Studies Show TV Advertising Could Be Replaced By Online Video Advertisements

For decades, television has been the advertising giant, offering companies slots to promote their product or service using commercials. But recent reports indicate that the internet is starting to eclipse TV as the preferred method of marketing.

The Wall Street Journal reports that a number of businesses have shifted their advertising budgets to online videos and content, using MasterCard and Verizon Wireless as an example. A MasterCard media representative confirmed this reallocation of funds, stating that the company will pour more money into online marketing this year.

The change is a result of more viewers opting to stream online videos, according to the CEO of Starcom MediaVest, an ad-buying company. Starcom MediaVest moved $500 million away from TV advertising, putting 75% of it into online outlets in 2013. Furthermore, digital media accounted for about a quarter of all ad dollars last year, and Emarketer predicts that this percentage will increase over time.

Consequently, TV advertising executives are fighting back, promoting new dramas and popular shows, such as The Voice and The Blacklist to urge viewers to stick to watching TV. They also continue to pour money into commercials that draw large audiences, such as the ones that air during the Super Bowl. This marketing methodology is still effective, as nearly 40% of advertising dollars were spent on TV last year, and Neilsen, a consumer data compilation company, reports that more people are watching traditional TV than ever before.

But ad executives argue that online videos and advertisements reach out to a different demographic of viewers, citing studies that show a larger percentage of online viewers are ages 18 to 34. They are claiming that younger audiences are leaning on YouTube and other online video chambers, and less on traditional TV.

Neilsen has worked to provide marketers with statistics and evidence of the benefits of online advertising recently, making companies more comfortable with spending more money on this type of marketing. In addition to videos, Nielsen, along with the Association of National Advertisers, claim that the best way to advertise would be to combine both TV and internet marketing strategies. The two businesses predict that this approach will become more important in the next few years.

“This research is inline with the reality of consumer habits today. With mobile advertising becoming an emerging market for advertisers, both online and mobile video will become a bigger player in advertising campaigns,” says Milena Lyons, Branding Specialist CMG Creative Agency. “Viewers are watching video over different platforms throughout their day. You, the advertiser, just have to be where they are, TV, Mobile and Online. Online and mobile video is an excellent branding opportunity for everyone.”