In a strategic move to strengthen its online video footing, British household cleaning products maker Reckitt-Benckiser today moved about US$20 million from TV to online advertising for more than 15 of its brands, AdAge.com reported. Until now, the company has spent more than 90 percent of its budget on TV, according to TNS Media Intelligence.
The move was reportedly also fuelled by the need to improve its CPM cost. The company has reported five straight years of growth in sales, and spends $475 million on advertising.
The brands reportedly targeted for the shift include Air Wick, Lysol, Mucinex, Finish and Clearasil, according to AdAge. Further, the company is partnering with more than a dozen video ad networks.
Marc Fonzetti, the company's media manager and Internet specialist said the company has "seen a fundamental shift in consumer consumption and media habits migrating over to digital video."
With this aim in mind, the company has chosen "ad-serving networks over TV network sites such as Hulu, ABC.com. CBS.com and NBC.com," the AdAge article stated. Emphasis on Return on Investment is another reason why consumer -package-goods have not invested very much in online video. The volume of inventory required to TV audiences is very high and cuts into CPMs.
Scott Ferber, CEO of online video ad network Tidal TV told AdAge that online CPMs are expected to stabilise in the next three years.

