Which Medium is Better for Video Marketing ROI: TV or Online?

orlando video marketing company

With the expansion of digital platforms, larger audiences are flocking to the internet for video content. Now more than ever, companies are struggling to decide where advertising dollars are best spent. Video marketing companies can help with execution and distribution of video campaigns, but you need to decide which platforms align with your company’s objectives. Do you continue with traditional TV commercials or make the shift to online video marketing?

We’ll let you in on a little secret; you don’t have to choose. A study analyzing ROI from online video and TV ads found that online does not unilaterally deliver a higher return than television. However, when 60 percent of the video campaign budget is spent on broadcaster inventory, TV ROI can reach as high as 250 percent. These platforms are not mutually exclusive. Online video and traditional TV work better in tandem and each possess benefits to help strengthen your overall campaign.

Time-tested TV

Some companies believe the emergence of digital video marketing renders traditional TV marketing ineffective. This is not the case. Television still holds a firm spot as a potent form of connecting with audiences.

TV is a Trustworthy Medium

Establishing trust in your brand is essential for a mutually beneficial relationship between you and your audience. Consumers won’t spend their money on your product or service if they don’t trust your brand. A survey of 30,000 consumers across 60 countries found 56 percent of people say TV is one of the most trusted formats of advertising or communication. Even millennials, branded as the digital generation, still trust television ads over online video ads. Television has solidified itself as a credible resource for the public, despite people knowing the ads are paid for. The trustworthiness of ads comes third to personal recommendations made by family and friends and online opinion polls, respectively. Audiences won’t lose trust in this medium, proving it’s still relevant and worth the advertising dollars.

TV Dominates Time

Even with the rise of digital video, traditional television continues to dominate the time viewers spend watching videos. A study found 78.4 percent of U.S. adults 18+ spent an average of four hours and fifteen minutes of their day watching TV in 2016. If people are still spending their time watching TV, continuing to communicate through traditional television makes sense. The more time spent using a medium, the more likely viewers will see your content.

“Lean Back Effect”

Despite the ability to fast forward, consumers aren’t avoiding TV commercials entirely. On average, an hour of television contains 15 minutes and 38 seconds of commercials. Ads that are broadcasted on TV are generally seen as less intrusive allowing for the “lean back effect” to kick in. This refers to a viewer’s ability to pay relaxed attention to TV commercials instead of “leaning forward” with online ads (referring to the position people are in as they wait for the “skip ad” option seen on pre-roll digital ads to pop on). When viewers are in “lean forward” mode, they are more engaged, scanning for information, but they have a shorter attention span. During “lean back,” viewers consume content passively, allowing for longer attention spans. A longer audience attention span is never a bad thing for your company.

Daring Dynamic Digital

There isn’t a question of the value of advertising through digital. Online video marketing has proved its worth over the last three years with companies seeing ROI grow as agencies continue uncovering “best practices” for advertising on digital platforms. Digital will only continue to draw in larger audiences, therefore spending money on advertising in this medium is necessary for businesses.

Online Offers Targeted Messaging and Better Analytics

With TV, the ability to target your message to a particular group of consumers involves running your ad at specific times during certain programs. Digital platforms have introduced marketing tools that have streamlined the way companies target fixed demographics. Online video marketing provides you the opportunity to tailor messages to specific demographics. With 90 percent of adults 18 to 34 watching online video and two-thirds of people 35 to 54 doing the same, companies can get a comprehensive overview of who’s watching their video content. Analytic tools can show how your advertisement efforts translate into quality traffic to your website. They allow you to see who watched your video, for how long they watched and if they liked the content enough to engage. Leveraging this information will show whether your company is successfully communicating with your target audience or if you need to adjust the message to be more engaging.

Online Means Greater Engagement

Though the number of followers gives an idea of how many people might be consuming your content, engagement is a truer measurement of content success. Online videos open the door for immediate engagement between consumer and company. An Aimclear study found that search results featuring videos have a 41 percent higher click-through rate (CTR) than those with just text. With two-way communication becoming the norm between organizations and their audiences, videos provide an additional forum for viewers to express their opinions on your company.

Online video also encourages social sharing. Personal recommendations from family and influences are the most trustworthy form of product promotion and communication. Audience shares translate as firsthand recommendations. This lets your company establish trust with customers before ever communicating with them directly.

Online is Accessible

We are a mobile world. We have a laptop so we don’t have to sit at a desk, a tablet so we don’t have to carry our laptops and a phone so we don’t have to remember our tablet. Companies need to mobilize their messages to keep up with their already-mobile consumers. Online videos allow that. An International Advertising Bureau study found 35 percent of respondents said they saw content on their mobile devices. Mobile ads on the sides of the screen are less intrusive to the consumer’s content because they don’t disrupt content consumption. Business Insider found that video ads have an average CTR of 1.84 percent, which is the highest rate of all digital ad rates.

In short, incorporating both traditional television commercials and innovative online video ads strengthens your overall campaign message. Both mediums allow you to reach multi-screen audiences, share multiplatform creative and measure cross-media analytics. A strong, saturated campaign will offer opportunity for advertising on both mediums.

Find out how we can leverage the strengths of both platforms for your company. Appleton Creative is an award-winning, full-service Orlando marketing and advertising agency that specializes in video and film for online and television. Appleton works with local, national and international clients to deliver inbound marketing strategies and custom online ads to put your business ahead of the competition. At Appleton, we want to learn about your business, empower your marketing team and be your creative resource. Your video marketing goals are worth exploring, contact us at 407-246-0092 or at info@appletoncreative.com.

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