TV Commercials still rule in much of Asia - How effective is yours?


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1. TV Advertising spend in Vietnam is still growing.

2. Spend on TV Advertising dominates all advertising in Vietnam, and is higher than the regional average.

3. Much TV spend though is wasted through failing to advertise the brand and failing to make a connection.

4. AdTraction shows you how well you are making the connection.

5. Use AdTraction to make sure you are getting ROI!

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  • Thank you to organisers for the invitation to attend. Thank you to distinguished guests for sparing your time to listen. TV Advertising spend in Vietnam is approaching $650 million this year TV Advertising is the dominant medium for advertising here. People must be believing that it is effective. My presentation today will raise some issues we have observed and some potential solutions.
  • Firstly, as I’m in market research, I’d like to do a bit of research on this audience! How many of you work for a company that has advertised on TV in the past year? And how many of you are working in a Marketing function? I think this presentation is going to be very pertinent to you.
  • And how many of you are working in cost-control, budget-control, or some sort of procurement/finance function? I think this is going to be very relevant to you to as we’ll be talking about how effective, or perhaps ineffective, TV advertising can be – and that of course is a big cost for many companies that perhaps needs to have financial oversight of.
  • TV advertising spend is approaching $650m this year. It has been constantly growing over the years and is projected to grow further in the future. Significant sums of money are being spent on this medium.
  • Not only are significant sums being spent, TV ad spend actually dominates all ad spend – far more then print, digital, and out-of-home. 76% of all media spend is going on TV. Clearly, the marketing community of Vietnam believes TV to be the key channel with which to reach consumers.
  • This proportion is actually higher than the Asian average, 76% versus 41%. So the marketing community here is clearly indicating that this is the best method to reach consumers. There are a number of hypotheses for why it is so concentrated in Vietnam. Firstly, other channels are not that well developed yet – for example there’s no heritage of radio advertising and digital is only really beginning to take off. Secondly though, some commentators, even in Vietnam, have suggested that the marketing community here is not yet sufficiently experienced to handle “integrated campaigns” very effectively – i.e. managing campaigns across multiple media. Whatever the reason for it, it is clear from the spend figures that when people think “marketing” they’re also thinking “TV”.
  • $650m is a lot of money, TV dominates other media, and it is a really high focus on TV in Vietnam compared to Asia; so the marketing community here must really believe that advertising on TV is really worth it, right?
  • Certainly, TV advertising has many advantages. It has huge reach. It can be very engaging to consumers. And it is a great platform to showcase your brand/product/service. Both in Vietnam and internationally, TV advertising has triggered billions of dollars of sales.
  • Another bit of research then; how many of you are planning a TV campaign over Tet 2014? The Tet period is one with a big uplift on sales for many categories and sectors, so many companies do launch campaigns at this time.
  • So let’s think back to Tet 2013 earlier this year. How many new TVCs do you think were launched in January 13 just before Tet started in February? Hands up for those who think 1-10, 11-20, 21-30 etc.
  • Well, I can reveal that there was a lot of activity. Let’s look at this first bar. 01-13 = January ‘13. And 30s = 30 Seconds. The “30 Second” TVC in Vietnam is the “standard” TVC length. As you can see, 72 new 30 second TVCs were launched in Jan ‘13! Now let’s look at the next one; “All” = all variations. Sometimes a 30s TVC is cut down to 5 second, 10 second, or 15 second smaller versions. Or sometimes there are extended versions that last for 1 minute. If we look at all variations then 216x TVC executions were launched. But many companies start advertising 2 months before Tet. We can see that in December 2012 (12-12) there were 90x 30second TVCs launched. And 237x variations; many of which would have continued into January. So people are being exposed to a lot of communications before Tet.
  • When you look at All variations, consumers were exposed to 615x variations.
  • But even if you just focus on the core 30s executions, that’s still 162 different and new pieces of communciation launched for the consumer to try and absorb!
  • And how does this look for the consumer? Well, on the left is a grid that represents what 615x executions looks like. Each little square represents 1x TVC. And on the right is a grid that represents what all of the 160+ executions look. Of course, some companies will spend a lot more – e.g. Unilever, and maybe their TVC has 4x squares. But the principle I’m focusing on here is that “all things being equal” these little squares represent all of the messaging that consumers will get. The yellow square represents your TVC! Just one little square amongst all the others. But hey, it doesn’t look so bad. If all of the other TVCs were blue and yours is yellow, then there’s a good chance that your TVC will be remembered. Unfortunately that is not a realistic view – even if that seems to be the view that most marketing teams have.
