MediaCom Fact Book 2016

Affiliates 96 - 99

Paid Social 100 - 105

TV

Mobile

Print

Content

Regional Press

AV Partnerships

Radio

Events

Out Of Home

Sport

Cinema

CultureCom

Direct Response

Kids

8 - 13 14 - 25 26 - 37 38 - 41

42 - 49 50 - 59 60 - 67

Direct Mail 68 - 71

Real World Insight 72 - 77

Programmatic 78 - 81

Search & SEO 82 - 89

VOD/Online Display 90 - 95

106 - 111 112 - 117

118 - 121

122 - 127

128 - 133 134 - 141

142 - 153

2015/2016 MediaCom 124 Theobalds Road London WC1X 8RX UK Tel: +44 (0)20 7158 5500 Web: mediacom.com Josh Krichefski, MediaCom UK CEO EA: Dixie Maloney Tel: +44 (0)20 7158 4539 Email: dixie.maloney@mediacom.com

Fact Book 2016 Edition

Key Media Facts & Figures

Hello and welcome to the 2016 edition of the MediaCom Fact Book,

As always, the aim of this book is to combine a useful reference for key media facts and figures, with key insights into current trends from our experts in each sector, giving you the information you need for the coming year.

I’m enormously proud to be taking up my new role as UK CEO at what I’m sure you’ll agree is an exciting time for the industry. Fittingly, in each of the sections of this year’s Fact Book, you’ll see evidence of the media buying landscape shifting and moving at a remarkable pace. But you’ll also see how we, as the UK’s leading media agency, are adapting to these changes across our wide array of disciplines.

This year you may notice some subtle changes in the structure and layout of the book, which we believe will make it easier for you to get to the facts and figures that matter most.

As ever, if you have any questions on the content of this book, or if you’d like further details about the facts, figures and issues mentioned here — don’t hesitate to get in touch with us. I hope you enjoy reading it and I look forward to hearing your feedback.

Best,

Josh Krichefski MediaCom CEO, UK

7

Affiliates

TV Jonathan Masterson Head of TV jonathan.masterson@mediacom.com

A look back at 2015 No sign of slowing In last year’s Fact Book we predicted the four main points we’d be discussing in this year’s edition would be Station Ownership, Premier League rights, the Rugby World Cup and viewing trends. It’s safe to say that those four issues dominated another strong year in TV, along with record TV revenues.

Advertiser demand for television showed no sign of slowing down in 2015; with the market experiencing a record high for the year. Demand has grown 9% compared to 2014 (source: GroupM), and we believe this is down to a number of factors. We’ve seen large growth categories in finance, motors and pharmaceutical (according to figures from Nielsen). The Government’s decision to push spend forward into Q1 due to purdah restrictions (which prohibit spending in the six weeks prior to an election) also proved beneficial.

Some feared the lack of a big summer sporting event could have adversely affected June and July, but those fears proved unfounded, in fact, compared with the World Cup in 2014, this period saw an increase in revenue.

Momentum continued into Q4, and despite England’s poor performance in the Rugby World Cup, the tournament injected further money into TV. This, combined with advertisers embracing a late TV market, fuelled inflation, which in turn improved weekly TVRs.

8

8

Fact Book 2016

Adult audiences drop, but TV still delivers In previous years we’ve seen impact growth counterbalance revenue-driven inflation, but for the second year running we are seeing further declines in adult TV audiences (especially 16-34s) which has led to an overall increase of 10% (16-34s broadcast growth is over 18%).

But TV still delivers. From all the econometric models and results we’ve seen, TV still comes out top, and in 2015 it was no different.

MediaCom clients alone bought 5.9m TV spots and demand continues to grow. Why? Because TV is still good value for money. Despite growing demand, ITV’s adult CPT in 2015 has only increased 12% since 2000.

In contrast, house prices have increased over 48% and travel fares 66% in the same period (source: ONS).

TV is still good value for money. ITV’s Adult CPT in 2015 has only inflated 12% since 2000. In contrast, house prices have increased over 48% and travel fares 66% in the same period.

Three major sales points We have seen TV sales points consolidate further as Viacom, after their £450m purchase in 2014, moved the Channel 5 sales operations over to Sky Media. As you can see from the chart below, we now have three major sales points responsible for over 99% of TV spend.

50% 45% 40% 35% 30% 25%

0%

Other

5%

Sky Portfolio

10%

C4 Portfolio

15%

ITV Portfolio

20%

9

TV

Sporting dominance The battle for sporting rights dominance continued in 2015, with Sky and BT retaining the Premier League TV rights for a record £5.14bn, and Eurosport securing the Olympic TV rights for a cool £922m.

The Rugby World Cup came and went, and while England’s performance doesn’t warrant more than a passing mention, the tournament performed strongly for ITV. Impacts increased year-on-year throughout the competition period across all main audiences and over 11m viewers tuned in to watch England vs Wales. As of writing, the only other programme to exceed this on commercial TV was the Britain’s Got Talent final, which pulled in an audience of over 12.3m.

BT’s first season as the home of the Champions League has been solid in terms of viewing, with over 800,000 people tuning in to watch Manchester United vs Wolfsburg, yet this has been outperformed by Premier League coverage.

Evolving engagement For the second year in a row, we have seen audience decline on linear TV and we foresee this trend continuing as the years go by. TV is going through another golden age in regards to the content we are seeing on our screens – C4’s Humans, Sky’s You, Me & The Apocalypse and a rebooted version of The Muppets all stand out. Alongside this, we are seeing viewing habits change, with media owners evolving their business to suit new consumer behaviours. Multi-screen behaviour in particular has become of great interest to media owners: ITV announced the launch of ITV AdVentures, AdSync+, and the ITV Hub; Channel 4 launched PVX; and Sky followed their own AdSmart with the unveiling of AdVance.

At MediaCom, our market leading approach is based on an AV neutral planning ethos, from Cinema to in-mobile video. We believe this approach ensures that our clients maximise coverage with their target audience at the right entry cost, even as traditional engagement methods evolve.

10

Fact Book 2016

A look forward to 2016 Programmatic TV With TV technology evolving and ‘programmatic’ such a buzz word, the big question for 2016 is whether programmatic TV will be scalable.

While opinion is divided on the matter, our view is that we will not see programmatic linear TV at scale for a good while yet. We are starting to see the basics, such as AdSmart, being adopted and Channel 4 aren’t shy about showing their enthusiasm for programmatic, but there are a lot of issues to work out first before this becomes a reality.

