Several studies over the past couple of years have noted the importance of mixing television buys with digital video buys, and it seems many are taking that advice to heart. According to one new report more than half of CMOs are supplementing TV ad buys with digital video buys.
Simulmedia and The CMO Club have released a new study, showing 54% of CMOs are now supplementing television with video ad buys. But, researchers also found that nearly 1/3 (31%) aren’t aligning budgets for both of these formats.
“For over a decade, marketers have attempted to find the most efficient balance between TV and digital video spend,” says Pete Krainik, Founder of The CMO Club. “Our report shows that it’s not TV vs. digital video, it’s about TV and digital video, both today and for the foreseeable future.”
Some interesting takeaways from the report include:
–Digital video ads now account for 24% of ad budgets, up from 10% in 2012
–Digital video spending is expected to increase to 36% of budgets by 2018
–Digital video spending is growing about 42% each year
“Digital depth cannot match TV’s breadth. Nor should it. Conversely, TV has not historically been as measurable or personalized, so it cannot perform the magic that digital delivers. In that very unique way, TV and digital do not compete, they complement. The winning combination is the joint approach. TV’s reach and digital’s depth make them amazing partners in the marketing mix,” said David Cooperstein, CMO at Simulmedia. “This solution guide is a unique perspective from a range of CMOs and seeks to provide senior marketers with a roadmap to help them navigate the relatively uncharted territory of digital video. CMOs will learn how to use the best of TV and digital to engage consumers and deliver business results.”
Digital video is expected to account for roughly $6 billion this year. Advertisers spent just over $70 billion on television ads (2014).
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