Online video delivers 50% higher ROI than TV ads claims YouTube with econometric findings | digital marketing strategy | Scoop.it

YouTube is using Ad Week Europe to underline the change in consumers’ media consumption patterns with a study claiming that online video ad units deliver up to 50 per cent more return on investment (ROI) when compared with TV.

To add credibility to its claims that online video adds a higher ROI than TV, the online video sharing service has paired with Dentsu Aegis Network-owned consultancy Data2Decisions to apply Market Mix Modelling and Ecosystem Modelling techniques of analyse the sales impact of YouTube, as well as identifying the optimal level of spend through budget optimisation simulations.

The analytics firm concluded that brands should invest more of their media budgets on YouTube. Specific points in the study included:

1.    At current budgets, online video delivers 50 per cent higher ROI than TV advertising - this also holds true for YouTube
2.    In the studies completed so far, the YouTube investment should be increased by between two and six times
3.    In the optimised media budgets, between five per cent and 25 per cent of the total  AV budget should be invested in YouTube...


Via Jeff Domansky, Os Ishmael