In Defence of Liberty

Driven by data; ridden with liberty.

YouTube’s Return on Investment

youtube-return-on-investment-google

Google, who share a parent company with YouTube, suggest that the video sharing service has a better Return on Investment (ROI) than television.

In their meta-analysis of 56 case studies across eight countries, Google claimed “advertising on YouTube delivered a higher Return on Investment than TV in nearly 80% of cases” [1].

 

“50% higher ROI”

An example illustrating this trend was given: Mars UK tested the mix of television and online video activity in the summer of 2015, and found that YouTube delivered more than double the ROI of television for every pound spent reaching the main shopper.

The online video sharing service also paired with the consultancy Data2Decisions, which released analysis of YouTube’s sales impact, along with determining optimal levels of expenditure [2]. The analytics firm concluded that, at current budgets, online video delivers 50% higher ROI than television advertising – which also holds true for YouTube.

Paul Dyson, the founder of Data2Decision, said in addition:

We have been modelling online video for clients through the past five years and our experience consistently finds higher ROIs from online video compared to TV. So it was no surprise to see this repeated in the studies we conducted with Google.

Personalisation

Certainly, YouTube offers a level of personalisation that traditional television advertising cannot, as television can only be broken down into slots between specific programmes on chosen channels.

Instagram have also increased their video length limit from 15 seconds to one minute, which will assist with advertising. As people move onto watching more videos online, the capacity for greater returns will grow.

References

[1] Thinking with Google, 2016. YouTube challenges TV on advertising ROI. Available from: https://www.thinkwithgoogle.com/intl/en-dk/research-study/youtube-challenges-tv-on-advertising-roi/ [Accessed: 13th May 2016]

[2] Shields, R., 2016. Online video delivers 50% higher ROI than TV claims YouTube with econometric findings. The Drum. Available from: http://www.thedrum.com/news/2016/04/19/online-video-delivers-50-higher-roi-tv-ads-claims-youtube-econometric-findings [Accessed: 13th May 2016]

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This entry was posted on June 11, 2016 by in Social Media and tagged , .
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