The role of television in 21st century marketing

Presentation to SEMPL Media Trends SeminarDavid Brennan – Founder – Media Native

Need to use different research methodologies for TV

Emotional metrics

Conjoint to measure brand valueEthnographic

Neuroscience

Implicit Attitude Testing

Econometrics

BiometricsEthnographicCreative Workshops

The UK is the most advanced digital market – e.g. - online retail - use of social media - video on demand - digital advertising revenues

Therefore established media must suffer...mustn’t they?

The first signs of the ‘TV is Dead’ movement

“TV is, at heart, a totalitarian regime. Its viewers...sinking into a passive stupor before the tube. Its overthrow will be a major force for freedom and individuality, culture and morality”

“Television is not vulgar because people are vulgar, but because people are similar in their prurient interests”George Gilder – Life After Television (1994)

“There is a fundamental shift in human behaviour going on – and the question is no longer if, but rather when more television consumption will occur via the internet than traditional broadcast orcable platforms”

“At the end of the day, people want to sit down the friction of having to sit down in front of aTV set at the appointed time”Michael Arrington – TechCrunch (2006)

3 REASONS WHY THEY GOT IT SO WRONG…

1. They don’t understand the TV mindset

2. Binary thinking – if x lives, y must have to die

3. They assume a rational. predictable world (cf. classical economics)

1. They don’t understand the TV mindset

2. Binary thinking – if x lives, y must have to die

3. They assume a rational. predictable world (cf. classical economics)

TV viewing is at an all time high

TV is the dominant youth media…by far

Ad avoidance has not been effected by DTR penetration –People watching more commercials at normal speed!

Translating into strong advertising revenue performance

% Share by medium of total ad revenue

0

10

20

30

40

50

60

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

Press

TV

Internet

Outdoor & Transport

Radio

Cinema

%

Source: AA/Warc

TV’s % share of display advertising revenue

%

Source: AA/Warc (2011 based on latest estimates)

Technology is not killing TV…it is making it stronger!

Digital technology is TV’s best friend...

Need for storytelling

The importance of emotion

The power of context:relaxed & receptive

3 reasons why TV will remain the dominant ad medium

The need for storytelling – how we learn & remember!

The power of context – relaxed, receptive, shared

Emotion and long-term memory are key

Neuroscience proves that audio-visual has greatest effect on emotion & long-term memory – where brands live

Emotions sell more than rational– how the human brain is wired

Produces higher emotion, engagement + long-term memory compared to other forms of advertising (inc online video!)

IPA Study:880 brands studied26 years of dataMultiple markets & media

PWCStudy:706 brands studied15 years of dataMultiple markets & media

EbiquityStudy:3000 brands covered5 years of dataMultiple markets & media

Power = payback: 3 studies show TV most effective

TV pay back more than any other medium...and for longer

TV payback across two years+ - most other media across weeks

Payback driven by FAME and EMOTION, not rational measures

TV builds brand value – more profitable

TV boosts performance of other media...especially online

Power = payback: 3 studies show TV most effective

It’s not about online replacing TV

TV and the web are used in a very integrated manner, to multi-task, socialise and respond to what they see on their TV screens

The growth of laptop, smartphone & tablet penetration + wireless broadband is revolutionising how TV is experienced

TV & online – a match made in heaven!

Promotional Channel

A point-of-sale medium

Audience builder

Response Channel

TV’s informal PR machine

Distribution Channel

Online offers many exciting advantages for TV…

Research conducted amongst most digitally enabled households (2008)

TV shown to lead and influence many forms of online behaviour

Online supporting TV and acting as ‘harvester’ for TV-prompted behaviour

Concurrent consumption of TV & online is key – instant response button

Base : 1000 adults 18-55 with home broadband

Concurrent use is now more widespread

Over half of consumers with internet access claimed to concurrently watch TV & browse the net every day (53%)

16-34s are almost twice as likely to do both together than the 35+ (73% v. 42%)

Virtually all UK internet users(94%) had gone online as a result of seeing something on TV in the last year

Promotional Channel

A point-of-sale medium

Audience builder

Response Channel

TV’s informal PR machine

Distribution Channel

Online offers many exciting advantages for TV…

Sources: Virgin Media Jan 2010, Infomitv Dec 2009, projectcanvas.co.uk,

Massive growth for on-demand TV…

80% of broadband households now watch TV on demand

Viewing to on demand TV has increased by over 25% in the last year

Lots of new broadcaster services are being launched – mainly based around catch up

TV on demand is now one of the most popular online activities…

…but still less than 2% of total TV viewing time

..

