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The Case for TV: TV is as popular as ever TV amplifies other media and works across platforms TV remains the most effective medium TV pays back
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The Case for TV:
TV is as popular as everTV amplifies other media and works across platformsTV remains the most effective mediumTV pays back
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Time
Pop
ulat
ion
(000
's)
Radio Newspaper Magazines Internet TV
TV is as popular as ever!
Source: IPA Touchpoints Hub Survey (other media) and BARB for TV – Monthly Reach by Hour
Monthly Reach by Hour
TV viewing hours unchanged for 15 years
3.69 3.6 3.59 3.59 3.59 3.61 3.67 3.67 3.63 3.73 3.65 3.7 3.743.633.57 3.6
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
Ave
Hou
rs V
iew
ed D
aily
Source: BARB/TNS Infosys – Individuals
Average Daily Hours Viewed
TV is constantly on the consumers radar!
Bringing up Children 24%
Crime, Law and Order 25%
Source: Television Opinion Monitor Q1-Q2 2007/ Sample – UK adults (1224)
Cost of Living 26% Family and Friends 34% Sport 25%
Television Programmes 29%
The DTR has enhanced TV viewing
Sky+ homes watch 20 mins more TV per day and 21% more commercial TV than non-Sky+ homes
Most viewing is still live (88%+) in pvr homes
Most time-shifting programmes watched on same day as recording
42% of time-shifted breaks viewed at normal speed
DTRs increase commercial impacts by 5%!
Thinkbox 2007 Engagement Study found a much higher concentration on the TV screen when commercials are being Fast forwarded
Source: BARB, ACB/LBS and Skyview, Thinkbox
One flat-screen TV sold every six seconds
Over 3 million sold in 2006
Average screen size growing by an inch per year
45% of new TVs bought in last year cost £500+
The ‘celebration’ bit...Consumers are investing in TV
TV and ad content
delivered via the internet
Hard disk based on
demand and interactive services & advertising
EPGs, Sky Active menus
Interactive TV services
and ads
Server based on-demand
servicesand ads
Personal Video
Recorders (PVRS)
Video On Demand
(VOD)
Internet Protocol TV
(IPTV)
InteractivityGuides & Interfaces
Mobile TV
Server, broadcast
and download
based mobile content services
New Functionality Supporting TV Viewing
ITV has the unrivalled ability to create
viewer response and engagement
Source: BARB/ITV Consumer/YouTube (Youtube average 647,000 views per video), ITV Interactive Tracker
Approx. applications to enter the show’s auditions:
50,000
Approx. competition entries to win tickets to the shows:
1 million
TV ratings for final of Britain’s Got Talent:
16.1 million
Red button interactions: 1 million+
George Sampson videos on YouTube: 4,850+
Top 20 video views of George Sampson on YouTube:
30 million+
0800On bus read Piers Morgan’s blog via BGT WAP site
0900Catch-up on latest goss in Friend’s Reunited BGT group
1100E-mail clips to my friends from ITV.com
1300Lunchtime catch-upshow on ITV2
1930Share mobile clip in
pub with friends
2100The show!
2145Vote via Red Button.
Please don’t letPaul go out just yet.
2200Talent Extra on ITV2
1630Watch exclusive
behind-the-scenes video on itv.com
1500Watch best clips on BGT branded You Tube channel
1800Receive email newsletter with link to show preview
TV content works across many platforms ITV 360° - The Viewer Experience
Engagement with TV Content Online
% Done in last 6 months
0%
10%
20%
30%
40%
All Male Female 15-24 25-34 35-44
Visited a website related to a television programme
Watched a TV/video clip online / downloaded a TV/video clip
Watched television / film online / downloaded a TV programme / film
Source: nVision Research – The Future Of TV - Base: All Internet users aged 15+, 2007
The young are still spending more time with TV
60
30 2922
72
6
ITV1
Kiss 100Bebo
FacebookGoogle
Source: TV – BARB 01Jan-12Oct08 / Press – TGI Q3 2008 / Radio – RAJAR Q2 2008 / Internet – Comscore Aug 2008
1534 - Daily Minutes Viewed / Visited
* Each bar is based on the people viewing, listening or accessing each medium.