Key areas will need to be addressed in terms of compliance with Ofcom restrictions such as the post 9pm watershed, HFSS (products high in fat, salt or sugar) and ‘ex-kids’ (meaning an ad will not be broadcast before, during or after children’s programmes), as well as regulations on ownership and sharing of first party data. But as we discussed in our 2015 summary, TV is clearly evolving in terms of trading models and audience viewing. There are now strong programmatic routes to buy TV content outside of linear programming, and across multiple devices as audience fragmentation continues.

Strong AV planning across all devices is more vital than ever before.

This needs to take into account campaign KPIs, using the correct programmatic solution to deliver the cover lost by audience decline on traditional TV. This isn’t about preparing for the future, this is the reality of good TV buying in today’s market.

TV still on top This is, however, a market in a state of change and many of the old fashioned principles remain valid. TV has always, and continues to drive the highest ROI in econometric studies due to its incredibly broad appeal and impact as well as pricing, which has been depressed by the peculiarities TV continues to drive of TV trading.

the highest ROI due to its broad appeal, impact and pricing

The market mechanics mean that while a client might target a 16-34 audience with a spot during the X Factor, on TV they will only pay for the 2.2m 16-34s that watch the spot. The other 5.9m people watching TV at the moment the ad is aired are effectively free. In the rush to optimise every part of the communications system, it’s often tempting to call these extra viewers ‘wastage’, however, let’s not forget the power of these audiences.

Fundamentally brands have built their media plans around this benefit, which programmatic would work to reduce, so not all advertisers would be keen to see it disappear.

11

TV

The content battle Content continues to be key, particularly as we move into the digital and data arena where there is a lot of serious and cash-rich competition for the traditional content creators. Commercial impacts are in decline but media consumption is up 48% since 2010. 24 year-olds are watching 36% less traditional TV than their parents were at the same age (source: BARB).

Commercial impacts The consumer wants top quality content are in decline but and now has even more choice of media consumption where to get it. This demand from both traditional and increasingly is up 48% since non-traditional broadcasters (the likes 2010. 24 year-olds of Amazon and Netflix) only leads to are watching 36% driving up the price of buying rights.

less traditional TV than their parents were at the same age (source: BARB).

Media owners face new pressures and are on the lookout for new solutions to deal with the issue. One answer to this problem is sharing the cost with each other. In 2016, ITV will join forces with the BBC to secure a free-to-air rights deal that will see both broadcasters screen Six Nations Rugby until 2021. The new deal brings the Six Nations to ITV for the first time in its history, and looks to be a prudent business decision. ITV and the BBC can no longer take on Sky and BT for sporting rights on their own. We expect to see an increase in joint ventures in 2016, with more broadcasters coming together to create programming like Channel 4 and AMC’s Humans.

While the battle for content will continue to be hard fought, there are two government-related issues to think about for next year.

Responsible advertising Commons debates continue to be waged around responsible advertising, particularly in regards to food. Just ahead of finance, food is the biggest sector in terms of advertising expenditure on TV in the UK, so this could have huge implications for the industry this year. The Government have frequently been questioned on food advertising restrictions of late, and in 2016 we may well see these restrictions tightened. There are rumblings from the Government that there will be a review of the Ofcom guidelines on advertising for HFSS products, with a possible post 9pm watershed a distinct possibility.

12

Fact Book 2016

Channel 4’s privatisation The other area where there has been much talk is that of Channel 4’s potential privatisation.

The impact of such a move could take away C4’s uniqueness in a highly consolidated market. It would certainly change their remit to one focused on driving profit for stakeholders. Currently, C4 invest all their profit back into content. They use a lot of independent production companies to create their content, and if privatisation means profit goes to the shareholders, then creativity could be compromised. Similarly, commercial pressures could mean a change in their ethos of sticking with a show they believe in. Gogglebox was a slow burner with regard to ratings, but is now not only a jewel in the crown, it is also an outlet for award winning media ideas.

If C4 was privately owned, Gogglebox would have been axed after its first series, or shifted to a digital channel. Similarly, C4 will be showing the 2016 Paralympics from Rio, the cost of production would have made this impossible if it were a privately owned company.

A great year for sport Speaking of sport, 2016 looks set to be a great year for commercial TV and sporting events. This summer we have the Euro 2016 Final tournament in France, as well as, the Olympics and Paralympics in Rio, with all events looking to bring in large audiences to broadcast television.

Events which feature British teams/sportspersons will always attract the largest TV viewing and, thanks to the expanded Euros, there have never been more home nations in a major football tournament with England, Wales and both Northern and the Republic of Ireland featuring.

Media owners like ITV and C4, along with many of our clients, will be hoping we see strong Home Nations and Team GB performances to deliver high audience figures over summer… not to mention bragging rights.

13

Affiliates

Print Chris Reed / Richard Cross Associate Directors – MarketPlace chris.reed@mediacom.com / richard.cross@mediacom.com

A look back at 2015 Publishers adapt and diversify It was a fascinating year for the National Press sector as it continued to evolve, with the market finally exhibiting signs of how best to utilise their digital platforms from both a commercial and content POV. In late November the market was taken by surprise by the news that The Sun was set to drop its paywall and once again become free for all to access. This move clearly demonstrates that one model doesn’t fit all and that publishers must be willing to adapt if they are going to thrive in this increasingly digital focused sector.

Audiences have not deserted their trusted source for news and opinion, they have simply diversified and changed their consumption habits.

The Times is a fine example of this; at the end of 2014 the title announced that they had made operating profits for the first time in 13 years, and to the tune of £1.7m. Many senior figures within the industry see this as vindication for News UK’s decision to charge for their online content, in spite of the fact that such content is consumed by an affluent and scarce audience.

14

14

Fact Book 2016

Newsbrands reach

39 million people across PCs, smartphones and tablets

24 million people read newsbrands on their phone – more than the entire population of Australia

First impression targeting The Telegraph continued to make huge strides in 2015 with their ‘First Impression’ targeting. Volkswagen Group was one of the first advertisers to buy into the opportunity and it continues to be a focal point of their business model. The package offers advertisers the chance to reach their audience with maximum impact through the delivery of an HPTO or ‘first online execution’ plus the first Arrivals and departures format in the print edition.

dominated the magazine sector in 2015 and gave a tantalising insight into the potential future of the magazine marketplace

Last call for the Lads Mags

This year finally saw the long awaited demise of the ‘Lads Mag’; FHM, Loaded, Nuts and Zoo are no more. They paid the price for not adapting and moving with the times. A stellar success in the 1990s, FHM boasted a paid for circulation of over 700,000 copies per month, however, their lowest common denominator approach to life focusing on ‘birds, booze and banter’ ceased to be relevant to modern consumers. While undoubtedly a blow to the market, the death of the Lads Mag gives market forces an opportunity to step back and separate the wheat from the chaff.

