TV has changed and is continuing to change.
It is now a very fragmented space as consumers divide their attention chasing content across multiple platforms. While Linear TV remains a staple in Australian households, Consumers are increasingly moving their attention to digital TV, and advertisers are following.
2027 is predicted as the tipping for Australia – where streamed digital video will be bigger than broadcast TV.
Last week PepsiCo announced they will stop advertising on Linear TV to focus more on digital. Why? Pepsi cites changing consumer behaviours and the effectiveness of digital advertising in reaching targeted audiences.
"...we have decided to shift to different types of screens.” Vandita Pandey, PepsiCo ANZ CMO of Beverages & Snacks
This is big, but not surprising news - similarly Coca Cola has shifted their advertising efforts to digital, from 30% (2019) to 60% (2024).
“To recruit the next generation of drinkers, our marketing has shifted from a TV centric model to a digital first organization that balances local intimacy, scale and flexibility." - James Quincey, Coca Cola CEO”
The audience is shifting and advertisers will follow.
We are seeing this shift occurring – across clients big and small, across a broad range of industries.
Video best practice
There are important considerations when you’re looking to increase your online video investment, especially if you’re moving money from linear TV.
Audience Targeting
One of the greatest advantages of online video over linear TV is its ability to accurately target audiences. This is especially valuable when you’re trying to reach audiences who are currently in-market for your products & services.
Affinity Audiences v In-Market Audiences (YouTube)
Affinity audiences have demonstrated a qualified and ongoing interest in a given topic.
Being in-market means Google has identified them as actively shopping for that thing.
NB: There’s a big difference between someone who has an affinity (interest in) luxury cars and someone who is in-market for a luxury car!
Geographic Flexibility
Online video allows you to drive broad reach nationally, or focus on specific locations and regions (even post codes) based on your business needs. This is also great for test campaigns.
Safety & Suitability
Similar to buying TV, consideration needs to be given to the environments in which your ads are consumed. Do you want to be in sporting environments? Family friendly? Travel? All these are possible.
You must also remove the areas you don’t want to appear in – offensive and irrelevant areas which could hurt your brand.
Brand safety tip: There are multiple layers within the platforms such as Google, as well as third party brand safety providers. Even with these technology layer, manual check processes are essential.
Reach & Frequency
Similar to traditional TV, you will also want to forecast and set Reach and Frequency (R&F) objectives for your campaigns. There are accurate tools to forecast and manage frequency in most areas of online video, and when implemented properly, will ensure you’re reaching more of your audiences, avoiding wastage and burnout due to frequency overkill.
Storytelling in Video
Because of the format and consumption habits of online video, you will need to create online-video specific creative which follows a different story arc to traditional TV commercials. You generally need to create a hook and introduce your brand early, rather than taking people on journey with a reveal at the end.
Tip: Pay close attention to the view-through metrics for your video and make a note of where most people drop-off in comparison to your key branding messages and offers. Have you lost them, before you communicated your important messages?
Embracing online video requires a nuanced understanding of its unique advantages over traditional linear TV. By leveraging the precise targeting capabilities, optimising for specific geographical areas, ensuring brand safety, setting clear reach and frequency goals, and crafting engaging stories tailored to online viewing habits, marketers can effectively enhance their video campaigns. This strategic approach enables a more focused, safe, and impactful connection with desired audiences, ensuring that key messages resonate and drive the intended actions, thereby maximising the return on investment.
TV Advertising Options
It used to just be “TV”. Not anymore. What’s the difference between BVOD and SVOD? What is Programmatic TV? How does Connected TV fit in? Here’s a quick overview of the different digital video options.
Linear TV – traditional TV where all programming is scheduled in advance.
Broadcast Video on Demand (BVOD) - all content from traditional TV broadcasters that is made available online for viewers to consume at any time.
Subscription Video on Demand (SVOD) - subscription video business model where subscribers are charged a regular fee to access video content.
Connected TV (CTV) - refers to any big TV that can connect to the internet, either directly or via external devices such as streaming sticks, consoles, or set-top boxes, enabling the streaming of digital video content. This technology offers access to an extensive array of content beyond conventional broadcast channels, encompassing streaming platforms, on-demand videos, and various internet apps.
Programmatic Video - the automated process of buying and selling video ad space leveraging data and algorithms for optimal ad placement targeting specific audience segments. It involves real-time bidding, considering factors like inventory, audience data, cost, performance, and relevance, enhancing efficiency, targeting accuracy, cost-effectiveness, and ad performance. Programmatic video can be bought across linear TV, Connected TV and BVOD.
Online Video Buying Models
The cost and effectiveness of digital video advertising can vary widely based on a variety of elements such as the chosen platform, the target audience, and the particular ad format. Understanding the key methods for purchasing digital video ads is crucial for maximizing campaign effectiveness and achieving marketing objectives. Key buying models include:
Cost per Thousand Impressions (CPM): This model charges advertisers for every thousand impressions their video ad receives. It's particularly beneficial for campaigns aiming to enhance brand visibility and reach a wide audience efficiently. The CPM model delivers brand awareness and efficient reach.
Cost per View (CPV): CPV is a model where advertisers pay each time their video is viewed. This approach is advantageous for campaigns focused on increasing the number of video views, thereby boosting engagement with the content. It is well-suited for content that is engaging and designed to draw viewers in from the first few seconds.
Cost per Completed View (CPCV): In the CPCV model, advertisers only pay when a viewer watches the entire video ad. This model is ideal for campaigns where the complete message delivery is crucial, such as detailed product demonstrations or compelling storytelling that requires the full attention of the viewer.
Skippable Ads: Skippable ads allow viewers the option to skip the advertisement after a certain amount of time, usually five seconds. This model respects viewer preference. It necessitates the creation of immediately captivating content to prevent viewers from skipping.
Non-Skippable Ads: With non-skippable ads, viewers are required to watch the entire advertisement before accessing their desired content. This guarantees full exposure but can sometimes lead to viewer annoyance if overused or placed inappropriately. It's crucial to balance the use of non-skippable ads to maintain a positive user experience.
Short-form Ads (Bumpers): Bumper ads are brief, usually six seconds or less, and are designed to convey a concise message. They are cost-effective and can significantly extend reach but pose creative challenges due to their brevity. They are effective for reinforcing messages or promoting offers.
Long-form Ads: Long-form formats provide an opportunity to deliver comprehensive brand and product messaging. They are suitable for storytelling, detailed product demonstrations, or when a deeper emotional connection with the audience is desired. However, keeping the viewer engaged throughout the longer duration can be a key challenge.
Shorts: This relatively new format caters to the growing trend of short, engaging video content often consumed on mobile devices. Shorts require a unique creative approach tailored to the platform and audience habits, often focusing on high-energy, impactful content that captures attention quickly.
