV
consumption by age range
budget to a mobile ad platform will increase
incremental reach.
18% 45%
Advances in mobile technology continue to
benefit consumers and change the way they 38%
consume media. Marketers have an opportunity to
benefit from these changes in consumer attention
as well. Based on the insights from this study, it
is clear that complementing TV with smart video 34%
advertising executions will make brands’ and 25%
agencies’ advertising dollars work harder.
19% 13%
8%
Smartphone Video Television
18–24 25–34 35–54 55+
5
Experian, May 2014What’s Next? Although consumers have embraced video consumption on mobile devices, one of the biggest impediments to marketer adoption has been a lack of industry standard tracking and measurement in mobile video. To address this issue, BrightRoll has been actively involved in establishing standards for mobile measurement, including being a beta participant of Nielsen Online Campaign Ratings. Nielsen Online Campaign Ratings identifies and provides consistent measurement of consumers exposed to mobile ad campaigns. As standards are established and adopted, marketers will soon be able to measure their mobile campaign delivery to target audiences.
BrightRoll is the only independent and unified programmatic video advertising platform for
reaching audiences across the web, mobile and connected TV. The company powers digital
video advertising for the world’s largest brands, including 85 of the top 100 US advertisers
and 18 of the top 20 advertising technology companies. The platform enables advertisers
to reach 4 in 5 video viewers online and consistently ranks among the top two video ad
platforms in ads served. As a result, BrightRoll technology collects and analyzes hundreds of
billions of data points monthly enabling real-time decisions that drive ROI for advertisers.
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For more case studies, whitepapers and videos about BrightRoll and
the programmatic advertising space, please visit our resources page.
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