How Media Works: Advertising and the Purchase Funnel for Entertainment Advertising A Yankelovich Study for the Television Bureau of Advertising

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase Funnel

for Entertainment Advertisingfor Entertainment Advertising

How Media Works:How Media Works:Advertising and the Purchase FunnelAdvertising and the Purchase Funnel

for Entertainment Advertisingfor Entertainment Advertising

A Yankelovich Study for the Television Bureau of Advertising

Study ObjectivesStudy ObjectivesStudy ObjectivesStudy Objectives

Determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand:

The role of television advertising in driving consumer actions throughout the purchase decision process

How television interacts with other media platforms, including new media such as the Internet

How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle 2

Source: TVB/Yankelovich “How Media Works,” April 2009

MethodologyMethodologyMethodologyMethodology

Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them.

Interviews took place January 29 to February 10, 2009; Super Bowl Sunday was excluded.

Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them.

Each respondent then completed an ad survey for up to three of these categories.

The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc.

The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied.

3Source: TVB/Yankelovich “How Media Works,” April 2009

A Majority of Respondents are In the A Majority of Respondents are In the Market Market

A Majority of Respondents are In the A Majority of Respondents are In the Market Market

4

“Are you currently considering a purchase in the Entertainment Category?”

(Asked of those who recalled seeing a TV ad for an Entertainment Vehicle* in the last 2 months)


* Includes movie, sporting event, amusement/theme park, theater, concert, play, aquarium, zoo, and museum advertising.

Yes58.7%

No41.3%

Customer Profile: Entertainment Customer Profile: Entertainment AdvertisingAdvertising

Customer Profile: Entertainment Customer Profile: Entertainment AdvertisingAdvertising


Saw an Entertainment Ad That Made an Impression

Currently Considering a

Purchase in this Category

Made a Purchase

in this category in the

past 6 months

Made a Purchase

in this category

in the last 2 weeks

Male 46.3% 49.2% 45.9% 48.6%

Female 53.7% 50.8% 54.1% 51.4%

18-34 36.5% 40.7% 38.9% 37.3%

18-49 67.2% 73.5% 71.1% 71.4%

25-54 57.6% 60.6% 58.0% 56.2%

55+ 28.5% 23.0% 25.9% 24.9%

Urban 31.3% 29.3% 29.6% 28.6%

Suburban 46.9% 50.2% 48.7% 50.3%

Rural 21.9% 20.5% 21.7% 21.1%

HHI <$30K 24.1% 22.7% 21.2% 19.5%

HHI $30-$70K 43.7% 41.3% 42.9% 41.6%

HHI $70K+ 24.8% 28.4% 28.2% 31.4%

HHI $100K+ 13.3% 14.5% 15.2% 18.9%

Entertainment Ads on Television Are Among the Most-Entertainment Ads on Television Are Among the Most-Recalled Ads Across all 15 Categories Studied Recalled Ads Across all 15 Categories Studied

Entertainment Ads on Television Are Among the Most-Entertainment Ads on Television Are Among the Most-Recalled Ads Across all 15 Categories Studied Recalled Ads Across all 15 Categories Studied


Saw an ad that got your attention:

55%

46%

46%

46%

41%

40%

40%36%

36%

34%

34%

33%

28%

27%

25%

80%Any (NET)

Restaurants

Vehicles or auto dealers

Telecommunications or electronic products

Entertainment activities

Automobile or life insurance

Department stores or discount stores

Food, convenience, or grocery stores / supermarkets

Furniture, mattress, or carpeting / flooring stores

Travel or travel websites

Financial services

Healthcare products or services

Home improvement stores or services

Services

Schools / colleges / learning centers / vocational schools

Commercial websites

Half of consumers say they made an Half of consumers say they made an entertainment-related purchase in the past entertainment-related purchase in the past

monthmonth

Half of consumers say they made an Half of consumers say they made an entertainment-related purchase in the past entertainment-related purchase in the past

monthmonth


34%

18%

14%

7%

6%

3%

7%

2%

2%

6%

Within the last 2 weeks

3-4 weeks ago

1-2 months ago

3-4 months ago

5-6 months ago

7-11 months ago

1-2 years ago

3-5 years ago

6 or more years ago

I have never purchased in this category Entertainment

52% of those who recently saw an

entertainment ad made a purchase in

the past month

Last time made an entertainment activity purchase:

