C4: Broadcaster VoD ads cheaper than YouTube

Research commissioned by Channel 4 has found that the effective cost per thousand views for advertisers on broadcasters’ VoD platforms is far cheaper than the equivalent cost on YouTube or Facebook.

The research found that the true Cost Per Thousand (or Minute) for Broadcaster VoD completed ads is circa 20 per cent cheaper than YouTube and a third of the cost of Facebook – even when including organic views (which make up much of Facebook’s exposure).

The research also found that commercial broadcaster VoD delivers significantly higher engagement levels, completion rates and watch time for advertisers than VoD ads on YouTube and Facebook.

Research was conducted with independent agency GOG Research and Neuroscientist Dr Amanda Ellison at Durham University and coupled with viewing metrics obtained from Channel 4’s own online marketing campaigns. It showed:

  • Advertising on Broadcaster VoD commands 3.5 times greater attention levels than advertising on YouTube
  • Completed advertising video views are 62 per cent lower for YouTube and over five times lower for Facebook, than All 4 ads
  • Three quarters (73 per cent) of minutes ‘watching’ YouTube on tracked devices showed that the ads and videos were hidden from view due to users using them as background music play-listing behind other tasks
  • 53 per cent of YouTube advertising is viewed in an attentive state, compared to over 85 per cent of viewing time to Broadcaster VoD ads
  • In over 30 hours of Facebook passive usage, only three commercial video ads were viewed for longer than 3 seconds (Facebook’s definition of a view), of which the longest was for 3.5 seconds
  • Almost half of the time Facebook users were observed, they were in constant scrolling mode with just enough time to scan posts. 7 in 10 of them said they actively scroll past video ads
  • Ads on Broadcaster VoD are more likely to be viewed in full screen, with sound, and all the way through to the end than non-broadcaster VoD

The research results identify that in the digital video world, where and how viewers watch VoD content, is equally important as what they consume.

Jonathan Allan, Sales Director, Channel 4 said: “These research results are compelling and support what we already know to be true – that BVoD is a far more effective and efficient use of brand marketing spend than social media platforms. It’s particularly timely as Google and Facebook face further calls to take responsibility for brand safety and viewing measurement and should give advertisers and agencies much to consider as they evaluate their marketing mix and media investment decisions”

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