Two Studies Show the Power of Online Video Advertising

How effective is online video advertising? Two studies put fourth by YuMe, an online video advertising company, show that it’s something brands need to take seriously.

In the first study, Frank N. Magid Associates looked at viewers across the YuMe video ad network and found that their online viewing had grown substantially over the previous year. Not only did 66 percent report increased viewing, but 48 percent planned to watch more in 2011.

The reason is that the audience now sees online video as on par with television. Watching online video is now a daily routine, the study found. Those watching more online tend to be older, female, and highly educated.

In the second study, YuMe used Nielsen data to find out what happens when brands distribute 5, 10, or 15 percent of their broadcast budgets to YuMe. Using an actual budget from a packaged goods brand, the study found that the brand could increase reach without increasing costs.

The percentage of people who saw the ad increased with online viewing from 3 or more to 6 or more in all the scenarios that were run. The brand’s cost per thousand impressions (CPM) decreased sharply in all scenarios.

“Reaching heavy users of online video is very important for marketers,” says Mike Vorhaus, president of Magid Advisors at Frank N. Magid Associates. “The YuMe network is clearly an excellent opportunity for advertisers and marketers to advertise to a broad population, including consumers who are relatively light viewers of TV.”

For more on these studies, download YuMe’s whitepapers “Online Video and Television Viewing Attitudes and Behaviors” and “Share-shift Analysis – TV + Online Video: The Best of Both Worlds.”


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