Those who saw entertainment ads Those who saw entertainment ads overwhelmingly rated them positivelyoverwhelmingly rated them positively

Those who saw entertainment ads Those who saw entertainment ads overwhelmingly rated them positivelyoverwhelmingly rated them positively

8

32%

38%

26%

3%

1%

53%

32%

13%

1%

1%

Very positive

Somewhat positive

Neither positive nor negative

Somewhat negative

Very negativeTotalEntertainment


Type of impression made by TV ad for entertainment activity:

85% of those who saw these

advertisements rated them

positively, compared to 70%

of all ads

Entertainment Ads on Television Are Much More Likely Entertainment Ads on Television Are Much More Likely to Be Considered Attention-Getting, Informative and to Be Considered Attention-Getting, Informative and

RelevantRelevant

Entertainment Ads on Television Are Much More Likely Entertainment Ads on Television Are Much More Likely to Be Considered Attention-Getting, Informative and to Be Considered Attention-Getting, Informative and

RelevantRelevant


Ratings of Entertainment Activity Television Ads:

53% total

70% Ent.

How informative was it?

42% total

57% Ent.

How relevant was it?

How much did it get your attention?

19.6%

15.4%

18.9%

15.6%

12.2%

9.0%

3.6%

2.8%

1.3%

1.5%

40.0%

18.0%

21.0%

10.0%

5.0%

3.0%

2.0%

1.0%

0.0%

1.0%

10 -Completely

9

8

7

6

5

4

3

2

1 - Not at all

54% total

78% Ent.

Total Entertainment

Those Who View TV Ads for Those Who View TV Ads for Entertainment Entertainment are are Likely to Seek Information, Discuss the Ad, or Likely to Seek Information, Discuss the Ad, or

Consider a PurchaseConsider a Purchase

Those Who View TV Ads for Those Who View TV Ads for Entertainment Entertainment are are Likely to Seek Information, Discuss the Ad, or Likely to Seek Information, Discuss the Ad, or

Consider a PurchaseConsider a Purchase


Actions Taken After Seeing TV Commercial for Entertainment

TotalEntertainment Activities

Index to Total

Any (Net) 49% 64% 131

Considered purchasing the product or service 17% 20% 118

Talked with others about the advertisement 16% 32% 200

Went online to learn more about the product or service advertised 14% 19%

136

Remembered you had seen the product or service advertised before 11% 9%

82

Purchased the product or service in a store 10% 5% 50

Visited a store or location to learn more about the product or service 8% 2%

25

Tried to find the advertisement on the Web 5% 7% 140

Looked in a newspaper or magazine to learn more about the product or service

4% 9% 225

Purchased the product or service online 3% 2% 67

Contacted the company in the advertisement 3% 1% 33

Sent someone an Email about the product or service 3% 3% 100

Sent someone a Web-site link about the product or service 2% 3% 150

Other action 3% 11% 367

Did nothing 51% 36% 71

Younger Adults are Even More Likely to Take Younger Adults are Even More Likely to Take ActionAction

Younger Adults are Even More Likely to Take Younger Adults are Even More Likely to Take ActionAction


Actions Taken After Seeing TV Commercial for Entertainment

Age

Entertainme

nt 18-34 35-49 50+

Any (Net) 64% 72% 66% 54%

Talked with others about the advertisement 32% 38% 34% 23%

Considered purchasing the product or service 20% 26% 21% 13%

Went online to learn more about the product or service 19% 27%

19% 11%

Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the

Internet)9% 12% 5% 10%

Looked in a newspaper or magazine to learn more 9% 6% 8% 12%

Tried to find the advertisement on the Web 7% 8% 8% 3%

Purchased the product or service in a store 5% 7% 5% 4%

Sent someone an Email about the product or service 3% 3% 3% 4%

Sent someone a Web-site link about the product or service 3% 4%

4% 1%

Purchased the product or service online 2% 3% 3% 1%

Visited a store or location to learn more 2% 3% 1% 2%

Contacted the company in the advertisement 1% — 2% —

Other action 11% 9% 10% 15%

Did nothing 36% 28% 34% 46%

Most Were Exposed to Multiple Most Were Exposed to Multiple Viewings of Entertainment Ads Viewings of Entertainment Ads Most Were Exposed to Multiple Most Were Exposed to Multiple Viewings of Entertainment Ads Viewings of Entertainment Ads


Number of times saw entertainment activity TV commercial in past 2 months:

14%

33%

26%

14%

13%

17%

32%

27%

14%

10%

Just this one time

2-3 times

4-5 times

6-9 times

10 times or more

TotalEntertainment

Multiple Exposures Leads to Action: Peer Multiple Exposures Leads to Action: Peer Contact, Information Seeking, Purchase Contact, Information Seeking, Purchase

ConsiderationConsideration

Multiple Exposures Leads to Action: Peer Multiple Exposures Leads to Action: Peer Contact, Information Seeking, Purchase Contact, Information Seeking, Purchase

ConsiderationConsideration


Among those who recently saw a TV ad for Entertainment activities

# TV Ad Exposures

Entertainmen

tRecall 1-3 ad

exposuresRecall 4+ ad exposures

Any (Net) 64% 58% 71%

Talked with others about the advertisement 32% 27% 37%

Considered purchasing the product or service 20% 17% 23%

Went online to learn more about the product or service 19% 15% 23%

Remembered you had seen the product or service advertised before (i.e., the newspaper, radio, or the Internet) 9% 7% 11%

Looked in a newspaper or magazine to learn more 9% 7% 10%

Tried to find the advertisement on the Web 7% 8% 6%

Purchased the product or service in a store 5% 4% 7%

Sent someone an Email about the product or service 3% 2% 5%

Sent someone a Web-site link about the product or service 3% 3% 3%

Purchased the product or service online 2% 2% 3%

Visited a store or location to learn more 2% 2% 2%

Contacted the company in the advertisement 1% 0% 1%

Other action 11% 9% 14%

Did nothing 36% 42% 29%

Actions taken after seeing an Entertainment Activities TV ad

In addition to TV ads for entertainment activities, In addition to TV ads for entertainment activities, respondents were most likely to recall Internet respondents were most likely to recall Internet

adsads

In addition to TV ads for entertainment activities, In addition to TV ads for entertainment activities, respondents were most likely to recall Internet respondents were most likely to recall Internet

adsads


Saw ad for same product or service in a media other than TV:

TotalEntertainment Activities

Index to Total

Any (Net) 46% 52% 113

On the Internet 20% 26% 130

In a newspaper 18% 17% 94

On the radio 12% 13% 108

In a magazine 11% 8% 73

In an Email offer 8% 3% 38

On a billboard or other outside sign 7% 7% 100

Other media 3% 4% 133

Did not see, hear, or read in any other media 35% 34% 97

Not sure 19% 14% 74

Entertainment & Activities Entertainment & Activities Advertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel

Entertainment & Activities Entertainment & Activities Advertising Impact at Various Stages ofAdvertising Impact at Various Stages of

the Consumer Purchase Funnelthe Consumer Purchase Funnel


80%75%

67%61% 59%

53%

20%25%

33%39% 41%

47%

86% 88%

75% 73%

59%64%

14% 12%

25% 27%

41%36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Media Influence (Any)-All Cat. No Media Influence-All Cat.Media Influence (Any)-Entertainment/Activities No Media Influence-Entertainment/Activities

Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

Index =108

Index = 117

Index = 112

Index =120

Index =100

Index =121

Entertainment & ActivitiesEntertainment & Activities Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel

Entertainment & ActivitiesEntertainment & Activities Media Impact at Various Stages of the Media Impact at Various Stages of the

Consumer Purchase FunnelConsumer Purchase Funnel


Media cited by less than 3% of respondents were incorporated into the total for “other.”

48% 51% 46% 49%40% 39%

20% 19%15% 12%

10% 12%

4% 5%

5% 3%

3% 4%

14% 13%

9% 9%

6%10%

14% 12%25% 27%

41% 36%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Awareness Interest Consider Purchase Want to Purchase Visit Store/ Website Make Purchase

Television Internet Newspaper Other No Media Influence

ConclusionsConclusionsConclusionsConclusions Entertainment ads enjoy the highest recall

scores. Entertainment ads resonate with consumers, as

seen by positive ad ratings, and higher-than-average scores for ad relevance, attention-getting and informativeness.

Those exposed to TV ads are likely to seek out additional information about the entertainment activity, discuss the ad with others, or make a purchase. Younger consumers score even higher on

these metrics, as do those with multiple ad exposures.

Television is a strong performer at every stage of the purchase funnel; internet ads are a strong secondary driver especially at the top of the funnel.


Documents

How Media Works: Advertising and the Purchase Funnel for Entertainment Advertising A Yankelovich Study for the Television Bureau of Advertising