Rise of freesheets On a more positive note, the free market continued to evolve and grow. Dennis Publishing launched ‘Coach’ magazine as a weekly freemium title with a health and lifestyle angle to the content. This came about weeks after Time Inc relaunched NME as a freesheet in an attempt to rescue a classic British media brand. No doubt Time Inc are hoping for a revitalisation of Evening Standard/Time Out proportions but the question is, will turning a formerly credible musical journal into a mass market publication work?

Source: Newsworks

15

Print

A look forward to 2016 Measurability The biggest challenge newsbrands face over the coming months centres around measurability and how print and digital should be considered as a single entity for targeting audiences. Publishers Audience Measurement Company (PAMCo) will certainly address these issues, however, many industry figures have commented on the prolonged time this has taken to get out to the market. The report will be the first ‘brand’ measurement approach and a single source of data. The testing period ended in December 2015, and the survey is due to start in April 2016, with the full report set to be released in H1 2017.

Quality content will always be at the very heart of the magazine brand ecosystem. The ability to get content in front of as many readers as possible, irrespective of the devices or platforms, is becoming ever more crucial. The likes of Facebook, Google, Twitter, Buzzfeed and Flipboard have played a pivotal role in helping magazine brands extend their content and conversations, but the advertising revenue for the content originators has been somewhat elusive – until now.

Apple News The release of iOS9 in early September 2015 saw the death of Newsstand (once heralded as the saviour of traditional publishing), and the birth of Apple News. So what is Apple News? From a user’s perspective it will be a news feed aggregation app very similar to the Flipboard offering.

The user can choose areas of interest to follow from dynamic lists and then let the app do the work to suggest additions, which will also track user interests over time.

At first inspection it seems like standard stuff, but interestingly it will give advertisers and publishers more control than ever before with the ability to place ads alongside key content with various formats via Apple’s own iAds platform. Apple have also taken the unprecedented step to reward the originators with up to 100% of the ad revenue generated from advertising on their hosted content.

Transparency In the past Apple have been very protective over data sharing and tracking, but all this looks set to change. Tracking and collaborative smart targeting is rumoured be part of the offering, giving advertisers the insight they’ve been craving from Apple, as well as a richer creative environment for publishers. We welcome this transparency with open arms, but only time will tell if this will be the silver bullet for publishers.

16

Fact Book 2016

A bright outlook The medium to long-term outlook is relatively bright. There is a renewed confidence returning to this vibrant sector, with publishers putting the recession far behind them via a plethora of launches in the ad-funded freemium market, and newsbrands leading the way as providers of quality web and mobile-ready content. The market will continue to evolve and innovate much as it always has done.

Newspaper sites reach

Newsbrands reach

of the total smartphone audience

ABC1s each month

On the days they read them, people spend on average

Newsbrands reach

82%

94% 95%

70 mins

of 18-34 year-olds each month

reading newspapers

Source: Newsworks

Newsbrands - Total monthly reach (vs print 2011)

35000

20000

Daily Star

The Sun

Daily Mirror

Daily Mail

Daily Express

0

The Times

5000

Independent

10000

The Guardian

15000 The Telegraph

Adults 15+ (000’s)

Metro

25000

London Evening Standard

30000

Total combined print, PC & mobile 2011 print monthly reach

Source: NRS PADD (July 14 - June 15)

17

Print

October 2015

Circulation (ABC actively All Adults purchased) 51,598 Oct 2015 %

Men 25,188 %

Women 26,410 %

15-44s 24,744 %

ABC1 27,630 %

Av Time Spent Reading

Sun on Sunday The Mail on Sunday Sunday Mirror The Sunday Times The People Sunday Express The Sunday Telegraph The Observer Daily Star Sunday Sunday Mail The Sunday Post The Independent on Sunday Scotland on Sunday Sunday Herald

1,463,273 1,262,542 720,118 701,620 280,220 352,770 351,738 266,591 197,939 188,987 170,624 44,680 24,142 29,009

9.3 8.2 4.4 4.8 1.3 2.0 2.5 1.5 1.6 1.5 1.2 0.8 0.2 0.2

10.4 8.2 4.7 5.0 1.3 2.1 2.7 1.9 1.6 1.7 1.1 0.9 0.2 0.2

8.2 8.2 4.1 4.7 1.3 2.0 2.4 1.2 1.6 1.3 1.3 0.6 0.2 0.1

9.6 4.5 3.5 3.6 0.5 0.9 1.3 1.7 1.1 1.2 0.4 0.8 0.1 0.1

6.0 9.5 6.8 3.4 0.9 2.3 4.0 0.7 1.1 2.4 0.8 1.0 0.3 0.2

35.9 65.1 93.8 41.8 48.2 62.2 84.8 35.7 44.6 79.5 62.9 54.5 67.3 63.3

Sunday papers October 2015

Page Mono £

Page Clr £

Mono Scc £

Col Scc £

Twitter Followers (UK)

Facebook Likes (UK)

Tablet Readership

Sun on Sunday The Mail on Sunday Sunday Mirror The Sunday Times Sunday Express The Sunday Telegraph The Observer Daily Star Sunday Sunday Mail The Independent on Sunday

n/a 39,300 60,690 30,300 28,420 34,000 23,765 13,890 13,933 10,472

55,502 55,800 90,090 38,600 40,670 42,000 n/a 18,057 22,000 16,660

n/a 129 144 117 116 80 97 59.6 n/a 44

n/a 181 220 150 166 153 116 77.38 n/a 64

N/A N/A 388,000 9,898 2,739 1,390,000 2,437 6,135 N/A 7,841

N/A N/A 433,688 N/A N/A N/A N/A N/A N/A N/A

10,000 26,474 9,463 92,000 133,035 73,000 50,000 62,406 N/A N/A

Sunday papers

18

Fact Book 2016

Dailies October 2015

Circulation (ABC actively All Adults Men purchased) 51,598 25,188 Oct 2015 % %

Women 26,410 %

15-44s 24,744 %

ABC1 27,630 %

Av Time Spent Reading

Average Unique Visitors Adults

The Sun Daily Mail Metro Evening Standard Daily Mirror The Daily Telegraph Daily Star Daily Express The Times i Daily Record The Guardian Financial Times The Independent

1,755,390 1,448,510 1,349,476 900,498 747,285 460,184 426,798 401,142 352,365 205,565 177,441 166,965 43,450 40,552

