Television Still Master of the Media Universe

NCC Ottawa 2011, June 15 - 18

If you listen to many media pundits, you’d think that television is

going the way of the 8-track tape.

Newspaper Headlines proudly proclaim The Death of TV

“…television remains a universal medium but almost no-one is watching the ads…”

-Toronto Starreporting on the

Bensimon Byrne /Gandalf ResearchPublished On Wed Jan 27, 2010

Are emerging technologies and the changing media landscape spelling

DEATH for TV?

Three key reasons why people may hold the belief that Television, or more specifically the 30-second TV commercial, is dead or waning:

Three Key Myths

• People are spending more time with the internet than with television and are using different delivery platforms – online and mobile – to access content.

Internet

• PVRs are becoming ubiquitous and are being used to skip or fast forward through TV commercials.PVRs

• TV no longer engages, connects with people in a truly meaningful way – the way social media can.Relevance

Myth #1

Despite ongoing predictions of the demise of TV,

PPM proves that TV is more vibrant than ever with

29 million Canadians tuning in nightly.

• Television has the highest weekly and daily reach of any medium in Canada.–98.7% Average Weekly Reach–92.8% Average Daily Reach

• Source: BBM Canada Infosys TV; M-Su 2a-2a; National; Total TV; Weeks 1-38 in 2010/11 (complete weeks)

PPM 2010/11 - Year-to-Date Statistics

Demographic Average Weekly Per Capita Hours

AverageWeekly

Reach %

AverageDaily

Reach %

Persons 2+ 28.9 98.7 92.8

Kids 2-11 22.5 98.3 90.8

Teens 12-17 21.9 98.5 90.5

A18+ 30.4 98.8 93.3

A18-24 24.1 98.2 89.6

A18-34 23.1 97.9 89.3

A18-49 24.4 98.3 91.0

A25-54 25.8 98.5 92.1

A55+ 40.0 99.4 96.5

Source: BBM Canada Infosys TV; M-Su 2a-2a; National; Total TV; Weeks 1-38 in 2010/11 (complete weeks)

TV Viewing Remains Strong (or Growing) Year over Year

TV viewing – per capita weekly hours tuned, PPM

Ind.2+ C2-11 T12-17 A18+ A18-24 A18-34 A18-49 A25-54 A55+

27.7

22.0 22.7

28.9

24.6 23.2 24.0 24.8

37.3

28.9

22.5 21.9

30.4

24.1 23.124.4

25.8

40.0Broadcast 2009/10 Broadcast 2010/11ytd

Telecaster Clearances

• Advertisers are producing more and more commercials

2008 2009 2010 2011 ytd

47,02449,838

55,284

49,799

Telecaster Clearances

TV Ad Revenues• TV ad revenues have rebounded following the recession

2002 2003 2004 2005 2006 2007 2008 2009 2010 2010ytd

2011ytd

0

500

1,000

1,500

2,000

2,500

3,000

3,500$Millions

+9.5%+4.3% +2.5%

+8.0% +0.9%+2.8%

-7.7%

+9.5%

+7.2%

Source: TVB TSS Report

2,5952,842

2,9643,038

3,280 3,3103,403

3,142

3,440

989 1,060

Average Weekly Time Spent Online vs. with Television

Per Capita Hours, 3-month Average

A2+ A2-17 A18+ A18-24 A18-34 A18-49 25-54 A55+0

5

10

15

20

25

30

35

40

45

9.77.1

10.3 10 10.5 11 118.5

30

23

31.6

25.3 23.8 25.3 26.6

41.8

Online TV

Online Data Source: comScore Media Metrix; based on measured online monthly minutes at home and out-of-home.TV Data Source: BBM Canada National PPM; based on measured weekly hours at home and out-of-home.

Myth #2

PVR Usage in Canada

• PVR penetration in Canada is currently at 25.5% as of March 2011.

Penetration as of March 2011

PVR 25.5%HDTV Sets 57.6%HDTV Receivers 28.5%

Last Updated: 5/19/2011 9:58:55 AM

PVR Usage in Canada

• To skip or fast forward commercials there are two basic requirements: 1. you must have a PVR2. you must be watching recorded or time

delayed television.• Even with a PVR you cannot skip/fast forward

LIVE TV.

The fact is…96.1% of viewing in Canada is to

LIVE television

Live vs. Playback Viewing HoursPPM 2010/11 YTD – Live vs. Playback Viewing Hours

Demographic % Live TV % Playback

Persons 2+ 96.1 3.9

Kids 2-11 96.7 3.3

Teens 12-17 96.7 3.3

A18+ 96.1 3.9

A18-24 96.1 3.9

A18-34 95.2 4.8

A18-49 95.2 4.8

A25-54 95.1 4.9

A55+ 97.0 3.0

Source: BBM Canada Infosys TV; M-Su 2a-2a; National; Total TV; Weeks 1-38 in 2010/11 (complete weeks)

Myth #3

Is TV still an effective advertising vehicle?

The Television Bureau of Canada set out to establish renewed proof of the power of

Television advertising.

Here was their answer…

Broccoli -A Case for Television Advertising

TVB’s Objective

• Prove TV advertising works better than ever• By developing a campaign that would be

communicated with TV alone. No support channels, no PR. Just 3 TV spots and a metrics plan to measure its success…

• Thereby increasing the sales and awareness of broccoli; a widely un-liked and unadvertised commodity product, owned by no one.

Primary Measurable Goals1. Advertising Impact:

• Prove that television could make a “mundane” product such as broccoli RELEVANT:

• Raise top-of-mind AD awareness by 20 points

• Raise intent to purchase by 10 points

2. Business/Sales Results:

• Increase year-over-year sales of broccoli by 5%

U&A Study Results• Top-of-mind awareness for broccoli grew from no

mentions before the campaign, to being the second most mentioned produce in the grocery aisle

• 13% of respondents indicated they purchased at least one more bunch of broccoli on their latest shopping trip vs. the pre-campaign period

• Intent to purchase at least one more bunch of broccoli also increased by 13 points

Ad Awareness Results• 65% unaided and 90% aided campaign awareness; vastly

surpassing the goal of a 20 point increase

Product Traits

Online/Social Results

• Online mentions of “broccoli” or “miracle food” increased by 444%

• Search volume was up 100%• Campaign spawned consumer generated

media:– Fans of the campaign created a Facebook fan page • garnered more than 17,000 followers

– Fans posted the broccoli commercials to YouTube• generated more than 30,000 additional views

– Fans created more than 15 spoofs of the commercials which were posted to YouTube • viewed more than 20,000 times

Online/Social Results

Sales Results

According to AC Nielsen, the volume of broccoli sold in Ontario and B.C. increased 8%

in same period (year-over-year) sales surpassing the goal of 5%

That’s an additional188,574

pounds of broccoli!

So….Is TV still an effective advertising vehicle?

In Summary

TV viewing time is as high as ever (or growing)Advertisers continue to invest in televisionTime spent with TV continues to exceed time

spent onlinePVR penetration is at 25.5%... But 96% of viewing

is to LIVE TVTelevision remains highly RELEVANT – clearly

generating engagement, recall and sales results – as demonstrated by the Broccoli Campaign

To paraphrase Mark Twain:

“the reports of my death have been greatly exaggerated.”