Digitization of Advertising: How Native Video is Changing Media Planning Strategies

Some advertisers still believe that the best way to reach a large audience is through traditional methods and channels, considering TV advertising as the most universal tool. However, this is no longer the case. Consumers no longer sit in front of their TVs searching for engaging media content, and their consumption habits have significantly changed. Even five years ago, Google started highlighting this shift — and it’s worth a reminder.

(Un)Fresh Insights from Google

To track the gradual decline of TV advertising, let’s rewind 5–6 years. At the end of 2018, during the height of the sales season, Google’s marketing department ran an experiment comparing the reach of digital video and TV for the launch of the Pixel 3 smartphone.

This two-week experiment was fairly straightforward. In the first week, the gadget’s advertisement aired on national TV channels in the U.S., with minimal presence on YouTube. In the second week, the approach flipped: no TV, only YouTube ads.

Marketers hypothesized that YouTube in the U.S. could generate as many Target Rating Points (TRPs) as TV, with similar levels of reach. The target demographic for both channels was adults aged 18 to 49.

The results confirmed the hypothesis. It turned out that YouTube had the potential to scale more effectively than TV in one week due to several key advantages. First, YouTube reached more young adults aged 18 to 29. Secondly, YouTube managed to reach 36% more unique users in the target demographic than TV. Additionally, YouTube's audience was, on average, five years younger.

Many similar experiments have led to a clear conclusion: integrating digital video formats into advertising campaigns makes sense, especially for campaigns that struggle to achieve noticeable results. For instance, substituting TV with digital video for a day or a week, as done with 15-second unskippable ads on YouTube, has proven that a digital-first strategy is effective and should be incorporated into various marketing scenarios.

However, there is a catch.

Changes in Audience Behavior: Watching Video Without Sound

Platforms like TikTok, Instagram, and Facebook have radically transformed how users consume content, especially video. Most users now watch videos without sound — including advertisements.

According to MarketSplash, 85% of Instagram and Facebook users watch videos on their devices with the sound turned off. A similar trend is observed on TikTok: people often watch content in public places and mute their devices to avoid disturbing others.

This trend is also supported by research from Verizon Media and Publicis Media, which found that 92% of Americans watch videos without sound on smartphones, and 83% do so across all devices.

Moreover, a significant portion of the audience, particularly those with lower incomes, relies solely on mobile devices for internet access. For example, in 2021, 27% of U.S. adults with an income below $30,000 used only smartphones to access the internet, lacking home broadband due to financial constraints (Pew Research Center).

Challenges and Opportunities for Advertisers

The shift towards soundless video consumption poses challenges for advertisers, especially regarding measuring the effectiveness of advertising messages. Technically, it’s nearly impossible to determine whether a video was watched with or without sound. This is particularly relevant for mobile InStream video, where technical audits might show that the ad was played with sound, although the user didn’t hear it.

Additionally, high competition and limited reach in the personal computer market affect ad effectiveness. Studies show that many users prefer to watch videos silently in public spaces, whether in quiet places without headphones or while waiting in line.

This context can hurt advertisers’ goals. Ads with sound are designed to amplify emotions, capture attention, and make messages more memorable. Sound helps convey complex messages, enhances brand recognition, and often makes campaigns more effective, especially on TV or digital platforms.

Connected TV also has technical limitations that make it difficult to measure ad effectiveness accurately. For instance, it’s hard to determine whether the user actually watched the ad or was in front of the screen when it played. Additionally, tailoring ads to specific audiences is more challenging on TV. Furthermore, many people use other devices, like smartphones, while watching TV, which can divert their attention from the ad.

But does this mean sound-based advertising is no longer relevant?

Not entirely.

The Ukrainian Context

In Ukraine, mobile traffic has been steadily growing. Although large-scale measurements haven’t been conducted since the war began, experts estimate that mobile traffic accounts for 85–90% of total internet traffic.

This is also reflected in the allocation of advertising budgets in the market.

In simple terms, online advertising is becoming increasingly attractive to businesses because its results are easily aligned with pre-set parameters, making strategy adjustments straightforward and cost-effective.

Meanwhile, TV and Connected TV platforms have their limitations in tracking ad placement quality, reach, and frequency, which reduces their effectiveness.

Before deciding on a budget for TV advertising, ask yourself three marketing questions:

1. Can you track the results?
   If you don’t know how your ad impacts sales, you can’t measure its effectiveness. If sales go up but you don’t know which ad contributed, it will be hard to understand which channel is working. Without performance data, it’s impossible to adjust your campaigns.
   
   
2. How much will mistakes cost you?
   Ads don’t always yield immediate results. TV ads are expensive, and it may take several attempts to find an effective message. This requires additional spending on testing and tweaking materials. Can you afford that?
   
   
3. How well can you target your audience?
   TV ads reach many people, but there’s no guarantee that your target customers will see your message. So, you risk wasting money on people who aren’t interested in your product or service.
   

Native Video: Easy Access to a Broad Audience

Native video is becoming a key tool in media planning because it offers a more effective strategy for reaching audiences. It only plays when the user actively interacts with the content, minimizing “banner blindness” and ensuring high visibility. Through partnerships with major publishers in Ukraine, our Native Video network reaches up to 85% of the adult population.

The chart below shows the traffic and reach of some of the publishers we collaborate with.

Advantages of Native Video

Native video delivers high user engagement. When a site visitor scrolls through a video placed between paragraphs, the video starts playing, instantly grabbing the user's attention.

More brands are aiming to create value-added content, which is why video duration is gradually increasing. However, the current trend shows that shorter videos tend to be more effective, as research confirms.

Adaptation is another crucial advantage of this format. Our team can customize the video so that the key information is presented to the user in an easily digestible form. This allows for high view counts and quality interactions with the audience, making it an effective tool for advertisers.