The Daily: Media Measurement in a Video First World

Introduction

This episode is brought to you by TikTok for Business. Are you looking to slay your next campaign on TikTok? Get ahead by measuring ahead to improve your campaign's performance on TikTok. Better measurement is the key to an improved ROI. Learn more from TikTok for business at TikTok.com.

The trend we're observing with video content is not losing momentum anytime soon. Advertisers are not exceptions to this trend; they have embraced short-form video for storytelling about their brands and products. This shift is evident on platforms like TikTok.

Key Insights on Media Measurement

Today, we’ll explore how media measurement is evolving in a video-first world. We begin by reflecting on the past decade's changes in media habits. Historically, traditional television dominated consumer attention and advertising dollars. However, from 2014, where 94% of Americans watched traditional TV, to today, where that number has dropped to 68%, the decline is evident. Time spent watching TV has also fallen from approximately four and a half hours to three and a half hours. Concurrently, TV ad spending has plummeted from 40% of advertisers' budgets to just 15% in the last decade.

Video Consumption Trends

In the last five years, video content creation has surged online, driven by the rising demand for video and decreasing barriers to creating high-quality content. With advanced smartphone technology and generative AI tools, producing engaging video content has never been easier. This trend is further reflected in advertising, where most advertisers have shifted toward short-form video.

Recent statistics reveal that five years ago, video accounted for one-third of social media content consumption, while today it constitutes two-thirds. The growth of platforms like TikTok has significantly contributed to this shift.

Changing Advertising Dynamics

Advertising spending is also catching up. Jasmine mentioned that social video ad spending is expected to surpass linear TV ad spending in the US next year—a clear reflection of shifting consumer and advertiser behavior. Yet, measurement methodologies have not fully adapted to these new dynamics.

Current Measurement Landscape
The measurement spectrum varies widely. Some advertisers utilize sophisticated models, while others depend on traditional click-based metrics. Despite the emergence of video as a dominant channel, many advertisers are still relying on outdated click-based measurement strategies. Historically, companies measured media effectiveness using models from the pre-internet age—like Nielsen's TRP models.

Evolving Measurement Techniques

To evolve, advertisers must move from click-based models to more effective video measurement strategies. TikTok's attribution analytics tool helps advertise better by offering insights into the time it takes for users to convert. Discovering that it takes approximately ten days for a user to make a purchase following seeing an ad highlights the limitations of click-based measurements.

Marketers can harness tools like conversion lift studies, which utilize test and control groups, and third-party partnerships to refine their measurement strategies. These advancements allow advertisers to gain a clearer understanding of their campaign performance and improve outcomes incrementally.

Key Recommendations for Marketers

When measuring true media impact, aligning measurement strategies with consumer online behavior is crucial. Aspects to focus on include:

Understand Time to Conversion: Use attribution analytics to determine how long it takes consumers to convert.
Incorporate Incremental Measurement: Consider conversion lift studies to gauge the actual reach and effectiveness of campaigns.
Utilize Audience Data: Implement post-purchase surveys to capture consumer behavior and insights.

For brands looking to thrive on TikTok, crafting native content is essential, as generic ads do not perform well. The path of successful advertising is increasingly reliant on adapting to these new video-first measurement dynamics.

Keyword

TikTok
Media Measurement
Video Content
Click-based Measurement
Conversion Lift
Attribution Analytics
Advertising
Consumer Engagement
Social Video Ad Spending

FAQ

Q: What is the current trend in media consumption?
A: There is a significant shift towards video content, with social video ad spending expected to surpass linear TV ad spending soon.

Q: How can marketers improve their measurement strategies?
A: Marketers should move away from traditional click-based measurements to more comprehensive methodologies such as attribution analytics and conversion lift studies.

Q: What should advertisers focus on to achieve better results on TikTok?
A: Advertisers should focus on creating native video content that resonates with the audience and utilizes advanced measurement tools to understand conversion paths.

Q: Why is the time to conversion important in measurement?
A: Understanding the time to conversion helps advertisers recognize the full impact of their ads beyond immediate clicks, allowing for a more accurate measurement of their campaign's effectiveness.