10.5 7.1 6.1 3.0 4.2 2.3 2.1 2.1 2.1 1.2 1.3 1.3 0.5

8.3 7.4 4.9 2.2 3.7 2.1 1.2 1.9 1.7 1.0 1.2 1.2 0.3

10.3 3.3 8.9 4.1 2.9 0.9 2.0 0.9 1.5 0.8 1.0 1.2 0.5

6.2 8.4 6.5 3.8 2.9 3.7 1.0 2.1 3.4 1.6 0.7 2.2 0.7

30.1 43.75 20.46 21.5 33.9 56.2 27.3 43.67 45.4 36.7 32.53 44.9 35.8 34.1

2,036,000 11,246,000 2,450,000 1,864,000 4,768,000 8,556,000 874,000 2,477,000 445,000 547,000 708,000 9,394,000 711,000 4,665,000

Dailies October 2015

Page Mono £

Page Clr £

Mono Scc £

Col Scc £

Twitter Followers (UK)

Facebook Likes (UK)

Tablet Readership

The Sun Daily Mail Daily Mirror The Daily Telegraph Daily Star The Times Daily Express The Guardian i The Independent Financial Times Metro Evening Standard

n/a 37,800 29,000 46,000 23,765 16,645 n/a 11,400 10,472 10,472 42,400 n/a n/a

55,502 53,979 36,800 59,000 n/a 27,195 31,360 18,000 16,660 16,660 58,600 20,040 70,210

n/a n/a 112 106 n/a 75 n/a n/a 44 44 n/a n/a n/a

233 n/a 142 214 97 123 128 n/a 64 64 n/a n/a 295

933,000 1,131,000 562,000 1,390,000 134,000 652,000 385,000 4,660,000 107,000 1,060,000 4,480,000 217,000 274,000

1,951,776 3,156,406 308,297 2,723,266 878,662 433,688 571,075 5,032,224 N/A 3,468,125 2,653,565 1,116,579 496,151

10,000 25917 75,087 73,000 49,758 71,000 100,464 50,000 N/A 4,183 11,437 28,000 6,519

12.8 6.8 7.4 3.8 4.7 2.5 2.9 2.3 2.5 1.4 1.4 1.5 0.7

19

Print

Newspaper supplements October 2015

Circulation (ABC actively purchased) Oct 2015

All Adults 51,598 %

Men 25,188 %

Women 26,410 %

15-44s 24,744 %

ES Magazine Sun TV Buzz Sun on Sunday Fabulous Daily Mail Weekend Guardian Weekend Guardian Guide FT Money Independent Magazine Telegraph Magazine Times Magazine DEX Saturday DMR We Love Telly DSTAR Hot TV MOS You MOS Event Sunday Times Mag STI Culture STI Style PPL Love Sunday STL Stella STL Seven IOS New Review Observer Mag Obs. Food Monthly SEX ‘S’ Magazine DSTS OK! Extra

344,363 1,755,390 1,755,390 1,448,510 166,965 166,965 n/a 40,552 460,184 352,365 401,142 747,285 426,798 1,262,542 1,262,542 720,118 720,118 720,118 280,220 351,738 351,738 44,680 188,987 188,987 352,770 426,798

1.2 8.8 5.7 8.1 1.8 1.7 0.4 2.5 1.9 1.9 3.6 6.0 5.3 3.5 3.2 2.9 1.5 1.6 0.4 1.2 1.3 1.5 0.9

1.3 8.7 4.6 7.3 1.8 1.7 0.5 2.3 1.9 1.9 3.3 4.9 4.7 3.6 3.2 2.4 1.2 1.5 0.5 1.2 1.2 1.4 0.9

1.1 8.7 6.6 8.9 1.8 1.7 0.4 2.7 1.9 1.9 3.8 7 5.7 3.5 3.2 3.3 1.9 1.7 0.4 1.3 1.5 1.7 0.9

1.4 7.2 5.2 2.7 13 1.2 0.3 0.7 1.2 0.6 1.7 2.6 2.1 2.5 2.2 2.1 0.6 0.6 0.4 0.9 1.1 0.4 0.9

20

Fact Book 2016

ABC1 27,630 %

Ratecard ÂŁ

Twitter Followers (UK)

Facebook Likes (UK)

1.7 4.8 3.5 9.6 3.0 2.8 0.7 4.0 3.1 2.0 2.2 7.2 6.3 5.6 5.2 4.7 2.5 2.7 0.6 2.0 2.2 1.7 0.4

20,000 31,000 55,502 41,000 9,000 9,000 20,190 10,000 23,252 16,540 30,000 31,250 15,000 34,200 34,200 19,950 n/a n/a 45,750 18,300 18,300 10,000 10,000 11,000 27,500 15000

206,000 NA 87,600 1,883 19,202 49,500 44,800 3,308 18,800 15,300 N/A N/A N/A 37,400 15,900 36,400 N/A 147,608 N/A 82,700 N/A 16,000 24,700 N/A N/A N/A

4,687 20,137 235,108 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 45,538 62,444 N/A N/A 183,609 215 36,780 N/A N/A N/A N/A N/A N/A

21

Print

Women’s weeklies January-June 2015

Circulation (ABC actively purchased) Jan-Jun 15

All Adults 51,598 %

Men 25,188 %

Women 26,410 %

15-44s 24,744 %

Bella Best Chat Closer Grazia Heat Hello!

Inside Soap Look New! Now OK! Pick Me Up Real People Reveal Star Take a Break That’s Life!

Woman Woman’s Own Woman’s Weekly Yours

185,850 164,539 265,760 276,333 126,762 170,790 207,344 133,228 118,017 245,829 135,444 179,387 138,984 152,612 130,781 146,149 602,674 239,691 243,927 204,446 275,339 251978

0.9 0.6 1.6 2.0 0.7 1.9 2.1 0.9 0.7 0.9 1.2 3.1 1.2 0.6 0.8 0.5 4.2 1.2 0.9 1.5 1.4 0.8

0.1 0.1 0.4 0.3 0.1 0.5 0.5 0.3 0.1 0.1 0.2 0.7 0.3 0.1 0.1 0.2 1.2 0.3 0.1 0.2 0.2 0.1

1.6 1.2 2.8 3.6 1.3 3.3 3.7 1.5 1.3 1.6 2.1 5.4 2.0 1.1 1.5 0.8 7.1 2.1 1.7 2.7 2.6 1.4

0.5 0.4 1.5 3.2 1.2 3.4 2.4 1.3 1.2 1.6 2.1 4.5 1.7 0.8 1.4 0.8 3.9 1.4 0.4 0.9 0.7 0.1

22

Fact Book 2016

Ratecard ÂŁ

Unique Visitors Adults

Average Minutes per Visit

Twitter Followers (UK)

Facebook Likes (UK)

Tablet Jan-Jun 15

18,150 18,845 10,774 18,618 12,420 20,540 17,278 4,500 14,000 13,475 18,000 16,170 8,900 8,900 14,275 12,100 22,920 10,900 19,050 23,650 12,400 9,661

