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[World Marketing Day] XICA releases analysis report comparing the two major video advertising media using data from over 60 advertisers | Reveals effectiveness and efficiency of TV commercials and online video ads for each product

Survey / Research

May 5th is World Marketing Day, a day proposed by Philip Kotler, the father of modern marketing. In today's world, where marketing is becoming more complex and diverse, the decision of "which media to advertise in and how much" is becoming more important. Therefore, in conjunction with this anniversary, XICA Corporation (Headquarters: Minato-ku, Tokyo; President and CEO: Yoshiaki Hirao; hereinafter XICA) will publish the results of a survey conducted on over 27 advertisers' data using Marketing Mix Modeling (hereinafter MMM) to analyze the "acquisition number" and "efficiency (return on investment)" of the two major video advertising media today, "television" and "online video media (YouTube, TVer, TikTok, etc.)" (sales amount, number of units sold, number of applications, etc.).

Survey results summary

1. Online video ads are about 1.7 times more effective than TV commercials

It is speculated that the reason why online video advertising is so efficient is that it allows for a targeted approach based on user attributes.

2. Industries dealing in "low-involvement products" have particularly high acquisition rates for TV commercials (about 3.6 times higher than online video ads), while industries dealing in "high-involvement products" have good efficiency for online video ads (about 2.0 times higher than TV commercials).

For "low-involvement products (daily necessities, eating out, etc.)" that are likely to be purchased impulsively or habitually, TV commercials are effective because of their wide reach and ability to appeal to an immediate impression. For "high-involvement products (finance, real estate, etc.)" where a lot of information is collected and careful consideration is made at the time of purchase, online video ads are effective because of their precise targeting and ability to provide detailed information.

3. Online video ads continue to improve while maintaining their high efficiency over time (+26% YoY)

Behind this trend are media characteristics such as diversification of ad delivery destinations and flexibility in PDCA operations, as well as changes in user viewing behavior and the evolution of ad delivery technology for each platform. It is important to quickly grasp these trends and optimize investment in each media in order to improve results.

Background to this analysis

With the development of digital technology and the diversification of consumer values ​​and lifestyles, marketing in recent years has become more complex and diverse than ever before. Of particular note is the accelerating shift in viewing from "television" to "Over The Top (OTT)," including CTV (Connected TV). This trend is particularly noticeable in the United States, and it is expected that this trend will spread to the Japanese market in earnest in the future.

Under these circumstances, a major issue for advertisers is the difficulty of deciding "in which media, and how much advertising should they place." While there is a need to accurately grasp the changes mentioned above and optimally allocate advertising budgets, the fact that the impact of each media on performance, which is the basis for investment decisions, is not accurately visualized, is a major obstacle preventing correct decision-making.

XICA offers MAGELLAN, an MMM solution that visualizes the effectiveness of all marketing initiatives, including TV commercials, and allows for side-by-side comparisons. Therefore, this time, we used MAGELLAN to verify the number of results and efficiency of TV commercials and online video ads based on data from over 60 advertisers.

Investigation result

1. Online video ads are about 1.7 times more effective than TV commercials

Online video ads are approximately 1.7 times more effective than TV commercials. This reflects the strength of online video ads, which can be efficiently managed through precise targeting.

2. Industries dealing in "low-involvement products" have particularly high acquisition rates for TV commercials (about 3.6 times higher than online video ads), while industries dealing in "high-involvement products" have good efficiency for online video ads (about 2.0 times higher than TV commercials).

The characteristics of the industries were analyzed by dividing them into those that handle "low involvement products" (daily necessities, restaurants, etc.) where the products and services are low-priced and have a short purchase consideration period, and those that handle "high involvement products" (finance, real estate, etc.) where the products and services are high-priced and have a long purchase consideration period. Differences were observed in the number and efficiency of media acquisition depending on the industry.

