Reports: Online Ads More Effective

Ads in TV shows streamed online do much better than the same ads aired during traditional broadcast, according to a study conducted by marketing research firm Millward Brown. The firm suggests that it’s likely due to the ‘lean-forward’ viewing experience combined with the fact that only a single company or product is generally advertised during a stream, whereas dozens of ads run side by side during a typical broadcast airing.

Viewers responded better to campaigns online across a range of questions, including attention, awareness, favorability and consideration. And there’s more good news for video content producers — a report on video advertising from DoubleClick shows a much higher rate of interactivity than banner ads online. While the focus was on ads embedded on traditional web pages, one would assume that ads during streams and clips would also generate more clicks than banner ads alongside content.

Broadband viewers are young, rich and there’s lots of them. So why aren’t creators charging advertisers higher CPMs for online impressions than television or cable spots? It would certainly be one way to improve the low profit margins associated with Internet distribution.