Chief Executive Officer of Omnicom Group’s media operations, Daryl Simm is at the frontlines of the shift from traditional to digital media,
overseeing over $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 an interview with Wall Street Journal.
Simm singled out gaming as one market whose 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.”