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  1. 1. The Case for TV: <ul><ul><li>TV is as popular as ever </li></ul></ul><ul><ul><li>TV amplifies other media and works across platforms </li></ul></ul><ul><ul><li>TV remains the most effective medium </li></ul></ul><ul><ul><li>TV pays back </li></ul></ul>
  2. 2. TV is as popular as ever! Source: IPA Touchpoints Hub Survey (other media) and BARB for TV – Monthly Reach by Hour Monthly Reach by Hour
  3. 3. TV viewing hours unchanged for 15 years Source: BARB/TNS Infosys – Individuals Average Daily Hours Viewed
  4. 4. TV is constantly on the consumers radar! Source: Television Opinion Monitor Q1-Q2 2007/ Sample – UK adults (1224) Bringing up Children 24% Crime, Law and Order 25% Cost of Living 26% Family and Friends 34% Sport 25% Television Programmes 29%
  5. 5. The DTR has enhanced TV viewing <ul><li>Sky+ homes watch 20 mins more TV per day and 21% more commercial TV than non-Sky+ homes </li></ul><ul><li>Most viewing is still live (88%+) in pvr homes </li></ul><ul><li>Most time-shifting programmes watched on same day as recording </li></ul><ul><li>42% of time-shifted breaks viewed at normal speed </li></ul><ul><li>DTRs increase commercial impacts by 5%! </li></ul><ul><li>Thinkbox 2007 Engagement Study found a much higher concentration on the TV screen when commercials are being Fast forwarded </li></ul>Source: BARB, ACB/LBS and Skyview, Thinkbox
  6. 6. <ul><li>One flat-screen TV sold every six seconds </li></ul><ul><li>Over 3 million sold in 2006 </li></ul><ul><li>Average screen size growing by an inch per year </li></ul><ul><li>45% of new TVs bought in last year cost £500+ </li></ul>Consumers are investing in TV The ‘celebration’ bit...
  7. 7. TV and ad content delivered via the internet Hard disk based on demand and interactive services & advertising EPGs, Sky Active menus Interactive TV services and ads Server based on-demand services and ads Personal Video Recorders (PVRS) Video On Demand (VOD) Internet Protocol TV (IPTV) Interactivity Guides & Interfaces Mobile TV Server, broadcast and download based mobile content services New Functionality Supporting TV Viewing
  8. 8. ITV has the unrivalled ability to create viewer response and engagement Source: BARB/ ITV Consumer/YouTube (Youtube average 647,000 views per video), ITV Interactive Tracker 30 million+ Top 20 video views of George Sampson on YouTube: 4,850+ George Sampson videos on YouTube: 1 million+ Red button interactions: 16.1 million TV ratings for final of Britain’s Got Talent: 1 million Approx. competition entries to win tickets to the shows: 50,000 Approx. applications to enter the show’s auditions:
  9. 9. 0800 On bus read Piers Morgan’s blog via BGT WAP site 0900 Catch-up on latest goss in Friend’s Reunited BGT group 1100 E-mail clips to my friends from 1300 Lunchtime catch-up show on ITV2 1930 Share mobile clip in pub with friends 2100 The show! 2145 Vote via Red Button. Please don’t let Paul go out just yet. 2200 Talent Extra on ITV2 1630 Watch exclusive behind-the-scenes video on 1500 Watch best clips on BGT branded You Tube channel 1800 Receive email newsletter with link to show preview TV content works across many platforms ITV 360° - The Viewer Experience
  10. 10. Engagement with TV Content Online % Done in last 6 months Source: nVision Research – The Future Of TV - Base: All Internet users aged 15+, 2007
  11. 11. The young are still spending more time with TV Source: TV – BARB 01Jan-12Oct08 / Press – TGI Q3 2008 / Radio – RAJAR Q2 2008 / Internet – Comscore Aug 2008 1534 - Daily Minutes Viewed / Visited * Each bar is based on the people viewing, listening or accessing each medium.
