THE EFFECTIVENESS OF TELEVISION

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1 THE EFFECTIVENESS OF TELEVISION

2 Television is changing. TV is no longer just a box in everyone s living rooms, it is now something that can be watched anytime, anywhere, across a range of different screens. So as viewing habits evolve, is TV advertising as effective as it used to be? An overwhelming body of evidence from Australia and around the world demonstrates not only that TV advertising works, but in fact, it s more effective than ever. People love watching television Page 5-6 Television delivers unrivalled reach Page 7-10 Television generates social media buzz Page Television makes brands famous Page TV has a powerful halo effect Page TV ads drive a direct response Page Ads on TV drive the most sales Page Television is the ultimate influencer Page TV is the most trusted ad environment Page Ads on television are more engaging Page TV and online a powerful combination Page Second screens drive TV engagement Page Ads on television are more accepted Page Television is the lead effectiveness medium Page Television is proven to deliver the best ROI Page TV is as effective as ever Page 39-40

3 People love watching television TV is Australia s number 1 source of entertainment Deloitte conducted a survey to explore how Australians media usage and preferences have evolved with technology. The survey of more than 2,000 Australian consumers showed that despite the explosion of entertainment and information options, TV is still Australians number one choice for entertainment. Respondents were asked to rank their three preferred sources of entertainment. Watching TV retained its lead with 64% of survey respondents ranking it in their top three preferred entertainment activities, followed by using the internet for social or personal interests 63%, cinema 26%, reading newspapers 19%, listening to the radio 14% and reading magazines 8%. Source: Deloitte Media Consumer Survey 2014, n=2300 Australians 6

4 Television delivers unrivalled reach Television reaches over 80% of Australians every week Advertisers know that to achieve growth you need to increase usage amongst light users and attract new consumers to your brand. Therefore, it's vital to reach as many people as possible with your message. That s why, in an increasingly fragmenting media landscape, television is more important than ever. TV s reach is unrivalled. OzTAM and RegionalTAM data show commercial free-to-air television reaches over 13 million Australians every day and over 80% of Australians every week. Source: OzTAM and RegionalTAM, 5 cap cities, 6 regional markets, average cumulative weekly reach, all people, consolidated data, weeks 1 to

5 You can reach more 13-24s with TV Teens and young adults spend 60% of their screen-time watching TV While younger audiences consume a range of different content across different screens, TV still dominates their screen-time. According to the Australian Multi-Screen Report, on average, teens and young adults spend 1.5 hours a day watching TV on a TV set. Daily Time Spent Watching Broadcast TV On A TV Set and Viewing of Content On Other Devices Source: Australian Multi-Screen Report, Q4 2014, daily average for

6 Television generates social media buzz 37% of social media users regularly talk about TV People have always loved talking about TV. In the digital era, the water-cooler effect of TV still exists, it s just moved online. Social TV is giving viewers access to ever-growing online communities where they can chat with friends about their favourite show, vote for their favourite cast member, or comment live within a program all without leaving their couch. When social media users were asked how often they make comments about TV on social media, an overwhelming 29 percent said they did once or more times a week, with a further 8 percent commenting every day or almost every day. This daily social media engagement with TV provides a huge opportunity for advertisers to truly connect with their audiences. Source: Spotlight on Social TV, November 2014, conducted by Network Ten and Research Now, online survey of 1,067 social media users, 5 cap cities 12

7 Television makes brands famous No other medium builds brands like television Television is the undisputed brand-builder. There is no better medium for launching, building, or maintaining a brand than television. It is the fastest and most cost-effective way to get your product seen and talked about. But it s not just about getting your brand noticed. The real power of television advertising is its ability to forge and maintain a relationship between your brand and the consumer a relationship that will pay back in both the short and the long term. 14

8 Television has a powerful halo effect TV boosts sales of other products within a brand s portfolio TV advertising doesn t just work for the product being advertised, it also creates a halo effect across a brand or range of goods or services within a brand s portfolio. For instance, if a Finance brand advertises their savings account on TV, the campaign is also likely to boost sales of its other products, such as mortgages or insurance. Ebiquity in the UK quantified TV advertising s halo effect in their Payback 4 study. Their data shows over a third (37%) of TV s total sales effect is transferred to other brands within the portfolio. Source: Payback 4 Pathways to Profit

9 TV ads drive a direct response TV ads are proven to drive web traffic and sales Some fear that multi-screen activity results in viewers being less receptive to advertising messages. A new study Television Advertising and Online Shopping refutes this and concludes that the second screen puts a virtual store in every consumer's pocket. The researchers matched a large panel dataset of internet browsing and online shopping with data from twenty large advertisers (including Amazon, AT&T, Target and Domino's) accounting for about $3.4 billion of TV advertising spend. The study confirmed that multi-screen users visit, browse and buy advertised products within just moments of seeing a commercial on TV. Source: Television Advertising and Online Shopping 2015 Science Daily 18

10 Ads on television drive more sales 25% of people are more likely to buy a brand after seeing a TV ad A recently released biometric study conducted by Innerscope in the U.S. shows that 25% of consumers are more likely to try or buy target brands after watching the ads on Television, compared to watching the ads on Facebook at 9%. The study found that consumers have higher visual attention with final branding moments and brand logos on TV advertising than those viewed online as pre-roll on any device. And 47% of consumers said they immediately skip or ignore a video ad on Facebook. Source: Innerscope Research 2015, using biometric monitoring, eye tracking and traditional survey methods, n=390 consumers aged years 20

