Looking at this figure, you would think that TV viewing is doing fine—but it isn’t. In fact, between 2010 and 2017, TV ad spending increased by 16 percent, but the viewership decline by 20 percent during the same period.
For instance, another Leichtman’s research found that about 69 percent of all American homes had subscribed to a video-on-demand service from Hulu, Netflix, or Amazon Prime—an increase from 52 percent just three years back.
In addition to this, the percentage of businesses using video as an online marketing tool has increased from 63% in 2019 to 81% this year. In fact, as per a Google survey, 60% of people prefer watching online videos than TV advertisements.
But why all the hype? Why YouTube is the 2nd most used website after Google? Why do Facebook executives expect to go all-video-no-text by the next year? Why are more businesses shifting from TV commercials to YouTube videos for marketing? Let’s take a look.
Online Video Ads Receive Higher Reach Than Classic TV Commercials
As per a Neilson report, YouTube videos tap more American adults, lying in the age bracket of 18 to 34 years, compared to any television cable network.
Today, YouTube has over 2 billion users, which is about 1/3rd of all internet users. Take a rough guess how many videos these users watch in one day?
A whopping five billion.
According to a Facebook research, people are 1.5X more likely to view a video advertisement on their mobile phones, rather than TV, and 92 percent of these viewers are likely to forward it to others or share on their timelines.
Online Video Advertisements Cost Less Than TV Commercials
Video content marketing is all about low costs and higher returns.
Airing a 30-second TV advertisement on a local cable network can cost you up to $342,000. This figure doesn’t include the setup cost that can easily cost you anywhere between $63,000 to eight million, depending on the time length, quality, and complexity of the ad. You spend all this amount, and then hope to get positive results.
On the other hand, online videos cost you after you receive the results. With YouTube, you need to pay anywhere from $0.10 to $0.30 for every view your ad receives (pay per view).
The best part? Google revealed that online video marketing produced more consistent and better ROI than traditional TV advertisements. Just last year, a 7-year old boy made about $22millions through YouTube.
So Should You Step Down From TV Advertising?
While we don’t want you to rely on TV advertisements entirely, we also don’t want you to pull the plug. Video marketing on online platforms sure receive more views and a better reach; however, viewers might still pay more attention to TV commercials, as suggested by WARC.
Ultimately, TV is still an active channel to reach a mass audience. But despite what WARC research discloses, all the above statistics are unambiguous on one foreground: more people are viewing video content online.
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