  • This is more like the reality – lots of communications done in many different ways. Can you see your “Solid Yellow” TVC now? Where is it? OK, here are some arrows to point it out to you. Yep – your TVC is hard to find and remember versus all of the other communications that are out there.
  • Advertising on TV can be powerful. But because it is powerful, many companies want to utilise it. Consequently, your TVC has to compete against all of the “clutter”.
  • One frequent problem of TVCs is that they don’t advertise the brand, they just advertise the category. That is, the TVC seems to just talk about shampoo or soft-drinks, but it could represent any brand at all. Let me show you a TVC for Dove Men that was launched in South America. That was good, a fun TVC.
  • That was actually an example of a good TVC, not a bad one – it was very effective. But the reason it was effective was because it made the funny and comedic use of “shampoo TVC cliche” – the “hair swoosh”. You know from your own experience that pretty much every shampoo brand for ladies has used the “hair swoosh” at some point. And because so many brands use the “hair swoosh” it does not represent any brand in particular – it is just shampoo. In most “hair swoosh” TVCs you can change the brand for any other brand! It just advertises shampoo. People don’t even remember what the brand was being advertised – they just remember that they need to buy some more shampoo! This means that they might not buy your shampoo even though you were doing the advertising; they might buy their usual shampoo or, often, just revert to the market leader. Can you think of other “category” TVCs? Yes – carbonated soft drink often just have young people dancing around – could be for any brand. Yes – for instant noodle TVCs you often just have a picture of a happy housewife with a happy family – it just makes people want to eat noodles, not necessarily your noodles! This means you are spending on advertising but you are not getting the return!
  • We have tested over 350 TVCs using our methodology AdTraction And a subjective review of these has shown that in our opinion, roughly 2/3 of advertising is really just “category advertising” and not “brand advertising”.The implication of this is that 2/3 of advertising spend in Vietnam is wasted, perhaps about $430million dollars is being poured down the toilet! If you are working in Finance or Cost Control – this figure should be getting you worried!
  • Now I would like to show you a couple of TVCs. They aren’t the best, they aren’t the worst – but they are useful for showing you different types of advertising. The first is from G-Mobile. (Play Clip).
  • And now this one from Vietnamobile.
  • So what’s your feeling about these TVCs? Perhaps you subscribe to Viettel or Mobifone and you are very happy. But let’s imagine these were the only two networks in Vietnam and you had to choose one. There’s no right or wrong choice, everyone has a different opinion. But in this audience today, what is the consensus? Can you raise your hand if you would like G-Mobile? Can you raise your hand if you would like Vietnamobile? NOTE TO SPEAKER: In the audiences we have tried this on so far, it always has been in Vietnamobile’s favour, i.e. More people support Vietnamobile. That’s right, it seems that you guys seem to lean towards Vietnamobile.
  • G-mobile is a bit difficult to follow; lots of jumping around; indeed it has a voice-over throughout. In fact you know there’s a problem if a TVC has a voice-over because it means that they were not communicating visually so they had to actually speak their story – but this is not radio! You should be able to communicate your story with images.Vietnamobile on the other hand was clear, amusing, and engaging. Indeed, even though they were promoting a “functional benefit” (the long talk-time feature) they communicated in quite an emotionally engaging way with a funny story.
  • And that’s what effective TV advertising does – it makes emotional connections with its audience through being engaging. Here’s another example but on a personal level. My wife’s favourite flower is the “sunflower”. She likes roses, but she prefers the happy yellow colour of sunflowers. So at Valentine’s Day the tradition is to buy roses for the one you love. And yes, I could go out and buy a big bouquet of roses for $25 – that’s what everyone is doing. Or, I could spend $10 on a few stems of sunflowers. My wife is actually much happier to receive the sunflowers because it shows that I was really thinking of her – I could buy roses for any woman, but by buying sunflowers it shows that I really care about what makes her most happy. I make a much better connection with her because i have found out what makes her happy and special. And it makes me happy too because I only have to spend $10 and not $25!That is what marketing is about. It is not how big your advertising spend is – no consumer cares about how much you spend on advertising. The only thing the consumer cares about is whether or not you are making a connection with them. In fact, you can get away with spending much less if you can get the connection. The reality is, like for like spending on TVCs, a TVC that makes a connection and engaging will deliver more ROI.
