CBS Makes More Money per Viewer with Online Ads

online ads

It’s no secret that more and more people are going online to watch their favorite television shows. With major networks like ABC, NBC and CBS offering full episodes of popular shows streaming online for free and Netflix, Hulu, Apple TV, Amazon Prime and other online outlets each carving out their share of the market, audiences have more options than ever before to forgo regular TV programming — or even ditch cable entirely — to watch their favorite shows online.

Case Study: CBS

The major networks have taken advantage of the advertising opportunities, which are proving quite lucrative. In fact, a chief research officer of CBS recently reported that the network makes more revenue per viewer on their streaming programming than on television, according to Variety.

CBS makes between 10% and 20% more in ad revenue per viewer on its streaming online programming ads than its TV ads, and that percentage is expected to go up later this year, the article noted. Those watching popular shows online see a full selection of ads and can’t fast forward through any of them, which makes it harder for audiences to tune out advertising messages when viewing network programming online.

Another boon for networks like CBS is that the audience is smaller, harder to reach and younger—a type of audience that many advertisers prefer to target, the article explained.

TV Ad Growth vs. Online Ad Growth

While TV ad spending still greatly surpasses online ad spending, digital video advertising is currently growing at a much faster rate as advertisers are discovering its value. TV ads are only expected to grow 3.3% in 2014 while digital-video ads are expected to grow a whopping 41.9%, eMarketer reports.

In actual figures, spending for TV ads is projected to hit $68.54 billion, while digital video ads are projected to hit $5.96 billion, which reflects how relatively new online advertising is compared to TV advertising.

The Takeaway

Younger consumers are spending fewer hours watching television, partially because they tend to spend less time at home and partially because they spend more time seeking entertainment on laptops, tablets and mobile devices while they are out and about. Effective digital advertising strategies will become more and more important to reach Millennials, the generations to follow and segments of older demographics that are also spending more time online.

About Bigfin.com

Bigfin.com LLC is an industry leader in digital advertising, including microtargeted display advertising and mobile phone advertising. We also offer comprehensive digital marketing solutions including search engine optimization, local organic search, custom website design and social media marketing. Looking for digital marketing or web design services? Contact us online or by phone at 425-822-8200.

(Photo via Forbes.com)

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Spending for Direct Response Outpaces Branding in Online Ads

online ads

Digital advertising is growing by leaps and bounds with spending growth seen in both direct response advertising and branding. However, a higher percentage of online advertising dollars goes to direct response, according to a recent eMarketer report. Out of the $50 billion that advertisers in the U.S. will spend on online ads in 2014, 59.1% will be spent on direct response, the report noted.

This spending seems to reflect the idea that when it comes to the digital sphere, many believe the best way to drive sales is to place the right advertising message in front of the right target audience at the right time. That way the audience has an immediate opportunity to make a purchase or transaction.

What Contributes to Higher Spending on Direct Response?

One of the major factors contributing to more digital spending on direct response is the increase of mobile ad spending, according to Advertising Age. On mobile, the ads seen most often are app install ads and related direct response ads.

Branding messages simply aren’t communicated as effectively on the smaller screens of smartphones and tablets. In addition, the mobile landscape is ripe with opportunities to offer audiences direct response ads featuring location-based deals.

Another factor is the introduction of in-app native ad formats and products in Facebook, Google and Twitter, which is driving more advertising dollars into direct response advertising that involves app-installs.

Industries That Highly Favor Direct Response

Certain industries lean even more heavily on direct response in their digital advertising than others, eMarketer explained. Those include retail and travel, both of which have direct response percentages at 70% or higher of total online advertising spending.

Mobile Vs. Desktop Ad Spending

While more ad dollars are flowing into mobile ads, spending still favors desktop advertising. In 2014, 64.6% of digital ad spending was devoted to desktop, as opposed to 35.4% for mobile. The industry leaning most heavily on mobile ads is retail, which spends 37% of its online ad dollars on mobile advertising.

online ads

The Takeaway

Companies are realizing the numerous advantages of direct response advertising when it comes to maximizing their digital ad campaigns. Their spending priorities reflect the belief that when you want to encourage sales, the best way to do so is to urge your target audience to respond immediately.

About Bigfin.com

Bigfin.com LLC is an industry leader in digital advertising, including microtargeting and mobile advertising. We also offer comprehensive digital marketing solutions including SEOweb design and social media. Looking for online marketing or web development services? Contact us online or by phone at 425-822-8200.

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Facebook Provides More User Control Over Ads

facebook ad preferencesFacebook will soon give you more control over the types of ads you see in your feed, according to the Facebook newsroom blog.

The social media giant will also begin drawing from more resources to determine what types of ads to show you.

Facebook Ad Preferences

This month, the social media giant introduced ad preferences, a tool that will be present on each Facebook ad you see. This tool will not only allow you to adjust your ad preferences but will also let you learn why you were targeted with a certain type of ad in the first place. The ad preferences tool will roll out in the U.S. over the next few weeks and will be available globally in upcoming months, the blog explained.

The tool will allow you to click on the top right corner of the ad and select an option that says “Why Am I Seeing This Ad?” From there, you can discover why you’re seeing the ad and adjust your preferences. While this won’t change the number of ads you see or allow you to opt out of ads entirely, it will help your ads become more relevant to your interests.

Why Does Facebook Show You Certain Ads?

For years, Facebook has used data from your Facebook activity, such as the pages you like and posts you click on, to show you targeted ads related to that activity. Now, however, Facebook has announced that it would also start using data from your web behavior and apps you use as additional factors that determine the types of ads you see. Facebook says doing this helps users see ads that are more relevant to their needs and interests.

Facebook’s greatly expanded ability to provide targeted ads using web behavior could eventually rival Google, Adweek explained in a recent article. The social network’s competitive edge could be user interest, while Google’s competitive edge is user intent, Adweek explained.

The Takeaway

Brands that advertise on Facebook could benefit from users’ new ability to choose the types of ads they are interested in. This could help ensure that only the people who are most interested in their products and services see the ads, increasing the likelihood that users will respond to a brand’s advertising message. Facebook’s use of users’ web behavior and app usage data could also produce more highly targeted advertising for brands.

About Bigfin.com

Bigfin.com LLC is an industry leader in search engine optimizationweb design and social media. Looking for online marketing or web development services? Contact us online or by phone at 425-822-8200.

(Image via http://newsroom.fb.com/)

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