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CW1 – Industry Structure and Skill Set Report -‐ 21028547
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Introduction The report will identify the functions of media agencies and the critically analyse research methods they use to investigate new and traditional media. Also looking at different ways media can be used to communicate to consumers and the implications of Digital on the process. A prediction of Ad spend of Newspaper 17.0%, Magazine 5.8% and TV 29.5 for 2013. The UK has the highest percentage of Internet adverting spend in the world according to by Admap. (2012) and WARC data (2012) [Appendix 1]
Admap. (2012) 1.
The JICs
(JIC)s Joint Industry Committees are non for profit organisations that produces data for media buyers and sellers. These organisations have to be competitive as they are representing the wide range of industries. All offline media measured is only the potential of (OTS) Opportunity To See not actual. BARB (Broadcasters’ Audience Research Board) is a JIC that collects measurements for the UK television audiences with RSMB, Ipsos MORI and Kantar Media (formerly known as TNS). The types of data captured includes estimates number of people watching television includes which channels and programmes are being watched when they are watched type of people who are viewing at any one time minute by minute. BARB defines a viewer as ‘How many people presence in a room with set on’ BARB. (2012) This definition is based on a old model, where families in the 1950s would gather around the TV. During the 1990’s and onwards newer cheaper technologies let consumer buy more TVs within the household. BARBs research is missing context of how the viewer is viewing. An advertiser pay large amount of money for sporting events ad brakes but misses the fact that people will go the toilet or get another beverage. This view still counts as a view because the TV set is left on. (NRS) The National Readership Survey provides data for print advertising trading in the UK. The survey covers over 275 of Britain's major newspapers and magazines, showing the size of the audiences they reach. The NRS define a reader as ‘have read or looked at last week/month for more the 3mins’ NRS. (2012) This has room for misinterpreted data for example if a person is in a waiting room or looking another person newspaper on the train this counts if the person has read or looked at the medium over the 3mins, the chances of the advertisers messages really be transmitted across within this time. Within a waiting room the magazine may be old version of the text.
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2.
How major survey research is carried out.
BARB has two methods of primary research first a sample of ‘over 5100 homes’ BARB. (2012) that have a device called ‘Black Box’ that collects data. Each person in the room is documented through a register in and out process through the custom remote control. Occupancies of the room are reminded every 30 minutes to register. Also if guests are in the room as well they have to register in also. This register process is questionable, because people are lazy, And the likely hood they will log in and out each time they go for a drink is a tedious process, especially if the survey is voluntarily. If a person is submerged in a movie they don’t want to be bothered by the black box so they might just leave it. Another issue if a family goes on holiday for two weeks, this represents 5000 homes less, particularly during peek holiday times like half terms. How does BARB tackle this issue. The black box monitors other devices connected, this includes such devices like games consoles yet doesn’t state the use of the technology. For example if a Microsoft Xbox is being used for streaming services like ‘Netflix’ this needs to be documented. BARB however monitors (VOD) Video on demand if takes place within 7 days of the original broadcast. This viewing known as ‘time shift viewing’ is then added to the live data to produce the final data called ‘BARB Gold Standard’ BARB. (2012) the industry this minute by minute data to base trade on. Should VOD be added to the live viewer data, this amount of viewership can considerably change the (CPT) Cost per thousand. Many VOD services like ITV change the number and brands of advertisements on these VOD services. This shows that the number given in ‘BARB Gold Standard’ is misconstrued. One of the emerging areas is second screen display while watching television. A statistic from (IPA Touchpoints. 2012) states ‘Nearly half of all adults and three quarters of 15-24s surf the internet on their laptop whilst watching television, whilst just over a quarter of adults and just over half of 15-25s surf the internet on their mobile phone whilst watching TV’ (IPA) Institute of Practitioners in Advertising uses JICs data to base its research on. BARB is not currently researching this area. If they did, and found that most people are looking at another screen, would this directly impact the CPT/Million currency of television advertising? With ever-changing television habits, can planners forecast a clear monetary value through second screen technology, however if this is likely JICs like BARB may need to rethink and then undertake the role understanding influencing platforms on its medium. The second research method is Face-to-face interviews by the RSMB, a research contractor for BARB since 1989. The Survey is on a continuous basis and involves 53,000 interviews per annum, interviewees have to be living in a privately owned household and are chosen randomly. Each interview is approximately 20mins with the use of Computer Assisted Personal Interviewing (CAPI) The data is collected and realised at 9.30am each morning. The selection process for the interview only covers ‘67% of households were owner occupiers.’ National statistics. (2009-10). this means 33% of the population is missing from the survey because they are not living privately owned households. What differences in consumer behaviour is missing from the survey? The data is released at 9.30am each morning with faster national broadband could this data be released minute by minute for effective real-time marketing like other digital communication channels for example streaming services.
