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On the ado over
cross-platform deals


Very few advertisers are integrating online

May 15, 2008

With one more day of broadcast upfront presentations to go, one trend that has emerged is the networks’ emphasis on cross-platform ad deals. NBC Universal focused its entire presentation on its companywide cable, broadcast and new media options, CBS started its announcement with a discussion of parent company CBS Corp.’s overall performance, and ABC and the CW emphasized their online programming successes. Perhaps that’s because, while many advertisers pay lip service to cross-platform advertising, few are actually integrating their on- and offline campaigns. That’s the finding of a new study from DoubleClick Performics, the digital marketing division of the online ad serving company, which examines the most effective forms of advertising and also delves into the media habits of DVR owners. The study finds that TV ads make by far the strongest impression on consumers, while online lags far behind. Other conclusions: DVR users watch very few commercials, fast-forwarding through the vast majority, and the content of some ads gets lost when a consumer is engaging in media multitasking. Stuart Larkins, senior vice president of search at DoubleClick Performics, talks to Media Life about the growth of DVRs, cross-platform advertising, and what media people need to know about it.

What did you find most interesting or most surprising about this study?
 
Some of the most surprising stats uncovered in the survey include that more than three-quarters of respondents engage in media about the same compared to when they did not own a DVR.

We thought there might be a slight preference or move toward one form of media versus another, but respondents indicated “about the same” levels of consumption between internet, newspaper, magazines and radio.

This signals that there is still a need for a strong mix of marketing efforts. 
 
From an advertiser’s perspective, we were surprised at the lack of integration between online and offline advertising efforts, even around the same programming in many cases.

In other words, big-brand advertisers that spend significant amounts of money on offline advertising, television ads, for example, continue to miss out on very cost-effective opportunities to carry that message online. We ran across very few advertisers who supplement their sponsorship of a television program by also sponsoring that same program in different online venues such as Hulu.com or network web sites.

This doesn’t make much sense; if the advertiser has identified those viewers as appropriate targets, then why not also communicate with them online where they lack the option to fast forward through advertisements?
 
Beyond programming sponsorships, some advertisers continue to miss out on opportunities to capture traffic through search engines being generated by their offline communications; if offline advertisements generate online research, it’s best for these advertisers to cost effectively capture that traffic with search buys. Overall, there is still far less integration than there should and could be.
 

What is the most important thing that media planners and buyers can take from the study?
 
This study emphasizes the importance for marketers and media planners to consider and reevaluate their marketing campaigns on an ongoing basis to ensure they communicate relevant and consistent messages across all channels.

The data enable companies to improve their media spend by targeting the best consumers and getting their brand in front of the right audience in the right places, not exclusively through television brand advertising or other isolated channels.
 

Based on your findings, would you say DVR owners generally have a lower tolerance for commercials (on- or offline) than the general population?
 
Based on the report, DVR owners’ ability to skip commercials is not necessarily the most attractive feature of their DVR, but a majority of people do skip over commercials most of the time while viewing programs from their DVR.

Since purchasing a DVR, nearly half of respondents watch more television, but 85 percent watch fewer commercials.
 

Why do such a high number of DVR owners also watch TV programs on the web? Is it simply a matter of them being early adopters?
 
Almost half of DVR owners have watched at least one television program on the internet.

The primary reason for watching television programs online is that the respondent missed seeing the program when it aired live (60 percent). Almost one-quarter of respondents think that they will watch more television programs online in the future.


Why are DVR owners paying less attention to online video ads than on TV?
 
Thirty-eight percent of DVR owners pay less attention to ads when they view television programs online compared to on TV. Forty-six percent of respondents said they rarely pay attention to ads when viewing television online.

It’s possible that multi-tasking could be part of the reason here. Another dynamic to consider is that consumers won’t always report being attentive or receptive to ads even though they may very well be paying attention either directly or subconsciously.


Do TV and web ads (also including banner, etc.) generally receive different levels of attention from respondents? If so, why?
 
According to the research study, TV ads make the most impression on nearly half of respondents (42 percent), while online banner and search ads have a less significant effect (2 percent) on respondents.

We think a big reason for the disparity here could be the understanding among consumers of search ads. In other words, many consumers are not aware that “sponsored links” are advertisements. This could be generating an unfair perception among web users of the credibility or source of these “sponsored links.”


Most respondents cited the convenience of time-shifting as the thing they most like about their DVR, and one-third of respondents watch more than 75 percent of their television this way. What does this indicate about the future of live programming on television? Have we already left the era of "must-see" events?
 

Sporting events and other significant new events are still prominent on live television.

However, the usual primetime and late-night TV lineups are the most highly-recorded types of programs for DVR owners. Consumers generally are more interested in watching sports and other types of events live, as they happen, whereas some other types of programming work just as well after their original air date.
 



Diego Vasquez is a staff writer for Media Life.




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