The Power of Out of Home Audiences in the Digital Age

Empirical Generalizations in Advertising II: What Works in the New Age of Advertising & Marketing

The Power of Out of Home Audiences in the Digital Age

Brad FayCOO

Carol EdwardsSVP

Jay LeonVP

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Additional Authors: Jack Wakshlag, CRO Turner; Carol Frost; VP and Chris Peck, Arbitron

Out of Home Viewing: How Important? How Valuable?

TV Everywhere• Trends point toward expanding opportunities to consume TV out of home• Out of home sports viewing is particularly popular

But How to Measure? • Nielsen NPM focuses on in-home viewing

Empirical Generalizations in Advertising II: What Works in the New Age of Advertising & Marketing 2

We Studied Two Turner Sporting Events

MLB Playoffs (2011)

NBA Playoffs (2011)


Two Methods: Quantity & Quality

Quantity of Out of Home Audience• Arbitron undertook a major series of studies to estimate the size of out of home viewing

for the three sporting events.• The goal was to measure the relative size and composition of the out of home audience in

order to show advertisers the value of this “extra” audience.

Quality of Out of Home Audience• Keller Fay Group measured the word of mouth conversations about advertisers for the

three sporting events• Hypothesis was that WOM levels would be higher for audiences exposed to broadcasts out

of home vs. at home• If true, could show that audience value would be higher out of home, due to greater

engagement, advocacy and reach for messaging via WOM


Two Empirical Generalizations

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1. Out-of-home audiences for major sporting event television are large enough to have a material impact on media planning and buying decisions.

2. Out-of-home sports television audiences are even more valuable than at-home audiences because they generate more WOM conversations about advertised brands.Empirical Generalizations in Advertising II: What Works in the New Age of Advertising & Marketing 5

Findings: Out-of-Home Audience Size & Composition

Arbitron Portable People MeterTM Methodology

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• Arbitron’s Portable People MeterTM (PPM) panel:– PPM = Passive, electronic, persons-level

measurement device which resembles a cell-phone– Representative sample (70,000 panelists aged 6+) in

44 U.S. markets.

• Tournaments covered: • 2011 NBA playoffs and the 2011 MLB playoffs


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Arbitron Measured Size & Composition of the Out of Home Audience

• NBA playoff games were broadcast on Turner’s TNT in May 2011.

Source: Arbitron audience data in top 44 markets


Arbitron Measured Size & Composition of the Out of Home Audience

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• MLB Playoff games were telecast on Turner’s TBS network in October 2011.

Source: Arbitron audience data in top 44 markets


Findings: Word of Mouth Engagement with Advertised Brands

Turner & Keller Fay Group Studies Measured Relative Value of Out-of-Home Sports Audiences

• Keller Fay’s TalkTrack® WOM survey expanded to measure WOM for major advertisers.– Booster samples utilized for NBA playoffs & NCAA

tournament.– Compared WOM levels for “out of home” viewers vs. “at

home”– Also compared WOM levels during playoffs vs. earlier in

season and non-season.

• As with all TalkTrack® surveys…– Representative sample of consumers kept track of

category/brand conversations for 24 hours.– Brands recorded in a diary on open ended basis.

• Tournaments covered: • 2011 NBA playoffs and the 2011 MLB playoffs


NBA Advertiser WOM Peaked During Finals

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• Among the target market, WOM levels for Turner’s 12 largest advertisers were considerably higher compared to the off-season (+18%) and even compared to the prior playoff round (+10%), indicating the success of advertisers in raising brand engagement.

Source: Keller Fay Group’s TalkTrack®; Off Season Reflects June 14th – Oct. 24th, 2010; NBA Regular Season Reflects Oct. 25th, 2010 – Apr. 10th, 2011; Early Playoffs Reflects Apr. 11th – May 15th, 2011; Eastern Conference Finals Reflects May 16th – 29th, 2011.


Out-of-Home Viewers Far More Likely to Talk About Advertisers vs. At-Home Viewers

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• These findings suggest that an out-of-home viewing context was more conducive to conversations about the advertised brands.

Source: Keller Fay Group’s TalkTrack®, May 16th – May 29th, 2011.


MLB Advertiser WOM Highest for OOH Viewers

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• These results again imply an advertiser engagement benefit associated with out-of-home viewing.

Source: Keller Fay Group’s TalkTrack®; Sep. 26th – Oct. 16th, 2011.


Out of Home Is More Valuable

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• Two factors explain the higher WOM stimulative effect of out-of-home viewing, both of which represent important values to advertisers:– Out-of-home audience has inherent

characteristics such as youth & affluence – tend to support greater WOM engagement with brands & advertising

– Out-of-home viewing tends to occur in more “social” settings, such as a bar or restaurant; these environments create more opportunities for advertising to stimulate conversations about brands.


Discussion & Implications

Out-of-Home Audiences Need to be Measured

• By not measuring out-of-home, media buyers may be missing larger audiences. – Restricted in ability to optimize media plans for most attractive consumer targets. – Increased efforts to measure OOH audiences are justified not only by their size, but by

high quality of audience characteristics.

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Implications

• Advertisers can take comfort in the knowledge that increasingly “on the go” viewing may produce rewards in terms of both audience size and engagement.– Out-of-home audiences are large enough to have a material impact on media

planning & buying decisions.– Out-of-home audiences are even more valuable than at-home audiences

because they generate more WOM conversations about advertised brands.

• Challenge for the research community:– To provide more and more effective tools for measuring across platforms,

across locations, and to incorporate “social” effects when studying the impact of advertising.

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Appendix

Arbitron Portable People MeterTM Methodology

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• Arbitron’s Portable People MeterTM (PPM) panel in 44 markets.– PPM = Passive, electronic, persons-level

measurement device which resembles a cell-phone– Representative sample (70,000 panelists aged 6+) in

44 U.S. markets. – Panelists carry PPM throughout their day. – PPM records exposures to encoded media content

both in-home and out-of-home in order to report the “lift” programming receives from out-of-home viewing over the in-home viewing.


TalkTrack® Methodology

• Keller Fay Group’s TalkTrack®, a national syndicated program measuring word of mouth in all forms – face-to-face, over the phone, and through the Internet.

– Over three-quarters of all conversations occur face-to-face, as depicted in the pie chart.

• The study involves 36,000 online consumers annually, yielding approximately 360,000 conversational mentions of brands.

• Respondents are representative of the US population aged 13 to 69, use a diary to keep track of their brand conversations, then complete an online survey to gather detailed information about these conversations.

Mode of Conversations Across All Categories


Business

The Power of Out of Home Audiences in the Digital Age