7 Killer facts about TV advertising Over the last few years there’s been a lot of intriguing research into how TV advertising works and why. It’s a big subject, so we thought it would help to collect all this good stuff together, condense it and arrange the headlines and supporting evidence into what we think are the 7 killer facts about TV advertising. This handy, nickable PowerPoint version comes complete with notes and links to further evidence. We think that all of this clearly shows why TV will continue to be absolutely central to the future of advertising. www.thinkbox.tv
There is reams and reams of evidence to demonstrate TV’s unparalleled effectiveness as an advertising medium but here are some key pieces.
TV continues to pay in the longer term, delivering 45% of its value in Years 2 & 3.
The PWC Study also showed that TV is the most effective generator of brand value and what distinguished the brand value leaders in every market we studied was a dominant TV share of voice
The study also revealed TV was the most efficient medium at increasing market share in relation to share of voice
It also showed that TV is getting more effective over time; it has increased its lead over all other media channels in each of the last three decades. In fact, the report concludes “don’t neglect TV. Far from being dead, TV advertising remains one of the most effective and efficient media. New technology and increased competition for viewers may actually be making TV more efficient, not less”
A bit of science behind this fact. TV is typically processed at a low involvement level, which means the content is less critically analysed but this makes it well suited to thematic or brand messages that need to be remembered for the long-term. Information which enters the memory through low involvement processing gets stored directly via the emotional centres of the brain straight to the long-term, implicit memory without any conscious filtering. TV is an incredibly effective way of increasing a set of associations around a brand. It literally hardwires brands into the brain.
Thinkbox’s sponsorship work ( TV sponsorship: a brand’s best friend , with Duckfoot research) showed that the associations linked to the sponsoring brand amongst fans of the programme were strongly related to the associations created by the programme itself http://www.thinkbox.tv/server/show/nav.1036
Thinkbox’s Engagement Study showed that it was ad liking – not recall or brand attribution – that had most relationship with brand perceptions and intention to purchase. This finding reflected the IPA Study conclusion that “it is liking of an ad, not traditional measures like recall or awareness, that is the best indicator of future brand performance” http://www.thinkbox.tv/server/show/nav.854 http://www.thinkbox.tv/server/show/nav.874
Over an hour more every week, that’s how much commercial broadcast TV we watch compared to 10 years ago, according to BARB. And don’t forget that this doesn’t include all the TV BARB doesn’t yet measure, like online or mobile. An hour more is the least we’re watching.
… and commercial viewing has grown consistently for a number of years Inds – 11 mins more per day compared to 10 years ago Abc1s – 11 mins more 16-24s – 1 min more 16-34s – 3 mins more HW CH – 16 mins more
Commercial impacts have consistently risen at an even higher rate, across all of the main demographic segments 2004 vs 2008 % increase Inds – 15% Abc1s – 19.1% 16-24s – 17.8% 16-34s – 6.2% HW CH – 8.8%
Touchpoints 2 (5,000 sample; ½ media usage monitored in real time; all media included) shows people spend far more time watching TV than with any other medium; and that TV has the highest level of increase per user of all media http://www.ipa.co.uk/Content/TouchPoints-Site-Home
Commercial TV fairs even better
And our media time differs little from 2005
If we compare time spent with each medium against their shares of display advertising revenues, TV is significantly undervalued).
