What's the matter with just using TV and online video?
Network and cable TV audience fragmentation and time-shifting have been diluting show ratings and engaged TV commercial viewership for years. Yet the sight, sound, and motion (SSM) :30 commercial is still the most powerful brand-driving tool for marketers.
Digital pre-roll video initially added a new medium to the mix and contributed positively to the incremental reach equation. Research conducted by the Interactive Advertising Bureau (iAB.net) concluded that online plus TV reach is shown to be more effective on key brand effect metrics than either platform alone. This research also concluded that prior exposure to online ads improves ad impact of TV ads by double digits. Though not a part of this study, it's not hard to imagine how additional diversification of channels and heightened audience engagement would result in similar effectiveness gains for users of place-based out-of-home video advertising.
But recently, the iAB also reported that up to 36% of online adverting impressions could be fraudulent, including digital video. So click fraud, target accountability and advertiser environment control remain hurdles for online video.
How to efficiently find greater reach without adding new creative costs?
The short answer is to keep broadening the SSM platform to include new vehicles like out-of-home. But the validity of audience delivery across video out-of-home networks has historically been a shortfall in the place-based media industry. Planners and out-of-home buyers made gut decisions based on context and general intuition of audience value. Not that these decisions were wrong. But they didn't meet the accountability standards required by marketers who require Nielsen audit data and use Marketing Mix Modeling to validate every major medium, even if that medium promised significant incremental reach.
Unexpected surprises in the new Nielsen in-flight audience data.
Now Nielsen and one of the largest place-based video media companies, RMG Networks, announced new audit data that holds its in-flight out-of-home media network more accountable than ever. Nielsen data for place-based video networks offers auditable measurement that is more like TV and stronger than digital from a click-fraud perspective. This data combined with granular in-depth surveys done bi-annually eliminates any risk of impression fraud by bots or other unseen users.
There was something surprising in Nielsen's new Place-Based Video Report data too. In comparison to broadcast ratings data the largest out-of-home networks delivered a larger monthly audience than many of the top rated individual network TV shows. What's more, the largest digital place-based media networks handily out-deliver the leading cable networks and even outreach the networks on an average rating basis for Adults 18+ and other demos.
3 tips for using place-based video to expand incremental reach.
Some of the savviest marketers (P&G, Ford, Verizon) are looking beyond broadcast and cable or digital video to leverage existing :30 commercial creative with place-based SSM video. The benefits of doing so include extending reach to influential, social-media-active consumers and to lighter TV-viewing audiences. These advertisers are blending digital place-based out of home to extend reach within SSM media platforms.
Tip 1: While some brands use video out-of-home as a primary channel (travel, credit cards, B2B technology) many mass market consumer brands now apply as much as 2%-5% of their annual broadcast and digital budgets to out-of-home video, similar to the use of cinema in years past.
Tip 2: To achieve a sufficient level of measurable impact a rule of thumb is usually $3-5 Million per brand per year across in-flight entertainment and other place-based networks. This provides a substantial share of voice and projects a leadership image within the channel.
Tip 3: Communications effectiveness improvements can also be gained by running TV commercials in high-engagement channels (eg. in-flight video, online video) early in the launch flight. This ensures that when commercials are reinforced in less engaging programming like cable TV the full creative message is being recalled.
To summarize, in-flight video today and soon office media networks, airport lounge media, and mall media promise to open up Nielsen-accountable options for leveraging TV scale that didn't exist before.
About the Sponsor
RMG NETWORKS (NASDAQ:RMGN) helps brands and organizations communicate more effectively using location-based video networks. The company connects brands with target audiences using video advertising networks comprised of over 200,000 display screens, reaching over 100 million consumers each month. The company also builds enterprise video networks that empower organizations to visualize critical data to better run their business. RMG Networks works with over 70% of the Fortune 100. The company is headquartered in Dallas, Texas, with offices in the United States, United Kingdom, China, India, Singapore, Brazil and the UAE For more information, visit www.rmgnetworks.com.
John Leeman is the former Chief Marketing Officer for online grocer FreshDirect.com. Before that he was the global managing director for the American Express account at Mindshare, NY and the communications planning SVP for P&G's Baby Care and Family Care divisions at Carat, NY. John is currently a board advisor for eXelate and a marketing consultant for RMG Networks.
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