7 Killer Facts About Advertising 1

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Transcript of 7 Killer Facts About Advertising 1

Page 1: 7 Killer Facts About Advertising 1
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1. TV is the best profit generator

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Print increases revenue but TV is superior

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4.55 Mean

5.9*

3.19**

4.88*

2.16**

3.52 Mean

Increase in revenue (£m) for a £1m advertising investment

Other media did not show long-term revenue growth. Could be: poor investments, data variation, mostly short-term

* = + standard error, ** = -1 standard error

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…and TV ads deliver growth for longer

Year 1 TV investment still affecting sales in year 2 almost as strongly

Year 1 Year 2 Year 3 Year 4 Year 5

Print

TV

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10%

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Print

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TV is core for nearly all leading brand value owners

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120InternetTVRadioPressOutdoorDirect MailCinema

… and used more than twice the sector average of our survey by all the market leaders

£m

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The IPA found that TV builds market share better

Campaigns that used TV were more efficient at driving market share in relation to share of voice

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Campaigns using TV Campaigns not using TV

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TV is becoming more effective over time

The launch of multi-channel is making it easier to reach consumers

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Average increase in marketshare by points gained (where TV is the leadmedium)

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2.TV hardwires brand

memories

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TV is effective; it’s a scientific fact

Neuroscience shows TV’s effect on emotion & long-term memory ie where brands live

The power of audio-visual and human gesture = deep emotional response

The context of viewing – relaxed and shared

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Emotional ads provoke the implicit mind

The Explicit/Conscious/

Rational Mind

The Implicit/ Emotional

Mind

Conscious mind - conscious analysis and rejection?

Constantly informs us via gut feelings and intuitions. Guides behaviour without conscious analysis

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Thinkbox’s sponsorship work showed that…

…the implicit mind is highly associative. Meaningful, emotional associations stored beneath the cognitive radar.

Sponsors become firmly associated with programme

This results in the programme personality ‘rubbing off’ on the brand

The words used to describe the brand & programme were more closely aligned by fans of the programme than non-viewers

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Ad liking is the key to driving brand KPIs

Recognition

‘Liking’ Relevance

CreativityAwareness

Favourability

Future Purchase Intention

Usage

Ad KPIs

Brand KPIs

0.84

0.420.48

0.74

Thinkbox’s Engagement study showed that the standard KPIs of recall and attribution had no correlation with brand favourability or purchase intent

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3. An hour more every week

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Source: BARB/TechEdge

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inds abc1 adults 16-34s hwch

Commercial Broadcast Viewing 1998

Average Commercial Broadcast Viewing 1998-2007Commercial Broadcast Viewing 2008

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age

ho

urs

per

day

Commercial TV viewing continues to grow

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400

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1,000

Indivs abc1 adults 16-34s men hwch

2004 2005 2006 2007 2008

Source: BARB/DDS

bil

lio

ns

Consistent increase in commercial impacts

+15%

+19.1% +17.3%

+6.2%

+8.8%

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IPA Touchpoints2: TV dominates the media day

The IPA’s Touchpoints2 survey shows that TV is the dominant medium, accounting for 54% of media time each

day

27%

13%5% 1%

54%

TV

Radio

Internet

Newspapers

Magazines

Source: Touchpoints2 2008 – Adults. Base: All Media use per day

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TV fares even better within just ad-supported media

7%9% 2%

20% 62%

TV

Radio

Internet

Newspapers

Magazines

Source: Touchpoints2 2008 – Adults

Base: All commercial Media use per day (exc BBC TV, BBC radio and internet email time)

Commercial only

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Our media time in 2008 differed little from 2005

2008 (hrs)

2005 (hrs)

3.90

3.83

1.30

1.19

2.09

2.18

0.59

0.59

0.23

0.27

4.2 minutes 5.4 minutes 6.6 minutes No change 2.4 minutes

Source: Touchpoints 2005 and 2008 - Adults

How we spend our media time hasn’t changed much since 2005 – only TV and the internet have increased

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Internet Press Radio TV

% Ad revenue % Media time per day

TV is under-valued comparing ad spend to time spent

%

Source: Touchpoints 2008 and Advertising Statistics Yearbook 2008

Base: time and revenue calculated as a % of total internet, press, radio and TV only

* Cinema, OOH and DM time not available

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4.TV is the dominant

youth medium

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26%

24%

1%2%

47% TV

Radio

Internet

Newspapers

Magazines

Source: Touchpoints 2008 – 15-24s

Base: All Media use per day

TV is by far the dominant medium for 15-24s

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2008 (hrs)

2005 (hrs)

