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Advertiser to Shift $20M to Web from TV

2009.05.02

Reckitt-Benckiser is moving more of its television advertising dollars to online video. The company plans to shift an estimated $20 million in TV ad dollars to the Web for more than 15 of its brands, including Lysol, Air Wick, Mucinex, Finish and Clearasil.

Reckitt-Benckiser, the U.K.’s fourth-largest advertiser, plans to shift an estimated $20 million in advertising away from TV, investing instead in online advertising.

The company, whose brands include Lysol, Clearasil, French’s and Mucinex, spent less than $1 million in measured spending online in 2008, according to TNS Media Intelligence, AdAge reports. About 90% of its measured media budget has traditionally been spent on television.

The company plans to boost effectiveness of its TV campaigns by the use of online video, and has inked deals with more than a dozen video ad networks including Glam, Tidal TV, YuMe and Brightroll, rather than broadcaster-owned sites like Hulu or TV.com.

The need to improve CPM was the driving factor for the switch in strategy, says the senior vp-director of digital media for R-B’s digital media agency, Media Contacts (Havas). “We needed to make it compelling from a buying standpoint in terms of how these CPMs related to TV CPMs, and we had to deliver the impressions more efficiently than TV did,” he is quoted as saying.

Now is the time to focus on online video, because there has been a fundamental shift in consumer consumption and media habits migrating to digital video, according to Marc Fonzsetti, R-B’s media manager and internet specialist. “The integration of traditional and digital media is here now,” he says. While YouTube started the revolution, R-B wants to be aligned with professional content.

R-B will measure the campaign by combining TV’s gross rating points with the web, along with elements like online coupons and clickthroughs at some of the brands’ microsites. Each brand’s audience metrics will then be paired with data from Nielsen’s Homescan panel.

The switch seems to apply only to U.S. spending, Brand Republic writes.

The British company said earlier this month that it plans to increase market share in the U.S. in 2009, from around 30% in 2008 to between 31% and 31.5%. Strong product innovation combined with heavy marketing investment has driven growth, and the R-B has not yet seen any effect of the recession in North America, the company said (via Reuters).

The 2008 Internet Advertising Revenue Report from the Interactive Advertising Bureau and PricewaterhouseCoopers shows that internet advertising revenues in the U.S. remain strong, despite the difficult U.S. economy. Q408 revenues hit $6.1 billion, and revenues for the year topped $23 billion. The report indicates that interactive advertising’s continued growth - though moving at a slower pace - confirms marketers’ increased confidence in the value of reaching consumers online, according to Marketing Charts.

http://www.mediabuyerplanner.com/2009/03/31/reckitt-benckiser-to-shift-20mm-from-tv-to-web/

 

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