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NRS like BARB uses a random probability sample of interviewees for the survey continuously throughout the year. On average 36,000 interviews a year with adults aged 15+. The issue with 36,000 people is that it isn’t enough to really develop understanding of the readership of the UK. The range of publications like niche hobby magazines that are on offer within the UK market cant be analysed with this sample of people. The Age of readership is younger then 15, Advertisers that have brands aimed at a younger markets cant use JICs data to aim at the under 15s. These missed markets need to be understood because this data may be used for insight into the purchase decision. The interviewee is conducted in the respondent's own home and takes around 27 minutes. 27 minutes isn’t enough time to understand the role and relevance of each magazine, newspaper has on the reader. Further data needs to be collected to understand the lifestyle of the reader and how that impacts to reading and purchase decision of the text. Respondents asked about their readership as well as information about themselves this in terms of sex, social grade, age, region and many other demographic, lifestyle characteristics and now Internet usage, frequency of use, location of use, type of device used and broadband. This data of internet use is good for media planners to let them know if their target audience has internet, but NRS doesn’t correlate the data, they could ask questions like ‘After reading Hello magazine, do you go to the website for more information?’ this connected information will benefit the buyers and sellers in the process. NRS needs to establish if the same readers of the print texts and the internet content are the same as this would let planning teams be more effective in an integrated multichannel campaign. The data released by NRS can be up to 6 months old. This means media planners are basing their ad campaigns on old data compared to other digital platforms. A campaign based on this data is then used to plan for a campaign to run at the end of the year for example, this could be over 12months until the campaign is ran from the initial data capture. This isn’t effective because consumer habits can change within this time scale. The NRS data does not take into account the change of readership of a newspaper throughout a week. The Financial Times (FT) is a good example of this where within organisations departments may share the weekday FT, but on Saturday the newspaper changes towards an older demographic, the readers at home that own shares and bonds want to check on the markets. The shared texts is another important point as the data collected by NRS does not cover if they bought the text themselves, NRS just covers data relating to read or looked at over 4 minutes. The JICs surveys cant change to quickly because of the scale of the survey. Also the cost of changing to newer technology and larger samples would have large financial pressure. This may also changes the value of a CPT, this will have an effect on the cost of advertisements. The Shannon and weaver model made in 1949 still applies to the JICs offline research. The way the information is attained from the sample still has the same disadvantages. A disadvantage is the model of information and how it is passed to the interviewee or black box. People like to answer even if they don’t have one, they feel that they have to. The interpretation of the data can lead to misinterpretations. Depending on the Noise source the readability of the data can be hindered. If the information was accessible from the information course the data would be more reliable then going though all the steps.
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3. The role of above models effect the positioning of agencies
Media planning process developed such an importance that media departments become ‘media independents’ once part of full service creative agencies. For example media agency Mindhare was ‘The network’ a media department however before this within creative agency O&M and JWT. Importance and growth of media agencies in-house led to the client trade association the (ISBA) Incorporated Society of British Advertisers. Modern media planners can identify waste significantly by cleverly choosing multichannel campaigns. The split left creative agencies away from the research process. Media agencies developed the importance of consumer insights and set up such bodies like IPA Touchpoints. Businesses like media agencies because they talk ‘business’ objectives and (ROI) rate of investment not creative ideas like creative agencies. With the knowledge of consumer insight at its forefront aim JICs used by media planners develops understand the OTS for their brands campaigns so they can ensure the amount of coverage on the medium. JICs like BARB and NRS in a sense kept adverting on traditional medium strong by presenting the benefits of great sum of viewers. Founder of The media Business Allan riche mentioned the significances of up-to-date research ‘That why i’m buying marketing companies, to find out how consumers are reacting to our brands in real-time’ JICs data is being left behind in a world of real time marketing. Because NRS releases their data every 6/12months and BARB 10am the next day this data can’t be used for real-time marketing right in the moment of the event. Digital platforms like twitter have trends by the hour, breaking news my change the whole image of a campaign. Consumers are smarter and quicker looking for new and timely information, entertainment all the time. Planning is strategy, the role and relevance of the ad campaign is vital for success, how it triggers emotions to transmit the message effectively across. Another point to be is the (PESTEL) effects on consumer behaviour, for example aspects like current news trends may be effecting the readership of a newspaper or magazine because of the exclusive content of the time. These high sales figures will only effect the 6 months average because the data is only released every 6 months.