30,000 20,000 205,000 87,000 256,000 324,000 146,000 12,000 126,000 250,768 16,000 138,000 6,000 117,000 36,000 35,000 21,000 12,000 52,000

2.0 6.1 2.4 2.3 2.3 4.3 2.3 2.2 1.2 1.7 3.1 6.4 2.1 2.3 7.7 3.7 2.4 2.1 4.3 2.7

9,904 18,100 4,923 85,101 341,218 380,711 156,269 36,566 161,649 120,822 107,941 518,812 3,636 6,418 100,661 40,725 3,206 3,442 10,600 13,500 3,111 6,177

6,415 62,565 100,726 357,528 138,411 442,442 1,322,244 244,555 1,195,852 32,972 1,199,487 86,915 35,865 91,514 7,328 55,246 53,000 16,299 299,363 16,120 12,574

280 1,028 1,936 3,732 1,702 2,340 904 1,673 1,919 4,567 448 309 824 786 775 673 2,822 -

23

Print

Men’s lifestyle January-June 2015

Circulation (ABC actively purchased) Jan-Jun 14

All Adults 51,598 %

Men 25,188 %

Women 26,410 %

15-44s 24,744 %

ABC1 27,630 %

Esquire FHM GQ Men’s Fitness Men’s Health Q Zoo

27,064 40,217 75,113 33,801 142,486 41,103 24,001

0.2 1.1 0.8 1.2 2.1 0.6 0.6

0.4 2.1 1.4 2.2 3.7 1.0 1.0

0.1 0.2 0.3 0.1 0.5 0.3 0.2

0.4 2.0 1.3 2 3.6 1.0 1.0

0.3 1.0 1.1 1.3 2.5 0.9 0.4

Home interest January-June 2015

Circulation (ABC actively purchased) Jan-Jun 14

All Adults 51,598 %

Men 25,188 %

Women 26,410 %

15-44s 24,744 %

ABC1 27,630 %

25 Beautiful Homes Country Homes & Int. Country Living Elle Decoration Good Homes Homes & Gardens House & Garden House Beautiful Ideal Home Living etc

71,538 70,121 139,214 42,915 68,498 63,542 105,262 161,762 66,455

0.7 0.7 1.3 0.4 0.9 1.4 1.2 0.9 2.0 0.4

0.2 0.4 0.8 0.2 0.3 0.8 0.7 0.3 1.1 0.1

1.2 1.1 1.8 0.7 1.4 2.0 1.8 1.5 2.8 0.6

0.5 0.6 0.8 0.6 1.0 1.1 0.8 0.8 1.9 0.5

1.0 1.0 1.8 0.7 1.1 1.7 1.5 1.3 2.4 0.5

TV weeklies January-June 2015

Circulation (ABC actively purchased) Jan-Jun 14

All Adults 51,598 %

Men 25,188 %

Women 26,410 %

15-44s 24,744 %

ABC1 27,630 %

Radio Times Total TV Guide TV & Satellite Week TV Choice TV Easy TV Times What’s on TV

706,655 108,829 136,888 1,276,045 122,091 211,984 1,010,798

3.8 1.0 1.0 3.8 0.6 2.2 5.4

3.7 0.5 1.0 2.6 0.4 1.8 3.7

4.0 1.2 1 5 0.7 2.6 7

2.0 1.0 1 2.9 0.5 1.7 4.9

5.3 0.7 0.8 2.7 0.4 1.8 3.6

24

Fact Book 2016

Ratecard £

Average Minutes per Visit

Twitter Followers (UK)

Facebook Likes (UK)

Tablet Jan-Jun 15

12,607 18,000 14,994 3,500 10,889 9,156 8,800

1.9 2.7 1.4 1.7 26.2 1.2 1.6

339,400 155,900 772,300 539,700 3,100,000 118,000 321,500

682,773 3,214,742 1,806,126 2,761,994 4,434,366 106,788 2,785,527

2,941 2,994 6,494 6,287 1,641

Ratecard £

Average Minutes per Visit

Twitter Followers (UK)

Facebook Likes (UK)

Tablet Jan-Jun 15

6,225 6,400 8,851 9,100 4,500 12,170 18,372 13,355 12,440 7,050

2.6 2.8 1.7 2.1 2.6 2.5 2.2 2.7 2.3

13,600 31,386 118,000 68,200 189,426 140,000 68,100 265,000 80,400 96,200

N/A 1,800,000 2,300,000 1,300,000 3,227 81,484 4,400,000 4,800,000 2,200,000 491,342

703 701 766 1,108 959 489 490 1,391 1,653

Ratecard £

Average Minutes per Visit

Twitter Followers (UK)

Facebook Likes (UK)

Tablet Jan-Jun 15

20,350 7,000 5,715 17,000 11,900 16,450 20,160

1.8 12.9 3.7

59,537 2,074 10,389 73,734 N/A 15,977 147,665

53,860 N/A 6,043 459 N/A 22,037 7,631

31,649 257 3,093

25

Affiliates

Regional Press Annette Stephens / Les Middleton Associate Director – Connect / Associate Director, MediaCom Accent, MarketPlace annette.stephens@mediacom.com / les.middleton@mediacom.com

A look back at 2015 Managing decline With around 22m copies distributed every week, local newspapers continue to form an important part of the local media landscape.

However, as predicted, 2015 witnessed another decline (around 8%) in the print circulations of regional press products – albeit at a reduced rate.

This comes on the back of a continued reduction over the last 5 years, of around 40% from 2010 to date.

Titles covering smaller geographic areas (generally frees) have outperformed the market and there’s been a reduction in the number of free titles closing, but the overall decline has been attributed to titles with larger circulations covering regions and cities.

Digital bright spots In contrast, digital growth has been exceptional. We have witnessed another surge in digital traffic across the last year and it’s now relatively commonplace for digital platforms to dwarf their print counterparts.

Publishers are working to diversify their online products further and the online propositions are, in many cases, no longer just a replication of the printed product. Online audiences for these publications tend to be younger and more upmarket, and unsurprisingly there are many touchpoints for communicating with this audience.

Mobile usage has also increased exponentially, now significantly exceeding desktop reach. This is not a huge surprise given the meteoric rise in smartphone usage and general consumption habits across devices.

26

26

Fact Book 2016

An evolving MarketPlace We have consistently talked in our year-end summary about the increased impetus on the selling of packages and this has proved especially important in 2015, creating a cost efficient way for advertisers to reach the larger cities where regional print brands are strong and ultimately bringing incremental revenue via agency spend.