  • And now we can measure this engagement. With new technology we are able to watch consumers whilst they watch the TVCs. With sophisticated measurements we are able to determine how they are feeling whilst they are watching. Today is not about going into detail of how this works, but I can say that we have tested over 100 TVCs using this method and we have found it to be very effective at understanding how people are feeling when they watch and how engaged they are.
  • So let’s look at the G-Mobile TVC again – but this time with our emotional engagement analysis. (Note to Speaker: In presentation mode, click on the G-mobile logo. This will take you to the video player that reveals the emotional connections. It is a good idea before the start of your presentation to test this. It needs a wifi/cable connection to the internet. And if you test it beforehand it will go into the memory cache of your computer and will play back faster). Let me pause it for a second to explain what you are seeing. In the background the TVC will play. On the X-axis is the seconds. On the Y-axis is the measurement of engagement – the scale can run up to 100%. On the dashboard here, I can select which emotion – I am selecting Happiness right now – but could choose Sadness (Disappointment) or Anger (Irritation) etc. I can also choose who to look at – e.g. Male versus female. OK – let’s play it. As you can see the happiness does not really go anywhere – up to about 10%. This is actually a very low score, a poor performer. Now let’s look at Anger – which is like irritation. Wow, you can see that amongst Men (blue line) it goes up to 40%! It seems that this TVC is 4x more irritating than it is positive! Was it really worth media spend to irritate your audience?! Probably not.
  • Now let’s look at Vietnamobile. (Speaker: In presentation mode, click on the logo, it should take you to the video player). You can see the Happiness score here just keeps going up, especially for women! I guess women really liked the idea behind the story of being able to talk for a long time! It isn’t so high for men – perhaps they didn’t like the idea of women being able to talk for so long! But even amongst men, the scores were still higher than for G-mobile.
  • Speaker: In case the video player does not work, you can refer to these charts. If the player did work, it just serves to re-iterate the key points. Happiness only rises to about 10%, but Irritation rises to over 40% amongst men!
  • And amongst Women at least, the Happiness score for Vietnamobile takes off to nearly 60%. We can see now why you as an audience and also why the respondents we tested this with felt more positive towards Vietnamobile – it is much better able to connect. And whether you are in marketing or whether you are in a finance function, before you go and spend $500,000 on your media plan – it is probably a very good idea to check whether or not your TVC is going to make the right kind of connection with your audience. Else you could just waste your whole budget!
  • In summary then. TVCs that are emotionally engaging will “win” for you. They create cut-through – which is important if you want to stand out amongst all the other hundreds of executions that people will see. They are memorable and build affinity – which is important for the connections. Emotional connections are really the extent to which the audience becomes “involved” in your TVC. A return on involvement is your return on investment.
  • That emotional campaigns are more successful than just functional one is fact not fiction. The Institute of Practitioners in Advertising (IPA) is the UK’s organisation for people who work in advertising. This is a prestigious group and has some of the toughest “effectiveness” standards anywhere in the world. They have conducted a study of 880 TVCs over the past 20 years in the UK. They didn’t just look at consumer response, they also explored company growth, profitability, and other bottom line measures. They found that companies that focused on emotionally-based communications grew faster and much more profitably than companies that focused on functional benefits.
  • Advertising on TV can have powerful effects. And yes, the size of your media spend does have an impact. But for any given budget, it is the content that will give you a return on investment. You need to make sure you are advertising your brand – and not just the category. You need to make sure you are making an emotional connection. $650m is a lot of money – try and spend it wisely!
  • It is always good to end a session with some action points. If you work in Marketing, then on Monday, have a look at your past or planned TVCs. Ask yourself why you think your TVC will stand out from the clutter, why you think it is making a connection. If you think you might have a problem – please do contact me, I might be able to help. If you work in Finance or some sort of budget control function, well, perhaps on Monday you ought to visit your Marketing Team and ask them those same questions. Why do they think their TVC is going to deliver ROI. If you think you might have a problem – then please do contact me, I can try and help!Thanks very much for listening.
  • TV Commercials still rule in much of Asia - How effective is yours?

