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When directly comparing commercials viewed only online or only on TV, online video ads perform better than TV ads, across every brand metric and for every vertical.

This is the standout finding of the new Video Effectiveness Research Report by Nielsen IAG, in partnership with Microsoft Advertising and released by the Interactive Advertising Bureau of Canada (IAB Canada).

The study claims to establish a baseline for Online Video ad effectiveness in comparison to, and as a complement to TV advertising. It found that fundamentally, viewers who saw ads both online and on TV had improved recall and likeability for all verticals. Yet it also showed the power of TV as re-purposed TV ads are more effective than original online video ads at driving brand recall and likeability.

For those who saw ads either only online, or only on TV, 39% of those exposed to only online video ads recalled the message versus 21% for those exposed only to TV ads. This represented an 86% increase in message performance, In addition, just over a quarter  (26%) of those exposed to only online video ads, perceived the ads as likeable versus 14% for the TV ads, another 86% increase in likeability,

The survey also showed that online video's advantages include the inability for consumers to easily skip commercials; considerably reduced ad clutter; less multi-tasking by consumers when viewing online video compared to TV; the ability to build frequency through multiple spots per advertiser in the same online content stream; and the ability for companion display ads within players to provide additional brand reinforcement.

Commenting on the survey, Paula Gignac, President, IAB Canada, said:  "Online Video was the fastest-growing ad format in both of IAB Canada's 2009 and 2010 Internet Advertising Revenue Surveys, and will be a key driver in causing a significant shift of branding dollars to online…[the]research is conclusive proof of the sound rationale behind that shift…advertisers already have all the tools they need to shift significant budget into online video right now, in order to take immediate advantage of the numerous strengths of the format."

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