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Report: Nielsen IAG And Microsoft Advertising Video Effectiveness Research

At the IAB Canada MIXX conference yesterday, they released “Video Effectiveness Research Report” which was done in conjunction with Nielsen IAG and Microsoft Advertising.  As online video usage continues to grow, more and more advertisers are turning to the medium to find unique ways to connect with audiences.  The study was created to help develop a working baseline for advertisers to understand the effectiveness of online video advertising and how it compares to TV advertising.

Viewers who saw ads both Online and on TV had improved recall and likeability for all verticals; and also, that re-purposed TV ads are more effective than original Online Video ads at driving brand recall and likeability.

Conducted with over 238 brands, across 412 products, in more than 950 ad executions and over 1 ½ years, the study showed that for those who saw ads either only Online, or only on TV:

  • 39% of those exposed to only Online Video ads recalled the message versus 21% for those exposed only to TV ads (or a +86% increase in message performance); and,
  • 26% of those exposed to only Online Video ads, perceived the ads as likeable versus 14% for the TV ads, (or a +86% increase in likeability).

For those who saw ads on both Online and TV:

  • 29% of those exposed to both Online Video and TV ads recalled the message versus 19% for the TV ads alone (or a +53% increase in message performance); and,
  • 17% of those exposed to both Online Video and TV ads perceived the ads as likeable versus 13% for the TV ads alone (or a +31% increase in likeability).

When examining the performance of re-purposed vs. original Online Video creative, re-purposed TV ads were found to be more effective than ads specially-developed for the Online environment, with:

  • 39% of those exposed to re-purposed TV ads recalling the message versus 29% for the Online original ads (or a +34% increase in message performance for the re-purposed ads); and,
  • 27% of those exposed to re-purposed TV ads perceived the ads as likeable versus just 19% for the Online original ads (or a +42% increase in likeability for the re-purposed ads).

“Online Video was the fastest-growing ad format in both of IAB Canada’s 2009 and 2010 Internet Advertising Revenue Surveys, and will be a key driver in causing a significant shift of branding dollars to Online,” says Paula Gignac, President, IAB Canada. “Microsoft Advertising’s research is conclusive proof of the sound rationale behind that shift, by virtue of the sheer number of brands and verticals that have been tested within the study. And, because re-purposed TV assets have been shown to be as good as or better than original Online Video ad creative in building brand and message recall and likeability, Advertisers already have all the tools they need to shift significant budget into Online Video right now, in order to take immediate advantage of the numerous strengths of the format.”

Download the Nielsen IAG/Microsoft Video Effectiveness Research Study