anintroductiontouktelevision apresentationto … · i\cdpmedia\intro\tv\0498.ppt b.a.r.b: nowit...

$: ANINTRODUCTIONTOUKTELEVISION APRESENTATIONTO … · i\cdpmedia\intro\tv\0498.ppt B.A.R.B: NOWIT WORKS homes panel 4,435 N4 Each connected via acomputer link to AGB E Viewing is measuredelectronically$
AN INTRODUCTION TO UK TELEVISIONA PRESENTATION TO

SALLY CURRENGALLAHER

MEDIA COMPANY

COPMEDIA COMPANY

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CONTENTS

Television Viewing

Ratings - The currency of television

Commercial television in the UK§ ITV§ C4§ GMTV§ Satellite/Cable§ C5

Digital Television

The Cost of Television

Our Buying Philosophy

Summary

Glossary of TV Terms

COPMEDIA COMPANY


TOTAL TELEVISION VIEWING IS SLOWLYDECLINING

Source : BARB

All TV Adult Hours & Minutesper da

1992 4.01

1993 3 .52

1994 3 .49

1995 3 .48

1996 3.45

1997 3.40

COPMEDIA COMPANY

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ADULT SNARE OF VIEWING BY STATION

N

0

01995

1996

1997

mCC

tU

* April-December onlySource : BARB

MEDIA COMPANY


THE CURRENCY OF TELEVISION

of the population who viewed each individual programme/advertisement

RATINGS OR TVRs

f All Adults

e

verti semen

COPMEDIA COMPANY

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BUT ...

100 TVR's is not 100% of the populationNot 100% cover

4How do we know this?

TVR 1 + Cover Unique ViewersProg 1 . 20 20% 20%Prog 2 . 15 25% 5%Prog 3 . 5 27% 2%

COPMEDIA COMPANY


B.A.R.B: NOW IT WORKS

4,435panelhomes

N4Each connected via a computer link to AGB

E Viewing is measured electronically

N4E Audiences measured minute by minute

-~4NR's for 200 demographic groups4

Who saw each advertisement and how many times

14 `BUYABLE' AUDIENCES

COPMEDIA COMPANY


COMMERCIAL TELEVISIONIN THE UK

0 C4

0 GMTV

Satellite/Cable

0 C5

COPMEDIA COMPANY


ITV

" Regional

® 13 areas(14 contractors - 2 in London)

E Sold by 3 sales houses

® 60% of commercial viewing (impacts)§ mass market - it reaches everybody§ older§ fast cover build

® Yardstick by which all other channels are measured

COPMEDIA COMPANY


1998 ITV REGIONS & SALES HOUSES

TSMS 1 :4 oftotal : broadcastrevenue

C ScotlandN ScotlandN Ireland

Wales & WestSouth &' S E

East

London(Weekend)

Laser Sales20.7% of

total broadcastrevenue

London (Weekend)N WestYorkshireNorth EastBorders

CarltonUK Sales22.0% of

total broadcastrevenue

London (Weekday)Midlands

South West

ITV Region Homes %

London 19 .40

Midlands 15 .38

N W est 1 1 .65

Borders 1 .18

Yorksh ire 9 .95

N East 5 .03

C Scotland 6 .33

Wales & West7 .67

South &SE 9 .24

East 6 .71

S West 2 .98

Ulster 2 .35

N Scotland 2 .13

COPMEDIA COMPANY

200

180

160

140

120

100

80

60

40

20

0

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ITV ADULT COST '000 - BY REGION

173

100 = Network Average Adult Cost/'000

99

77

0

6475 77

132

77

°6 L z

-a

3

Luo

....H NC

(/)

p

Na

a> --~

°6

06

06Lo a ° ms

NwZ m

V)a ov

64

Source : CDP Media Co.Jan-Dec 1997

55

cO`oVNz

COPMEDIA COMPANY

140

130

120

110

100

90

80

70

60

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ITY ADULT COST '000 - BY MONTH