As expected, Newsquest moved their sales operation into the Mediaforce fold in February of 2015, radically changing our day-to-day buying relationship, with just two sales points covering the vast majority of the regional marketplace. We haven’t witnessed any significant changes to either publishers’ proposition. This may come with time.

Finally, one of the biggest developments of 2015 was the Trinity Mirror purchase of Local World. This has been a long awaited move and is, in our view, a significant milestone. This acquisition has made inroads to rejuvenating the marketplace, and has heaped a little more pressure on the likes of Johnston Press, who are no longer the biggest players in the field.

A look forward to 2016 Content and partnerships We expect that 2016 will bring an increased focus on content, along with the creation of strong, cross-platform partnerships. The consolidation of the market has brought shared knowledge, ideas and expertise that we believe will benefit some of the smaller players.

Undoubtedly the main players will still be pushing their packages and we fully support this as a way of delivering quality reach in the main conurbations.

We also believe that there will be further diversification of products and solutions to ensure that regional publishers continue dialogue and connect with their consumers to get a slice of the local/regional pie across all vehicles and devices.

27

Regional Press

28

England

Publication

Website

Basildon Birmingham Bolton Bournemouth Bradford Burton Cambridge Colchester Coventry Derby Dorchester Ipswich Cheltenham Grimsby Hartlepool Huddersfield Hull Ipswich Ipswich Preston Blackburn Leeds Leicester Liverpool Manchester Manchester Newcastle Newcastle Carlisle Norwich Barrow-in-Furness Norwich Nottingham Nuneaton Oldham Oxford Portsmouth Sheffield Telford Southampton Stoke Birmingham Sunderland Swindon Stockton-on-Tees Brighton

Basildon Evening Echo Birmingham Mail Bolton News Bournemouth – The Daily Echo Bradford Telegraph Burton Mail Cambridge News Colchester – Evening Gazette Coventry Telegraph Derby Telegraph Dorset Echo East Anglian Daily Times Gloucestershire Echo Grimsby Telegraph Hartlepool Mail Huddersfield Daily Examiner Hull Daily Mail Ipswich & Felixstowe Star (Mon-Wed, Fri) Ipswich & Felixstowe Star (Thur) Lancashire & Wigan Evening Post Lancashire Telegraph Leeds – Yorkshire Evening Post Leicester Mercury Liverpool Echo Manchester Evening News (Mon-Wed, Sat) Manchester Evening News (Thur-Fri) Newcastle Journal Newcastle upon Tyne Sunday Sun News & Star – Carlisle Norfolk Eastern Daily Press North West Evening Mail Norwich Evening News Nottingham Post Nuneaton News (Paid) Oldham Evening Chronicle Oxford Mail Portsmouth News Sheffield Star Shropshire Star (Mon-Fri) Southampton – Southern Daily Echo Stoke – The Sentinel Sunday Mercury – Birmingham Sunderland Echo Swindon Advertiser Teesside Evening Gazette The Argus Brighton

www.echo-news.co.uk www.birminghammail.co.uk www.theboltonnews.co.uk www.bournemouthecho.co.uk www.thetelegraphandargus.co.uk www.burtonmail.co.uk www.cambridge-news.co.uk www.gazette-news.co.uk www.coventrytelegraph.net www.derbytelegraph.co.uk www.dorsetecho.co.uk www.eadt.co.uk www.gloucestershireecho.co.uk www.grimsbytelegraph.co.uk www.hartlepoolmail.co.uk www.examiner.co.uk www.hulldailymail.co.uk www.eveningstar.co.uk www.eveningstar.co.uk www.lep.co.uk/www.wigantoday.net www.lancashiretelegraph.co.uk www.yorkshireeveningpost.co.uk www.leicestermercury.co.uk www.liverpoolecho.co.uk www.manchestereveningnews.co.uk www.manchestereveningnews.co.uk www.chroniclelive.co.uk www.chroniclelive.co.uk www.newsandstar.co.uk www.EDP24.co.uk www.nwemail.co.uk www.eveningnews24.co.uk www.nottinghampost.com www.nuneaton-news.co.uk www.oldham-chronicle.co.uk www.oxfordmail.co.uk www.portsmouth.co.uk www.thestar.co.uk www.shropshirestar.com www.dailyecho.co.uk www.stokesentinel.co.uk www.birminghammail.co.uk www.sunderlandecho.com www.swindonadvertiser.co.uk www.gazettelive.co.uk www.theargus.co.uk

Fact Book 2016

Monthly Unique Users (000)

Twitter Followers

Facebook Likes

Sales House

ABC Circ

416 515 701 873 831 68 185 272 203 225 337 286 73 121 81 151 294 190 190 72 622 340 199 747 1,139 1,139 471 471 324 559 153 199 250 10 122 495 245 292 124 926 165 515 149 353 221 700

18,300 115,629 22,700 47,200 26,800 6,467 42,575 11,000 38,853 41,581 28,900 25,700 12,791 11,743 7,910 35,328 39,376 13,600 13,600 13,800 41,500 101,000 49,538 242,868 276,191 276,191 34,391 n/a 21,000 52,000 9,155 30,200 70,270 4,455 10,500 35,200 40,000 71,800 43,097 44,900 33,992 n/a 29,600 19,400 40,045 49,900

17193 153,365 20,995 68,708 19,255 12,175 15,112 32,000 24,202 30,395 10,756 4,433 19,455 22,572 12,438 54,670 87,317 8,449 8,449 16,864 10,354 43,212 31,212 1,019,572 799,152 799,152 30,986 n/a 16,432 40,331 14,590 7,943 54,843 13,861 5,669 10,305 30,880 21,201 22,771 56,673 53,487 n/a 71,488 10,960 80,896 13,794

Mediaforce TMS Mediaforce Mediaforce Mediaforce TMS TMS Mediaforce TMS TMS Mediaforce Mediaforce TMS TMS Mediaforce TMS TMS Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce TMS TMS TMS TMS TMS TMS Mediaforce Mediaforce Mediaforce Mediaforce TMS TMS Mediaforce Mediaforce Mediaforce Mediaforce TMS Newsquest TMS TMS Mediaforce Mediaforce TMS Mediaforce

22,313 27,662 11,777 16,918 17,423 9,869 15,088 11,349 21,306 21,889 12,359 19,725 11,190 19,824 8,279 14,051 31,601 8,516 28,254 18,311 12,814 21,946 30,448 59,754 36,831 105,539 15,807 29,190 11,726 40,713 10,300 10,603 20,577 2,147 8,994 12,103 25,894 22,286 32,340 21,185 33,426 22,750 18,876 11,188 25,493 13,309

Source: ABC Jan-June 15 (daily circ figures Mon-Sat where possible) ICREG data as of 01 Nov 15

