“Half the money I spend on advertising is wasted, the trouble is I don’t know which half.”
An Irish user, on average spends 40 minutes a day watching YouTube content. Whereas, TV viewing time per person is 220 minutes a day. YouTube average watching time is growing dramatically, as more and more companies are choosing YouTube to publish their content: movies, TV shows and series etc. At the same time the number of companies are switching from traditional advertising to online advertising is increasing as well. The reason for this is that online marketing tools are more cost effective, allow direct respond, ads are more targeted, the impact is highly measurable.
For many decades TV ads were considered to be a great investment, as it allowed to reach mass audience. Recently, Google has claimed that YouTube ads are 80% more effective in driving sales comparing to TV advertising. In the following article, we will try to find out how effective both tools are comparing to each others.
TV Advertising is not just a tool to influence people, getting people to buy stuff, but it is the best investment for building a credible and trustworthy brand. Many advertisers are reluctant to switch their marketing budget from TV Advertising to online video ads. TV ads doesn’t drive sales, but they change perception of the product, and attitude. At the same time, generally consumers find TV advertising misleading, boring and irritating.
Basically, there are two formats of YouTube ads: TrueView In-Stream ads and TrueView Discovery ads.
In-Stream ads are just like TV ads that you probably see every day, but instead of streaming on your TV, the ad is displayed before a user watches the video.
Whereas, discovery ads work alongside with other YouTube videos. They appear in search results, on watch page and home page.
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Both tools are highly effective. A company should be driven by the objectives of the campaign. I would strongly recommend for any company to find the balance in allocating marketing budget to reach the ultimate result.