TV advertising's killer charts: what every marketer should know

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  1. 1. TV advertisings killer charts What every marketer should know 46 nickable charts With notes Full Deck Published: June 2015
  2. 2. Thinkbox is supported by 99% of UK broadcasting Main shareholders Associates & supporters
  3. 3. TV Killer Facts 03 01 TV is the best profit generator 02 TV is the lead effectiveness medium TV has unbeatable scale and reach 05 TV is the most talked about media 06 Multi-screening brings viewers closer to content and brands We spend more time with TV than any other media04 07 All TV ads can be response ads 08 TV is everywhere09 TV is the emotional medium and builds brand fame10 TV is the catalyst for other media 11 Handy slides
  4. 4. 1. TV is the best profit generator
  5. 5. TV is the best profit generator 1.79 1.52 1.48 0.91 0.37 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 1.80 2.00 TV Radio Press Online Display Out of Home ProfitROI 2008-2011 Source: Payback 4, 2008-2011 & 2011-2014, Ebiquity Payback 4 (2011-2014)
  6. 6. TV is vital for long term profit -20% 0% 20% 40% 60% 80% 100% 120% 140% TV Other brand Activation Averageupliftinprofiteffects 3+ year campaigns only Source: Advertising Effectiveness: the long and short of it, 2013, IPA
  7. 7. We are starting to uncover the payback of TV sponsorship a word from our sponsor Source: Payback 4, 2008-2014, Ebiquity. Retail & FMCG categories only AverageProfitROI 1.51 0.87 0.70 0.65 0.50 0.00 0.20 0.40 0.60 0.80 1.00 1.20 1.40 1.60 TV Spot TV Spon Press Radio OOH Based on limited retail and FMCG only
  8. 8. 2. TV is the lead effectiveness medium
  9. 9. TV is the lead effectiveness medium 100% 52% 27% 13% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% TV Press Radio Online Display Out of Home Twice as effective per impact as any other medium Source: Payback 4, 2008-2011 & 2011-2014, Ebiquity EffectivenessIndex TVIndex=100
  10. 10. Largest effects accumulate over time 0 10 20 30 40 50 60 70 80 90 100 Number of very large business effects % Very large profit gains Index 1 year 2 year 3+ years Source: Advertising Effectiveness: the long and short of it, 2013, IPA
  11. 11. Nearly half of TVs sales effects are delivered after the first year of investment 0% 20% 40% 60% 80% 100% Year 1 Year 2 Year 3 Year 4 Year 5 Revenueeffectas%ofyear 1effect Print TV The effects of TV are long lasting Source: Payback 1, 2008, PriceWaterhouseCoopers
  12. 12. TV gives the best business results 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Increaseinno.ofbusinesseffects Source: Advertising Effectiveness: the long and short of it, 2013, IPA
  13. 13. TV is by far the most trusted form of advertising 37% TV Set 12% Newspapers 7% 7% Radio 7% Magazines 3% 3% 3% Websites Search Social media Outdoor Source: TV Nation, 2014, Ipsos Media CT/Thinkbox. Base: all adults 15+. Question: in which, if any, of the following places are you most likely to find advertising that you trust? Media where youre most likely to find advertising that you trust
  14. 14. 3. TV has unbeatable scale and reach