Online offers many exciting advantages for TV…

Response ChannelA point-of-sale

medium

Audience builder

Distribution Channel

TV’s informal PR machine

Promotional Channel

We’ve always shared TV – in real life and virtually

TV drives word of mouth – and vice versa

TV acts as social fuel

70% of viewing is shared...but now it is shared beyond the sofa

Television is the ultimate social medium

A fraction of our time is on social media compared to TV

Source: Deloitte Media Perspectives 2011 (based on BARB & UKOM data)

The average person spends 35x more time with TV than with all social networks!

The…

Episode after Susan Boyle’s debut – additional 1.9m viewers

From 11.1m to 13m

X-Factor has 2.5m friends on Facebook

Glee has 130,000 followers and has 1,500 tweets per episode in UK alone!

Social media is a good companion to TV

Strong link between TV advertising & social media

Meet Aleksandr the Meerkat

Public face of online company comparethemarket.com

Almost 1 million Facebook fans

Responsible for revitalising the whole insurance comparison market!

TV ads inspire, social media captures and extends

How a meerkat got the country talking...

Over 1 million youtube views in just 4 weeks!

Increased our website traffic by over 400%!

Increased planning requests by almost 200%!

Spoof ads, forums, blogs, fan pages, applications to animal sanctuaries, requests to adopt Harvey…the list goes on

Response ChannelA point-of-sale

medium

Audience builder

Distribution Channel

TV’s informal PR machine

Promotional Channel

Online offers many exciting advantages for TV…

HD / 3D

Devices becoming TV devices

Web functionality merging into TV Integration

across home networks

Technology is evolving

2010 2013

‘Tellyported’ families given the latest TV tech

The 5 main themes

The main themes of Tellyporting

Consolidation

Hierarchy of Screens

Social Media The Drive to Live

The Commercial Contract

The emerging living room eco-system

The commercial contract

5) The commercial contract

Our tellyporters showed an increased capacity for instant response

Measurement?

Click to save/download

Click to email me details

Click to ‘like’

Click to join Facebook group

Click to post to my wall

Also opportunity for task-unintrusive ads

Purchasing?

Buy now

The next wave of content and ads?

Enthusiasm for new advertising formats!

In summary

Consolidation of viewing on demand & recorded content used around linear schedule. Broadcaster sites dominate

Hierarchy of screens Big TV in the living room always preferred. Concurrent TV & online use has increased

Social medium Live TV prompts conversation with people

chatting about and sharing their favourite

programmes and ads

Primacy of live TV Apps and new ways to watch TV adds to the

live TV experience, doesn’t take away from it

Commercial contract Greater integration of TV and online means

new advertising opportunities

The role of television in 21st century marketing

Presentation to SEMPL Media Trends SeminarDavid Brennan – Founder – Media Native

An Introduction to TV Technology

TV is a medium we share with other people

Source: Touchpoints 2010 – Adults

*Shared activity is determined as at home, with a partner/spouse, parent, children, brothers and sister, other family and friends

60% of all TV time is shared

31% of internet time is shared

25% of radio time is shared

15% of newspaper reading time is

shared

“Do you know if each medium is set up specifically to check ads to see if they are legal, honest, decent and truthful?”

29%

40%43%

49%49%

62%

0%

10%

20%

30%

40%

50%

60%

70%

TV Newspapers Radio Magazines Posters Internet

Source: Television Opinion Monitor 2010 UK adults 16+

TV ads are seen as most trustworthyTV ads are seen as most trustworthy

People need to trust more than ever before...

The 3rd Age of Television

How new TV technology is adding new opportunities

How did the tellyporter’s TV viewing habits change?

Live TV viewing behaviour didn’t change Connected devices fitted around their usual TV viewing – more options, flexibility, more TV!

On demand jumped from PC to TV Apps on TV meant content viewed where they really wanted to see it – on the TV set

PVR still preferred to catch up It provided the most control and instant access

3D TV created much excitement Quality was appreciated but lack of content and price could hold back purchase for now