No, it isn’t the internet, keen though today’s youth are on it. TV is the medium that young people spend the most time with. MTV and Microsoft research, along with Thinkbox’s own has shown how TV is young people’s favourite activity (along with listening to music) and the IPA’s Touchpoints 2 showed that young adults spend 2-3 times as much time watching television as they spend online
Touchpoints 2 shows that TV accounts for 47% of the media day of 15-24 year olds – compared to 26% for internet and 24% for radio – … http://www.ipa.co.uk/Content/TouchPoints-Site-Home
… and that young people have increased their time spent with TV compared to Touchpoints 1
Supporting Evidence Young people (16-24s OR 16-34s) are increasing their viewing to commercial television
Generation Whatever demonstrates that TV is their favourite activity for relaxing and when they are bored. Playing a DVD is their favourite activity when they are hanging out with friends, indicating the potential for on demand TV services. On all counts, TV was a preferred activity to going online http://www.thinkbox.tv/server/show/nav.851
Generation Whatever research identified a number of roles that TV plays in the lives of young people – ‘emotional central heating’, social currency, stature and legitimacy, and glamour & entertainment
The same research showed young adults talk about TV than any other (digital) medium
Young people are also far more positive about TV advertising than their older counterparts – they are 2 ½ times more likely to say they enjoy TV advertising and significantly more likely to say they want to buy the products being advertised and htat they talk about TV advertising with others Further links: The Secret Life of Students - http://www.thinkbox.tv/server/show/nav.852 TV and young people - http://www.thinkbox.tv/server/show/nav.977
The broadcasters are responsible for most of that growth via their own services – and the broadcasters now dominate this market
Technology is good news for TV in all sorts of ways. TV remains people’s favourite entertainment whatever the technology involved in delivering it. Whenever there is a major new technological change people often hail its arrival with the prediction that it will kill whatever existed previously. But it’s worth remembering, TV didn’t kill newspapers, video didn’t kill cinema and the ipod didn’t kill radio. What tends to happen with the arrival of new technologies is that things shift and change but the predictions of the demise of what was there before rarely come true.
Worried looks greeted the advent of digital television recorders, but the concern is proving unfounded. DTRs are great for TV; people end up watching more TV at normal speed and more ads. Only 10-15% of viewing is time-shifted and of that nearly half is still watched at normal speed. Thinkbox’s own research shows DTR’s change the way viewers feel about their television – and the advertising they now control – and it is all for the better. And DTRs let people pause or rewind ads they really like, or share them with others. According to the Skyview panel, when households acquire a DTR, they watch significantly more TV, but the majority (82%+) is still to live broadcast schedules – and as they only fast forward around 70% of the time, this means they watch more commercials at normal speed than they did before they got the DTR http://www.skymedia.co.uk/Audience-Insight/skyview.aspx
According to Duckfoot Researc h, even when ads are fast forwarded at 30x speed, recall is still around 2/3 of the level when they are played at normal speed
This is indicative of the fact that the technologies that are supposed to kill TV end up nurturing the medium. We have seen similar examples for IPTV (supposedly the death of the schedule – in reality people use it to keep up with the schedules!) and web TV (YouTube etc. were supposed to cannibalise TV audiences but instead act as an informal PR machine (e.g. Susan Boyle)
The internet is a wonderful thing for telly because it’s facilitating the watching of more TV. Here is a slide to help you navigate the difference between Web and IPTV. The catch all term is internet TV and that’s divided into Web TV and IPTV. Web TV comes to you from the open source world wide web.
Our recent Me-TV study shows that online TV viewing is one of the fastest growing activities on the web http://www.thinkbox.tv/server/show/nav.741
The broadcasters are responsible for most of that growth via their own services – and the broadcasters now dominate this market
Access is diversifying – we are seeing rapid growth in viewing TV at work, on mobile devices and in a range of situations BBC iPlayer, Youtube & ITV.com are on the podium of most ‘ever visited’ sites Repertoire of sites ever visited – 2.8 sites visited per user
However, online TV is also introducing many light TV viewers, who tend to be discoverers, to content they would not normally find time to watch – therefore bringing them back into the broadcast audience
Thinkbox’s recent TV + Online study , with the IAB (TV & Online: Better together), demonstrated that, for a significant proportion of the population, TV is often concurrently consumed with the laptop open and online, and people are increasingly ready and able to use it to find out more or communicate about the content they are watching on TV, both programming or advertising content. There are many examples of TV leading directly to online search, comparison and purchase and strong evidence that, without TV, online activity would be less effective TV and online study: http://www.thinkbox.tv/server/show/nav.1019
We saw in the study anecdotally how that can lead to people following up what they see on TV with immediate online action – via search, website visits, purchase – so that a brand can go from initial awareness to sale all within the same commercial break
They are generally more positive about TV advertising across all its roles, but particularly at the start of the consumer journey
Consequently, more of them say they have been persuaded to purchase online by a TV ad than by online advertising
Supporting Evidence Amongst the TV + Online sample (the 25% most digitally-enabled section of the population) concurrent consumption of TV and online is fast becoming a regular event – almost half of them do it at least once a day and two thirds once a week or more
TV is cultural glue. People love talking about TV, off- and online, almost as much as they love watching it. In fact, the only subjects we want to discuss more than TV are friends and family, according to Television Data Monitor. Just a furtive glance at the immense number of groups on Facebook dedicated to TV shows, or the responses that Guardian blogs on TV events receive, demonstrates its cultural importance.