11 Television is the ultimate influencer Aussies nominate TV as the biggest influence on purchasing decisions According to a Deloitte survey of more than 2,000 Australians, television advertising is by far the most impactful form of advertising. 6 in 10 (62%) respondents nominated TV advertising as having a high to medium influence on their decisions to purchase goods and services. This compared with 27% for ads delivered through social media platforms such as Instagram, Facebook and Google, and 22% for ads delivered through mobile apps including location-based ads. Source: Deloitte Media Consumer Survey 2014, n=2300 Australians 22

12 TV is the most trusted ad environment People rate TV advertising as the most trustworthy Ipsos in the UK conducted a study to determine the trustworthiness of different advertising environments amongst consumers. They found that 37% of adults nominate TV as the place where they re most likely to find trustworthy advertising. Trust in TV was not only much higher than any other medium, TV s trustworthiness is actually increasing growing 5 percentage points since The second most trustworthy was newspapers at 12%, radio, websites and magazines at 7%, and search, outdoor and social media at 3%. Source: TV Nation 2014, Ipsos Media MT UK, people 15+, Q: Which, if any, of the following places are you most likely to find advertising that you can trust? 24

13 Ads on television are Your ad is guaranteed to run 100% of the screen on TV 100% viewable When you run your ad on television, your ad is guaranteed to be 100% viewable, for 100% of the ad. This compares to online video where impressions are mostly defined as 50% of an advertisement s pixels viewable for just one or two seconds. Simply put, there is no medium more accountable than television. 26

14 Ads on television are more engaging TV ads are 4 times more engaging than ads on Facebook Biometric research conducted by Innerscope in the U.S. shows that TV commercials are four times more engaging than video advertising on Facebook, leading to Higher Brand Recall and Purchase Intent. The study found that consumers have higher visual attention with final branding moments and brand logos on TV advertising, than those viewed online as pre-roll on any device. 47% of consumers said they immediately skip or ignore a video ad on Facebook. 25% of consumers were more likely to try or buy target brands after watching the ads on TV, compared to watching the ads on Facebook at just 9%. Source: Innerscope Research 2015, using biometric monitoring, eye tracking and traditional survey methods, n=390 consumers aged years 28

15 TV and online a powerful combination Television + online drives a better result The combination of TV and online together in an advertising campaigns is more effective for advertisers than using either in isolation. This was demonstrated in research conducted for a key retail client that measured the sales uplift of viewers who were exposed to a network-driven TV and online promotional campaign. It found that shoppers who were exposed to the cross-platform communication not only shopped more frequently, they bought more of the promoted product, and spent 24% more on each shopping occasion during the promotional period. Source: Client Sales Effect Study, Nine Entertainment Co. 30

16 Second screens drive TV engagement Interaction with second-screens drives deeper engagement A world-first Neuro-Insight study explored the impact of social media interaction on viewers engagement with first and second screens. The study found that: interacting with social media while watching TV drives a 9% increase in program engagement throughout the program, cumulative increase in engagement is 26% second-screen interaction positively impacts detailed memory encoding which is the ability to remember specific elements of a broadcast. The results disproved the theory that second screen usage during TV viewing negatively impacts audience engagement and substantiated the value of TV sponsorships and social media extensions. Source: The Re-Socialisation of TV, research conducted by Neuro-Insight for Seven Network and MEC 32

17 Ads on television are more accepted Australians prefer ads they see on TV In a recent study, Millward Brown asked Australian multi-screen consumers about the various screens they use on a daily basis television, laptop, tablet, mobile and how the advertising on each of these screens influences their attitudes and behaviour. The 2014 AdReaction survey revealed that: 1. Australians pay the most attention to ads they see on television 2. Australians prefer ads they see on television over any other screen 3. Receptivity is higher for TV advertising. The Global AdReaction report saw these local results echoed around the world. The global study also showed that TV is more often than not the starting point or catalyst of a consumer s multi-screen journey. Source: Millward Brown, Advertising in a Multi-Screen World,

18 Television is the lead effectiveness medium TV outperforms other media in generating sales According to Ebiquity s Payback 4 study, one of the biggest on effectiveness of its kind, TV is on average twice as effective per equivalent exposure as the next best performing medium. Press advertising delivers 52% of the sales uplift TV creates, radio 27%, online display (excluding VOD) 13%, and out-of-home 11%. Media Effectiveness Index (TV Index = 100) Source: Payback 4: Pathways to Profit, Ebiquity UK, database (analysis based on 10 categories, 100 advertisers) 36

19 Television is proven to deliver the best ROI Television generates the most profit for advertisers An econometric study by Ebiquity in the UK compared on a like-for-like basis the sales and profit impact during the last eight years of five different forms of advertising: TV, radio, press, online display and out-of-home. It found that TV advertising remains the most effective form of advertising and creates the most profit for businesses. Return on Investment Ebiquity Database Source: Payback 4 Pathways to Profit

20 Television is as effective as ever TV continues to be the best driver of key performance metrics Researchers in the U.S. wanted to better understand TV s effectiveness and whether the changes in the media landscape has had an impact on its efficacy. MarketShare analysed 1000 s of marketing optimisations used by major advertisers from 2009 to Their analysis showed not only that TV advertising effectiveness has remained steady over the 5-year period, but that it also outperforms digital and offline channels at driving key performance metrics such as sales and attracting new customers. The study also showed that networks' premium digital video delivered higher than average returns compared with short-form video content from non-premium publishers. Source: MarketShare, Evaluating TV Effectiveness In A Changed Media Landscape,

21 For more information about the power of television and its amazing effectiveness visit 2015

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