The value of 'Value Exchange': Why TV and Cinema outperforms Online Video for advertisers

When deciding where to place your video advertisements, it’s easy to focus on metrics like impressions and clicks. However, one of the most crucial, yet often overlooked, factors is value exchange, the dynamic between the viewer, the content, and the advertising.

In simple terms, value exchange is the unwritten agreement between the content provider and the audience: "Enjoy this premium content, but in return, you’ll need to watch a few ads."

Platforms with a strong value exchange tend to convert more content viewing into ad viewing, making your advertising investment far more effective.

TV and Cinema: the gold standard for value exchange

Data consistently shows that TV and cinema are highly effective at converting content consumption into ad viewing. Why? Because the value exchange is clear and accepted. When you sit down to watch a blockbuster film or your favourite TV show, you expect, and tolerate, a few ad breaks as part of the deal.

A 2024 study by Tapestry and Map The Territory found that ads are perceived as 80% less intrusive when shown alongside high quality, professionally produced content compared to user generated content.

This is great news for TV advertisers. It means:

• Guaranteed full plays: TV ads run from start to finish with no skipping.

• Prime placement: Your ad sits alongside trusted, engaging content, making it more memorable and impactful.

  
  

Online Video: A weaker value exchange

By contrast, the value exchange for online video platforms like YouTube or social media is weaker. When you click on a short clip or scroll your feed, you may be interrupted by a pre-roll or in-feed ad. However, these ads often feel like an annoyance rather than an expected part of the experience.

How many times have you closed a video because the ad wasn’t worth the wait? Or scrolled past an in-feed ad without giving it a second glance? This is a symptom of a poor value exchange.

As a result, view through rates on online platforms tend to be low. According to industry data, broadcaster video on demand (VOD) has a 97% view through rate, whereas YouTube and social platforms struggle to come close to that level of ad completion.

Understanding the cost differences: Linear TV vs. Online Video

Very often the value of online video advertising when compared to linear TV is misunderstood. This is because there is a fundamental difference between how you are charged for adverts on linear TV and online video. A common mistake advertisers make is assuming that the cost per impression (CPM) or video start is a fair comparison across platforms. It’s not. There is a fundamental difference in pricing models:

• Linear TV: Advertisers are generally charged based on ads that reach viewers measured by impacts or ratings, rather than simply by the number of times the ad starts.

• Online video: You are typically charged per video start, even if the viewer skips or abandons the ad shortly after it begins.

  
  

This means that cost per completed view (CPCV) is a far more accurate metric when comparing the true value of TV and online video advertising. Without considering the duration and quality of the ad views, it’s easy to overestimate the effectiveness of online campaigns.

Why quality of views matters

While it’s tempting to chase large impression numbers, quality matters more than quantity. An ad that is fully viewed alongside premium content is far more likely to influence purchasing decisions than one that is skipped or scrolled past.

By prioritising platforms with a stronger value exchange, you ensure your marketing budget delivers meaningful, impactful views rather than fleeting, superficial impressions.

For expert advice on how to ensure your marketing budget is working as effectively as it can for you, contact us today for a free 30 minute intro chat hello@tvadswork.com