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Source : CDP Media Co.Jan-Dec 1997

COPMEDIA COMPANY

160

140

120

100

80

60

40

20

0

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NOW COSTS VARY BY DAYPART

100 = All Time Average Cost/'000

125

o o`

o o`

o o`

o 0`O 0!

cM

CSI ~?N

O"O O

O

150

oOO NN N

100

o o`O N

MN N

50

0M

OV

N

COPMEDIA COMPANY


CHANNEL 4

® National§ Will sell 20% of airtime in 6 macro regions

-

Restricted programme choice in macros-

Difficult to buy London macro

® 19% of commercial impacts§ More upmarket and younger than ITV§ Slower cover build§ 40-50 TVRs per week maximum

® Best used in conjunction with ITV- Can buy C4 and then use ITV for upweights

COPMEDIA COMPANY 1998 C4 SALES REGIONS (MACROS)

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C4 Macro ITV Region Homes

C4 London London 19 .40

C4 Midlands Midlands 15 .38

C4 North North West 26 .53

Yorkshire

N East

C4 South East 23 .40

South & SE `

South Wales & West

C4 Scotland C Scotland 9 .46

N Scotland

Borders

C4 Ulster N Ireland 2 .34

Total 96 .51

includes Channel Islands

S4C sold 6y TSMS (ITV Sales House) 3 .49

COPMEDIA COMPANY


GMTV

" National Breakfast Service§ Similar macro opportunities to C4

" 3% of commercial impacts§ Half cost of ITV for Housewives with children§ Expensive for other audiences

COPMEDIA COMPANY


SATELLITE/CABLE

National sell§ Very limited regional cable sell

Satellite v Cable is simply the means of distribution§ Each provides similar services

" Important for national campaigns

Total worth of subscriptions now £1 .2bn+ per year (nearlythree times the advertising revenue taken by Channel 4)

COPMEDIA COMPANY

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SATELLITE/CABLE . . . . A GROWING FORCE

Currently in just over 6.7m homes (28 .1 % of all UK homes)By the turn of the century it is expected to rise to 40%Current Dish/Cable split is 62%/38%, but with cableexpected to grow fastDish/Cable penetration is fairly evenly spread across the UKCabled homes receive a menu of Astra services plus agrowing selection of "cable only" stationsFootball has been the driving force behind the growth ofsatellite and cableEnglish speaking Astra stations are dominated by Murdoch'sSky group of channels

COPMEDIA COMPANY

45

40

35

30

250

20

15

10


PENETRATION ESTIMATES

Data point taken at the end of each year

0

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

III Combined -O-- Dish IN CableSource : CDP Media/BARB March 1998

COPMEDIA COMPANY

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BSkyB - THE BRAND LEADER

The current monthly cost of receiving Sky's top package ofstations is £30 via satellite and up to £45 via cable

M Total worth of subscription revenue now £1 .2bn+ per year(nearly three times the ad revenue taken by C4)

Government has banned BSkyB from bidding for 8 majorsporting events

COPMEDIA COMPANY

180

160

140

120

100

80

60

40

20


SATELLITE/CABLE RECEIVERS- BY CLASS & AGE

Profile indexed against Terrestrial TV

92

105

123

85

139

157 154

71

33

AB

C 1

C2

DE16-24 25-34

35-44

45-54

55-64

65+

Source : BARB Jan-Dec 1997 (Adults)

COPMEDIA COMPANY

SATELLITE/CABLE RECEIVERSBY SIZE OF HOUSEHOLD & PRESENCE OF KIDS

180

160

140

120

100

80

60

40

20

0

Profile indexed against Total TV

146 140150 150

COPMEDIA COMPANY


40

35

30

25

20

15

10

SHARE OF VIEWINGIN THE SATELLITE/CABLE HOME

'_ CN U

> U LO LOU U m

U U

-m

N \ N

U

0 aU

0 _>

F- a0

Source : BARB Jan-Dec 1997 (Adults)

