Higher Consumer Engagement Online is the Future of Television

January 27, 2008

Strategic communications programs are best executed using a variety of tools that allow for specific targeting in terms of editorial, context and audience. However, this is still a huge challenge when trying to communicate key messages via television advertising. TV ads can still be too broad as compared to other communications tools (e.g., search engines, direct mail etc). However, if online video is any indication of the future of television, the day is near when television ads are used for highly targeted communications.

A study by Simmons found that consumers are 47% more engaged by online TV viewing than by watching on a TV set. You can read the article to learn more about the study itself but I think the article needs some context as it is comparing apples to oranges – in other words, you can’t compare television to online video…at least just yet. When I watch an ad on Hulu it’s one ad per show, one break, and often has high relevance to the content I’m watching. When I watch an ad on Heavy, Break.com or Dailymotion (disclosure: Dailymotion is a client), fewer ads are often directly relevant to the content, increasing engagement. In other words, TV has lousy engagement but broad reach. Video can have terrific engagement, but lousy reach.

However, this is all likely to change. Online video can afford the experimentation at this early growth stage. Television, being a more mature and far broader audience medium (as of today) has to be more conservative - mistakes due to experimentation made on TV will be of a far larger scale than mistakes online.

At some point, the lessons learned online make their way to television due to innovation in technology and advertising formats. Until then, it’s worth keeping in mind the differences both in their capabilities and uses while also looking at how we may see online lessons make their way to television.

Online video is experimenting with the model of fewer ads and messages per video segment. This means less time to leave for the bathroom and less clutter to dilute message reception. TV may eventually adopt this too (or return…like the old main sponsor shows).
Increased interaction with advertising is also coming online with interactive in-video ads. This can provide instant interactive marketing especially with video content tied to the marketing content. Think American Idol but with voting on the screen instead of via cell phone.
Increased contextual relevance is already coming online. Companies like Scanscout match in-video text ads to video content automatically and sponsors match their ads to specific groups of content on sites like Heavy.com and Dailymotion (disclosure: a client). A contextual approach has been taken on TV advertising for some time but as marketers look to increase not only awareness but engagement through brand communications, increased contextual targeting will become a more precise technology both online.
We already see a variety of in-video ad formats online. Some of this may transfer to TV with Web video or just on traditional shows. With channel logos and promos already on shows so are brief in-show ticker ads so far away?

All this is about the future, not the present. While a lot of people watch online video, it’s only a fraction of those watching TV (essentially, everyone). So if you’re looking to reach those demographics watching online video the above points are critical.

Otherwise, it’s going to be a bit longer before online video marketing has the same reach as television based marketing. Of course, at that point we may be watching all that content on our television.

(See the original post at http://www.fortexgroup.com/blog/2007/12/27/higher-consumer-engagement-online-is-the-future-of-television/)

Written by Ephraim Cohen · Filed Under Video Viewing Measurement
Tagged: behavioural marketing, consumer engagement, contextual marketing, video ad formats