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The positioning of media agencies is that they use JICs are another research method just as they will use (TGI) Target Group Index ‘Provider of marketing and media surveys’ Kantar media. (2012) Also a Primary research, Mediacom is a good example of how they develop insight with ‘Real world street’ Mediacom has chosen an average street in a average city to ‘truly understand their attitudes and behaviours, their decisionmaking processes and habits’ Mediacom. (2012)
4. Implications of digital
Each industry is currently trying to measure the digital growth element however costs of this research will see these Digital wings of the JICs cooperate such as (UKOM) UK Online Measurement establishment survey that develops industry site-centric measurements to better understand the role of the online channels. UKOM is now data partner with comScore. Also the likes of the (IAB) Internet Adverting Bureau to provide data and a vehicle for planning online advertising. Online technology companies like Google Analytics and Facebook are dismissing this ‘traditional’ measurement of CPT/M because with digital adverts they can actually deliver measurable visits, compared to estimates of OTS. Online platforms have been made easy to use, anyone can setup an advert and target niche audiences at a relatively cheaper cost compared to other mediums. Online adverting is based on Click through rates of adverting (pay per click) but this model is questionable because many consumers don’t buy products straight after they click adverts, if they still trust adverts. Advertisers and commission need to build consumer confidence with inline advertising so that it can become effective. Data available online like Google analytics is accessible to anyone not just media planners. Statistics on engagements can be used to easily to judge what channels are being effective. The use of cookies to see where users click, the products they buy has let companies understand consumer buying metrics online. Amazon is a good example of this when a person buys a product they will use purchase history information to suggest other products. These improvements can be made instantly because of the medium. Online measurement tools collecting big data effectively and reliably, what impacts dose this have on offline media data research. For example if a print publication received a larger website visit, would there be noticeable increase on print readership from NRS data. With the use of data fusion print readers for example are 20% and digital are 15% NRS will count both together for higher readership. This doesn’t help account planners to understand the role that each medium on/offline has on these different readers. This is the same between digital data to support television campaigns. A WARC article (2011) by Jim Marshall at the institute of practitioners in advertising sates a point that ‘ The value of a TV campaign will still be judged and analysed on a CPT’ and goes onto say that a new value definition needs to be established ‘in terms of its ability and efficiency in generating search enquires, Youtube uploads, twitter comments etc.’ How can this be effectively implemented without unbalancing the current currency these surveys are based on. Digital channels are relatively cheaper then offline mediums. They can also support other channels of communications like TV campaigns with website links on the advertisements. This data can be used in-house to clarify reach and engagement.
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Within a Digital landscape (UGC) User Generated Content is a good way to receive free content for a clients brand, harnessing this can develop advocacy for a brand. This level of engagement will see monetary value. These Digital platforms develop brand relationships and experience that can’t be found on offline mediums. A good example is a campaign ran by (The Rabbit agency 2012), a social media specialist agency and social media agency of the year that holds the BMIBaby account, a low cost airline. This agency setup a competition on Instagram a photo sharing site to take a photo of where travellers have been and mention #myeurope and have the chance to win free tickets. Dan, L. (2010). This example is a low a cost Digital solution to enrich a brand. BMI baby have done this successfully but not everyone ‘One key issue for marketers is understanding how digital and social media are used in the purchase-decision process’ (WARC 2012) Such tools like well referenced content is good because it lets Google find the business content more effectively. Web.stagram. (2012)
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References
Admap. (2012). Global adspend forcast. Trade magazine. December 2012 (Adstats ), p48-49. Dan, L. (2010). Bmibaby and Instagram reward users with a free flight.Available: http://wallblog.co.uk/2011/10/10/bmibaby-and-instagram-reward-users-with-a-free-flight/. Last accessed 3 Dec 2012. Hamish, P and Ji, (2012). Spending advertising in the digital age. Great Britain: KoganPage. p18-26. Kantar media. (2012). Homepage. Available: http://www.tgisurveys.com/. Last accessed 3 Dec 2012. Mediacom. (2012). Real world street. Available: http://www.mediacom.com/en/what-we-do/consumerinsight/real-world-street.aspx. Last accessed 4 Dec 2012. National statistics. (2009-10). English Housing Survey Household Report 2009–10. Available: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/6718/1937206.pdf. Last accessed 1 Dec 2012. NRS. (2012). What we do. Available: http://www.nrs.co.uk/interview.html. Last accessed 1 Dec 2012. Therabbitagency. (2012). Therabbitagency. Available: http://www.therabbitagency.com/. Last accessed 3 Dec 2012. Todd P. Dorothy A. Manila S. Stacy .G (2012). .PDF. Digital and Social Media in the Purchase-Decision Process: A Special Report from the Advertising Research Foundation. 52 (1), 2. Web.stagram. (2012). BMI baby. Available: http://web.stagram.com/n/bmibaby/. Last accessed 4 Dec 2012.
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Appendix 1
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