Google has raised a controversy with his latest remark “YouTube ads are more effective than TV”.
According to a report by Matt Brittin, in 80% YouTube ads were more effective than TV ads in driving sales. The report will be available publicly at the Advertising Week Europe festival in a session on Wednesday. The report title is “The (Entertainment) Revolution will not be televised”.
“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. Lucien is General Manager, EMEA, at MarketShare, one of the companies hired by Google to conduct the analysis.
Matt also suggests that “advertisers should spend six times more on YouTube“, to see more conversions from the ads.
The statement has already raised the heat in the market. TV industry has responded to his statement. Thinkbox is taking lead and responding to Google. A spokesman from the company said, “TV builds brands better than anything else and creates the most profit.” Thinkbox is a TV marketing body that has Sky, ITV and Channel 4 as its members.
“The true value of TV advertising is not just its return on investment [getting people to buy stuff], but that it achieves the best return on investment at the highest levels of investment.” TV builds brands better than anything else and creates the most profit. said Thinkbox research and planning director Matt Hill.
In an interview to Business Insider, Google’s EMEA director of brand solutions Debbie Weinstein responded to why TV is so often the focus of YouTube’s appeals to advertisers. She said,
“I don’t think it’s a war. I do think it’s about answering customers’ questions which is how should I be spending my media dollars with all the advancements that have been happening in the media space.”
“I think it’s particularly been moving on video. Everyone has known for decades that video is the most powerful form of storytelling. So we have video and you can sort of take your video asset and run it in a variety of places.”
“I think that’s why the comparisons are often made between YouTube versus the other places you can be placing your video assets.”
However, long-term studies show that 16-24 year old demographic that advertisers covet are not watching TV anymore. In fact, the young now spend more time watching stuff online than watching regular scheduling programming.