YouTube Gives Advertisers Far Better ROI Than TV Ads: Google Report

YouTube Gives Advertisers Far Better ROI Than TV Ads: Google Report
SHARE
THIS



Google has released a report that says ads on YouTube (which, we should add, it owns) give marketers a better return on investment than expensive TV commercials.

The study is based on analysis the tech giant did across eight countries and shows that four out of five times YouTube ads were more effective than their TV counterparts at driving sales.

According to the report, Google advises that advertisers should be allocating up to six times more of their budgets to YouTube than they currently do. However, it should be stressed that the report should be put into context as it only focused on European markets.

The report was revealed at Advertising Week Europe conference in London yesterday and is another attack  by Google on the TV industry and a pitch for its significant advertising revenues. Last October, Google told advertisers that if they wanted younger audiences they should shift 24 per cent of their marketing budgets to YouTube.

Interestingly, YouTube announced plans late last year that would allow users to pay a monthly premium that would block pre-roll ads.

Google said of the findings: “In more than 80 per cent of media mix optimizations we studied, data showed that the recommended spend on YouTube should be at least double that of current levels.”

A spokesperson for one of the analytical firms behind the research, EMEA at Marketshare, said of the findings: “We found that while TV maintains a powerful impact in the digital age, digital video is under-invested in several categories we measured in the UK, France and Germany.”

However, the report contradicts findings by UK TV marketing body ThinkBox from 2014 that showed for “every £1 spent on advertising, TV is the best profit generator.”

Thinkbox’s planning director, Matt Hill, told the UK’s The Guardian that Google’s new research “misses the point” of TV advertising. “The true value of TV advertising is not just its return on investment [getting people to buy stuff], but that it achieves the best return on investment at the highest levels of investment. TV builds brands better than anything else and creates the most profit.

“Online video should increase but this should be funded by using money from less effective ad budgets, such as online display, or finding new money.

“What this study really shows … is that online video is a better advertising investment than other forms of online advertising. Advertisers involved in Google’s research make it clear they see online video not as a replacement for TV, but as an addition and a complement,” Hill said.

 

Please login with linkedin to comment

Latest News

AI – To Join It Or To Beat It
  • Media
  • Opinion

AI – To Join It Or To Beat It

I'm afraid we can't let you read this piece Dave! That's a joke about A Space Odyssey 2001, young B&T readers.

Opinion

by B&T Magazine

B&T Magazine
AnalogFolk Opens In Shanghai
  • Advertising

AnalogFolk Opens In Shanghai

AnalogFolk has opened in Shanghai and, as B&T's trusty Funk & Wagnalls atlas tell us, is somewhere near Wollongong.

Social TV – Will You Be At The Party?
  • Advertising
  • Marketing
  • Media
  • Opinion

Social TV – Will You Be At The Party?

Can't keep-up with the goings-on in the Aussie TV industry? Well, hit the couch, pull on the trakkie daks & peruse this.

Opinion

by Rochelle Burbury

Rochelle Burbury
JWT Melbourne Hooks John West’s Creative
  • Advertising

JWT Melbourne Hooks John West’s Creative

You'd only need snog a B&T staffer to know of our affection for the John West oysters in aspic & smoked mackerel ranges.

by B&T Magazine

B&T Magazine
Sydney-Based Tech Marketing Firm, Law Of The Jungle, Scoops Top International Gong
  • Marketing

Sydney-Based Tech Marketing Firm, Law Of The Jungle, Scoops Top International Gong

Sydney-based online cloud solution for marketing compliance, Law of the Jungle, has beaten the world’s best firms to win a prestigious RegTech Markets 2017 Spotlight Award. RegTech Markets, a global community for regulatory technology, inaugurated these awards to “shine a light on the world’s best and brightest RegTech companies”.  A panel of 30 industry experts […]

Is This The Bleakest Christmas Ad Ever?
  • Campaigns

Is This The Bleakest Christmas Ad Ever?

Tired of pretty people pulling bon-bons in your Christmas campaigns? Well, here's one to slash the wrists to instead.

by B&T Magazine

B&T Magazine
The Truth About Native Advertising!
  • Opinion

The Truth About Native Advertising!

Do you stammer about the office, railing against native advertising's great untruths? Read this and stop scaring people.

Opinion

by B&T Magazine

B&T Magazine
Why Are We Only Just Starting To Use VR To Train Staff?
  • Opinion
  • Technology

Why Are We Only Just Starting To Use VR To Train Staff?

In this opinion piece, PHD’s news business and marketing manager, Chloe Hooper (pictured below), argues why all agencies should be embracing VR to change the way they operate internally. Virtual reality (VR) is something most of us have had exposure to, but how many of us are really exploiting its potential to grow our people […]

Opinion

by B&T Magazine

B&T Magazine
PRIA Announces Winners Of 41st National Golden Target Awards
  • Marketing

PRIA Announces Winners Of 41st National Golden Target Awards

The Public Relations Institute of Australia (PRIA) last night announced the winners of the 41st National Golden Target Awards at a glittering ceremony hosted by Aussie actor and TV host Shane Jacobson at the Sydney Opera House. A sold-out crowd of more than 160 PR and communication professionals from around the country came together to […]

Personalisation At Scale: Targeting Audiences With People-based Marketing
  • Marketing
  • Opinion

Personalisation At Scale: Targeting Audiences With People-based Marketing

In this opinion piece, Indy Khabra (pictured below), national managing director at Amnet ANZ, explains power of the the people-based marketing equation, and also reminds marketers that they cannot afford to take data for granted. We are all talking about it. We all want it. We are all trying to get it. It’s that one-to-one […]

Opinion

by B&T Magazine

B&T Magazine