…and they are less ad averse
35 36
22
14
26
17
I enjoy TV adverts Ads on TV often make mewant the things advertised
TV ads give me something totalk about with others
8-21 year olds Adults
% Agree
Source: Other Lines/TGI
1.3
1.3
1.4
1.5
2.3
2.5
2.9
3.8
3.9
3.7
Bebo
cor
The Sun
brit aw
bgt
ITV1
15-34s - Daily Reach
Source: TV – BARB Weeks 1-41 2008, 3+ mins reach / Press – TGI Q3 2008 / Internet – Comscore Aug 2008
Reach in millions
Page 13
16-34 viewing has remained consistent…
0
2
4
6
8
10
12
14
2004 2005 2006 2007 2008
Total TV Commercial TV ITV Family
Weekly Reach in Millions
Source: BARB/TNS 2003-2008
…and they are switched on for just as long
0
1
2
3
4
5
2004 2005 2006 2007 2008
Total TV Commercial TV ITV Family
Average Daily Hours Viewed
Source: BARB/TNS 2003-2008
TV Amplifies Other Media
0
10
20
30
40
50
60
Outdoor DRTV Inserts DoorDrops
Press Online Search
Media Channels
£ C
ost
per
cu
sto
mer
Initial DART Analysis
Econometrically adjusted
The true return of each medium needs to be identified…
Source: Mediacom / Thinkbox Event / Example Client
TV can drive consumers online
“You may not believe this but last week I stood in front of a major media agency and 50 or so of their clients and sold TV.
I told them that TV & search are highly compatible & that money should be taken from below the line and pushed back into TV
alongside (obviously) massive growth in search.
This is a common theme of mine as we see huge spikes in query volume following TV exposure both editorial & ads.”
Mark Howe, MD Google Media Sales
Media Spend - £Unique Users
– 000’s
Source: Comscore and NMR Ad Dynamix
TV Spend and Unique Users Relationship
£0
£200,000
£400,000
£600,000
£800,000
£1,000,000
£1,200,000
Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-080
50
100
150
200
250
300
350
400TV Ad Spend Unique users
8.5
6.0
8.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
9.0
1980s 1990s 2000s
TV is becoming more effective over time
The launch of multi-channel is making it easier to reach consumers
Average market share gain (% points) where TV is the lead medium
Source: IPA - Marketing in the Era of Accountability
TV prices have continued to fall in the last 7 years
90
100
110
120
130
140
150
1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Re
al
CP
T (
19
85
= 1
00
)
Year
Base 100 = 1985
Source: IPA - Marketing in the Era of Accountability
The rise of multi-channel means more competition
making TV more cost efficient
ITV1 prices have continued to fall in recent years
90
95
100
105
110
115
2002 2003 2004 2005 2006 2007 2008
Adults HWS
Re
al
CP
T (
20
01
= 1
00
)* I
TV
Co
sts
in
de
xe
d a
ga
ins
t 2
00
1
Year
Base 100 = 1985
Source: ITV Salesnet, CPTs indexed on 2001 figures
TV Pays Back !
Thinkbox: Payback in the Third Age of Television
The Main Drivers of TV Effectiveness and Value
Amplification of Other Media
Fame and Awareness
Emotional and Implicit Associations
Immediate Benefits and Long Term Value
The Power of Emotion and Fame
Source: Guardian, Campaign, Marketing, Telegraph, FT Nov-Dec 2007
Case Study :
2006 - £45 million advertising campaign
Food category – exclusively TV
Every execution outperformed branding and recognition tracking norms
National stampede on hot chocolate puddings!
Food sales up 8.4%
Halo Effect - UK sales up 9.1%
IPA Grand Prix and Gold Winner 2006
Source: Guardian, Campaign, Marketing, Telegraph, FT Nov-Dec 2007
Case Study :
Started in August 2007
Initially multimedia – then 100% TV
Youtube received 500,000 page views in the first week ad went on air
By end November 2007 had been viewed over 6 million times
Weekly sales up 9% year on year during period on air
Exceeded revenue growth targets of 4-6%
Case Study: Hovis
TV’s longest commercial:
122 seconds
Launched in Coronation Street
3 fold increase in buzz around the brand
Source: Media Week 14Oct08
2 2
10
1
01
23
45
67
89
1011
12
Share of Voice Market Share
Extra needed for growth
Original
Source: IPA - Marketing in the Era of Accountability Oct 2007
%
Brands that shout louder grow faster!