    1. 1. $650 million can’t be wrong... ...or can it?!
    2. 2. How many of you work for a company that has advertised on TV in the past year? 2
    3. 3. How many of you work in costcontrol, procurement, o r finance function? 3
    4. 4. Approaching $650 million in 2013... Vietnam TV Ad Spend (USD Million) 800 700 600 500 400 300 200 100 0 2008 Source: IMF/Media Partners Asia 2009 2010 2011 2012 2013* 2014* * Estimated 4
    5. 5. Advertising is dominated by TV... Vietnam Ad Spend by Medium (%) 76 2012 0% 20% 40% TV Print OOH Online Radio 13 6 60% 80% 100% Source: IMF/Media Partners Asia 5
    6. 6. Disproportionately high relative to the region... % TV of Total Advertising Spend 80 70 60 50 40 76 30 41 20 10 0 Vietnam Asia Source: Do Kim Dung, Deputy Chair of the Vietnam Advertisement Association, quoted in 6
    7. 7. So TV advertising spend must really be worth it, right? 7
    8. 8. In theory, TV certainly has some major advantages...  Huge reach  Engagement  “Showcase” platform Undoubtedly, billions of dollars of sales have been triggered by TV advertising. 8
    9. 9. Are any of you planning a TV campaign for Tết 2014? 9
    10. 10. How many new TVCs were launched in Jan „13 before Tết? 1-10 11-20 21-30 31-40 41-50 51-60 61-70 70+ 10
    11. 11. Pre-Tết 2013 communication exposure was big! New TVCs in Dec „12 & Jan „13 0 01-13 30s 50 100 12-12 All 200 250 72 01-13 All 12-12 30s 150 01-13 30s 01-13 All 12-12 30s 12-12 All 216 90 237 Note: “30s”=30 seconds (standard format in Vietnam); “All”= 5, 10, 15, and >30 second formats/variations. 11
    12. 12. 12
    13. 13. 13
    14. 14. So how does this appear for the consumer? All 30 Second 14
    15. 15. Or more realistically... ...can you find your “Solid Yellow” TVC? All 30 Second 15
    16. 16. The big issue with TV advertising is the “clutter”! 16
    17. 17. Many TVCs don‟t even effectively advertise the brand... ...they only advertise the category Example: 17
    18. 18. People only remember the category & not the brand...  The Dove Men TVC is actually very, very good.  But it works because it makes fun of other shampoo TVCs.  Many shampoo TVCs have the “flowing hair”. It is a “cliché”.  The brands in such cliché TVCs are almost interchangeable – the brand has no connection with the story.  People only remember “shampoo” and not Brand X. This benefits the Market Leader But means your Ad Spend has been wasted 18
    19. 19. We have tested over 350 TVCs with 2/3 Advertise the category $429,000,000 wasted TVC spend in Vietnam? 19
    20. 20. TVC can be viewed at: 20
    21. 21. TVC can be viewed at: 21
    22. 22. What‟s your feeling? 22
    23. 23. Which TVCs are making the most impact?     Jumping around – viewer can‟t focus on anything! Voice over – this is a TVC not a radio ad! Trying to appear youthful – but not really conveying anything Unlikely to be remembered – just generic     Clear story Amusing Engaging Point well made – positive impression of brand 23
    24. 24. An effective TVC is all about making an emotional connection... 24
    25. 25. And this is now possible to measure with Show the TV ad happiness surprise Watch the viewer fear anger Decode micro movements disgust sadness 25
    26. 26. Let‟s look at this again – but with EMOTION! 26
    27. 27. Let‟s look at this again – but with EMOTION! 27
    28. 28.  “Happiness” peaks at about 10% - a very low score!  “Anger/Irritation” amongst Men (blue line) peaks at over 40%!  The G-Mobile TVC therefore is actually more irritating than it is good 40% 10% Happiness Anger/Irritation 28
    29. 29. For Vietnamobile, a real connection is made! 60%  “Happiness” peaks at 60% for women!  It really connects with women.  But even amongst Men (Blue line) the score hits peaks of 20% - which is still much better than G-Mobile. Happiness 29
    30. 30. TVCs that are emotionally engaging “win” for you...  Cut Through – you get heard! (over 3000 TVCs in past 2 years!)  Memorable – stay in people‟s minds long after campaign is over  Affinity – unlock the connection between your brand and purchasing  Brand Building – build the brand for longer term equity Return On Involvement yields Return on Investment 30
    31. 31. This is fact, not fiction! “The most effective [profit & growth] campaigns are those that rely primarily on emotional rather than rational models.” “Emotionally based campaigns are not only likely to produce very large business effects but also produce more of them, outperforming rational campaigns on every single business measure.”     “Marketing in the Era of Accountability” by Les Binet & Peter Field 880 TVCs assessed from past 20 years Institute of Practitioners in Advertising (IPA) 31
    32. 32. Advertising on TV can have powerful effects...  Size of your media spend does have an impact.  But for any given budget, it is the content that will give you the Return On Investment. Make sure you advertise your brand (and not just the category). Make sure you are making an emotional connection. $650 million is a lot of money. Spend it wisely!!! 32
    33. 33. Action Points:  If you work in Marketing, on Monday:  Review your past/planned TVCs.  Why do you think your TVC will stand out from the clutter?  Why do you think your TVC is going to make a connection?  If you think you might have a problem:  If you work in Finance/Procurement/Cost-Control then on Monday, ask your Marketing Team:  Why do you think your TVC will stand out from the clutter?  Why do you think your TVC is going to make a connection?  Why do you think your TVC will deliver ROI?  If you think you might have a problem: 33
    34. 34. Cimigo for Brand Value And for stronger consumer engagement & intelligence. @cimigovietnam 34
    35. 35. We look forward to talking with you. The Voice of the Customer