Biggest Lies about TV Advertising by Augustine Fou

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Brand advertisers should take a fresh hard look at TV advertising and hold it up to the same, high standards of measurability and ROI as digital; and they should be sure to synergize TV (pitching) and digital (catching).

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Biggest Lies about TV Advertising by Augustine Fou

  1. 1. Biggest LIES of TV Advertising Dr. Augustine Fou http://linkedin.com/in/augustinefou Marketing Science Consulting Group, Inc.May 1, 2012 1
  2. 2. Executive Summary • The old ad-land joke about “wasting 50% of my ad dollars” has gone on long enough; brand advertisers should take a hard look at TV and hold it to the same, high standards of measurability and ROI as digital. • TV advertising may continue to be used as long as it is part of an overall Unified Marketing™ approach AND only if the main marketing problem is lack of awareness. • This deck will debunk the most frequently told lies about TV advertising and propose steps to unifying and synergizing TV and digital marketing, including budget reallocation. Further reading: TV Advertising Still Works, … NOT!May 1, 2012 2
  3. 3. TV Advertising Used to WorkMay 1, 2012 3
  4. 4. Selling Tide TV was great at making a lot of people aware of Tide … …by raising awareness where there was none, TV drove sales.May 1, 2012 4
  5. 5. But, today, lack of awareness is not problem… … but the same blunt instrument is still used for everything.May 1, 2012 5
  6. 6. We’ve known for a long time “I know I‟m wasting 50% of my ad dollars; I just don‟t know which half...” - John WanamakerMay 1, 2012 6
  7. 7. We know it’s bad for us … smoker’s lungs brain on drugs … and yet we continue to do it.May 1, 2012 7
  8. 8. Busting the LIESMay 1, 2012 8
  9. 9. “TV’s got amazing reach..” “Using Nielsen reported numbers you get: 146.5 hours per individual (age 2+) x 285 million individuals (age 2+) that watch TV = 41.8 Billion hours of TV watching; of which roughly 25% of the time is TV ads or 10.4 Billion hours of total time with TV ads, equivalent to some 1.2 Trillion 30 second commercials per month).”May 1, 2012 … but, 9
  10. 10. But, reach is irrelevant if… Nielsen (Dec 2010) estimates 44% of ads are not skipped – i.e. 56% of ads ARE SKIPPED IPG/YuMe (May 2011) study found 63% of TV ads are avoided or simply ignored. … no one saw the ads.May 1, 2012 10
  11. 11. “People watch a LOT of TV” Source: Nielsen Feb 2012May 1, 2012 … but, 11
  12. 12. But, having the TV on… Activity Engagement While TV is On Surf the Internet on computer 56% Read a book, magazine, newspaper 44% Go on social networking site 40% Text on mobile phone 37% Something else (other) 30% Shop online 29% Surf the Internet on mobile phone 18% None (i.e. actually watch TV) 14% Surf the Internet on tablet 7% Read a book on eReader 7% Source: Harris / Adweek June 2011 0 10 20 30 40 50 60 … doesn’t mean they watched the ads.May 1, 2012 12
  13. 13. “TV still beats Internet video”May 1, 2012 Source: Nielsen, Jan 2012 … but, 13
  14. 14. But, TV ad spending has… Source: Kleiner Perkins, May 30, 2012 … already plateaued; others have not .May 1, 2012 14
  15. 15. “It just works, trust us …” … but,May 1, 2012.
  16. 16. But, how do you know it works ... Traditional Digital • TV • Search • Print • Social • Radio • Mobile • Video Metric: Metric: Size of Actions of Audience The Grand Digital Canyon Users … if the metrics only tell you the size of the audience.May 1, 2012.
  17. 17. We’ve won awards for it … but,May 1, 2012.
  18. 18. But, the agency got all … By 2007, per store sales for Burger King fell behind Wendy’s. By 2012, Burger King fell to No. 3 in overall sales. No. 2 … the fame and new biz.May 1, 2012.
  19. 19. People love watching ads… … but,May 1, 2012 19
  20. 20. But, actually they will… Top Reasons for Owning/Using DVR Pause, Rewind, Fast… Recommendations: Get… “I buy a season of Watch TV Shows When… „24‟ on DVD so I Skipping Ads /… can watch 60 min Season Management (1… shows in 41 mins” No Tapes (VCR) 0% 20% 40% 60% 80% 100% Source: Online Poll April 2012 … skip them if they could.May 1, 2012 20