COPMEDIA COMPANY


SNARE OF VIEWINGIN THE SATELLITE/CABLE NOME

60

50

40

30

20

10

The younger they are - the more satellite they watchof0

0

3028

21

3533

25

36

40

54

Adults 16+

Adults 1 6-34Kids 4-9

All BBC

ITV/C4/C5

All SatelliteSource : BARB Jan-Dec 1997

COPMEDIA COMPANY


FOR SOME GROUPSPENETRATION IS NOW ABOVE 40%

45

40

35

30

25

20

15

10

Uf

O2

V Qm

44 .3

SV

Source : BARB March 1998

COPMEDIA COMPANY


Channel 5

® Predicted 65% penetration at launch- estimated 50%

False promises

Claiming 70% by end of 1997

Mission statement - modern mainstream- in reality 2nd class ITV- now buying up football- copycat programming

® A film at 9 .00pm every day of the week!- Sweeney- U .S . series

®

It offers nothing that is not available elsewhere

COPMEDIA COMPANY


HOW THE STATIONS CAN BE BOUGHT

* Amalgamation of selected regions

Offering a single buying

Nationally

point -

By Macro* Regionally Locally

IN x x ,/ x

C4 J ./ V/ x

C5 "/ V/ x x

GMTV ./ ./ x x

Satellite ./ x x x

COPMEDIA COMPANY


BROADCAST REVENUE (SNARE)

ITV

C4 (inc . S4C)

GMTV

Satellite

C5

01995

1996

1997

" 1998*

* EstimateSource : CDP Media Co.

COPMEDIA COMPANY


ADULT HOUSEWIFE IMPACTS (SNARE)

19 .619 .71 8 .8 18 .8

ITV

C4 (inc . S4C)

GMTV

Satellite/Cable

C5

" 199519961997*

" 1988**

4 .6 5 .0

"April-Dec" EstimateSource : BARB

COPMEDIA COMPANY


THE CHANGING FACE OF TV BUYING

Satellite has now reached critical mass

" Penetration is too large for many national advertisers toignore

It is now possible to buy successful campaigns using Satelliteonly

Used in combination with other TV channels it can successfullychallenge the once dominant position of ITV

COPMEDIA COMPANY

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THE RACE f0 DIGITAL

® Plans for digital television are already very well advanced

Competing transmissions will be available via satellite, cableand by terrestrial signals

® All will come at an additional cost to the viewer, with chargesfor a decoding box (satellite & terrestrial) and for receivingpremium channels

® All will provide additional choice, crisper picture quality andCD quality sound

COPMEDIA COMPANY


THE RACE i0 DIGITAL

m Sky leading the way for the advent of Non-Terrestrial Digital

BDB (Carlton, Granada) to capitalise on advent of TerrestrialDigital

0 The launch of Digital has been delayed probably until 1999

COPMEDIA COMPANY

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TERRESTRIAL= DIGITAL BROADCASTING

The Government will allocate six multiplexes (bundles offrequencies)§ One to the BBC§ One to be shared between ITV and Channel 4.§ One will probably carry S4C & Channel 5 on half its

capacity

Applications for the remaining three and a half multiplexeswere open for tender

COPMEDIA COMPANY


BDB

" BDB successful applicant

BDB shareholders are- Carlton Communications- Granada Group- BBC

ITC forced BSKYB to sell their stake in BDB . They will remain apremium programme provider

® All current television channels plus 15 new channels areplanned to be available on digital by early 1999

COPMEDIA COMPANY

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BDB - WHAT WILL IT OFFER?

