Nick North - Convergence – the impact of the internet on television

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  • ProliferationThe socialisation of TVData DataDataThree strategies for TV businessDon’t panicExploit the digital potentialDe-regulate to competeStrategies for audience trackingFollow the content – cross platform measurementBeyond exposure – the measurement of TV’s ROIUnderstanding media brand impact
  • … of screens – … of content across platforms, locations and time – TV is everywhere: expected 90% of mobile traffic will be video by 2013.… of channels OTT distribution via IP… of touchpoints From 3 to 300 to 3 million channelsIP strengthens our bond with TVAdditive (out of home viewing, pvr viewing up, etc)
  • Recommendation and discovery creating new audiences, new revenue streams Connected TVs and virtual connections via second screen will work because they give control, participation, sharing, commentaryCollaboration.WatchingInteractingRecommendingSharingCommentingChatting
  • Our latest results, in partnership with Deloitte, indicate that in a broadband market such as the UK, nearly half of all adults will browse the web while watching tv.
  • Television has the power to bring people together. Now without spatial constraints.Connected TVs, facebook connect, and the mobile or tablet as social TV remote controller make this easier. Socialised TV enriches the user experience, builds live “event TV”Content owners can encourage and benefit from socialised TV: building audiences, extending reach, creating new revenue streams and building brands.
  • Familiar with classic sci-fi tv/radio/book?TV is a super-medium, driving content creation, setting the agenda for other media. Magazines, book sales, recorded music, social media conversations
  • Over 60% SEE tv as the ad format with the greatest impact on the (highlighting, persuading, influencing)The growth in viewing in 2009-10 was double the total number of hours on social networks.In our latest study, TV drives purchase, third only to in-store promotion and recommendation.Fueling the drive to live: points to new business models…
  • Summary:Producers need to make more money from new distribution platforms. New models are emerging for payment for content, micropayments for TV, . We see more money going into ‘contextual advertising’ (product placement, advertiser funded programming). We talk about behavioural targeting in a bit
  • Producers need to make more money from new distribution platforms. New models are emerging for payment for content, micropayments for TV, . We see more money going into ‘contextual advertising’ (product placement, advertiser funded programming). A multiplicity of business models requires a multiplicity of measurements.We talk about behavioural targeting in a bit
  • What is TV? Audience interaction extends beyond the viewing event - and presents a new measurement horizon for GfK and our clientsA multiplicity of business models requires a multiplicity of measurements.
  • What is TV? Audience interaction extends beyond the viewing event - and presents a new measurement horizon for GfK and our clientsA multiplicity of business models requires a multiplicity of measurements.
  • That TV in a digital world can increase its power as an effective advertising medium.The internet unlocks additional value in TV content, and will contribute to TV’s continued growth
  • Nick North - Convergence – the impact of the internet on television

