The New Effects of Television by Lisa Glover

The New Effects of Television

TELEVISION HAS ALWAYS BEEN AN EFFECTIVE MARKETING TOOL FOR ADVERTISERS. IN THE NEW MEDIA LANDSCAPE, TELEVISION IS PROVING MORE EFFECTIVE THAN EVER – AND IN ENTIRELY NEW WAYS. INTRODUCING THE NEW EFFECTS OF TELEVISION.

Contents 1

The New watercooler effect

REACHING MORE PEOPLE

WE’RE ACTUALLY WATCHING MORE TV

TURNING PRODUCTS INTO BRANDS

ENGAGING YOUNGER VIEWERS

The ultimate influencer

THE SOCIAL TV PHENOMENON

THE NEW SHOPFRONT

TV keeps Paying BACK

THE EFFECTS KEEP GROWING

KEY FACTS • 40% OF PRIME-TIME TWEETS ARE ABOUT TELEVISION (THINKBOX UK).

• AUSTRALIAN TV SHOWS DOMINATE SOCIAL MEDIA

CONVERSATIONS WITH FREE TV PROGRAMS REGULARLY TRENDING ‘WORLDWIDE’ ON TWITTER.

• ONE-THIRD OF THOSE USING SOCIAL MEDIA WHILE WATCHING TV ARE CHATTING ABOUT WHAT THEY ARE WATCHING (AIMIA YELLOWTM SOCIAL MEDIA REPORT, JUNE 2012).

The New watercooler effect Television’s well-established effectiveness stems from its ability to get people talking: people love talking about television almost as much as they love watching it. In the new digital era, the watercooler effect of television still exists, it’s just moved online. Social media now gives 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. This two-screen behaviour is driving an even deeper level of engagement between the viewer and what they watch on television. It’s also providing an opportunity for advertisers to connect with consumers like never before.

KEY FACTS • TV IS IN OVER 99% OF AUSTRALIAN HOMES; TWOTHIRDS HAVE TWO OR MORE TVS. PAY TV IS IN FEWER THAN 30% OF HOUSEHOLDS.

•

IN 2011, FREE TV’S AVERAGE DAILY REACH HIT A 7-YEAR HIGH.

• OVER 14 MILLION AUSTRALIANS TUNE IN TO COMMERCIAL FREE-TO-AIR TV, EVERY DAY.

• EVERY WEEK, EACH OF THE TOP 40 SHOWS ON

FREE TV DELIVERS A NATIONAL AVERAGE AUDIENCE OF AT LEAST 1 MILLION VIEWERS.

REACHING MORE PEOPLE In a fragmenting media environment, reaching as many people within your target audience as possible is more important than ever. Television’s ability to consistently and efficiently aggregate audiences, across a range of demographics and psychographics, is what makes the platform so valuable to advertisers.

And while the reach TV delivers is nothing new, the extent to which its reach keeps growing is. It’s also the reason why commercial free-to-air television is being hailed as the antidote to fragmentation.

KEY FACTS • AUSTRALIAN TV VIEWING INCREASED TO 3 HOURS AND 9 MINUTES A DAY IN METRO MARKETS AND 3 HOURS AND 23 MINUTES A DAY IN REGIONAL MARKETS IN 2011.

• 1 IN 4 AUSTRALIANS ALSO WATCH NETWORK

CATCH-UP TV ONLINE (NIELSEN ONLINE CONSUMER LANDSCAPE REPORT, MARCH 2012).

WE’RE Actually WATCHING MORE TV Far from cannibalising viewing, new technologies are fuelling more opportunities for viewers to watch and engage with their favourite television programs. In addition to watching the TV set for between three to four hours each day, Australians are also watching TV online, across a range of different devices.

Catch-up TV provides viewers access to huge online libraries of content, where they can catch up on an episode from their favourite TV series, preview new shows and stream live TV.

TURNING PRODUCTS INTO BRANDS TV is the undisputed brandbuilder. There is no better medium for launching, building or maintaining a brand than television. It’s 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 in 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 long-term.

