Warc Blog

Major brands boost online video budgets

18 March 2013
NEW YORK: Advertisers like Reckitt Benckiser and Hyundai are increasingly moving budgets into online video, as usage of this channel increases among their core target audience.

Reckitt Benckiser, the household and personal care group, has shifted 30% of its TV ad spending into online video over the past three years.

"In some online video campaigns, we saw sales lifts that were double what we got from the TV ads," said Laurent Faracci, Reckitt's general manager for US marketing. 

Meanwhile Hyundai, the carmaker, has moved 5% of its US TV budget into online video, with much of the money going on broadcasters' websites such as ESPN.com and MTV.com.

Spending on online video advertising is expected to increase 41% in 2013 to $4.1bn according to figures from eMarketer.

The digital shift is made possible by the explosion in the amount of online space available for ads, including print publishers seeking to replace declines in traditional advertising business, media executives have said.

That has led to a fall in ad prices, to levels comparable, in terms of cost per thousand views, to those of TV programming.

"Ultimately, the dollars will have to come from television," Dawn Ostroff, president of Condé Nast's entertainment division, told the Wall Street Journal.

Strong publishing brands are among those that stand to gain from any redirection of adspend and she was optimistic that Condé Nast would benefit.

Similarly, Michael Rooney, The Wall Street Journal's chief revenue officer, said he was "bullish" about online video and reported the newspaper was getting a "positive response" from the ad community.


Data sourced from Wall Street Journal; additional content by Warc staff

 
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