29

Regional Press

Continued

30

England

Publication

AIR Adults

AIR Men

Basildon Birmingham Bolton Bournemouth Bradford Burton Cambridge Colchester Coventry Derby Dorchester Ipswich Cheltenham Grimsby Hartlepool Huddersfield Hull Ipswich Ipswich Preston Blackburn Leeds Leicester Liverpool Manchester Manchester Newcastle Newcastle Carlisle Norwich Barrow-in-Furness Norwich Nottingham Nuneaton Oldham Oxford Portsmouth Sheffield Telford Southampton Stoke Birmingham Sunderland Swindon Stockton-on-Tees Brighton

Basildon Evening Echo Birmingham Mail Bolton News Bournemouth – The Daily Echo Bradford Telegraph Burton Mail Cambridge News Colchester – Evening Gazette Coventry Telegraph Derby Telegraph Dorset Echo East Anglian Daily Times Gloucestershire Echo Grimsby Telegraph Hartlepool Mail Huddersfield Daily Examiner Hull Daily Mail Ipswich & Felixstowe Star (Mon-Wed, Fri) Ipswich & Felixstowe Star (Thur) Lancashire & Wigan Evening Post Lancashire Telegraph Leeds – Yorkshire Evening Post Leicester Mercury Liverpool Echo Manchester Evening News (Mon-Wed, Sat) Manchester Evening News (Thur-Fri) Newcastle Journal Newcastle upon Tyne Sunday Sun News & Star – Carlisle Norfolk Eastern Daily Press North West Evening Mail Norwich Evening News Nottingham Post Nuneaton News (Paid) Oldham Evening Chronicle Oxford Mail Portsmouth News Sheffield Star Shropshire Star (Mon-Fri) Southampton – Southern Daily Echo Stoke – The Sentinel Sunday Mercury – Birmingham Sunderland Echo Swindon Advertiser Teesside Evening Gazette The Argus Brighton

58,917 81,752 46,451 44,014 46,824 25,620 44,020 29,928 57,751 58,034 31,492 51,386 28,870 50,114 20,434 37,785 81,006 21,741 51,054 69,784 49,202 82,953 85,221 154,055 106,754 256,091 67,374 81,059 33,985 120,566 33,650 27,266 54,305 5,581 23,719 36,693 71,940 85,303 85,637 55,685 85,980 67,919 48,557 29,097 66,299 33,898

29,924 42,197 22,795 22,487 24,194 13,255 23,155 15,256 30,564 30,121 16,250 26,749 14,811 25,628 10,403 19,432 42,055 11,229 24,516 35,790 27,039 34,021 43,847 78,781 57,585 123,244 40,427 41,467 15,635 56,667 17,838 14,028 27,972 2,922 12,174 19,455 38,128 41,805 44,318 28,673 44,548 34,716 24,703 15,303 33,975 17,537

Fact Book 2016

AIR Women

AIR ABC1

Ratecard Mono SCC

Pg Mono

Pg Col

28,994 39,556 23,655 21,527 22,630 12,365 20,865 14,672 27,186 27,913 15,242 24,636 14,059 24,487 10,031 18,353 38,951 10,512 26,538 33,994 22,163 48,932 41,374 75,273 49,168 132,847 26,947 39,593 18,350 63,899 15,813 13,237 26,333 2,659 11,545 17,238 33,812 43,498 41,319 27,012 41,432 33,203 23,855 13,794 32,324 16,361

30,975 32,982 16,802 23,974 20,141 10,788 24,272 16,562 29,635 25,510 16,594 31,940 14,980 22,049 6,767 15,974 34,874 10,402 27,750 34,131 18,187 32,552 38,361 74,398 43,353 115,218 38,765 30,353 15,305 79,443 12,308 12,670 25,098 2,980 9,857 26,445 34,810 31,408 40,869 31,143 34,067 26,353 17,876 13,663 28,691 24,166

£7.80 £15.00 £5.10 £8.50 £11.04 £6.49 £9.55 £4.40 £18.15 £11.95 £6.85 £10.30 £7.70 £9.07 £7.26 £7.98 £17.15 £8.86 £8.86 £16.29 £4.90 £23.70 £18.40 £29.00 £28.85 £34.10 £16.30 £18.85 £7.58 £13.52 £10.67 £10.41 £17.20 £5.35 £6.62 £11.15 £16.16 £29.01 £9.65 £8.90 £11.80 £12.85 £14.44 £6.90 £16.95 £10.30

£2,246 £3,570 £1,469 £2,448 £3,179 £1,765 £2,625 £1,267 £4,320 £3,250 £1,973 £2,719 £2,094 £2,467 £2,222 £1,899 £4,665 £2,339 £2,339 £4,985 £1,411 £7,252 £5,005 £6,902 £6,866 £8,116 £3,879 £4,486 £1,804 £3,569 £2,539 £2,748 £4,678 £1,455 £1,350 £3,211 £4,945 £8,877 £2,934 £2,563 £3,210 £3,058 £4,419 £1,987 £4,034 £2,966

£2,246 £3,570 £1,469 £2,448 £3,816 £883 £3,412 £1,267 £5,832 £4,063 £1,973 £3,807 £2,618 £3,084 £2,888 £2,564 £5,831 £3,275 £3,275 £6,480 £1,411 £9,428 £6,256 £9,318 £9,613 £11,362 £5,237 £6,057 £2,526 £4,640 £3,555 £3,573 £5,848 £728 £1,823 £3,211 £6,428 £11,540 £3,960 £2,563 £4,012 £1,529 £5,744 £1,987 £5,446 £2,966

Source: ABC Jan-June 15 (daily circ figures Mon-Sat where possible) ICREG data as of 01 Nov 15

31

Regional Press

32

England

Publication

Website

Newcastle Gloucester Blackpool Plymouth Darlington Bristol York Wolverhampton Wolverhampton Somerset Devon and Cornwall Devon and Cornwall Worcester Leeds

The Chronicle – Newcastle The Citizen Gloucester The Gazette – Blackpool The Herald – Plymouth The Northern Echo The Post – Bristol The Press – York West Midlands Express & Star (Mon-Wed, Fri) West Midlands Express & Star (Thur) Western Daily Press Western Morning News Western Morning News Sunday Worcester News Yorkshire Post

www.chroniclelive.co.uk www.gloucestercitizen.co.uk www.blackpoolgazette.co.uk www.plymouthherald.co.uk www.thenorthernecho.co.uk www.bristolpost.co.uk www.yorkpress.co.uk www.expressandstar.com www.expressandstar.com www.westerndailypress.co.uk www.westernmorningnews.co.uk www.westernmorningnews.co.uk www.worcesternews.co.uk www.yorkshirepost.co.uk