  15. 15. TV has extremely high daily, weekly and monthly reach Source: BARB, 2014, individuals, reach 1min+ Commercial TV reaches 71.4% of the population in a day 92.8% of the population in a week 98.2% of the population in a month
  16. 16. Commercial reach has remained stable over 5 years Source: BARB, 2014, reach 1min+ Weekly reach % 2010 2011 2012 2014 92.8 93.3 92.3 88.6 92.4 90 Individuals Adults ABC1 adults 16-34 Men Kids 2013 Women 94.2 92.6 93.7 93.5 93.4 93.1 94 93.8 93.8 92.1 93.2 92.8 92.6 88.2 90.1 89.6 89.5 92.3 93 92.9 92.7 89.8 91.6 91.6 91.4 93.9 95 94.7 94.8
  17. 17. TV not only has reach, but also has volume 0 10 20 30 40 50 60 70 80 90 100 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 TV (any) Commercial radio Travelling (OOH) Social Networking Newspaper (any) Magazine Cinema Ave hours per day %Weeklyreach Source: Touchpoints 5, 2014, IPA. Base: adults 15+. TV, radio, newspaper & magazine figures include online/app consumption Online TV Commercial TV Internet Radio (any) Adults 15+
  18. 18. 4. We spend more time with TV than any other media
  19. 19. TV accounts for nearly half of peoples chosen media day TV 48.0% Radio 21.2% Video clips/movies/music online 1.9% Adults 15+ Includes only media which people choose to consume (i.e. excludes out of home) Source: Touchpoints 5, 2014, IPA. Base: adults 15+. TV, radio, newspaper & magazine figures include online/app consumption Newspapers 3.9% Magazines 0.6% Cinema 0.4% TV, radio, newspaper & magazine figures include online/app consumption Other online activity 1.3% Online games 1.1% Online buying/product info/banking 1.6% Online browsing/info seeking 4.6% Internet for work 3.7% Email 5.6% Social networking/messaging 6.2%
  20. 20. TV accounts for over 40% of 15-24s chosen media day TV 41.3% Radio 13.1% Adults 15-24 Newspapers 1.4% Magazines 0.4% Cinema 1.0% TV, radio, newspaper & magazine figures include consumption via internet/appsOther online activity 1.5% Online games 1.8% Online buying/product info/banking 1.8% Online browsing/info seeking 7.4% Internet for work 3.2% Email 5.4% Social networking/ messaging 15.7% Video clips/movies/music online 6.3% Includes only media which people choose to consume (i.e. excludes out of home) Source: Touchpoints 5, 2014, IPA. Base: adults 15-24. TV, radio, newspaper & magazine figures include online/app consumption
  21. 21. Total UK video consumption all platforms & devices Source: 2014, BARB / comScore / Broadcaster stream data / OFCOM Digital Day / IPA Touchpoints 5 / Rentrak 7.5% 6.9% 6.6% 3.7% 9.1% 6.9% 9.5% 48.8% 3.5% 4.5% 4.6% 2.2% 3.8% 3.0% 10.9% 67.1% YouTube Other online video Online 'adult' video Cinema Subscription VOD DVD Broadcaster VOD Playback TV Live TV All Individuals: 4hrs, 20 mins 16-24s: 3hrs, 30 mins All Individuals 16-24s Average video time per day 0.4% 1.0%
  22. 22. 44% 37% 12% 6% 1% 1% 30% 43% 3% 16% 6% 1% Commercial TV Online (exc TV, radio, press) Commercial Radio Newspapers Magazines Cinema Chosen media day share Ad revenue share The myth of time spent* Source: Touchpoints 5, 2014, IPA, and AA/WARC 2014 ad expenditure forecast (Q3) . *Only includes media which people choose to consume (i.e. excludes out of home) Please note: TV and radio activity is commercial only (i.e. excludes BBC) Online includes all commercial and non- commercial activity (e.g. BBC, government etc.)
