market movers

Marketers Embrace Video, Online or TV

Posted by Brandchannel Staff on April 26, 2010 05:35 PM

Reckitt Benckiser, owner of Lysol, Woolite, Clearasil and other invigorating brands, is spending a record $40 million on web video, according to Ad Age. (Yes, that's a Clearasil "spot" - we couldn't resist - you can see above.)

The British global consumer goods company was clearly pleased with the $20 million it spent on video last year, seeing an immediate lift on sales. Turns out it's also a bargain Web video shopper.

Instead of paying $30 to $40 CPM (cost-per-thousand impressions) rates, such as found on premium video websites such as Hulu, it's looking for rates under $2 in order to achieve scale.

That Web video news is timely in light of new research from ZenithOptimedia.

Their research indicates that marketers spent more on web advertising last year than they did on magazine ads, a first. However, 2009 wasn't entirely sunny for web advertising.

"Despite a record-setting $6.3 billion fourth quarter, online advertising revenue declined 3.4 percent for the year from 2008, the first year-over-year falloff since 2002. The loss in ad spending across all media was an even steeper 12.3 percent for the year and 2 percent for the fourth quarter," notes the New York Times.

Bear in mind that advertisers are being wooed by broadcast and TV networks during this upfront marketplace to place ads for the coming year. Marketers seem poised to boost spending on TV commercials in 2010, including paying higher CPMs to buy ads (or secure in-program placement) for their brands, reports the Wall Street Journal.

As for which demographics advertisers are chasing, AdWeek reports that advertiser are ignoring the "middle boomer" swatch of consumers aged 52 to 58, and we know that Gen Y, the so-called millennials, are broke. Gen X, it's up to you!

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