In industries dealing with low-involvement products, online video ads were more efficient, as was the case overall. Furthermore, TV commercials had about 3.6 times the number of acquisitions compared to online video ads, which means that their impact on acquisition is relatively large, even when compared to industries dealing with high-involvement products, where the number was about 1.7 times. As many of these products and services are purchased on a daily basis and are easily chosen impulsively or habitually, it is believed that TV commercials, with their strengths of wide reach and instant impression appeal, contribute greatly to acquisition.

Meanwhile, even in industries that handle high-involvement products, online video ads are about 2.0 times more efficient than TV commercials. This shows a relatively higher trend compared to industries that handle low-involvement products (about 1.6 times). In this industry, the situation and interests of the person considering the purchase often have a large impact on the purchase. Furthermore, impulse purchases are rare, and people tend to carefully consider the purchase after gathering a lot of information. This means that this industry has a higher affinity with online shopping, as it allows for accurate targeting and provides detailed information once the purchase is clicked.

3. Online video ads continue to improve while maintaining their high efficiency over time (+26% YoY)

We checked the yearly trends for companies that have been placing ads for two years, 2023 and 2024. The trends for each media are similar to the overall trend, but in 2, the efficiency of both media improved, with TV commercials at about 2024% and online video ads at about 24%. Although there is not a big difference in the figures compared to the previous year, it can be said that online video ads, which already have a high return on investment, are leading to more efficient results. This is based on the assumption that improvements are being made to optimize advertising budgets based on MMM's analysis, but it is also thought to be due to the media characteristics such as the large number of options for ad delivery destinations and the ability to run a detailed PDCA cycle. In fact, according to a CyberAgent survey*, the video advertising market size in 26 is known to have expanded by 2024% (115.9 billion yen) compared to last year, and it is believed that more companies are using it because certain results have been confirmed. It is also expected that a combination of factors such as the increase in the online video viewing population and the evolution of ad delivery technology using AI and machine learning by each platform may be at work. In this way, it is suggested that in order to maximize advertising effectiveness and improve results, it is important to quickly grasp changes in the market and technology, in addition to the characteristics of the media, and to flexibly and strategically optimize investment allocation to each media.

*Source: CyberAgent, 2025, "CyberAgent Conducts 2024 Domestic Video Advertising Market Survey",https://www.cyberagent.co.jp/news/detail/id=31459

Summary of survey results

The survey results show that TV commercials and online video ads are effective in different industries, taking advantage of their different characteristics. This is thought to be due to differences in consumer behavior when considering and purchasing, and highlights the importance of optimal media usage and media mix according to the nature of products and services.

In particular, in the case of online video advertising, it is believed that multiple factors contribute to improving its performance, so when optimizing ad delivery, it is essential to accurately grasp changes in user viewing behavior and media trends, etc. If you continue with the same approach without fully grasping the changes, your ads may not reach your audience, or even if they do reach your audience, their effectiveness may be weakened.

Furthermore, in order to respond to the increasing complexity and diversification of marketing, continuous data analysis and optimization using MMM etc. will be essential. The key to sustainable corporate growth will be to determine how much advertising should be placed in which media, as well as to understand how efficiently that investment is producing results, and to utilize this in the next strategy while implementing the PDCA cycle.

Analysis summary

  • Number of companies surveyed: 64
  • Industry composition: Daily necessities, food, restaurants, finance, real estate, etc.
  • Analysis method: Analysis by statistical processing based on the MMM analysis results of the target companies
  • Data calculation period: January 2022 to December 1

About us

XICA is a professional data science company that supports data-driven decision-making. We provide services to "target and maximize" sustainable growth by using data science to solve our clients' business problems. With highly accurate "data science" supported by leading data scientists and researchers from Japan and overseas as our core weapon, we connect business and marketing results through the high "application skills" of our experienced personnel in various fields such as "strategic consulting," "execution support," and "technology implementation."

*The names and logos of XICA and MAGELLAN are registered trademarks or trademarks of XICA Corporation in Japan and other countries.
*Other company names and product names mentioned are trademarks or registered trademarks of each company.

Inquiries regarding this press release

  • XICA Corporation Public Relations Officer: Kunimatsu
  • TEL：03-6380-9897
  • E-MAIL:pr@xica.net