By Adam Fraser
Google has now further poked the bear that is traditional TV advertising by revealing in a study that in 80% of cases, ads on YouTube were more effective in driving sales than TV ads.
Google’s analysis was across a relatively small sample – 56 case studies across 8 countries – but the conclusions were clear cut (and it should be noted self serving) – brands should be spending 6 times more of their budget on YouTube.
“We found that while TV maintains a powerful impact in the digital age, digital video is under-invested in several categories we measured in the UK, France and Germany,” said Lucien van der Hoeven, general manager EMEA at MarketShare, one of the companies hired by Google to conduct the analysis.
This is not the first Google has hit the PR button in terms of attacking TV’s effectiveness to promote YouTube as an alternative. At a conference in late 2015, Google’s MD for UK and Ireland suggested brands targeting 16-34 year old should spend 24% of their TV ad budgets on YouTube.
The long awaited shift away from TV to digital channels finally seems to be emerging. Emarketer have forecast that in 2017, digital spend will exceed TV spend for the first time.
The share of pie between TV and digital (as well as how they can synergistically work together) is an important topic, but coming in over the top of this is the overall efficacy of advertising more broadly as Ad blockers grow and consumers increasingly block out the hard sell.
Advertising remains part of the playbook but marketers need to think nimbly and flexibly. A long term steady decline in advertising efficacy appears to be playing out and alternatives such as sponsorships, product placement, branded content, influencer marketing and native all warrant consideration.
In social networks in particular, active listening and customer service to respond to the actual questions your customers have comprise foundational aspects of any sensible holistic marketing strategy. Listening first before shouting about how great you are has never been more important.