Premium OTT Now Equal to Non-Premium Digital

A Bill Harvey Consulting BHC and Fox study of 22 trillion in sales in relation to 48 billion in ad spend by media types found that ROAS of Premium digital video is higher than television and the synergy between them adds a kicker effect That study and Nielsen NCS both find that Premium digital video and TV have about twice the ROAS of Nonpremium digital video and digital displayThe average person can tell you that it makes sense to expect more positive effect with your ad in Premium digital video versus a Skipin5 environment however advertising practitioners closer to the trees have not been quick to definitively confirm and act upon that notion and have instead raced to the bottom in terms of that great oversimplification called CPM Global ad dollars in digital are double TV digital being 90 small space static ads with documented lowest ROAS among major media types Up until the end of 2020 the growth after Search has always been in Nonpremium or Display Now more marketers have woken up and the idea of Television plus Premium OTT is starting to spread exponentiallyPutting this in perspective SMI has provided this table which shows that both forms of digital video combined are still only about 10 of total digital ad spend in the US by national advertisersWhich means that although itamp8217s increasing Premium OTT is still only about 5 of national advertiser digital whereas based on its ROAS it ought to be the largest part of national advertiser ROASSMI also provided this fascinating table showing what happened to digital video vs the rest of digital when COVID hitDigital Video came into 2020 growing 24 times faster than the rest of digital In Q2 COVID hit and Digital Video showed its resiliency by growing 1 in that quarter while the rest of digital dropped 22 As the rest of digital rebounded too digital video growth stayed more than 25 percentage points higher in growth than the rest of digitalIn an earlier post I reminded us that sightsoundmotion was long ago theorized to be a more powerful communication style than just the sight of a static piece of text and picture or just hearing an audio track That39s why 58 of 1990 ad dollars in the US were in TV Twentyseven percent were in sightonly media and 15 were in audioonly media But look at how that has changedIn 2020 we put as much money in static sightonly ads 44 as we put into sight sound and motion ads 45 In 30 years we went from spending twice as much in sightsoundmotion as static sight only to spending the same in bothWas this due to some advertising research discovery that I never heard about Have neuroscientists and ROIbranding measurements scientists proven that sight only sells better per dollar invested and builds brand equity better than sight sound and motion No As stated above Nielsen NCS finds the ROAS of TV to be double that of digital display Yet marketers have been putting 18 times the number of dollars into lowROAS digital display as they put in highROAS Premium OTT Every dollar that walked from TV to digital therefore lost half its selling effect For all the talk of scientific media selection and all the great AdTech the actual bets are placed simplistically on bargain basement CPMs as if the whole thing is just a game and the psychological finesse of advertising is just more empty rhetoricThe good news is that we appear to be emerging from a cloud of ignorance into a better place maybe at all levels let39s hope and work towards that The SMI numbers show that Premium caught up In Q3 the buys that were made for Q4 2020 shows Premium catching up by growing 49 year over year a very fine number for any new industry in any one quarter Perhaps our 22 trillion study made a difference it came out in mid2020Is Premium OTT a new industry It is a proven industry TV yet wine in new bottles streaming The bottles are very attractive to a growing majority of us who have become technophiles and just love our smart content screens What39s not to love It39s got sight sound motion it39s convenient and there is so much contentFor an advertiser the ad context matters Context Effect in 20th Century hit 15 on ad recall now RMT is getting 36 on ROI and 62 on first brand mention The content around your ad should mirror the feeling of your ad That and the quality of the program content are both important if you want to set your creative up to have its maximum impactIf you just want to buy cheap impressions good luck with that hyperloads of frequency do more to irritate the citizen than to convert her or himYou can do this matching of ad to context much more sales effectively at the program level than at the network level The lifts to sales and brand metrics are roughly double when context and ad resonate at the program level than when they merely resonate at the network levelThis is why Crackle was first to announce making programspecific buys available in Premium OTT Other Premium OTT networks are setting up their pipes to do the same look for more such announcements soon Make sure to get enough Premium OTT in the Upfront as the second half 2021 will probably see soldout conditions in this valuable new media typeClick the social buttons above or below to share this content with your friends and colleaguesThe opinions and points of view expressed in this content are exclusively the views of the author andor subjects and do not necessarily represent the views of MediaVillagecomMyersBizNet Inc management or associated writers

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