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YouTube vs. TV Advertising: Which Has a Greater ROI?
YouTube or TV ads?
It’s a conundrum many business owners face, especially now in the multiple-device era. Think about it: chances are, when you’re watching TV, you have another screen in front of you. Do you pay attention to your ads or use the commercial breaks to go get a beer or check emails? If you’re like 87 percent of consumers, you use more than one device at one time.
Unfortunately, traditional TV ads are still stuck in the one-device era, and may not be the best use of your marketing dollars, for a few reasons.
If you want to track your results, target the right audience, and have actionable takeaways after each campaign, your best bet is YouTube Ads. Keep reading to see why YouTube might be a better avenue for ROI on your video ads and how much of your budget you should allocate.
YouTube Ads Have a Greater Reach than TV Ads, and Are More Effective
It’s true. According to a Nielson report, YouTube reaches more US adults (18 – 34 years old) than ANY of the existing cable networks.
YouTube’s user base is 1.3 billion and counting, and guess how many videos that 1.3 billion people watch every day?
Almost five billion.
Guess what else? Google released a study that YouTube advertising was a better source of consistent ROI than TV ads. In 56 independent investigations, they found that 8 in 10 studies found YouTube had a greater ROI.
TV’s role in the future of entertainment is shifting. Whilst TV is still a successful way to deliver mass reach, media plans need to adapt to where people are engaged and choosing to watch. The media mix is not fully optimised, which means that platforms like YouTube are frequently being under-valued by marketers. As Google EMEA President Matt Brittin said on stage at AdWeek Europe, 2016: “This is an ‘and’ game, not an ‘or’ game but audiences are watching more video than ever before and any screen will do.” – Google
YouTube Ads Are less Expensive than TV Ads
How much does it cost to advertise on YouTube? A lot less than TV ads. With traditional TV ad buying, you need to invest a considerable chunk of money to book air time. With YouTube ads, there’s no minimum investment, and you largely get out of it what you put in.
YouTube Ads Are More Targeted and Have Better Reporting and Tracking than TV Ads
Traditionally, advertisers have bought traditional TV advertising based on GRP (gross rating point) panel data, which measures reach and frequency in an audience.
But who is this audience? Did they act on your commercial? What happened after they saw it? Advertising on YouTube gives you a greater command of the data that should drive your marketing campaigns. The targeting options are just more data-driven. For example, you can target YouTube ads by:
- Demographic groups – Age, gender, income, or parental status, for example.
- Interests – You can advertise to people who are interested in certain topics. This includes the more granular affinity and in-market audiences.
- Video remarketing – You can serve ads to people who have already visited your website.
- Placements – You can show your ads on certain channels, videos, apps, websites, or placements within websites.
- Topics – You can target your videos based on specific topics on YouTube.
- Keywords – You can show your YouTube ads based on words or phrases related to a YouTube Video.
So, Should You Pull the Plug On TV Advertising?
No, not entirely, if it’s a core part of your marketing campaign and your target audience is older than 35. We recommend supplementing your TV ads with complimentary digital ones, creating one big picture that viewers can tie together. Google recommends you shift at least 24% of your TV budget to YouTube for maximum success.
YouTube has definitely had some growing pains as the online video world spirals beyond advertisers control. This was evident when a number of digital advertisers pulled out of the platform when they discovered their ads were being shown next to racist or extremist videos. They have said this problem has been solved, but there will doubtless be bumps in the road further on.
What we suggest is to form a good relationship with a reputable YouTube advertising company like Blue Corona. There are many details to navigate in the digital ads world, and having a reliable marketing partner will definitely help. Contact us today to learn more about our YouTube advertising services!
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About The Author: Blue Corona's Editorial Staff is determined to help you increase your leads and sales, optimize your marketing costs, and differentiate your brand by passing on our tribal knowledge. The team vigilantly stays on top of the latest in digital marketing, bringing you the top insights with expert commentary. Want to see something on our blog you haven't seen yet? Shoot us an email and our marketing team will get to work.
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