  12. 12. … and they are less ad averse % Agree Source: Other Lines/TGI
  13. 13. 15-34s - Daily Reach Source: TV – BARB Weeks 1-41 2008, 3+ mins reach / Press – TGI Q3 2008 / Internet – Comscore Aug 2008 Reach in millions Page
  14. 14. 16-34 viewing has remained consistent… Weekly Reach in Millions Source: BARB/TNS 2003-2008
  15. 15. … and they are switched on for just as long Average Daily Hours Viewed Source: BARB/TNS 2003-2008
  16. 16. TV Amplifies Other Media
  17. 17. The true return of each medium needs to be identified… Source: Mediacom / Thinkbox Event / Example Client
  18. 18. TV can drive consumers online “ You may not believe this but last week I stood in front of a major media agency and 50 or so of their clients and sold TV. I told them that TV & search are highly compatible & that money should be taken from below the line and pushed back into TV alongside (obviously) massive growth in search. This is a common theme of mine as we see huge spikes in query volume following TV exposure both editorial & ads.” Mark Howe, MD Google Media Sales
  19. 19. Media Spend - £ Unique Users – 000’s Source: Comscore and NMR Ad Dynamix TV Spend and Unique Users Relationship
  20. 20. TV is becoming more effective over time The launch of multi-channel is making it easier to reach consumers Average market share gain (% points) where TV is the lead medium Source: IPA - Marketing in the Era of Accountability
  21. 21. TV prices have continued to fall in the last 7 years Real CPT (1985 = 100) Year Base 100 = 1985 Source: IPA - Marketing in the Era of Accountability The rise of multi-channel means more competition making TV more cost efficient
  22. 22. ITV1 prices have continued to fall in recent years Real CPT (2001 = 100)* ITV Costs indexed against 2001 Year Base 100 = 1985 Source: ITV Salesnet, CPTs indexed on 2001 figures
  23. 23. TV Pays Back !
  24. 24. Thinkbox: Payback in the Third Age of Television
  25. 25. The Main Drivers of TV Effectiveness and Value <ul><li>Amplification of Other Media </li></ul><ul><li>Fame and Awareness </li></ul><ul><li>Emotional and Implicit Associations </li></ul><ul><li>Immediate Benefits and Long Term Value </li></ul>
  26. 26. The Power of Emotion and Fame
  27. 28. Case Study : <ul><li>2006 - £45 million advertising campaign </li></ul><ul><li>Food category – exclusively TV </li></ul><ul><li>Every execution outperformed branding and recognition tracking norms </li></ul><ul><li>National stampede on hot chocolate puddings ! </li></ul><ul><li>Food sales up 8.4% </li></ul><ul><li>Halo Effect - UK sales up 9.1% </li></ul>Source: Guardian, Campaign, Marketing, Telegraph, FT Nov-Dec 2007 IPA Grand Prix and Gold Winner 2006
  28. 29. Case Study : <ul><li>Started in August 2007 </li></ul><ul><li>Initially multimedia – then 100% TV </li></ul><ul><li>Youtube received 500,000 page views in the first week ad went on air </li></ul><ul><li>By end November 2007 had been viewed over 6 million times </li></ul><ul><li>Weekly sales up 9% year on year during period on air </li></ul><ul><li>Exceeded revenue growth targets of 4-6% </li></ul>Source: Guardian, Campaign, Marketing, Telegraph, FT Nov-Dec 2007
  29. 30. Case Study: Hovis <ul><li>TV’s longest commercial: </li></ul><ul><li>122 seconds </li></ul><ul><li>Launched in Coronation Street </li></ul><ul><li>3 fold increase in buzz around the brand </li></ul>Source: Media Week 14Oct08
  30. 31. Source: IPA - Marketing in the Era of Accountability Oct 2007 % Brands that shout louder grow faster!
