YuMe Says 15% of TV Ad Spend Should Move to Online Video

Larry Kless
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I caught up with Travis Hockersmith, Director of Market Analytics for YuMe, at the YuMe roadshow in San Francisco to discuss the key findings of the share-shift analysis that incorporates Nielsen's new data set, Fusion, which statistically fuses the TV and online panels to create a holistic video plan – which is really what agencies and advertisers want. This approach offers a lot of benefits and least of which, answers the question, "What percentage of my budget should I spend in online video and what exactly does that buy me?" Hockersmith notes that while TV continues to command the dominant share of viewers, as audiences continue to move online and to mobile devices, it becomes difficult to achieve a brand's desired reach and exposure in the fragmenting advertising landscape. As part of its ongoing market research, YuMe set out to demonstrate that shifting a portion of a brand's ad spend, for example reallocating 5%, 10%, or 15% of a TV buy, to online video can not only improve reach, effective reach, and frequency, but can also lower the overall campaign CPM. YuMe suggests a holistic approach to media buying independent of which screen the ad appears and set out to demonstrate this in its latest market research, Online Video Share-shift Analysis, which incorporated Nielsen TV/Internet Data Fusion, to show that online video campaigns complement TV campaigns, and that the combined effect is yields even greater advertising effectiveness. Hockersmith says: "We are all still trying to figure out what percentage of television budgets make sense to put into online video and we think that we've quantified the effect that 5, 10, 15% level – we really believe that there's a strong case and a lot of hard evidence that suggests that 15% of TV spend should be moving into the online video space." Distributed by Tubemogul.

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