2. Executive Summary
While TV remains a trusted mass market media with the broadest reach,
video consumption on mobile devices is becoming an integral part of
how marketers and agencies connect, engage and convert customers.
This first-of-its-kind study from BrightRoll and Nielsen shows how mobile
video advertising can be an effective complement for TV advertisers trying
to reach increasingly fragmented audiences and improve ROI.
3. Television has been and remains the primary advertising vehicle for the world’s largest brand marketers.
As the mobile space has matured and consumers have devoted more time to both mobile devices
and TV, the marketing community has seen new opportunities to influence behaviors. As consumers
have increasingly engaged with digital video on mobile devices, brand marketers are considering
complementing their TV investments with mobile video to put their message where consumers are
spending their time.
Today, consumer media viewing habits are changing more rapidly than ever before. Consumption of
sight, sound, and motion continues to set records on TV, dominates the desktop and is growing on
mobile devices. Brand marketers are considering unprecedented media investments to reach these
consumers, whose attention has become harder to capture as their media consumption fragments.
Marketers want the most from their media investments, and now they have more outlets across which
to optimize. BrightRoll commissioned Nielsen to examine media efficiency across TV and mobile video
in a first-of-its-kind study. The results of this study provide suggestions on how to execute multi-screen
campaigns cost effectively and with better results.
Consumption of sight, sound, and motion continues to set records
on TV, dominates the desktop and is growing on mobile devices.
The results of this study provide suggestions on how to execute
multi-screen campaigns cost effectively and with better results.
Television:
Record-setting
ad consumption
Desktop:
Ad consumption
domination
Mobile:
Growing ad
consumption
4. The Changing Face of
Media Consumption
The challenge of effectively reaching customers
is complicated by changes in consumer viewing
habits, including a significant evolution to
multi-screen viewing. Understanding this shift is
important to ensuring brand advertising budgets
generate the maximum return on investment for
advertisers and agencies.
TV penetration is unmatched, as over 95 percent of
AmericanhouseholdsownaTV.1
TVadbudgetsarethe
largestforanymediasegmentwithaforecast$68billion
spend in 2014 in the U.S., according to eMarketer.2
While TV remains the “first screen,” video
consumption on mobile devices is increasing at
record levels. CMO.com reports that online video
consumption across mobile devices is accelerating
rapidly, with smartphone increases of 73 percent
and tablet increases of 42 percent year over year
(Q1 2013 vs Q1 2014).3
eMarketer states that U.S.
mobile advertising grew to $9.69 billion in 2013 and is
projected to reach $17.73 billion by the end of 2014.
The number of U.S. mobile and connected TV viewers
will reach a staggering 204.6 million by 2017.4
The dramatic shift in consumer behavior has
encouraged many brand marketers to rethink their
media buying strategies to put their message where
target audiences are spending time.
SOURCES
1
Forbes, Fifty Essential Mobile Marketing Facts
2
eMarketer, June 2014
3
CMO.com U.S. Digital Video Benchmark Adobe Digital Index Q1 2014
4
eMarketer, August 2013
2012
2013
2014
2015
2016
2017
2018
$3.88B
$0.89B
$2.19B
$1.76B
$2.06B
$1.81B
$1.81B
$1.31B
$3.18B
$1.68B
$2.66B
$1.59B
$2.21B
$1.67B
TV Digital Video
US TV vs. Digital Video Ad Spending
Annual Increases, 2012–2018
Online video consumption growth in smartphones and tablets
Tablets are also
taking market share
with 42% year over
year growth.3
42%Smartphones are rapidly
gaining popularity with
73% year over year
growth.3
73%
5. US Global Mobile Advertising Growth
Source: MediaPost, July 2014
year-over-year
share growth for
US mobile
+57%
projected U.S. mobile
and connected TV
viewers by 2017
204.6MM
US mobile advertising is
projected to reach $17.73B
by the end of 2014
Over 95 percent of
American households
own a TV
4 billion
8 billion
12 billion
16 billion
20 billion
2013
Actual
$17.73B
2014
Projected
$9.69B
+82.9%
increase
6. Telecom
(Adults 18–49)
Financial Services
(Adults 18–49)
Auto
(Adults 25–54)
CPG
(Females 25–54)
TV only
BrightRoll Mobile
Incremental Audience
72.8%
+12.7%
71.6%
+9.9%
71.9%
+9.5%
71.0%
+11.9%
First-Of-Its-Kind Multi-Screen Efficiency Study
Nielsen, the leading global information and measurement company, was commissioned by BrightRoll,
the leading independent programmatic video ad platform, to develop a study to demonstrate how
brand marketers can put their media dollars to work most effectively through a combination of TV and
video advertising served to mobile devices.
The study uncovered how brand marketers can optimize their ad spend amidst the rapidly changing media
consumption habits of their target consumers. Leveraging Nielsen’s data and simulation capabilities, the
study focused on four major verticals: CPG, auto, financial services and telecom. The goal of the study was to
determine how the pairing of mobile and TV advertising can build incremental reach for brand advertisers and
improve cost efficiency.