  21. 21. Ads are engaging … Users trust us … TV ads are for branding… … but,May 1, 2012 21
  22. 22. Telling users about an experience … is not the same as experiencing it.May 1, 2012 22
  23. 23. Users trust peers the most…May 1, 2012 … and TV ads the least. 23
  24. 24. TV ads are like … “Homeless Marketing” … because, at best, you get a glance.May 1, 2012 24
  25. 25. The “Fiat500Co” (fiasco) “the jlo ad” “Fiat, who?”May 1, 2012 25
  26. 26. Can you name the company Hint: they are ALL 2012 Superbowl adsMay 1, 2012 …behind these ads? 26
  27. 27. $10 billion of TV ads … 1988: 50.4M barrels 2001: 33.4M barrels 2010: $555 million ad spend 1996 “bud”-”why”-”zer” 1999 “whassssuuuuup?” 2012: 17.7M barrels …could not save Budweiser.May 1, 2012 27
  28. 28. Cost-Benefit Analysis… Television Online Video DVDs 32% ads 1.5% ads 0% ads 68% 98.5% 100% Content: Free Content: Free Content: $40 Time Cost: 19 mins Time Cost: 1.5% Time Cost: 456 ad of ads per 60 mins time spent on ads mins saved (19 mins x 24 episodes) Source: eMarketer Dec 2010 Source: MarketingCharts, April 2012 Source: Google Shopping, May 2012 … what’s your time worth?May 1, 2012 28
  29. 29. Users have evolved … PUSH PULL • Direct marketing People ignore “interruption media” and • Email marketing only pay attention to information they are • Online marketing seeking. (“Purple Cow” by Seth Godin) • Sports marketing • Word of mouth marketing • Guerrilla marketing • Blog marketing • Event marketing • Product placement • In-game marketing • Sponsorships Advertisers push message out Users do their own researchMay 1, 2012 29
  30. 30. Advertisers can no longer… … just shout their ads at people.May 1, 2012 30
  31. 31. Empowered customers… • Research products online • Find information via search • Trust peers most Source: Forrester Research Q3 2010May 1, 2012 31
  32. 32. Paid ads are over … TV Advertising “it’s over after it’s aired” Even Superbowl ads stimulate only fleeting recall – of the top 100 daily Google searches how many were related to Superbowl ads?: • Feb 1: 20 of 100 • Feb 2: 6 of 100 • Feb 3: 1 of 100 • Feb 4: ZERO of 100 (forgotten by day 4) … when the media buy ends.March 29, 2012. 32
  33. 33. Make the Televigital TransitionMay 1, 2012 33
  34. 34. Televigital Transition • Understand your customers’ missing links (most of them may already be aware of your brand); they need other information to take action • More transparency and accountability; count and measure what matters – viewed ads not aired ads • If you must still do the “pitching” via TV ads, be sure to do the “catching” in digital channels when modern users come online to research further.May 1, 2012 34
  35. 35. Next steps • Missing Link analysis – what are the bits of information your customers need to move expeditiously towards the purchase? Further reading: http://mktsci.com/missing-link-marketing.htm • Unified Marketing™ Framework – map your current advertising and marketing tactics to detect redundancies or gaps in spending. Further reading: Unified Marketing http://bit.ly/mQfPXUMay 1, 2012 35
  36. 36. Dr. Augustine Fou – Chief Digital Strategist Dr. Augustine Fou is an advisor on digital strategy and social media marketing, with over 16 years of in-the-trenches, hands-on experience. He provides client executives with objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI with digital insights. Dr. Fou was the former Group Chief Digital Officer of Omnicoms Healthcare Consultancy Group. He is also an Adjunct Professor at NYU in the School for Continuing and Professional Studies and at Rutgers University at the Center for Management Development, where he teaches courses on digital strategy, social media marketing to executives. He is a frequent panelist, moderator, and keynote speaker. Dr. Fou completed his PhD at MIT at the age of 23. He started his career with McKinsey & Company. He writes a monthly column on Integrated Marketing for ClickZ.com, and can be found on Twitter.com @acfou.May 1, 2012 acfou@mktsci.com 36

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