YouTube adverts far less valuable than traditional TV, broadcasters claim [Yahoo! Finance]
Netflix, Inc. (NFLX)
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Source: Yahoo! Finance
A new study of almost £2bn in marketing spend, published by TV industry body Thinkbox, found that TV advertising accounts for almost 55pc of ad-generated profits over a two-year period, generating £5.61 for every pound spent. That compares to online video – consisting mostly of YouTube – which accounts for just 3.4pc of profits and generates £3.86 for every pound spent. While the study found that online ads offer the highest immediate payback for brands, TV campaigns have a longer-lasting effect, accounting for nearly two-thirds of all profits beyond the first week of advertising. The research highlights efforts by traditional broadcasters to rekindle advertising after deep cutbacks in spending across the industry. ITV saw its ad revenues tumble 15pc last year in what boss Dame Carolyn McCall has described as the worst downturn since the financial crisis. The Love Island broadcaster has stepped up its cost-cutting plans and refused to rule out job cuts as it tries to revers
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