0.7
2.7
0.0
0.5
1.0
1.5
2.0
2.5
3.0
Campaigns using TV Campaigns not using TV
TV enhances campaign efficiency
Market share % point gain per 10% point excess share of voice
Source: IPA - Marketing in the Era of Accountability
66%
49%
0%
10%
20%
30%
40%
50%
60%
70%
Campaigns using TV Campaigns not usingTV
Eff
ecti
ven
ess S
uccess R
ate
%
TV leads to greater business successes
% Reporting very large business effects over the last 26 years
Source: IPA - Marketing in the Era of Accountability
Immediate Benefits and Long Term Value
0
10
20
30
40
50
60
70
80
% Increase in FMCG purchasing within 4 weeks
Source: TNS Mediaspan, database of case studies, 1995-2002
New brandsEstablished brands
For large established
brands
& staples, % sales growth
is much smaller but in
£s is significant
TV advertising works very well
to drive sales of launch brands
Brands in high interest
categories
e.g. Toiletries, Ready meals
tend to show higher than
average % sales growth
On average, TV Advertising generates a 4.4% sales uplift within 4 weeks
Avg: 4.4%
Source: ITV Wales – December 2007
Case Study :
December 2007 campaign – 2 weeks ITV1 Wales only
Budget under £15,000
Campaign seen by 1.3 million adults
Footfall raised by 20% when most Cardiff retailers struggling
“This was the first time we’d been on TV for over 10 years and the help and service we received from ITV throughout the entire process was second to none. We worked with a production company who produced a high quality product at a very good price and the results were fantastic. Although television is a more expensive option it was well worth it.” Mark Nott, General Manager
Gloomy Christmas promises
miserable new year for retailers
Source: Telegraph, Guardian, IGD Retail Analysis Feb 2008
Case Study :
£14 million national TV campaign
Christmas ad featuring Lulu, Denise Van Outen etc
Strongest Xmas results ever delivered
Double level of growth than Tesco, Sainsburys, Waitrose
4 million more shoppers attracted over 6 weeks to 06Jan08
Year on year sales up 9.5%, and operating profit up 50%
Low Loyal Consumers respond most to TV Advertising
1.5
3.2
14.7
4.4
all buyers low loyal medium loyal high loyal
Contribution to Sales Uplift 57% 27% 15%
% increase in purchasing in first 4 weeks
Source: tvWORKS, Jan01-Dec03, saw at least 1 spot in prior 28 days, loyalty reflects spend on brand as % of spend on category, low loyal = 0-10%, medium loyal = 10-39%, high loyal = 40-100%
tvWorks
Low Loyal consumers are most effected by the absence of TV Advertising
100.0
105.4
93.3
73.472.0
101.3
104.4102.9
70.4
75.076.5
70
80
90
100
110
0 28 56 84 112 140 168 196 224 252 280 308 336 364
high loyal low loyal
Sal
es i
nd
ex
Minimum days elapsed since advertising was last seen
Source: tvWORKS, 2 years to Jan03, loyalty reflects spend on brand as % of spend on category, low loyal = 0-10%, high loyal = 40-100%, the sales index compares the amount of purchasing of the brand at each point in time to the amount of purchasing at the control
The effects of TV last for a longer termNearly 45% of TV’s revenue effects are delivered after the year of the investment.
Source: PWC/Thinkbox – Payback Study Oct 2007
Thinkbox and PWC analysed long term effectiveness
Source: PWC/Thinkbox – Payback Study Oct 2007
Car Insurance Auto x 3* Hair-careFruit Juices Cereal
*lower medium, upper medium, premium exec
706 brands, 10+ years of data, 41 brand surveys, 7 categories (significant spend, various price points)
volume, pricing & ad data
Longevity is key to long term value. Most brands are short lived.