KEY FACTS • A COMPREHENSIVE STUDY CONDUCTED BY PWC IN

THE UK SHOWS THAT TV ADVERTISING IS THE MAIN DRIVER OF ‘BRAND VALUE’ (PWC PAYBACK STUDIES 2009-11).

• TV’S ABILITY TO ENGAGE AND SUSTAIN AN

EMOTIONAL RESPONSE CONFIRMED IT AS THE MEDIUM BEST ABLE TO CREATE PERSONAL RELEVANCE AND THEREFORE, BRAND EQUITY (INNERSCOPE/FOX RESEARCH 2011).

ENGAGING YOUNGER VIEWERS Mobiles, laptops and tablets are providing younger audiences with new ways to view and engage with TV programming. They can stream live content, catch-up with their favourite shows online, or check-in to social TV apps to chat with their friends while they are watching. And while younger audiences are consuming content across a range of different devices, traditional TV viewing still dominates their total screen time.

TV has also been shown to influence their behaviour more than any other media. Tuned In recently examined how TV fits into young people’s tech-filled lives and the impact TV ads have on them. TV ranked by far the most effective media, with 6 in 10 nominating TV ads as having the greatest influence on their purchasing behaviour.

KEY FACTS • TV CONTINUES TO DOMINATE YOUNG PEOPLE’S SCREEN TIME;

• TEENS WATCH ABOUT 56 HOURS OF TV A MONTH IN THE HOME, COMPARED WITH 3.3 HOURS A MONTH WATCHING VIDEO ON A PC OR LAPTOP, AND 1.5 HOURS WATCHING VIDEO ON A MOBILE (AUSTRALIAN MULTI-SCREEN REPORT Q2 2012).

• IN A RECENT UK STUDY, 61% OF 10 to 24 YEAR

OLDS NAMED TV AS THE MOST INFLUENTIAL ADVERTISING MEDIUM (TUNED IN, THINKBOX 2011).

KEY FACTS • According to a deloitte study, 68%

OF AUSTRALIANS RATE THE ADS THEY SEE ON TELEVISION AS HAVING THE GREATEST INFLUENCE ON THEIR BUYING DECISIONS;

• JUST 17% OF AUSTRALIANS RATE ONLINE BANNER ADVERTISING AS HAVING AN INFLUENCE ON THEIR BUYING BEHAVIOUR (DELOITTE AUSTRALIA, STATE OF THE MEDIA DEMOCRACY SURVEY 2012).

The ultimate influencer In the new media environment, television remains the most powerful way to positively affect consumer buying decisions.

purchasing behaviour. Similarly, 63% of 14 to 22 year olds rate television advertising as their biggest influencer.

A recent Deloitte survey of Australian consumers found that television advertising is still the top influencer for all age groups.

The research confirms TV advertising is, without question, the most effective tool for advertisers.

More than 72% of Gen Xs and Boomers say TV ads have the greatest influence on their

THE SOCIAL TV PHENOMENON Portable devices such as tablets, laptops and mobiles are now a permanent fixture in nearly every Australian household. Far from distracting viewers away from TV, these “second screens” provide an enhanced viewing experience, allowing people to connect with huge online communities. With broadcast content at its core, social media sites offer a place for viewers to voice their

opinion, vote for their favourite contestant, or contribute to a program live on air, generating further buzz and excitement around TV properties. Social TV portals such as Fango, Jump-In and Zeebox also allow viewers to connect, participate and interact while they watch, driving an even deeper level of engagement.

KEY FACTS • 1 IN 3 AUSTRALIANS WHO USE SOCIAL MEDIA WHILE WATCHING TV ARE DISCUSSING WHAT THEY ARE WATCHING;

• 46% SAY SOCIAL MEDIA INCREASES THEIR

ENJOYMENT OF WHAT THEY ARE WATCHING (AIMIA, YELLOWTM SOCIAL MEDIA REPORT JUNE 2012).

