The Incremental Reach and Cost Efficiency of Online Video Ads over TV Ads

As people spend more time online, an increasing number of brand marketers are including video ads in their advertising campaigns. These advertisers would like to know the incremental reach and cost efficiency of their video and display ads compared to their TV ads. In this paper, we measure the incremental reach to a target demographic and estimate the cost per incremental reach point of YouTube (YT) and the Google Display Network (GDN) compared to TV ad campaigns. We consider two media planning scenarios: what it would have cost for the TV ad campaign to have delivered the equivalent of the online incremental reach, and what saving could have been achieved by having spent less on TV ads and complementing them with online ads for a given reach goal.

• Algorithms and Theory

• Economics and Electronic Commerce