  31. 32. TV enhances campaign efficiency Market share % point gain per 10% point excess share of voice Source: IPA - Marketing in the Era of Accountability
  32. 33. TV leads to greater business successes % Reporting very large business effects over the last 26 years Source: IPA - Marketing in the Era of Accountability
  33. 34. Immediate Benefits and Long Term Value
  34. 35. % Increase in FMCG purchasing within 4 weeks Source: TNS Mediaspan, database of case studies, 1995-2002 On average, TV Advertising generates a 4.4% sales uplift within 4 weeks Avg: 4.4% New brands Established brands For large established brands & staples, % sales growth is much smaller but in £s is significant TV advertising works very well to drive sales of launch brands Brands in high interest categories e.g. Toiletries, Ready meals tend to show higher than average % sales growth
  35. 36. Case Study : <ul><li>December 2007 campaign – 2 weeks ITV1 Wales only </li></ul><ul><li>Budget under £15,000 </li></ul><ul><li>Campaign seen by 1.3 million adults </li></ul><ul><li>Footfall raised by 20% when most Cardiff retailers struggling </li></ul>Source: ITV Wales – December 2007 “ This was the first time we’d been on TV for over 10 years and the help and service we received from ITV throughout the entire process was second to none. We worked with a production company who produced a high quality product at a very good price and the results were fantastic. Although television is a more expensive option it was well worth it .” Mark Nott, General Manager Gloomy Christmas promises miserable new year for retailers
  36. 37. Case Study : <ul><li>£14 million national TV campaign </li></ul><ul><li>Christmas ad featuring Lulu, Denise Van Outen etc </li></ul><ul><li>Strongest Xmas results ever delivered </li></ul><ul><li>Double level of growth than Tesco, Sainsburys, Waitrose </li></ul><ul><li>4 million more shoppers attracted over 6 weeks to 06Jan08 </li></ul><ul><li>Year on year sales up 9.5%, and operating profit up 50% </li></ul>Source: Telegraph, Guardian, IGD Retail Analysis Feb 2008
  37. 38. Low Loyal Consumers respond most to TV Advertising % increase in purchasing in first 4 weeks Source: tvWORKS, Jan01-Dec03, saw at least 1 spot in prior 28 days, loyalty reflects spend on brand as % of spend on category, low loyal = 0-10%, medium loyal = 10-39%, high loyal = 40-100% tvWorks Contribution to Sales Uplift 57% 27% 15%
  38. 39. Low Loyal consumers are most effected by the absence of TV Advertising Sales index Minimum days elapsed since advertising was last seen Source: tvWORKS, 2 years to Jan03, loyalty reflects spend on brand as % of spend on category, low loyal = 0-10%, high loyal = 40-100%, the sales index compares the amount of purchasing of the brand at each point in time to the amount of purchasing at the control
  39. 40. The effects of TV last for a longer term <ul><li>Nearly 45% of TV’s revenue effects are delivered after the year of the investment. </li></ul>Source: PWC/Thinkbox – Payback Study Oct 2007
  40. 41. Thinkbox and PWC analysed long term effectiveness Source: PWC/Thinkbox – Payback Study Oct 2007 Car Insurance Auto x 3* Hair-care Fruit Juices Cereal *lower medium, upper medium, premium exec 706 brands, 10+ years of data, 41 brand surveys, 7 categories (significant spend, various price points) volume, pricing & ad data
  41. 42. Longevity is key to long term value. Most brands are short lived. Source: PWC/Thinkbox – Payback Study Oct 2007 Take the cereal market as an example… born post ’91 & dead pre ‘06 born post ’91 & alive post ‘05 born pre ’91 & dead pre ‘06 born pre ’91 & alive post ‘05 11% 4.1 years 7.2 years 8.9 years 14.5 years Lifespan 49% 25% 15%
  42. 43. Brand value is just as important as longevity Source: PWC/Thinkbox – Payback Study Oct 2007 49p 400m per year 31p 1m per year
  43. 44. TV core medium for nearly all leading brand value owners £m Source: PWC/Thinkbox – Payback Study Oct 2007
  44. 45. TV investment delivers a clear increase in revenue On average a £1m increase in TV investment yields a £4.5m increase in revenue Source: PWC/Thinkbox – Payback Study Oct 2007
