Which is more effective: TV advertising vs YouTube advertising?
Is TV advertising still relevant? Which has a greater reach, more targeted audience, and better ROI?
I would suppose it depends on which audience you are chasing - but TV viewership seems to be the province of the Boomer generation. YouTube ads are more targeted, and you can appeal to laser-focused demographics. YouTube advertising would be more cost-effective, too.
Any form of advertising can be effective but it needs three things:
Yes, I agree with Tom. It depends a lot on who you are trying to reach out to.
TV still has a wider reach or higher penetration in Australia than YouTube but that number is slowly declining as the younger demographics between 18- 49 year olds are watching less and less. The over 50s are the ones who are propping up the numbers.
The younger target audiences are moving to video on demand services such as Stan, Netflix and online entertainment such as YouTube, social media, etc. Therefore, it’s not just YouTube that’s luring TV audiences away. Back in the days, tv stars were big but now, online and social media influencers are also shaping market trends and consumer demand.
At the end of 2018, YouTube has 15 million unique Australian visitors monthly, with a lot in the millennial generation. But TV still has the upper hand in terms of total viewership. Foxtel has about 2.8 million subscribers at the end of June 2018. TV ratings tend to peak for live sporting events such as footy, Olympics, cricket and the occasional blockbuster TV show episodes like MasterChef finale.
If you compare ads, YouTube ads are more customisable, has a lower minimum spend and better analytics than TV. But is it more effective? This study by Google says it generates better ROI than TV, but you have to take it with a grain of salt.
That being said, a lot of brands are using a mix of YouTube, TV and other type of ads to get the right conversion rate and effectiveness. For smaller businesses, YouTube at its current price point can be more attractive to start with.