The Highest ROI Form of Digital or Television Is … Premium OTT (Part 2)

One type of analysis we performed was Marginal Utility This is the forecasting based on the cumulative historical results of the incremental sales yield of the next million dollars spent in this versus that media typeHere is what that looks likeThis shows that so much money in these three verticals has been poured into NonPremium Digital Video that it is topped out Additional allocation there will not pay back This is not because the ads themselves drive people away from brands itamp8217s because dollars to the oversaturated media types come from and therefore deplete the media types that are not saturated TV and especially Premium OTTNote that these remarks may not apply to other types of advertisers these are all the biggest each one invested over a quarter billion dollars over the study period in three specific categories At lower spend levels itamp8217s unlikely that any large media types would be saturated by an advertiserDirect response advertisers experience saturation for specific offersads within specific pools of people ie direct mail lists ID audiences etc amp8220Burnt outamp8221 is the phrase they use for amp8220localamp8221 saturation eg a list or a network Saturation of a whole media type requires hefty spendersFrom the data above released in stages for the past couple of years one would expect to see that these three verticals would have moved heavily into Premium OTT The word would have spread and people would have discovered it on their own which seems to be the case in other verticals more than in these three Itamp8217s ironic therefore that brands in these three verticals studied are not upping their investments in Premium OTT to the degree that is happening in other verticals In Auto there is no increase in Premium OTT at all on a media type dollar share basis It39s the same in the 12 months ending June 2020 as it had been averaging since 2014In the other two verticals the share allocated to Premium OTT in QSR and CPG has gone up only one point since 2014 In CPG itamp8217s now 4 of total TVdigital spend up from 3 averaging since 2014 In QSR it is now 5But in the same time amp8211 the 12 months ending June 2020 the other digital video the one thatamp8217s topped out for these giants has grown 150 for Auto 3 percentage points 75 for CPG and QSR 3 ppEverything depends on the unique creative the target and the media context Generalizations will only take you so farWhat these broad industry findings suggest isThere is reason to suspect that Premium OTT is very high ROIEvery brand should heavyup test Premium OTTEvery brand should learn which advanced methods apply best in Premium OTT egamp8220AllInamp8221 ProgrammaticAddressableID ROl OptimizationContext ControlMotivational TargetingSynergyWe recommend a fullfunnel look at RCT21 the ARFamp8217s own randomcontrol trial initiative in collaboration with 605 Central Control and Bill Harvey Consulting Take advantage of the opportunity to learn all of the tricks of the RCT trade look at resonance attention engagement and other interim outcome stages as well as salesFor those interested in getting more information on the TVDigital multiyear ROI study findings including optimized reallocation analyses here is the 10minute video of my presentation at the recent ARF conferenceIt is a new time A time for new ways They are ripely available all around youPhoto credit Erik Mclean UnsplashClick 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

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

The Highest ROI Form of Digital or Television Is … Premium OTT (Part 2)

Author

Publish date

Channel

Bill Harvey

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

More Videos:

SUBSCRIBE FOR FREE MEDIAVILLAGE CONTENT | BECOME A THOUGHT LEADERSHIP CONTRIBUTOR

The Highest ROI Form of Digital or Television Is … Premium OTT (Part 2)

Enjoying This Commentary? There's More to Love

Bill Harvey

Stay in the know with more from MediaVillage

TAGS:

"About That with Carl Mayer": Involved Media Connected Audience Fall 2024 Report (Episode 5) - By Carl Mayer

Cookies