comScore and DunnHumby recently conducted a study on the effects of online advertising versus television advertising, across 200,000 consumers, recording their behaviour through the use of supermarket loyalty cards.

Their research showed that the boost given by online advertising to offline sales was not only higher but also faster than the boost provided by TV advertising.

The comparative study showed that the sales lift achieved by TV ads was 8% over a period of 12 months, while the lift from online ads was 9% over just 3 months. In parallel terms, the percentage of sales lift achieved through TV ads was 36% and that through online ads was 80%.

In 2008, Google had commissioned Harris Interactive to conduct a study among 3 consumer packaged goods (CPG) brands, in order to study the effects of traditional TV ads versus the effects of online platforms.

Accordingly, the study was carried out by running identical ads on TV, on a computer screen replicating a YouTube video environment, and on a computer screen replicating a click-to-play video embedded in the content. The results revealed that all the platforms were equally effective in the ability to convey their message about the brand and its strength, and thereby encourage users to go ahead and make a purchase.

While these findings should encourage marketers to shift their ad spend towards online advertising, TNS Media Intelligence has found that the ad spend for TV ads remains static at 58% since 2005, while ad spend on online ads has grown in 2009 from 2% to 4%. And that additional 2% has come through relocation of funds from radio and newspaper ads, but not from TV.

Gian Fulgoni, the executive chairman of comScore says, “these early results confirm the ability of online advertising to successfully build retail sales of CPG brands on par with the impact of television advertising. It is likely that the more precise targeting ability of the Internet – especially in terms of accurately reaching the desired demographic segment – is a key reason for its effectiveness.”

Studies conducted by The Pew Internet and American Life Project have found that only 65% of teens use social websites nowadays, as opposed to 78% who play online games.

Not too long ago, social networks were the hot favorite among this age group, along with email, which was used by 89% of teennagers at that time.

The latest trend, however, is to use text messaging and instant messaging instead of email, which is now used by only 73% of teenagers.

Significantly, young adults between the ages of 18 and 32 seem to be following the reverse trend, with only 50% of them playing games online while 67% access social networks.

Surprisingly though, it was found that only 10% of those between the ages of 12 and 17 years spend time in virtual worlds, which is almost the same percentage as was found a few years ago, and hardly 2-3% of the older generation do so.

Deloitte’s State of the Media Democracy Survey found that another victim of the changing times was the good old television. Studies reveal that those between 14 and 25 years of age are far more likely to use their PC for entertainment through games, music and social networks, than to sit and watch TV. This study was conducted across U.K., U.S.A., Germany, Japan and Brazil.

Searching and downloading music was the most accessed facility on the internet with 80% of youngsters using it while 73% access chat rooms social networks and message boards. It was also found that 59% of the youth use their mobile phones for entertainment, and the amount of time spent watching television is about one-third less than that spent by other age groups.

As far as advertising power goes, however, it was found that TV is the most influential for youth, followed by magazines, online ads and newspaper ads, while radio ads are fifth in line.

• Pew Internet Report: Adults & Social Network Websites
• Pew Internet Report: Adults & Video Games

Google has forged into a new deal with online video advertising company, SpotMixer, that allows advertisers to use SpotMixer’s video creation technology to create television commercials for their products free of cost, and then air them on TV as well as online.

Ads can be made either in the form of images, audio and / or video content selected from a vast database provided by Google, or from the advertisers’ own uploaded content. There is also an adjustable soundtrack so that advertisers can record the ad in a voice of their choice if they so desire.

The service can be accessed from the “Submit Ad” page when creating a Google TV ads campaign. Google has provided the short video clip shown below to teach advertisers how to use this service.

Creating a new TV ad with the tool is quite a simple procedure really. After logging into the AdWords account, users have to select an appropriate categories for the industry concerned or the type of product to be advertised and then select from relevant images, audio or video content using a drag and drop interface. Advertisers can customise the ad to their requirement by clicking the link to “Add more images and video”. They can also dynamically change the templates to give the ad a more personal look. Completed ads need to be downloaded and then added to the TV Ads Campaign.

This is a great idea for a cheap, do-it-yourself system to advertise products and service to a wide audience. It should help start-ups with limited budgets advertise on television alongside big brands without needing to spend a lot on ad production. The service was launched in beta back in September 2008, for a few clients and they are already reporting positive feedback.

This new UPnP driven gadget makes it possible for users to interconnect their computers and the TV by storing movies, videos and images on the computer and then watching them on the big screen at their convenience.

Free and commercial software packages are available, to store such data on a hard drive and then watch it on television later. This will be yet another step by Google to combat the popularity of its rival Microsoft. This is their first product offering that goes up against the extremely popular Windows Media Player.

This device will contain technology to find and then send images and videos from the computer to UPnP compatible hardware. Google Media Server will use technology from Google Desktop, such as desktop gadgets, and Google Desktop Search to locate files.

Google loyalists will surely be enthralled by this new package. The setup only require Google Desktop on the PC and a UPnP enabled device such as a Sony PlayStation 3. More information can be found on the Google Gadgets web page:

Google Media Server

These proposals have not yet been finalised, but The Register reports that they are in line with EU Audiovisual Directives issued last year.

Current rules allow channels like ITV1, GMTV, Channel 4 and Five only 7 minutes of advertising per hour, with only one break in a show of half an hour, and two breaks during a show of one hour duration with a minimum interval of 20 minutes between two consecutive ad breaks.

The new guidelines proposed will allow channels to include 2 ad breaks during a half hour program. Also, the mandatory 20 minute interval between breaks will be abolished to allow the break to be inserted at a convenient point during the program. An ad break will be allowed every 30 minutes, instead of the current 45 minute interval while broadcasting movies.

Read the Ofcom press release

The statement released by Ofcom implies that while viewers opinions and concerns are important and will be welcomed, they are bound to take into account the revenue generated by advertising in order to pay for the choice of television services viewers are able to enjoy.

Commercial broadcasters are very much in favor of these changes as TV advertising revenues have been falling in proportion to the increase in number of users of the Web. Paradoxically, however, it is very likely that longer and more frequent ad breaks on TV may drive more viewers to the Web, eventually leaving them with even fewer viewers.

If things work out well, broadcasters and large companies as well as small and medium businesseses will benefit from the new laws. The increased advertising opportunities would allow brands additional opportunities to reach viewers, also earning the broadcasters additional revenue. Some viewers, though, might abandon TV for the Internet. SME advertisers could then reach these consumers through online ads that are typically cheaper than TV.

However, if viewers respond badly to too many ads, both the brand owners and broadcasters could incur heavy losses as viewers look upon the ads and their associated products negatively.
Ofcom will take a final decision on these regulations and implement them by 1st January 2009.