Online video, OTT and CTV ads ROI measurement : Implications for publishers
Nielsen's 2024 Marketing Report sheds light on significant trends in marketing ROI, particularly emphasizing the effectiveness of online video. The report reveals that online video significantly outperforms performance media like paid social and search in terms of long-term return on investment (ROI). Despite this, the ease and immediacy of performance media often sway marketers’ choices. This article summarizes the key insights from the report and examines the implications for OTT (over-the-top) and CTV (connected TV), especially concerning measurement challenges and the rise of retail media.
Key Findings: Long-Term ROI of Online Video
Nielsen’s report indicates that online video delivers superior long-term ROI. This channel helps build brand recognition and customer loyalty, providing lasting value compared to the short-term focus of performance media.
- Sustained Impact: Online video fosters deeper emotional connections with consumers, leading to higher brand recall and long-term customer retention.
- Broad Reach: Online video allows brands to reach a wide audience, essential for building brand awareness and achieving long-term growth.
Measurement Challenges in OTT and CTV
Only 31% of marketers feel confident in measuring CTV ROI. This lack of confidence underscores significant challenges in the OTT and CTV sectors:
- Fragmented Ecosystem: The variety of platforms and devices in the OTT and CTV space complicates the measurement process. Each platform may use different metrics, making it difficult to standardize measurements.
- Data Integration Issues: Aggregating data from various sources to get a comprehensive view of campaign performance is challenging. Accurate measurement requires access to detailed data from multiple platforms
If these measurement issues are not resolved, OTT and CTV risk losing out to more measurable channels, such as retail media, which is already gaining traction in the US.
Retail media is rapidly emerging as a dominant performance channel, offering several advantages over traditional media:
- Direct Purchase Data: Retail media platforms provide direct access to purchase data, allowing for precise targeting and accurate measurement of ROI.
- High Intent Audiences: Advertising on retail platforms targets consumers who are ready to buy, leading to higher conversion rates and better ROI compared to other channels.
In the US, retail media is already outperforming OTT and CTV by offering more immediate and measurable results. If OTT and CTV do not improve their measurement capabilities, they risk being overshadowed by this growing channel
visit Nielsen’s full report here.