• FREE TV PROGRAMS HAVE BUILT HUGE ONLINE COMMUNITIES AND FAN BASES WITH SOME SHOWS ATTRACTING 1 MILLION FACEBOOK FANS AND HUNDREDS OF THOUSANDS OF TWITTER FOLLOWERS.

KEY FACTS • 36% OF ONLINE AUSTRALIANS ARE USING THE

INTERNET WHILE WATCHING TV ON A DAILY BASIS (NIELSEN AUSTRALIAN ONLINE CONSUMER LANDSCAPE, MARCH 2012).

• 25% OF MULTI-SCREEN USERS GO DIRECTLY ONLINE AFTER SEEING A TV AD;

• 26% GO DIRECTLY TO AN ADVERTISER’S WEBSITE AND 25% CONDUCT AN ONLINE SEARCH, BASED ON THE TV AD THEY’VE JUST SEEN (YAHOO! RAZORFISH 2011).

THE NEW SHOPFRONT It is widely known that television advertising influences behaviour and purchasing decisions. However, TV’s direct role in driving a response via other media channels, particularly online, is often undervalued.

The study found a quarter of multi-screen users go online immediately after seeing a TV commercial. 26% go directly to an advertiser’s website and 25% conduct an online search based on the television commercial they have just seen.

Yahoo! Razorfish recently explored the relationship between television advertising and consumers’ online behaviour.

TV KEEPS PAYING BACK There are many ways advertising is judged: was it popular, did it win awards for creativity, are people talking about it with their friends? But nothing is as important as whether it delivered a return on its investment. In one of the most robust studies of its kind, Ebiquity conducted econometric analysis of more than 3,000 ad campaigns, across nine different categories, over a five-year period. Their analysis compared on a like-for-like basis

the sales and profit impact for five types of media: TV, radio, press, online and outdoor. The study proved that television advertising generates the highest absolute volume of sales and profit, while also delivering the best return. The researchers also found that despite the changing media landscape, television’s return on investment has increased 22% in the last five years.

KEY FACTS • TV IS 2.5 TIMES MORE EFFECTIVE AT CREATING SALES UPLIFT;

• TV DELIVERS AN ROI OF 4.5:1 IN REVENUE TERMS AND 1.7:1 IN PROFIT TERMS – MORE THAN ANY OTHER MEDIA;

• THE SALES EFFECT OF A TV AD IS ALMOST AS STRONG IN YEAR TWO AS IT IS IN YEAR ONE (WARC, EBIQUITY/THINKBOX UK 2011).

• ACCORDING TO DATA2DECISIONS, THE DAMAGE FROM A YEAR OFF TV CAN TAKE FIVE YEARS TO UNDO.

THE EFFECTS KEEP GROWING Television also enhances the performance of other media used within the marketing mix. Executions in other media remind consumers of the television commercial they have seen which strengthens the impact of that message, thereby adding to that channel’s effectiveness.

Furthermore, television also creates a halo effect across a brand’s portfolio. For instance, if a bank advertises its mortgage product on TV, its credit card and general banking products also benefit.

KEY FACTS • A UK STUDY EXAMINED TV’S MULTIPLYING EFFECT AND FOUND RESPONSE LEVELS CAN INCREASE dramatically WHEN COMBINED WITH TV;

• TV ALMOST TREBLES THE RESPONSIVENESS OF ONLINE CAMPAIGNS and more than trebles the responsiveness of radio campaigns (ITV/DMA RESPONSE TV REPORT 2010).

• 38% OF TV’S TOTAL SALES EFFECT IS FELT BY PRODUCTS NOT DIRECTLY ADVERTISED (PAYBACK 3, EBIQUITY/THINKBOX 2011).

TO FIND OUT MORE ABOUT THE NEW EFFECTS OF TV VISIT THINKTV.COM.AU/ NEWEFFECTS 28

Think TV is a marketing initiative of Free TV Australia ÂŠ2012