Reckitt moves adspend from TV to online video

01 April 2009

SLOUGH, UK: Reckitt Benckiser, the household goods company, is planning to move $20 million (€15.0m; £13.9m) of its US adspend from television to online video, with 15 of its brands seeing an increase in their presence on the web as a result.

Online is expected to be one of the only channels to post meaningful growth in America this year, as the advertising recession hits spending levels through most other mediums.

According to figures from TNS Media Intelligence, Reckitt spent around $475m on TV ads in 2008 – some 90% of its measured media outlay – compared with under $1m on the web, a total that was more than 100% higher than the previous year.

However, a number of its products, including Finish, Clearasil and Lysol, will now feature in online videos, which are being distributed through online ad networks including Brightroll and Tidal TV.

Reckitt's media manager, Marc Fonzetti, argued that there has been a "fundamental shift in consumer consumption and media habits," with a particular emphasis towards web-based video.

As such, the company's move onto the internet is based on a need to keep up with this "integration of traditional and digital media," and an attempt to drive more efficient spending in terms of cost per thousand.

It will use a number of measurement tools linked to its web campaigns, including gross ratings points, online coupons, clickthroughs and figures from Nielsen Homescan, which assesses how TV and web ads influence consumers' purchase decisions in-store.

This will ensure that "everything is is ROI-focused," according to Fonzetti.

Data sourced from AdAge; additional content by WARC staff