Mauricio Leon, commercial director of Performics, ZenithOptimedia's performance marketing arm, said the research confirmed some hunches and is also opening the door to wide-ranging conversations with brands about the power of this new ad channel.
"As an industry, we have often spoken about VOD in terms of incremental reach vs. TV, and these results prove that. But the most pleasing element of this project is how VOD can improve awareness and complement brand-building initiatives both during and after the TV campaign," said Leon, whose company advises Aviva on media strategy. "Using VOD to support a TV campaign and adopting a strategy of heavy VOD presence once the TV campaign has ended means clients can now use VOD to maintain the great work their TV campaign has done in terms of reach and awareness and get an extended audio-visual presence cost-effectively. A key consideration for practically all advertisers who cannot be on TV 52 weeks of the year!"
Research Findings: UK Insurer Aviva Benefits from Combination of TV and VOD Advertising
One aspect of the team's research focused exclusively on Aviva's use of TV and VOD. Here are Aviva's findings:
Brand Awareness and Message Association Increase with VOD
1. TV and VOD work together to increase unaided brand awareness and message association among light TV viewers, 56% of whom watch VOD content.
2. Aviva found that VOD is an effective channel for raising brand awareness and message association even after TV campaigns have ended. In effect, VOD helps maximize TV investment.
•At the end of October 2012, the Aviva TV campaign ended and VOD advertising continued to run alone in November. Researchers found a significant difference in message association among those who were exposed to Aviva's November VOD ads versus those who were not. Of those who were exposed to the VOD ads, 32% correctly associated Aviva with its messages, down from the high of 48% during the TV campaign but still higher than the pre-campaign level of 29%. Among those who were not exposed to the VOD ads, advertising "decay" set in and only 26% made the brand-message connection.
Digital Video Advertising: Cost-Effective, Too
3. Among light TV viewers, Aviva found that it was more cost-effective to increase unaided brand awareness and message association, per person, via TV and VOD than via TV alone.
Ad Industry Taking Notice
While the TV and VOD: Friends with Benefits study explains how VOD advertising helps brands, other reports are confirming the VOD industry's growth. According to the IAB UK/PwC Digital Adspend Study released last week, the U.K.'s digital video advertising market increased 46% from £ 109 million in 2011 to £ 160 million in 2012.
"Given the size and sustained growth of VOD, it's important to understand how it works and how it complements TV campaigns," said Tim Elkington, director of research and strategy for the IAB UK. "The TV and VOD: Friends With Benefits study should help answer these questions and aid marketers in understanding how they can leverage both media."
Note to Editors: Methodology
Tremor Video and the IAB UK co-funded the TV and VOD research, which took place from October 2011 to November 2012. Nielsen fielded the study, analyzing with Tremor Video the campaign performance of several ZenithOptimedia clients. The cross-media research approach was designed by all four stakeholders:
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