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How the Online Video Market will Impact Advertising

The evolution of online digital video will significantly impact the development of U.S. television advertising -- hopefully, for the better. comScore released a report entitled "Surviving the Upfronts in a Cross-Media World," an actionable guide for success in navigating the crossmedia landscape during this year's TV and digital upfronts.

The report examines the maturation of the online video market as a supplement to traditional television advertising and the effectiveness of cross-media campaigns in television programming.

Also featured in the report are actionable insights for advertisers, agencies and media buyers who are considering incorporating digital video formats into their media mix.

"With the digital upfronts in their second year, more advertisers are considering adding digital video to their media mix in long-form TV programming and short-form video," said Judy Bahary, SVP, Marketing Solutions at comScore.

According to the latest market study by comScore, there's an incredible synergy between TV and digital video formats when used together in cross-media campaigns, driving effectiveness levels higher than either medium used on its own.

As the online video market continues to develop, we should see it evolve from its current supporting role to an essential part of media planning in the annual upfronts for major advertisers.

Key findings from the market study include:
  • The online video audience has reached a point of near saturation at approximately 180 million monthly unique viewers, but average engagement levels are rising as it continues to play a more prominent role in the online experience.
  • Adding a digital video component to a TV media plan can increase the effective reach of the campaign in a very efficient manner.
  • Digital video ad formats are just as effective as TV ads. But TV and digital video have a synergistic effect when used together, making this media mix more effective than either one on its own.
  • Multi-Screen consumers are a fast-growing segment and need to be marketed to on multiple screens in order for campaigns to achieve optimal reach and frequency levels.
  • Younger age segments are generally more receptive to digital advertising than TV, highlighting the importance of incorporating digital video into the media buying and planning process.

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