  23. 23. Average daily reach by half hour 0 5 10 15 20 25 30 35 40 45 50 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30 20:00 20:30 21:00 21:30 22:00 22:30 23:00 23:30 TV Radio Newspaper Magazine Internet Time of day Source: Touchpoints 5, 2014, IPA. Base: adults 15+. TV, radio, newspaper & magazine figures include online/app consumption %Reach
  24. 24. We watch 2 hours and 25 mins of commercial TV a day 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 4.50 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 No.ofhoursofTVviewedperday Non-commercial viewing Commercial viewing 2 hrs 25 m 2 hrs 33 m 2 hrs 34 m 2 hrs 36 m 2 hrs 33 m 1 hr 16 m 1 hr 19 m 1 hr 27 m 1 hr 26 m 1 hr 29 m Source: BARB, 2004-2014. Base: individuals 4 hrs 2 m 4 hrs 2 m 4 hrs 1 m 3 hrs 52 m 3 hrs 41 m 3 hrs 45 m 3 hrs 44 m 3 hrs 38 m 3 hrs 36 m 3 hrs 39m 3 hrs 42 m 2 hrs 16 m 1 hr 26 m 2 hrs 16 m 1 hr 23 m 2 hrs 15 m 1 hr 21 m 2 hrs 16 m 1 hr 22 m 2 hrs 22 m 1 hr 22 m 2 hrs 24 m 1 hr 21 m
  25. 25. Average person in the UK sees 45 TV ads a day Source: BARB, 2004 2014. Base: individuals *digital switchover complete Only includes ads viewed at normal speed Daily UK totals are now 2.65 billion TV ads seen every day 38 39 39 40 42 43 46 47 47 47 45 2004 2005 2006 2007 2008 2009 2010 2011 2012* 2013 2014
  26. 26. The majority of TV viewing is live Source: BARB, 2014. Base: individuals & individuals in DTR homes Individuals Individuals with DTRs 88% 6% 6% Individuals Individuals with digital recorders (DTRs) 83% 8% 9% Live Viewed on the same day as live (VOSDAL) Time-shifted viewing within 7 days
  27. 27. Time-shifted viewing stable in DTR homes Source: Ten Years of Sky Plus, Q2 2006-Q3 2010, Sky, & BARB Establishment Survey , Q4 2010 onwards, BARB 0 10 20 30 40 50 60 0 10 20 30 40 50 60 Q206 Q306 Q406 Q107 Q207 Q307 Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 Q210 Q310 Q410 Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Q413 Q114 Q214 Q314 Q414 %DTRpenetration %ofallviewing DTR penetration (HH) % time-shifted viewing in DTR homes (inds) Quarter
  28. 28. Time-shifting is driven by programme genre not ad avoidance 65% 64% 78% 80% 79% 82% 80% 81% 88% 89% 90% 91% 97% 97% 35% 36% 22% 20% 21% 18% 20% 19% 12% 11% 10% 9% 3% 3% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Time-shifted Live Source: BARB, 2014. Base: individuals in DTR homes, commercial TV vs. BBC
  29. 29. 5. TV is the most talked about medium both on and offline
  30. 30. TV ads are the most talked about Source: TV Nation, 2014, Ipsos Media CT/Thinkbox. Base: all adults 15+. Question: On which medium are you likely to find advertising that you talk about either face to face or over the phone / online? On which medium are you likely to find advertising that you talk about 58% 10% 9% 8% 8% 5% 4% 3% 28% 11% 4% 8% 5% 3% 3% 2% 0% 10% 20% 30% 40% 50% 60% 70% TV Social networks Newspapers Websites Online search Radio Magazines Out of home Face to face / on the phone Online
  31. 31. TV advertising drives 51% of all marketing-generated conversations 9% 19% 51% 21% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Paid media Non-TV Paid media TV Brand news, PR & events Product/service Influenced variables Source: POETIC, 2013, Data2Decisions/Keller Fay/Thinkbox
  32. 32. 6. Multi-screening brings viewers closer to content and brands
  33. 33. Multi-screening is a common activity Source: TouchPoints 5, 2014, IPA. Base: adults 15+ 25 mins Using internet while watching TV per day
  34. 34. 0 5 10 15 20 25 30 35 40 45 50 6:00 6:30 7:00 7:30 8:00 8:30 9:00 9:30 10:00 10:30 11:00 11:30 12:00 12:30 13:00 13:30 14:00 14:30 15:00 15:30 16:00 16:30 17:00 17:30 18:00 18:30 19:00 19:30 20:00 20:30 21:00 21:30 22:00 22:30 23:00 23:30 Ave.daily%ofadults Time Watching TV Watching TV and internet use Watching TV and social networking Multi-screening usage patterns follow TV Source: Touchpoints 5, 2014, IPA. Base: adults 15+ who have home internet access
  35. 35. Ad break multi-screeners are more likely to stay in front of ads % agreeing with each statement 57% 36% 35% 49% 41% 28% I just stayed where I was and waited for the programme to restart I left the room during the ad breaks I found myself watching the adverts almost by accident Multi-screeners Everyone else Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox. Mobile diary 7pm-11pm.