TV has continually been the 3rd most talked about subject (after ‘family and friends’) across the 30 years lifespan of the Television Opinion Monitor
Most discussion about TV goes on when people are watching together – Thinkbox’s Engagement Study demonstrated just how important the shared viewing phenomenon is; which is good as it is growing (as more people congregate around the 42” flat screen in the main living room) and it accounts for an estimated 70% of viewing occasions http://www.thinkbox.tv/server/show/nav.854
There are numerous TV-related groups on Facebook. In July 2008, there were more than 50 Facebook groups dedicated to the ‘Cadbury’s Drumming Gorilla’, with combined membership of almost 100,000 people.
Marketing reported Alexandr the Meerkat had 350,000 fans. Programmes with significant FB fanbases include X Factor (200,000+ members)and Skins (550,000+ members)
So there you have it, 7 reasons why TV will continue to be so central to the future of advertising.
Print increases revenue but TV is superior 5.9* 3.19** 4.88* 2.16** 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 4.55 Mean 3.52 Mean
… and TV ads deliver growth for longer Year 1 TV investment still affecting sales in year 2 almost as strongly Revenue effect as % of year 1 effect
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
TV is core for nearly all leading brand value owners … 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 Market share% points gain per 10% points excess SOV
TV is becoming more effective over time The launch of multi-channel is making it easier to reach consumers
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 Creativity Awareness Favourability Future Purchase Intention Usage Ad KPIs Brand KPIs 0.84 0.42 0.48 0.74 Thinkbox’s Engagement study showed that the standard KPIs of recall and attribution had no correlation with brand favourability or purchase intent
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 Source: Touchpoints2 2008 – Adults. Base: All Media use per day
TV fares even better within just ad-supported media 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
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
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 1.70 1.77 0.40 0.27 0.25 0.20 Source: Touchpoints 2005 and 2008 – 15-24s … and 15-24s’ TV viewing has increased since TP1
BARB also shows 16-34 increase to commercial TV average hours per week Source: BARB/TechEdge +24 mins
TV and music: favourite activities for young people Sample =
Inner life Reaching out Inner life Reaching out Emotional Central Heating Social Currency Stature & Legitimacy Glamour & Entertainment TV plays key roles in young peoples’ lives Sample =
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 Source: Other lines/TGI Young people are less ad averse
Source: Other lines/TGI 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
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 homes Sales of Freeview DTRs have rocketed to 2.3m in total 522k households subscribe to V+ from Virgin 398k 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 from broadcasters also available via IPTV platforms *Source = Me-TV/Work Research November 2008
In just 4 months, frequency of use amongst respondents rose considerably Reach Recency of viewing is increasing - fast
Broadcasters are now major players in Web TV The high reach of broadcaster TV web services is driven by: Quality content Legality Safety Familiarity Trusted aggregators Reach
Home use has increased significantly (laptops & WIFI). TV moving out of the home – taking TV to new domains such as work & travel. Broadband and WIFI are liberating usage
Catching up is main motivation for all TV 78% in Catch-up segment 22% in Discovery segment
Awareness and URL Further information Signed up to the deal Purchased product Inspires purchase Find product Compare prices Bought the car Engaging TV advert Explore spec TV starting the journey to online search/purchase 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 % Agree +6% +16% +14% +16% +7% +23% +9% +5% +13% Net difference (% points) Online ads TV ads TV ads work best at the start of the consumer journey Base : All adults (3,011 weighted); Q36a/b
TV & 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 % agree they have responded to ads in this way +22% +19% +13% +18% +9% +9% +7% +4% +2% +0% Net difference (% points) Online ads TV 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 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
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 big online eg X-factor group= 200,000+ and Skins 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