While performance marketers embraced the internet early on, brands were much slower to come to the table. For years, after the internet became a mass media, television remained the leading choice for brand advertisers. Even though consumers started to spend more time on digital devices than their TVs in 2013, it wasn’t until three years later that advertisers started allocating more ad spend to digital. But this year, ad spend on digital will outpace TV spend by 14%, and by 2020 that gap will widen to 45%.
The reason that brands have finally embraced digital advertising is that better tools, strategies and standards for campaign measurement now allow them to understand their campaign’s impact much more effectively.
Until recently, brands and agencies relied on Cost Per Thousand (CPM) impressions and Cost Per Click (CPC) metrics for buying and measurement. Unfortunately, many still do. Video campaigns in particular continue to be bought and sold on a CPM basis, which makes no sense because it doesn’t give the advertiser any clue of what they are actually buying.
Read the full article on Forbes.