Source: PWC/Thinkbox – Payback Study Oct 2007
Take the cereal market as an example…
born post ’91 & dead pre ‘06
49%
born post ’91 & alive post ‘05
25%
born pre ’91 & dead pre ‘06
15%
born pre ’91 & alive post ‘05
11%
4.1 years
7.2 years
8.9 years
14.5 years
Lifespan
Brand value is just as important as longevity
Source: PWC/Thinkbox – Payback Study Oct 2007
49p
400m per year
31p
1m per year
0
10
20
30
40
50
60
70
80
90
100
110
Focus 5 Series PassatCrunchy
Nut Pantene TropicanaDirectLine
Internet
TV
Radio
Press
Outdoor
Direct Mail
Cinema
TV core medium for nearly all leading brand value owners
£m
Source: PWC/Thinkbox – Payback Study Oct 2007
TV investment delivers a clear increase in revenue
On average a £1m increase in TV investment yields a £4.5m increase in revenue
Source: PWC/Thinkbox – Payback Study Oct 2007
TV and ITV1 has clearly helped the Anchor Butter brand to grow…
£3.9m £6.5m(+68%) Anchor sales up 14% from £65.6 million to £74.5 million
Those highly exposed to
ITV1 accounted for 90% of the increase in sales value….
…spending over a third more on Anchor than those with very little exposure to ITV1
Source: NMR Own Costs and TNS Worldpanel Sales for Anchor BUTTER Brand Set (Highly exposed to ITV1 = would see 90% of any advertising exposures as calculated by weights of viewing by daypart/dayand frequency)
Anchor Share of Spend 2007 vs 2008
15
31
2
5
12
2
5
5
1773
35
Jul06-Jun07 Jul07-Jun08
Other media
Other satellite
Five
Ch4
ITV Digital
ITV1
ITV1 spend up
253%
Immediate effects on sales at all stages of a brand’s lifecycle
4.4% increase in FMCG sales within the first 4 weeks of TV advertising – with 4 more repeat purchases
Lead medium for most successful brand value owners
Delivers its value over a much longer time frame (45% after year 1) – which is financially useful
A £1 million increase in TV investment yields a £4.5 million increase in revenue
Source: PWC/Thinkbox – Payback Study Oct 2007 / tvWorks Dec 2003 / IPA Marketing In The Era of Accountability 2007
TV Pays Back!
TV remains central in the lives of consumers and in the success of brands
TV still as popular as ever and so drives emotional associations between brands and consumers
TV amplifies other media works on many platforms
TV pays back… Immediate sales benefits Long term brand and shareholder value
ITV remains the nation’s most popular commercial channel
The Case for Continuous TV Advertising
Consumers are making careful brand choices, staying in more and watching more TV so now is the time to take advantage of, and get
an advantage with, TV advertising
41%going to pubs orrestaurants less
Source: GfK NOP July 2008
38%cutting down ontravel plans
Effects of Advertising During Recession
Source: Profit Impact of Marketing Strategy, IPA Breakfast Conference 18 Oct 2007, Data2Decisions
Share % change in first 2 years of recovery
Advertising during recession
0.7
1
1.6
Removed Maintained Increased
30
20
10
0250
0
GRPs
1½years
Advertising awareness
People remember advertising…
…and people forget advertising
No TV Advertising for a year produces a 13% decline in Purchasing
100.0
92.5
87.5
90.593.092.9
70
80
90
100
110
0 28 56 84 112 140 168 196 224 252 280 308 336 364
Minimum days elapsed since advertising was last seen
Sal
es i
nd
ex
Source: tvWORKS, 2 years to Jan03, the sales index compares the amount of purchasing of the brand at each point in time to the amount of purchasing at the control (when advertising had been seen in the last 28 days).
The effects of TV last for a longer termNearly 45% of TV’s revenue effects are delivered after the year of the investment.
Source: PWC/Thinkbox – Payback Study Oct 2007
£m
TV Helps Maintain Brand Thrust
During a recession…
Build market share at lower cost
Strong signal of commitment and confidence in brand
Increased revenue & profit when conditions improve
Increase/maintain ad spend = maintained shareholder value
Source: Paddy Barwise/London Business School, ‘Advertising in a Recession’, 1999.
