Nielson Report: Online Ads More Effective Than Traditional TV:
In a recent report by Dave Kaplan, Nielsen’s senior VP of product leadership, and Beth Uyenco, director of global research at Microsoft, they found that online ads are actually more effective than traditional television ads. It’s a common understanding amongst most that digital ads are often ignored but not all of them are created equally.
For online video ads, we need to take note that most of them can’t be skipped and that’s what makes them on par with traditional television ads. In an evaluation of 238 brands and 412 products in 915 ad executions in streaming full-episode TV programs, they found that online ads have about 65% general recalls compared to 46% for television ads.
On top of that, brand recalls for online ads are also higher; 50% compared to TV’s 28%. Message online recall is 39% compared to TV’s 21%. Likability is at 26% online, compared to TV’s 14%.
With the rate of popularity amongst online video ads rising, advertisers are sure to capitalize this market as they strive to increase their digital revenues. However, the fact remains that viewers are able to skip the same commercials on television that they’re being forced to watch online. This means that they would rather be avoiding the ads they’re currently interacting with.
Surely brands will try to capitalize on this fact and try to squeeze as much money as possible through forced commercials in digital videos. But how far they can sustain this remains to be seen.