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.
"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."
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 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 | YuMe.com
Also, for related coverage on YuMe's New York roadshow, see Beet.TV's coverage:
- Beet.TV: Brand Exposure May Increase Up to 6X with Online Video, YuMe and Nielsen Find
- Beet.TV: Ads on Connected TV's to Reach Scale in 2012, YuMe's Scot McLernon