Nielsen’s research shows that a combination of TV advertising supplemented with video ads served to mobile
devices can help marketers reach those consumers whose attention is spread across multiple screens.
Findings from the study indicate that a marketer’s reach for a desired target consumer may rise as much
as 12.7 percent (in the CPG vertical) when TV advertising is aligned with video advertising served to mobile
devices. Furthermore, reallocating 15 percent of a brand’s TV budget to mobile, reduces the cost per target
rating point (TRP)* by as much as 13.7 percent.
Findings from the study indicate that a marketer’s reach for a desired
target consumer may rise as much as 12.7 percent when TV advertising
is aligned with video advertising served to mobile devices.
*Target Rating Point (TRP) is one percent of the specifically targeted audience, not the total audience, being reached by an advertisement.
Incremental brand reach using mobile
7. Nielsen estimates that for marketing campaigns
to capture more than 60 percent of its target
audience, brands often spend more than
$707,000 per reach point (i.e., cost per point).
Further, it’s not surprising for brands to spend
$1,389,000 or more to acquire one incremental
reach point after 70 percent of consumers
have been reached. This dramatic increase
in incremental cost per point indicates that
marketers often hit a point of diminishing returns
once they hit the 60 and 70 percent thresholds.
$1,400,000
$1,000,000
$600,000
$200,000
Percent reach on TV
10 20 30 40 50 60 70
Cost Per Point Increase
Methodology
The study, conducted by Nielsen, was
commissioned by BrightRoll’s research
department. The study was conducted
on four omnipresent verticals: Consumer
Packaged Goods (CPG), auto, financial
services and telecom. Data was aggregated
from multiple sources including Nielsen
NPM panel, Nielsen EMM panel and Nielsen
MonitorPlus. TV TRP and incremental reach
point analysis were calculated via Nielsen
NPM and MonitorPlus data. Mobile TRP was
calculated utilizing BrightRoll data.
Telecom: Cost per TRP Adults 18–49
Financial Services: Cost per TRP Adults 18–49
Auto: Cost per TRP Adults 25–54
CPG: Cost per TRP Females 25–54
$48,641
$46,536
$44,296
$41,949
$42,335
$41,106
$39,707
$38,152
$40,073
$39,072
$37,902
$36,571
$43,981
$43,303
$42,429
$41,358
TV only
Shift 5% to mobile
Shift 10% to mobile
Shift 15% to mobile
8. Reach Fragmented
Audiences with TV and
Mobile Video
Today’s marketers live in a different world than
just 10 years ago. As consumption of media
expands across multiple screens, it’s become
harder for marketers to execute against these
channels in a manner that is cost effective.
As video consumption on mobile devices
continues to accelerate, complementing TV
buys with an incremental investment in a
mobile video advertising strategy will result in
a more efficient use of a marketer’s advertising
dollars. Moreover, once marketers hit the 60
and 70 percent thresholds in reach, there is a
point of diminishing returns for their TV buy.
Mobile video advertising creates new and more
efficient opportunities to reach audiences that
choose to consume content on mobile devices.
As such, reallocating a portion of a brand’s TV
budget to a mobile ad platform will increase
incremental reach.
Advances in mobile technology continue to
benefit consumers and change the way they
consume media. Marketers have an opportunity to
benefit from these changes in consumer attention
as well. Based on the insights from this study, it
is clear that complementing TV with smart video
advertising executions will make brands’ and
agencies’ advertising dollars work harder.
Millennials Lead Changes in
Consumption
Millennials and Hispanic Millennials are
exhibiting significant changes in how they
consume media. Millennials, whose use of
smartphones is at a near-constant rate, are
one of the largest population segments in the
U.S., totaling about 77 million. In the second-
quarter of 2014, 85% of Millennials aged 18-24
own devices, an increase from 77% in the
second quarter of 2013. The credit reporting
and consumer data firm Experian says that 43
percent of Millennials are “mobile dominate”
when it comes to digital media consumption.
Drilling down into the demographic data
reveals an even more dramatic insight - 58
percent of Hispanic Millennials watch videos
on their smartphone.
Smartphone phone and television
consumption by age range
5
Experian, May 2014
Smartphone Video Television
19%
8%
13%
34%
45%
25%
38%
18%
18–24 25–34 35–54 55+
9. What’s Next?
Although consumers have embraced video consumption on mobile devices, one of the biggest
impediments to marketer adoption has been a lack of industry standard tracking and measurement in
mobile video. To address this issue, BrightRoll has been actively involved in establishing standards for
mobile measurement, including being a beta participant of Nielsen Online Campaign Ratings. Nielsen
Online Campaign Ratings identifies and provides consistent measurement of consumers exposed
to mobile ad campaigns. As standards are established and adopted, marketers will soon be able to
measure their mobile campaign delivery to target audiences.
