Mobile Advertising in LatAm; The Myths, The Facts and the Future
7 Killer Facts About Tv Advertising
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Transcript of 7 Killer Facts About Tv Advertising
1. TV is the best profit generator
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
…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
TV
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TV is the most effective generator of brand value
Perfect Correlation = 1
No Correlation (0)
Average correlation, 7 categories 2008
WTP to 2007-2008 media spend
TV investment more strongly associated with current brand values than any other medium
Internet not included because brand level data unavailable
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TV £ Press £ Radio £ Outdoor £ Cinema £
TV is core for nearly all leading brand value owners
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… and used more than twice the sector average of our survey by all the market leaders
£m
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)
2.TV hardwires brand
memories
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
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
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
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
3. An hour more every week
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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Commercial TV viewing continues to grow
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Indivs abc1 adults 16-34s men hwch
2004 2005 2006 2007 2008
Source: BARB/DDS
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Consistent increase in commercial impacts
+15%
+19.1% +17.3%
+6.2%
+8.8%
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
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
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
4.TV is the dominant
youth medium
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
2008 (hrs)
2005 (hrs)
3.37
2.92
1.55
1.25
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1.77
0.40
0.27
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Source: Touchpoints 2005 and 2008 – 15-24s
…and 15-24s’ TV viewing has increased since TP1
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BARB also shows 16-34 increase to commercial TVav
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Source: BARB/TechEdge
+24 mins
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 =
Inner life
Reachingout
Inner life Reaching out
EmotionalCentralHeating
SocialCurrency
Stature&
Legitimacy
Glamour&
Entertainment
TV plays key roles in young peoples’ lives
Sample =
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
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
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
5.New technology is good news for TV
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
…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
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…
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
Recency of viewing is increasing - fast
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last few days last week last month last 3 months last 6 months longer ago
TV online users Omnibus (June 08) TV online users (Oct 08)
In just 4 months, frequency of use amongst respondents rose considerably
Reach
56%
24%29%
8% 10%
2%
64%
3% 2% 2%
75%
40%36%
14% 12%9%
69%
5%2% 4%
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40%
60%
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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
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.
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
6. TV is the new
Point of Sale medium
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
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
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50
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33
% Agree
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72
59
58
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50
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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
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
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18
23
14
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19
14
16
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% 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
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Online adsOnline ads TV adsTV ads
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
7. TV is the most
talked about medium
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
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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
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
TV programmes and ads fuel UGC
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
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