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For CSI conference, 10.05.10
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Addressable advertising on TV: An advertiser’s perspectiveCSI Conference, 11.05.10
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Who am I?- Coca-Cola Great Britain and Ireland Media Manager- Responsible for all media spends’ productivity and profitability
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What I watch
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Financials (what i’d pay, to who)
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• The costs of TV advertising
• The value of TV advertising
• Increasing productivity to command a higher price
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The problem from an advertisers point of view
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You can’t use TV to target effectively
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Lighter viewers watch bigger shows
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Source: 3 1971 figures reproduced from Goodhardt, G. J., A. S. C. Ehrenberg, and Collins, M. (1975). TheTelevision Audience - Patterns of Viewing. Hants,England, Gower Publishing Ltd. Page 78., reported in TV Futures, by Ehrenberg-Bass
Bigger channels are watched more
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Source: Figure reproduced from Barwise, P. and A. Ehrenberg(1988). Television and Its Audience. London,
Sage Publication. Data is from New York 1976 andfor UK in 1987.
Sport channels are 65% male (average: 51 percent)
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And also . . .
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• Picture of a kettle
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But, we continue to be high spenders on TV . . .
Why?
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It works!
• People are watching more TV than ever before
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It works!
• People are watching more TV than ever before
• TV has been getting cheaper year on year
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It works!
• People are watching more TV than ever before
• TV has been getting cheaper year on year
• TV is not becoming less effective
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Reach, not targeting is the most important media metric for business growth
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Targeting demographic groups has it’s limits
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Who actually consumers Diet Coke
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What I watch
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We almost never target just one audience at a time
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Dual targeting
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Targeting the end consumer and shopper
The move back into the living roomClassified - Internal use
Watching programmes together (With Food)
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The importance of ATL to support shopper marketing
Classified - Internal useGetting in-store right
The exceptions that prove the rule
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• Irrational?• Deep
engagement• Long term
brand value?
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If reach is the goal, then frequency is the enemy
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Diminishing returns on TV
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
14,000,000
16,000,000
18,000,000
0 1,000 2,000 3,000 4,000 5,000 6,000
Upl
ift in
Vol
ume
(L)
GRPs (Annual)
TV ST
PRESS
OUTDOOR
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Planning the weight of TV
• Very engaging, but difficult comprehension
• Low category understanding
• Lots of competitor advertising
Optimal frequency: 4+TVR range: 400-450
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Heavy viewer: 15 / 16
Light viewer: 1 / 2 Classified - Internal use
1.‘What’s your celebration?’
2.Win World Cup tickets
every day
3.With food message
4.Coke ZeroClassified - Internal use
Fusing with coke zone
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Stakeholder benefits
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• We don’t want to pay more for reduced ROI (want to see that it works for sales)
• We do want a stronger broadcast environment (with more investment in programming)
• We do want more attentive advertising (and audience scale)
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References:Marketing theory from Ehrenberg-Bass (www.marketingscience.info)Media data from Fairbrother Lenz Eley (www.flemedia.com)
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Thank you.e. arattner@eur.ko.comlinked in: Adam Rattnertwitter: ratters
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