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Is Reckitt-Benckiser's move the dawn of a new day?

Posted by Rich Cherecwich on March 31st, 2009 at 12:00 am

At the iMedia Brand summit in February, half of the assembled brand buyers said they planned to "heavy up" on measurable, ROI-driven strategies during the recession, and we're finally beginning to see some companies follow through.

The news today is that Reckitt-Benckiser, the parent company of brands such as Lysol, Mucinex, and Clearasil, will move $20 million slated for TV advertising and spend it on online video.

ROI was the driving factor for Reckitt-Benckiser, and the company is choosing to serve its ads via video ad networks rather than buy on premium web video sites, like Hulu or CBS.com, because ad networks offer lower CPMs.

All things considered, $20 million is just a drop in the bucket of R-B's overall ad budget. The company spends more than $400 million on TV advertising annualy, and $20 million is only 4.1 percent of its overall $475 budget. Still, it's encouraging to see a corporation take the plunge after spending less than $1 million on the web last year.
 
So what do you think Reckitt-Benckiser's decision will ultimately yield?

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