The Highest ROI Form of Digital or Television Is … Premium OTT (Part 1)

That media type is the streaming of network television grade content in an advertisingsupported environment Standard Media Index categorizes OTT within quotNational Television Digital VideoquotSMI has another category it calls quotNonPremium Digital Videoquot The latter is led by YouTube and also includes digital video within Facebook and all other digital video that is not presented in a context equal in production value writing and quotclassquot to traditional broadcast and cable network televisionThe data Iamp8217m about to share with you comes from a study sponsored by Fox and performed with the cooperation of SMI by Bill Harvey Consulting All television and digital advertising is covered by the study not just the portion delivered by FoxA study of this kind would never have been attempted before the advent of SMI The media cost data available to the industry had never been good enough to invest in a study of this kind SMI by creating a pooling system uploads actual insertion orders on a census basis cleans and harmonizes the data and reports back to each agency its own data side by side with the total industry for benchmarking and planning purposes Certain data are made available to networks and others while maintaining the confidentiality of advertiser and brandspecific dataWe studied Automotive CPG and QSR three of the largest national ad spend verticals accounting for almost half of national advertiser ad spend in the US SMI also compiles data in more than two dozen other countries In total we correlated 22 trillion dollars in sales with 48 billion in ad spend by all TV and digital media typesThe average ROI across all this advertising within each of the three verticals was determined using multiple regression analysis quite similar to the way it is done in marketing mix modeling using standard Excel extensions with no proprietary black box deviations The completely transparent methodology is reported in the full reportIndexing media types to the average across all television and digital media types Premium OTT is the highest ROI media type All other television is second and all other digital is thirdPremium OTT has 47X the ROI average across media types for Automotive 91X for QSR and 94X for CPGReasons explaining this degree of ROI performance include addressability lower ad load on demand availability meaning a viewer can wait for the perfect time to become immersed without distraction generally nonskipability and the publicamp8217s sudden falling in love with streaming especially younger audiencesAnd oh yes no ad fraud Not on Premium OTTThe reason why NonPremium Digital Video is under television and far under Premium OTT is generally because of the invitation to skip and other psychological deficits of those contexts for advertisingNevertheless the rush of ad spend into NonPremium Digital Video has dwarfed that of ad spend in the most powerful ROI medium This is explained by CPM still holding the bulk of the industry under its magic spell despite the rise of ROI analytics ROI already reflects CPM within it CPM is not an outcome measure but is treated as one Such it has always been only now are we starting to awakenRead Part 2Photo Glenn CarstensPetersUnsplashClick 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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The Highest ROI Form of Digital or Television Is … Premium OTT (Part 1)

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Bill Harvey

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The Highest ROI Form of Digital or Television Is … Premium OTT (Part 1)

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