  36. 36. Multi-screening doesnt reduce ad recall Average number of adverts recalled from last 15 minutes 1.9 1.6 1.6 2 2 Average I left the room I fast-forwarded the ads until the programme restarted I talked to someone else about something unrelated to the adverts on screen I started using another device Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox. Mobile diary 7pm-11pm
  37. 37. 7. All TV ads can be response ads
  38. 38. TV is a catalyst for direct response Source: POETIC, 2013, Data2Decisions/Keller Fay/Thinkbox. % of variables which can be influenced to drive website visits 69% of website visits are generated by paid media 47% Of these 69% website visits were generated by paid TV media
  39. 39. People welcome social elements within TV ad campaigns 52% welcome TV campaigns which carry a social media call to action Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox. Base: individuals 16+ With Facebook and Twitter being the most desired platforms to be directed to
  40. 40. 8. TV is the catalyst for other media
  41. 41. TV boosts other advertising channels Reactive Interactive Active TV is a multiplier of other awareness building channels TV to radio is strongest and can be >100% TV to press and OOH can be up to 50% Branded search is 33% more responsive to TV in 2011-2014 TV to generic search on average +5% shift in conversion per 100 TVRs TV helps drive significantly greater promotional effectiveness Observed multiplier effects up to 100% Source: Payback 4, 2011-2014, Ebiquity
  42. 42. TV & online synergy is particularly large 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Brand + activation channels TV + online AnnualisedESOVefficiency Source: Advertising Effectiveness: the long and short of it, 2013, IPA
  43. 43. TV & online are great together 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Brand + activation channels TV + online AnnualisedESOVefficiency Source: Advertising Effectiveness: the long and short of it, 2013, IPA
  44. 44. And this combined efficiency has increased over time 0.0 0.2 0.4 0.6 0.8 1.0 1.2 Brand + activation channels TV + online AnnualisedESOVefficiency 0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1998 - 2004 2006 - 2010 AnnualisedESOVefficiency TV + Online campaigns Source: Advertising Effectiveness: the long and short of it, 2013, IPA
  45. 45. 9. TV is everywhere
  46. 46. New devices enhance viewing and interaction Source: Ipsos Tech Tracker, Q4 2014, adults 15+. Penetration figures (Laptop and Personal Computer, Any Tablet, Any Smartphone) 35% 63%65% UK device penetration
  47. 47. Viewers are using all these devices to watch TV TV with internet connection Laptop/desktop Tablet Smartphone 8.3% 12.5% 5.4% 3.5% Source: Touchpoints 5, 2014, IPA. Base: adults 15+ % of adults watching online TV via device (in a week)
  48. 48. TV viewing is expanding beyond the living room Bathroom 9% Bedroom 46% Kitchen 19% Living room 56% Study 24% Garden 12% Where people watch television via tablets, laptops and/or smartphones Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox
  49. 49. TV is viewed in many places outside of the home Usage of devices to watch TV out of home location 5% 2% 4% 3% 1% 3% 8% 7% 5% 5% 6% 5% 11% 13% 9% 10% 9% 7% 0% 2% 4% 6% 8% 10% 12% 14% Someone else's house Public transport At work Public building In a car Travelling on business PC/Laptop Tablet Smartphone Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox Net: 17% Net: 13% Net: 12% Net: 10%Net: 13%Net: 16%
  50. 50. Viewing on other devices is small, but on the increase Source: BARB, 2014, and UK broadcaster data. Base: individuals 0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 2013 2014 No.ofhoursofTVviewedperday TV (streamed & on- demand) viewed on other devices Commercial Linear TV Non-Commercial Linear TV1 hour 18 mins 3 hours 44 mins 30 secs 2 hours 25 mins 1 hour 16 mins 2 hours 33 mins 1 hour 19 mins 3 hours 52 mins 3 mins 3 mins 30 secs
  51. 51. 10. TV is the emotional medium and builds brand fame
  52. 52. TV ads evoke emotion more than ads in other media 77% 8% 8% 6% 6% TV Radio Papers Mags Internet Source: TV Nation, 2014, Ipsos MediaCT/Thinkbox. Base: all adults 15+. 77% claim TV ads are most likely to make the...