3. Print increases revenue but TV is superior
0
1
2
3
4
5
6
7
4.55 Mean
5.9*
3.19**
4.88*
2.16**
3.52 Mean
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. …and TV ads deliver growth for longer
Year 1 TV investment still affecting sales in year 2 almost as strongly
Year 1 Year 2 Year 3 Year 4 Year 5
Print
TV
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Print
TV
Revenueeffecta
5. 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
0.21
0.31
0.32
0.47
0.82
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
TV £ Press £ Radio £ Outdoor £ Cinema £
6. TV is core for nearly all leading brand value owners
0
20
40
60
80
100
120
F
ocus
5
S
eries
P
assat
C
runchy
N
ut
P
antene
T
ropicana
D
irectLine
Internet
TV
Radio
Press
Outdoor
Direct Mail
Cinema
… and used more than twice the sector average of our survey
by all the market leaders
£m
7. 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
2.6
0.7
0
0.5
1
1.5
2
2.5
3
Campaigns using TV Campaigns not using TV
Marketshare%pointsgainper10%
pointsexcessSOV
8. TV is becoming more effective over time
The launch of multi-channel is making it easier to reach consumers
8.0
6.0
8.5
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
1980s 1990s 2000s
Average increase in market
share by points gained
(where TV is the lead
medium)
10. 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
11. 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
12. 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
13. Ad liking is the key to driving brand KPIs
Recognition
‘Liking’ Relevance
CreativityAwareness
Favourability
Future Purchase Intention
Usage
Ad KPIs
Brand KPIs
0.84
0.420.48
0.74
Thinkbox’s Engagement study showed that the standard KPIs of recall
and attribution had no correlation with brand favourability or purchase intent
17. 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
27%
13%
5% 1%
54%
TV
Radio
Internet
Newspapers
Magazines
Source: Touchpoints2 2008 – Adults. Base: All Media use per day
18. TV fares even better within just ad-supported media
7%
9% 2%
20% 62%
TV
Radio
Internet
Newspapers
Magazines
Source: Touchpoints2 2008 – Adults
Base: All commercial Media use per day (exc BBC TV, BBC radio and internet email time)
Commercial only
19. 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
20. 24
39
4
33
13
6
27
54
0
10
20
30
40
50
60
70
80
90
100
Internet Press Radio TV
% Ad revenue % Media time per day
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
26. 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 =
27. 44%
29%
23% 22%
64%
Tv programmes Websites Console games Computer games
for PC
Adverts for TV
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
28. 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
36%
22%
14%
26%
17%
35%
I enjoy TV adverts Adverts on TV often make
me want the things
advertised
TV ads gives me
something to talk about
with others
8-21 year olds
Adults
Source: Other lines/TGI
Young people are less ad averse
29. Source: Other lines/TGI
36%
22%
14%
26%
17%
35%
I enjoy TV adverts Adverts on TV often make
me want the things
advertised
TV ads gives me
something to talk about
with others
8-21 year olds
Adults
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
31. 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
32. …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
33. 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…
34. 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
urce = Me-TV/Work Research November 2008
35. Recency of viewing is increasing - fast
0%
20%
40%
60%
last few days last week last month last 3 months last 6 months longer ago
TV online users Omnibus (June 08) TV online users (Oct 08)
In just 4 months, frequency of use amongst respondents rose
considerably
Reach
36. 56%
24%
29%
8%
10%
2%
64%
3% 2% 2%
75%
40%
36%
14%
12%
9%
69%
5%
2% 4%
0%
20%
40%
60%
80%
100%
BBCiPlayer
ITV.com
4OD
Five/five.tvSkyPlayer
MTV.co.ukYouTube.comVideojug.comSimplytv.co.ukPeekvid.com
TV online users Omnibus June 08) TV online users (Oct 08)
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
37. Broadband and WIFI are liberating usage
43%
23%
33%
16%
6%
3%
8%
4% 5%
75%
18%
54%
19%
12%
3%
16%
10% 9%
0%
20%
40%
60%
80%
100%
Desktop at
home (not
doing anything
else)
Desktop
computer
(whilst
watching the
main TV set)
Laptop at
home (not
doing anything
else)
Laptop at
home (whilst
watching the
main TV set)
At home, with
the computer
connected to
the TV
At home, with
the computer
connected to
a projector
At work On a mobile
telephone
Other mobile
device on the
move
Omnibus TV online Users TV online users October study
Home use has increased significantly (laptops & WIFI).
TV moving out of the home – taking TV to new domains such as work &
travel.
38. Catching up is main motivation for all
TV
84%
49%
29% 28%
23%
20% 19%
16%
66%
49%
33%
27%
33%
19%
14%
25%
0%
20%
40%
60%
80%
100%
Watch progs
I w ould
otherw ise
miss
Mostly
w atch alone
More
selective
about
broadcast
TV view ing
IMore
engaged
Experiment
more w ith
TV progs
Watch more
progs in
entirity and
zap less
Watch more
TV than I did
before
Watch
programmes
I w ould not
normally
w atch
Catch-ups Discoverers
78% in Catch-up segment 22%
in Discovery segment
40. Awareness and URL Further information
Signed up to
the deal
Signed up to
the deal
Purchased
product
Purchased
product
Inspires purchase Find product Compare prices
Bought the
car
Bought the
car
Engaging TV advert Explore spec
TV starting the journey to online search/purchase
Purchased
product
Purchased
product
Sparked an idea for a gift
Searched for new mascara product on
programme’s website
41. 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
68
58
58
43
35
50
41
41
33
% Agree
74
74
72
59
58
57
50
46
46
+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
42. 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
19
18
23
14
19
19
14
16
11
4
% agree they have responded to
ads in this way
+22%
+19%
+13%
+18%
+9%
+9%
+7%
+4%
+2%
+0%
Net difference
(% points)
41
37
36
32
28
28
21
20
13
4
Online ads TV ads
43. adults (3,011 weighted) Q5 / Those using both together (1,934 weighted) Q6a
Half of digitally advanced group
now use together daily
143
36
47
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
45. TV is the 3rd most talked about subject
Which of these things you talk about with other people?
Source TOM Q1 Base: UK adults aged 16+ Jan – Dec 2008 (2,426)
36
36
27
26
26
25
19
19
17
15
14
13
Family and friends
Cost of living
Television programmes
Crime, law and order
Sport
Bringing up children
Work
You and your family's health
Education and schools
The present government
NHS and welfare services
Clothing and fashions
46. Mostly alone, 29
Mostly with 1-2
other people, 7
Mostly with 3+
other people, 1
Mixed viewers, 29
Mostly with
partner, 33
Source: Holden Pearmain Quant Study 2007
70% shared viewing promotes conversations
48. 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
49. 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
Editor's Notes
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 Research, 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.
