Video sharing site YouTube is challenging how much marketers spend on TV, saying that in 80% of cases brands “can confidently double their spend on the platform and still get better returns on investments.
The claims come after the California-based company conducted a meta-analysis of 56 case studies from brands in the CPG, automotive, classifieds and local, media and entertainment, retail and technology businesses. The brands ran campaigns across eight countries in Europe between 2013 and 2016, with 20% of them running in the UK.
YouTube concluded that at current spend levels, it delivers higher ROI than TV in 77% of cases.
Speaking to Marketing Week, Director for Media Strategy David Benson said: “Brands are investing too much in TV. What we are saying is that at current spend levels YouTube can offer better ROI than TV. In 80% of cases brands can confidently double their spend on YouTube without risking coming up against the ROI of TV. It is time YouTube was a much more considered part of the advertising budget.”
The studies were carried out by third-party research firms, including GfK, BrandScience and Kantar Worldpanel.
Benson said YouTube also deliberately picked brands that are respected marketers such as Mars, Diageo and Danone.
This is not the first the platform has tried to convince marketers to focus on YouTube and forget TV spend. In 2015, it urged advertisers to shift 24% of their budgets over if they wanted to reach young audiences who form a chunk of users on the platform.
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