3.37

2.92

1.55

1.25

1.70

1.77

0.40

0.27

0.25

0.20

Source: Touchpoints 2005 and 2008 – 15-24s

…and 15-24s’ TV viewing has increased since TP1

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16-34s

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2008

BARB also shows 16-34 increase to commercial TVav

erag

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Source: BARB/TechEdge

+24 mins

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36%

50%

55%

65%

76%

54%

61%

76%

41%

53%

59%56%

62%58%

67%71%

30%

54%

38%

56%52%48%

33%39%

Watch TV Surf theI nternet

Chat oncomputer

Listen tomusic

Watch aDVD

Playgames oncomputer

Play ongames

console

Usemobilephone

Relaxation Alleviates Boredom Fun with friends

TV and music: favourite activities for young people

Sample =

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Inner life

Reachingout

Inner life Reaching out

EmotionalCentralHeating

SocialCurrency

Stature&

Legitimacy

Glamour&

Entertainment

TV plays key roles in young peoples’ lives

Sample =

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44%

29%

23% 22%

64%

Tv programmes Websites Console games Computer gamesfor PC

Adverts for TV

Please choose the one thing you talk about most with your friends?

Base: All respondents aged 13+

TV stimulates their conversations

Overall TV content has a greater capacity for encouraging peer group discussion and debate than other forms of electronic media and entertainment

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Young people are almost 3 times more likely to enjoy TV ads than adults and generally accept advertising as part of commercial TV

Out of all adverts mentions almost 80% were from TV

36%

22%

14%

26%

17%

35%

I enjoy TV adverts Adverts on TV often makeme want the things

advertised

TV ads gives mesomething to talk about

with others

8-21 year olds

Adults

Source: Other lines/TGI

Young people are less ad averse

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Source: Other lines/TGI

36%

22%

14%

26%

17%

35%

I enjoy TV adverts Adverts on TV often makeme want the things

advertised

TV ads gives mesomething to talk about

with others

8-21 year olds

Adults

Young people are almost 3 times more likely to enjoy TV ads than adults and generally accept advertising as part of commercial TV

Out of all adverts mentions almost 80% were from TV

Young people are less ad averse

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5.New technology is good news for TV

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DTR owners watch more telly and more ads

Freeview+ figures = Freeview, Jan 2009. *Total penetration is an estimate based on the assumption that

most Freeview+ boxes will be connected to main, rather than secondary sets. **Screen Digest figures

Digital TV Recorders are now in c. 30% of UK homes*:

4.65m homes subscribe to Sky+ - that’s half of all Sky homesSales of Freeview DTRs have rocketed to 2.3m in total522k households subscribe to V+ from Virgin398k homes have a BT Vision DTR**14k opt for the Tiscali + package**

Around 28% of all DTT set-top boxes sold in the final quarter of 2008 contained DTR capabilities – that’s more than 2 boxes sold every minute

According to the Parks Associates study ‘Entertainment 2.0 in Europe’ (Dec 08), over a third of UK broadband homes own a DTR – making us the most DTR-advanced country in Europe

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…and recall ads even when fast forwarded

According to Duckfoot Research, even when ads are fast forwarded at 30X speed, recall is still around 2/3rds of the level when viewed at normal speed if ad already seen

However this is all free value to advertisers as BARB does not count anything fast-forwarded as an impact

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Death of the 30” spot A Love Story

End of the schedule Schedule builder

Eating into broadcast TV’s informal PR machine

‘Disruptive’ technologies nurture the medium‘Disruptive’ technologies nurture TV…

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64% of people have watched some web TV*

Internet/Broadband TV

IPTV Web TV

Simulcasts, streaming, downloads ( temporary & to own)

Linear and on-demand to TV screens

Closed System Open System

Broadcaster Services

Other Aggregators

Retailer Sites Hosted

On-demand services frombroadcasters also availablevia IPTV platforms

*Source = Me-TV/Work Research November 2008

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56%

24%29%

8% 10%

2%

64%

3% 2% 2%

75%

40%36%

14% 12%9%

69%

5%2% 4%

0%

20%

40%

60%

80%

100%

TV online users Omnibus June 08) TV online users (Oct 08)

Broadcasters are now major players in Web TV

The high reach of broadcaster TV web

services is driven by:

Quality contentLegality

SafetyFamiliarity

Trusted aggregators

Reach

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Broadband and WIFI are liberating usage

43%

23%

33%

16%

6%3%

8%4% 5%

75%

18%

54%

19%

12%

3%

16%

10% 9%

0%

20%

40%

60%

80%

100%

Desktop athome (not

doing anythingelse)

Desktopcomputer

(whilstwatching themain TV set)

Laptop athome (not

doing anythingelse)

Laptop athome (whilstwatching themain TV set)

At home, withthe computerconnected to

the TV

At home, withthe computerconnected toa projector

At work On a mobiletelephone

Other mobiledevice on the

move

Omnibus TV online Users TV online users October study

Home use has increased significantly (laptops & WIFI).TV moving out of the home – taking TV to new domains such as work &

travel.

