Addressable advertising on TV: An advertiser's perspective

Classified - Internal use

Addressable advertising on TV: An advertiser’s perspectiveCSI Conference, 11.05.10


Who am I?- Coca-Cola Great Britain and Ireland Media Manager- Responsible for all media spends’ productivity and profitability


What I watch


Financials (what i’d pay, to who)


• The costs of TV advertising

• The value of TV advertising

• Increasing productivity to command a higher price


The problem from an advertisers point of view


You can’t use TV to target effectively



Lighter viewers watch bigger shows


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


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)


And also . . .


• Picture of a kettle


But, we continue to be high spenders on TV . . .

Why?


It works!

• People are watching more TV than ever before



It works!


• TV has been getting cheaper year on year



It works!


• TV has been getting cheaper year on year

• TV is not becoming less effective


Reach, not targeting is the most important media metric for business growth






Targeting demographic groups has it’s limits



Who actually consumers Diet Coke


What I watch



We almost never target just one audience at a time


Dual targeting


Targeting the end consumer and shopper

The move back into the living roomClassified - Internal use

Watching programmes together (With Food)


The importance of ATL to support shopper marketing

Classified - Internal useGetting in-store right

The exceptions that prove the rule



• Irrational?• Deep

engagement• Long term

brand value?


If reach is the goal, then frequency is the enemy


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


Planning the weight of TV

• Very engaging, but difficult comprehension

• Low category understanding

• Lots of competitor advertising

Optimal frequency: 4+TVR range: 400-450


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


Stakeholder benefits


• 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)



References:Marketing theory from Ehrenberg-Bass (www.marketingscience.info)Media data from Fairbrother Lenz Eley (www.flemedia.com)

http://www.marketingscience.info/

http://www.flemedia.com/


Thank you.e. [email protected] in: Adam Rattnertwitter: ratters

mailto:[email protected]

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Addressable advertising on TV: An advertiser's perspective