    1. 1. Convergence<br />The impact of the internet on television<br />Television as BusinessSeptember 15th 2011<br />Nick North<br />Chief Marketing Officer<br />GfK Media<br />nick.north@gfk.com<br />
    2. 2. GfK<br />Our clients need to make decisionsKnowledge is the basis for decision-making<br />GfK Media mission<br /><ul><li>To provide clients with reliable, accurate and sound information about the usage of different media as well as user‘s attitudes, preferences and acceptance
    3. 3. A commitment to the highest quality standards of any media measurement
    4. 4. To deliver state of the art media intelligence solutions (research methods, software, hardware) across converging technologies and data sources
    5. 5. With more than 25 years‘ experience at the forefront of electronic media measurement
    6. 6. A partner of choice for the digital future</li></li></ul><li>Agenda<br />
    7. 7. Digital Trend Proliferation…<br />… of screens to watch and control TV<br />… of TV content across platforms, locations and time <br />… of channels from 3 to 300 to 3 million<br />… of touchpoints with TV content<br />… strengthens our bond with television<br />
    8. 8. Digital Trend Socialisation of Television<br />How social media contribute to programme success:<br /><ul><li>The ‘Drive to Live’
    9. 9. Recommendation and discovery
    10. 10. Connected television, connected audiences</li></li></ul><li>1/4 of the online community chat to one another via an online device whilst watching the Eurovision Song Contest<br />Yes – 24.1%<br />No – 75.9%<br />Yes amongst 16-34’s – 39%<br />Did you chat to/interact with your friends/ family using a device (such as a mobile, computer ) when watching the Eurovision song contest on Saturday night?<br />GfK on behalf of BBC: May 2011 – (Base all who watched ESC – All 857, 16-34 358)<br />
    11. 11. Facebook is the 2nd most used source to chat whilst watching a television programme for 16-34s<br />%<br />GfK UK on behalf of ITV: 23-29th March 2011 – Base: all who chat online <br />txt<br />Which if any of the following do you do when chatting to friends/family via electronic devices whilst watching TV programmes?<br />
    12. 12. Digital Trend Data Data Everywhere<br />Return path data<br />Web analytics data<br />Mobile transaction data<br />Geo-location data<br />Viewer interactions<br />Blogs, forums, social media conversations<br />
    13. 13. Digital TV Strategy<br />
    14. 14. Digital TV Strategy<br />The future of television, ever in doubt…<br />“Television won’t last. It’s a flash in the pan.” 1948<br />“Pretty soon, they will have a video cassette that will record all year long” 1982<br />“The Internet is about to kill TV” 2006 <br />“Tivo? It's theft…. Any time you skip a commercial... you're actually stealing the programming.” 2006<br />“The death of the 30-second TV commercial” 2007<br />“The era of appointment television is ending” 2007<br />“Brands must communicate via social media to survive” 2009<br />
    15. 15. Digital TV Strategy<br />The future of television… never stronger<br />The VCR, now recognised as the saviour of the movie studios, also led to higher volumes of TV viewing<br />TV viewing globally has increased year on year since 2006.<br />TiVo & the PVR have led to higher volumes of TV viewing<br />TV’s share of all advertising continues to grow in most markets. TV continues to be the most effective brand building medium, with the greatest impact<br />UK viewers spend 35 times more time watching TV than on social networks <br />Social media fuel the “drive to live”<br />
    16. 16. Digital TV Strategy<br />The most successful technologies for delivering video content to consumers have… <br />…first been seen as threats<br />…have increased television viewing<br />Opportunities<br />VCR<br />PVR<br />Streaming<br />Social media<br />Threats<br />
    17. 17. Digital TV StrategyExploit the potential of digital<br />Access data traces – online, mobile and digital TV (return path) – and follow the content to…<br /><ul><li>Create new revenue streams
    18. 18. Develop targeted advertising sales models
    19. 19. Drive content discovery, increase audience size
    20. 20. Amplify consumer engagement with TV, strengthen ROI</li></li></ul><li>Digital TV StrategyNew business models<br /><ul><li>Micropayments
    21. 21. Freemium
    22. 22. Cross platform subscriptions
    23. 23. Beyond national borders
    24. 24. Contextual advertising
    25. 25. Behavioural advertising
    26. 26. Direct response TV</li></ul>www.wired.com/.../epicenter/2011/01/nytimes.jpg<br />
    27. 27. Digital TV StrategyContent discovery and curation<br /><ul><li>Empower the viewer to access content across platforms
    28. 28. VOD 3rd most popular channelon a digital platform
    29. 29. Over 50% of programme searchesare for niche programmes
    30. 30. 60% of Netflix rentals are driven by its recommendation engine
    31. 31. Use viewing histories to optimise viewing choice: “viewers who liked that also liked this…”</li></ul>Copyright TV Genius<br />
    32. 32. Digital TV StrategyAmplify engagement<br /> “We want TV to deliver more than eyeballs. We want it to generate, among other things, greater involvement with consumers…<br /> We'd argue that shows with high "viewer advocacy" provide enhanced platforms for brands that want to create more buzz. …<br /> The more participation in a show the better, whether it's interacting with content online, voting for contestants or discussing it with friends. We have seen strong evidence where tweeting a show has amplified it…”<br />Antony Young, CEO Optimedia US, Ad Age May 2011<br />
    33. 33. Digital TV StrategyDe-regulate to compete<br /> To compete in future with the internet and mobile marketing channels, the TV industry will benefit from looser regulation and the freedom to <br />develop and implement new business models <br />to maximise core revenues from advertisers<br />
    34. 34. Audience TrackingThe Challenges<br /><ul><li>Measurement of media brand engagement and ROI
    35. 35. Follow the content – cross platform measurement
    36. 36. Meet the changing business needs - from audience measurement to Customer Relationship Management</li></li></ul><li>Audience TrackingMedia brand engagement – The X Factor<br />Word of mouth<br />Total reach to adults<br />70%<br />Total: 61% (29.3m)<br />Other traditional media – radio, print, other websites, read about on social media sites<br />60%<br />Other online / mobile – X Factor site; Fan page on Facebook; followed on Twitter; saw X Factor ad campaign<br />50%<br />1.8% (0.9m) <br />Extending the relationship with the property (7.9m)<br />9.4% (4.5m) <br />40%<br />5.2% (2.5m)<br />Non-BARB viewing – watched online and mobile clips, catch-up on ITV.com; watched clip on YouTube<br />5.2% (2.5m)<br />30%<br />Extending the viewing window (0.9m)<br />1.8% (0.9m)<br />Total BARB viewing<br />(20.5m)<br />20%<br />37% (18m) <br />Other BARB viewing (PVR, +1, ITV2) <br />10%<br />ITV1 Live<br />Source: BARB and ITV Vision Panel X Factor<br />
    37. 37. Audience TrackingMeasuring TV content across platforms, location and time<br />GfK UMS<br />A fully integrated user-centric system to measure viewing of TV content<br /><ul><li>Measurement of digital TV across platform
    38. 38. Time-shift
    39. 39. Connected TV-usage
    40. 40. Streaming, IPTV, VOD, PCTV
    41. 41. Illuminating the connections between web and TV
    42. 42. An integrated, hybrid system
    43. 43. Delivering a future-proof deeper understanding of audience behaviour</li></li></ul><li>Audience TrackingCreating value from dataClient need<br />Trading currency<br />Data sources<br />Measure ROI<br />Increase ARPU<br />Cross-media reach<br />Enrich content discovery<br />
    44. 44. Thank you<br />Television as BusinessSeptember 15th 2011<br />Nick North<br />Chief Marketing Officer<br />GfK Media<br />nick.north@gfk.com<br />

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