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Catching up is main motivation for all

TV84%

49%

29% 28%23%

20% 19%16%

66%

49%

33%

27%

33%

19%14%

25%

0%

20%

40%

60%

80%

100%

Watch progsI would

otherwisemiss

Mostlywatch alone

Moreselective

aboutbroadcastTV viewing

IMoreengaged

Experimentmore withTV progs

Watch moreprogs in

entirity andzap less

Watch moreTV than I did

before

WatchprogrammesI would notnormallywatch

Catch-ups Discoverers

78% in Catch-up segment 22% in Discovery segment

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6. TV is the new

Point of Sale medium

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Awareness and URL Further information

Signed up to the dealSigned up to the deal

Purchased product

Purchased product

Inspires purchase Find product Compare prices

Bought the car

Bought the car

Engaging TV advert Explore spec

TV starting the journey to online search/purchaseTV starting the journey to online search/purchase

Purchased product

Purchased product

Sparked an idea for a gift

Searched for new mascara product on programme’s website

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Tells you about a new brand you’ve never heard of before

Sparks interest in a brand

Gives you new information about a brand you have heard of

Persuades you to try a brand/product

Talked about with someone else

Helps you decide which brands are relevant to you

Makes you re-evaluate a brand

Gives you enough information to make purchase decision

Makes you like a brand

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58

58

43

35

50

41

41

33

% Agree

74

74

72

59

58

57

50

46

46

+6%

+16%

+14%

+16%

+7%

+23%

+9%

+5%

+13%

Net difference (% points)

Online adsOnline ads TV adsTV ads

TV ads work best at the start of the consumer journeyTV ads work best at the start of the consumer journey

Base : All adults (3,011 weighted); Q36a/b

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TV & online ads can trigger purchaseTV & online ads can trigger purchase

Looked in shop for brand

Remembered brand when considering buying

Visited brand’s website to find out more

Talked to someone about brand

Used comparison/review site

Searched net for where to buy brand

Bought brand online

Immediately searched net for more information

Searched for competitors

Blogs and forums to discuss

19

18

23

14

19

19

14

16

11

4

% agree they have responded to ads in this way

+22%

+19%

+13%

+18%

+9%

+9%

+7%

+4%

+2%

+0%

Net difference (% points)

41

37

36

32

28

28

21

20

13

4

Online adsOnline ads TV adsTV ads

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Base : All adults (3,011 weighted) Q5 / Those using both together (1,934 weighted) Q6a

Half of digitally advanced group now use together daily

143

36

47

Internet usage is genuinely during TV programmes

This is second only to eating, for activities whilst TV is on

More online chat, music, games, sports: relaxed usage

TV and internet together enables instant response

“I sit with it (laptop) on my knee, all night sometimes… watching TV and messing around online”(Pre-family male)

No At least once a day

At least once a week

Less often

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7. TV is the most

talked about medium

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TV is the 3rd most talked about subject

Which of these things you talk about with other people?

Source TOM Q1 Base: UK adults aged 16+ Jan – Dec 2008 (2,426)

36

36

27

26

26

25

19

19

17

15

14

13

Family and friends

Cost of living

Television programmes

Crime, law and order

Sport

Bringing up children

Work

You and your family's health

Education and schools

The present government

NHS and welfare services

Clothing and fashions

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Mostly alone, 29

Mostly with 1-2 other people, 7

Mostly with 3+ other people, 1

Mixed viewers, 29

Mostly with partner, 33

Source: Holden Pearmain Quant Study 2007

70% shared viewing promotes conversations

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TV programmes and ads fuel UGC

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Online catches and extends the talk about TV

Susan Boyle: over 11 million viewers on ITV1 on 11th April 2009 and since by over 150 million people worldwide

TV programme fan-groups are bigonline eg X-factor group= 200,000+ andSkins group = 550,000+

Numerous TV ad-related groups on Facebook eg Alexandr the meerkat has 350,000 Facebook fans

Online conversations (eg Twitter, MSN) encourage live TV viewing

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1. TV is the best profit generator

2. TV hardwires brand memories

3. We watch 1 hour more commercial TV every week

4. TV is the dominant youth medium

5. TV technologies are good news for TV

6. TV is the point of sale medium

7. TV is the most talked about medium