By Lauren Arevalo-Downes
Daryl Simm, CEO of Omnicom Group’s media operations, is at the frontline of the shift from traditional to digital media, while overseeing more than $54 billion in advertising and advising the likes of Apple, PepsiCo, Visa, and more. Now, Simm is recommending his clients shift a significant portion of their ad dollars from TV to digital video.
“Online video ad spending is growing at a considerably faster pace than overall media budgets have been growing,” said Simm in a recent interview with Wall Street Journal.
Simm singled out gaming as one market in which ad dollars are shifting at a much faster rate than others:
“It varies by client. If you are chasing gamers, obviously you are moving a disproportionate piece of your budget. If you are a conventional packaged goods company, you are not quite at the average yet. We are counseling our clients to move between 10 percent to 25 percent of TV dollars to online video, depending on the target audience.”
The current issue for online video in Simm’s mind is the need for content that is premium and relevant.
“I do think we have hit the apex and we are moving into an environment where there is more talent — actors, directors, producers, and brands — wanting to enter the online video space. That holds a lot of promise for online video. The amount of quality online video is still an issue.”
Editor’s Note: In this way, Simm also looks to assuage TV companies, stating that most premium video content still comes from networks that place their programming online.
This article was originally published on alistdaily.com, the insiders’ source for editorial focused on entertainment marketing news, and content partner with VideoInk. It’s been lightly edited from its original version. Follow [a]listdaily on Twitter @alistdaily or subscribe for the latest news, data, and more in your inbox.