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Consumers Who Watch TV Online More Engaged Than TV-Set Watchers, Simmons Finds

CONSUMERS ARE 47% MORE ENGAGED in ads that run with television programs that they view online than those watched on a TV set, according to new research findings.  —  A cross-media study by Simmons …

MediaPost Publications Mark Walsh

Context & Ripple Effects

The Simmons finding lands at the end of a year in which online TV went from curiosity to measurable behavior: the BBC reported in May 2007 that online TV viewing was already rising, and the New York Times followed in November with the argument that web video was pulling both viewers and marketers away from the set. What that coverage lacked was an advertising-side number.

The 47% engagement gap supplies it. For the first time in this arc, a major research firm — Simmons — has quantified not just that audiences are moving online, but that the ads they see there appear to work harder per exposure than the same medium on a television set.

First-order effects

  • Media buyers now have a confirmed cross-media datapoint from Simmons supporting higher effective value for online TV ad inventory, giving network digital-sales teams ammunition to price streaming placements above linear equivalents.
  • Advertisers who had treated online TV as experimental reach gain a stated basis for shifting budget out of TV-set-only buys.

Second-order effects

  • Rival audience-measurement firms face pressure to publish their own cross-platform engagement studies or cede the emerging 'engagement' metric territory to Simmons.
  • TV networks' ad-sales groups must reconcile two price cards for the same content — set-based ratings pricing versus online engagement pricing — forcing bundled or hybrid deals.

Third-order effects

  • If the engagement-gap pattern holds across future studies, TV advertising economics migrate from reach-based ratings toward engagement-based metrics, advantaging whoever measures cross-platform attention.
  • Sustained evidence that online-delivered ads outperform set-delivered ones accelerates the structural shift of television's revenue base toward digital distribution, with measurement firms becoming gatekeepers of that repricing.

The trend: Television advertising measurement is moving from set-based ratings toward cross-platform engagement metrics as viewing shifts online.