0 3 BBC Channels

0 Sky One- BBC Horizon

0 Premium Channels- BBC One TV

- Sky Movies- BBC Showcase

- The Movie Channel3 Carlton Channels

- Sky Sports- Select- Films- Entertainment

® 4 Granada Channels- 3 from GranadaSky

- Sports Club

COPMEDIA COMPANY

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SATELLITE - DIGITAL BROADCASTING

British Interactive Broadcasting (BIB)- British Telecom- BSkyB- Midland Bank- Matsushita Electric

Potential to provide shopping, banking and internet services tosatellite subscribers

Bringing information age to television viewer not just the PCuser

® Predicted to start Christmas 1998

COPMEDIA COMPANY


SATELLITE - DIGITAL BROADCASTING

It will not be cheap for the subscriberSet top boxes (decoders) will have to be subsidised - with aprice down to £200 to be attractive to consumersViewers will have to subscribe to Sky's 200 channel digitalpackage

" Interactive services will have to be paid forCharges not been decided

" Industry estimates 5 million customers within 5 years

COPMEDIA COMPANY


CABLE- DIGITAL BROADCASTING

Although details are not fully known yet, the cable companiesare claiming they will be offering a full range of channels(including BSkyB stations) with easier and better interactivefacilities than either satellite or terrestrial digital services

N Claim they will be on air late Summer

COPMEDIA COMPANY

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THE COST OF TELEVISION

Demand _ RevenueSupply Audience

- market driven- constantly changing- no rate cards- ITV drives the market

CPTor

Station Price

COPMEDIA COMPANY


BUT . . .

" We do not know what the revenue will be

" We do not know what the audience will be

" How do we know we are getting a good price?

" We agree on a position against the station price

COPMEDIA COMPANY HOW AUDIENCE DELIVERY AND REVENUE CAN

AFFECT RATING PERFORMANCE

COPMEDIA COMPANY


BOOKING DEADLINES

Generally 1 st of Month

2 months prior to transmissioneg .

April

-

February 1 stOctober

-

August 1 st

® Late booking will incur cost penalties

® It will also compromise our access to programmes

COPMEDIA COMPANY


OUR BUYING PHILOSOPHY

Client led- no agency deals

Value led-

total control -> quality campaigns-

no pre-emptions-

programme choice-

centre breaks-

deals are met

COPMEDIA COMPANY

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OUR BUYING PHILOSOPHY

Reach the right people (Target Audience)

In sufficient numbers (Coverage)

®

Enough times to be effective (Frequency, OTS)

In the correct environment (Positioning, Programming)

At the cheapest price

But : Never compromise the effectiveness of the schedule simply to improvethe cost

COPMEDIA COMPANY


COVERAGE

Buying into similar programmes, however popular they may be, willrestrict the potential coverage

Strong daypart, high conversions and buying centre breaks ofprogrammes help establish high levels of cover

"

Finding the right 'mix' of programmes that appeal to our targetmarket is the way to maximise cover

"

This can only be achieved if you have total CONTROL of the airtime

COPMEDIA COMPANY


SUMMARY

0 Ratings are the currency of television

ITV remains the dominant player- but C4 is good for more targeted opportunities- and satellite is growing

" The price of television is market driven

N The key to successful buying is control

COPMEDIA COMPANY

RATINGS§

% of the population who viewed each individual programme/advertisement

1 + COVERAGE§

%of the population who viewed one or more spots during a campaign

4+ COVERAGE§

%of the population who viewed four spots or more during a campaign


GLOSSARY OF TV TERMS

COVERAGE/REACH§

% of the population who viewed any spot during a campaign

Cost Per Thousand (CPT) = THE PRICE§

Expressed in thousands, the cost of reaching one thousand of given population

PURE COST§

The true average cost for all advertisers for any given month. All advertisers spend _ all commercial impactsdelivered

GROSS OR PUBLISHED COST§

Costs published by the sales houses, totally made up and up to 23% higher than Pure Cost

® IMPACTS§

Viewing figures expressed in 000's

anintroductiontouktelevision apresentationto … · i\cdpmedia\intro\tv\0498.ppt b.a.r.b: nowit...

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