Recently, it seems that more and more companies are leaning towards advertising through YouTube and other online video outlets instead of television. Nielsen conducted a study that shows during a week where popular dramas were returning on air, the viewership dropped by double digits.

Surely around nationally televised programs (i.e. SuperBowl), there will still be a fight over ad space, but it seems that during the normal day-to-day, more people are choosing to advertise online. Due to the services like Netflix, Hulu and Sling TV, fewer people tend to subscribe to a traditional television service. This drop in television viewership is really what will make advertisers consider shifting budget from TV to online.

This has become a big issue in the last couple of weeks, as Magna Global, an advertising buying agency, recently shifted $250 million of its client’s money from television to YouTube. They are making this shift because they believe that marketers are paying more for television but are not receiving the in-depth data and insights in return. With online marketing, marketers receive a lot more data that can help them make smarter media buys.

If this trend continues, television execs might need to consider a shift in strategy and recognize digital video and online streaming services as proper competitors.  With the wealth of data and information that is available when advertising online, it makes it easier for marketers to justify media buys, as they are backed with actionable insights and numbers. With online video advertising offering so many great reasons to make the move to digital, how will the television industry respond?

Nakul Bhatnagar
Just Media, Inc.

Sources:

http://www.businessinsider.com/tv-ratings-decline-2015-9

http://www.businessinsider.com/magna-global-signs-250-million-upfront-deal-with-youtube-2016-5