Thursday, February 10, 2011

YuMe Shows the Power of Online Video for Brands in Compelling New Data

YuMe recently released two new complimentary reports that both demonstrate the changing attitudes of online video viewers and presents a compelling case study for brands to shift advertising dollars from TV to online video for maximum campaign reach. In partnership with Frank N. Magid Associates and The Nielsen Company, the findings of the two reports  “Online Video and Television Viewing Attitudes and Behaviors” and “Share-shift Analysis – TV + Online Video: The Best of Both Worlds” were presented at a series roadshows hosted by YuMe stopping at 6 major cities across the U.S.

I caught up with Scot McLernon, YuMe's Chief Revenue Officer, at the San Francisco event to get an overview of the two studies and hear how brands can benefit by adding online video to their advertising and marketing mix. McLernon has been in the digital media space for the past 15 years and noted that within that space online video is the single fastest growing segment of online advertising. He said that the last two years have been a test for online video and now that test is over and online video has received high marks with its growing adoption.

Despite these trends, online video advertising still remains just a fraction of most brands overall advertising spending. YuMe's clients now want to know how to make online video an integral part of their overall media mix, which includes television, radio, print, outdoor advertising, out-of-home solutions and connected devices, to reach the growing audience that has shifted from TV to online video.

It's on that premise, McLernon emphasized,  that YuMe's roadshow is based and explained that TV ad dollars are now shifting to online video because consumption patterns are changing, online video, impression-per-impression, is more impactful than TV and, performance increases as online video is added to the media mix.

McLernon said:
"Online video is the fastest growing segment of online advertising but it's a confusing topic for many marketers and brand managers. We worked with both of these esteemed research companies to provide data that would help dispel the confusion around how to weave a cross-platform online video campaign into existing campaigns and future projects."
The first report, conducted with Frank Magid Associates, was a random study across the YuMe video ad network of over 600 top publishers. The data showed that with online video, brands could reach viewers more easily, more often and with less expense than traditional TV. Online video viewing showed a dramatic rise becoming a major platform for entertainment while TV viewing is on the decline. Over the last 12 months 66% of respondents anticipated increases in online video viewing over the next 6 months and 48% in the next 12 months. This was not a generational shift either, as YuMe’s audience ranged from kids to grandparents. In addition, short-from content reigned supreme and the viewers' perception of the quality of online video has improved and was viewed as on par with television. Online viewers were also more engaged with online video ads in contrast to the multi-tasking viewers do when watching television ads.

I also spoke with Mike Vorhaus, President of Magid Advisors at Frank N. Magid Associates, at the YuMe event and will feature him in an upcoming post with more in detail on this report. Vorhous noted that it's important to educate marketers on the major trends and available opportunities as video viewers move away from traditional TV to online.

The second report is based on research conducted with Nielsen set out to prove that shifting a portion of TV advertising dollars, in this case 5%, 10%, or 15%, to online video not only improves the campaign's reach, effective reach, and frequency, but also lowers the overall CPM. The CPM decrease was a real surprise for YuMe, as McLernon noted, since it was done without any increase in brand's advertising budget.

The take home message for brand advertisers, McLernon summarized is:
"This is not a generational shift. This is a shift that's taking place across all of the generations, from young to older and that shift is more of a technology shift than anything else. The second is don't be scared by the CPMs. Sure they might be a little but higher but the effective CPM, the return on investment is absolutely terrific. And the media mix, the effective reach and all the effective attributes that you would apply to your media buy, all of those go up as you sprinkle online video into the mix and shift it from television."

To download the two white papers, go to Video Advertising Trends & Research |

Also, for related coverage on YuMe's New York roadshow, see Beet.TV's coverage:
About YuMe
YuMe is a video advertising technology company that makes professional video profitable for publishers and effective for advertisers. Its robust ACE™ technology powers both its premium ad network and its industry-leading advertising management solutions, ACE for Publishers and ACE for Advertisers. YuMe’s premium ad network aggregates the best video content, representing hundreds of premium publishers. As a result, YuMe gives publishers and advertisers unprecedented reach, brand safety, contextual relevance, controlled syndication, and consistent delivery across all digital media platforms–Web, downloads, mobile, and IPTV. YuMe is a privately held company headquartered in Redwood City, CA and backed by Accel Partners, BV Capital, DAG Ventures, Khosla Ventures, Menlo Ventures and Intel Capital. For more information, visit, follow @yumevideo on twitter, or become a fan of YuMe on Facebook at