  45. 46. TV and ITV1 has clearly helped the Anchor Butter brand to grow… £3.9m £6.5m (+68%) <ul><li>Anchor sales up 14% from £65.6 million to £74.5 million </li></ul><ul><li>Those highly exposed to ITV1 accounted for 90% of the increase in sales value…. </li></ul><ul><li>…spending over a third more on Anchor than those with very little exposure to ITV1 </li></ul>Source: NMR Own Costs and TNS Worldpanel Sales for Anchor BUTTER Brand Set (Highly exposed to ITV1 = would see 90% of any advertising exposures as calculated by weights of viewing by daypart/dayand frequency) Anchor Share of Spend 2007 vs 2008 ITV1 spend up 253%
  46. 47. TV Pays Back! <ul><ul><li>Immediate effects on sales at all stages of a brand’s lifecycle </li></ul></ul><ul><ul><li>4.4% increase in FMCG sales within the first 4 weeks of TV advertising – with 4 more repeat purchases </li></ul></ul><ul><ul><li>Lead medium for most successful brand value owners </li></ul></ul><ul><ul><li>Delivers its value over a much longer time frame (45% after year 1) – which is financially useful </li></ul></ul><ul><ul><li>A £1 million increase in TV investment yields a £4.5 million increase in revenue </li></ul></ul>Source: PWC/Thinkbox – Payback Study Oct 2007 / tvWorks Dec 2003 / IPA Marketing In The Era of Accountability 2007
  47. 48. TV remains central in the lives of consumers and in the success of brands <ul><li>TV still as popular as ever and so drives emotional associations between brands and consumers </li></ul><ul><li>TV amplifies other media works on many platforms </li></ul><ul><li>TV pays back… </li></ul><ul><ul><li>Immediate sales benefits </li></ul></ul><ul><ul><li>Long term brand and shareholder value </li></ul></ul><ul><li>ITV remains the nation’s most popular commercial channel </li></ul>
  48. 49. The Case for Continuous TV Advertising
  49. 50. Consumers are making careful brand choices, staying in more and watching more TV so now is the time to take advantage of, and get an advantage with, TV advertising 41% going to pubs or restaurants less Source: GfK NOP July 2008 38% cutting down on travel plans
  50. 51. Effects of Advertising During Recession Source: Profit Impact of Marketing Strategy, IPA Breakfast Conference 18 Oct 2007, Data2Decisions Share % change in first 2 years of recovery Advertising during recession
  51. 52. People remember advertising… … and people forget advertising 30 20 10 0 250 0 GRPs 1½years Advertising awareness
  52. 53. No TV Advertising for a year produces a 13% decline in Purchasing Minimum days elapsed since advertising was last seen Sales index Source: tvWORKS, 2 years to Jan03, the sales index compares the amount of purchasing of the brand at each point in time to the amount of purchasing at the control (when advertising had been seen in the last 28 days).
  53. 54. The effects of TV last for a longer term <ul><li>Nearly 45% of TV’s revenue effects are delivered after the year of the investment. </li></ul>Source: PWC/Thinkbox – Payback Study Oct 2007
  54. 55. £m TV Helps Maintain Brand Thrust <ul><li>During a recession… </li></ul><ul><li>Build market share at lower cost </li></ul><ul><li>Strong signal of commitment and confidence in brand </li></ul><ul><li>Increased revenue & profit when conditions improve </li></ul><ul><li>Increase/maintain ad spend = maintained shareholder value </li></ul>Source: Paddy Barwise/London Business School, ‘Advertising in a Recession’, 1999.
  55. 56. Appendix – extra charts
  56. 57. Fame Metrics 2006 - Objectives <ul><li>A continuation from the Fame Ratings project of 2005 pioneered by BBH and licensed to ITV </li></ul><ul><li>Statistical analysis of the 110 brands rated in the 2005 Fame Ratings project: </li></ul><ul><ul><ul><li>Market share </li></ul></ul></ul><ul><ul><ul><li>Communications spend </li></ul></ul></ul><ul><ul><ul><li>Purchase frequency </li></ul></ul></ul><ul><li>Test effects of brand fame on profitability and market share </li></ul><ul><li>Explore the roles of different media in driving fame </li></ul><ul><li>3 key industry specialists used: OMD Metrics, PIMS and Pravda </li></ul>
  57. 58. TVWorks Study <ul><li>Single source piece of research covering: </li></ul><ul><ul><li>FMCG purchasing </li></ul></ul><ul><ul><li>TV viewing </li></ul></ul><ul><li>Conducted independently by TNS </li></ul><ul><li>3000 homes nationally </li></ul><ul><li>5 million purchases </li></ul><ul><li>28 FMCG product categories = 243 brands </li></ul><ul><li>3 years of data to December 2003 </li></ul><ul><li>Results analysed in terms of purchase occasions </li></ul>