Northern Ireland

Publication

Website

Northern Ireland Northern Ireland Northern Ireland Northern Ireland

Belfast Telegraph* Sunday Life (Belfast)* Ulster News Letter (Belfast)* Irish News*

www.belfasttelegraph.co.uk www.belfasttelegraph.co.uk www.newsletter.co.uk www.irishnews.com

Scotland

Publication

Website

Scotland Liverpool Paisley Scotland Aberdeen Aberdeen Dundee Dundee Edinburgh Edinburgh Glasgow Glasgow Glasgow Greenock Scotland Scotland

Daily Record – Scotland Liverpool Sunday Echo Paisley Daily Express Sunday Mail (Scotland)**/*** Aberdeen Evening Express Press & Journal – Aberdeen Courier & Advertiser – Dundee Dundee Evening Telegraph Edinburgh Evening News The Scotsman Sunday Herald – Scotland Glasgow Evening Times The Herald – Scotland Greenock Telegraph Scotland On Sunday Sunday Post**/***

www.dailyrecord.co.uk www.liverpoolecho.co.uk www.dailyrecord.co.uk www.dailyrecord.co.uk www.eveningexpress.co.uk www.pressandjournal.co.uk www.thecourier.co.uk www.eveningtelegraph.co.uk www.edinburghnews.scotsman.com www.scotsman.com www.heraldscotland.com www.eveningtimes.co.uk www.heraldscotland.com www.greenocktelegraph.co.uk www.scotsman.com www.sundaypost.com

Fact Book 2016

Monthly Unique Users (000)

Twitter Followers

Facebook Likes

Sales House

ABC Circ

471 104 166 167 991 312 578 301 301 158 142 142 313 253

81,107 12,599 31,900 8,543 31,700 61,948 36,800 71,990 71,990 8,710 35,607 n/a 13,900 91,200

139,050 21,040 47,568 63,950 13,803 85,245 17,366 77,108 77,108 14,272 18,636 n/a 19,998 7,927

TMS TMS Mediaforce TMS Mediaforce TMS Mediaforce TMS TMS TMS TMS TMS Mediaforce Mediaforce

32,848 12,744 13,567 20,139 28,810 22,667 18,148 60,990 107,681 19,970 24,977 11,000 8,487 27,981

Monthly Unique Users (000)

Twitter Followers

Facebook Likes

Sales House

ABC Circ

2,800 2,800 89 503

84,300 84,300 24,800 43,837

154,898 154,898 5,337 32,802

Mediaforce Mediaforce Mediaforce Mediaforce

45,905 42,239 17,853 38,581

Monthly Unique Users (000)

Twitter Followers

Facebook Likes

Sales House

ABC Circ

736 747 736 736 507 179 759 372 955 1,404 1,570 663 1,570 663 1,404 131

80,333 n/a 3,765 n/a 18,000 20,200 16,900 8,312 71,400 84,200 43,500 30,800 43,500 7,732 84,200 63,900

193,322 n/a 8,501 n/a 63,480 19,945 17,596 20,376 107,989 81,780 5,494 12,312 5,494 18,692 81,782 3,467

TMS TMS TMS TMS Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce Mediaforce

197,580 20,897 5,387 215,813 32,827 60,292 46,991 18,714 23,762 23,821 32,021 31,378 36,981 11,264 27,450 195,426

Source: ABC Jan-June 15 (daily circ figures Mon-Sat where possible) ICREG data as of 01 Nov 15 *Readership: NITGI15 **Oct 15 ABC Regional press website delivery: publisher statement *** Readership: NRS Jan-Jun 15

33

Regional Press

Continued

AIR Men

England

Publication

AIR Adults

Newcastle Gloucester Blackpool Plymouth Darlington Bristol York Wolverhampton Wolverhampton Somerset Devon and Cornwall Devon and Cornwall Worcester Leeds

The Chronicle – Newcastle The Citizen Gloucester The Gazette – Blackpool The Herald – Plymouth The Northern Echo The Post – Bristol The Press – York West Midlands Express & Star (Mon-Wed, Fri) West Midlands Express & Star (Thur) Western Daily Press Western Morning News Western Morning News Sunday Worcester News Yorkshire Post

113,578 34,110 41,705 52,979 70,225 60,373 48,204 163,885 271,669 52,432 64,940 32,120 22,097 96,486

Northern Ireland

Publication

AIR Adults

AIR Men

Northern Ireland Northern Ireland Northern Ireland Northern Ireland

Belfast Telegraph* Sunday Life (Belfast)* Ulster News Letter (Belfast)* Irish News*

155,000 174,000 65,000 154,000

77,400 83,900 35,200 79,500

56,800 17,743 20,093 27,094 36,723 31,412 25,098 84,292 138,588 27,198 33,307 n/a 11,345 64,006

Continued

AIR Men

Continued

34

Scotland

Publication

AIR Adults

Scotland Liverpool Paisley Scotland Aberdeen Aberdeen Dundee Dundee Edinburgh Edinburgh Glasgow Glasgow Glasgow Greenock Scotland Scotland

Daily Record – Scotland Liverpool Sunday Echo Paisley Daily Express Sunday Mail (Scotland)**/*** Aberdeen Evening Express Press & Journal – Aberdeen Courier & Advertiser – Dundee Dundee Evening Telegraph Edinburgh Evening News The Scotsman Sunday Herald – Scotland Glasgow Evening Times The Herald – Scotland Greenock Telegraph Scotland On Sunday Sunday Post**/***

572,820 58,182 12,180 576,409 65,497 129,941 90,935 26,040 84,125 85,397 105,889 75,981 107,794 27,368 79,717 529,055

293,854 29,850 6,216 290,471 32,074 61,007 43,466 9,114 41,253 47,166 60,186 38,125 55,817 13,610 42,710 267,499

Fact Book 2016

AIR Women

AIR ABC1

Ratecard Mono SCC

Pg Mono

Pg Col

56,778 16,366 21,611 25,885 33,503 28,961 23,106 79,593 133,081 25,234 31,633 n/a 10,752 32,480

34,227 16,512 23,431 25,013 35,499 29,703 29,507 63,726 119,046 32,333 40,079 n/a 11,242 68,431

£24.20 £7.70 £13.48 £9.90 £9.00 £15.85 £6.50 £25.75 £28.35 £10.65 £9.00 £9.00 £7.75 £18.63

£5,760 £2,094 £4,125 £2,693 £2,592 £4,411 £1,872 £7,828 £8,618 £2,897 £2,448 £2,448 £2,232 £11,476

£7,775 £2,618 £5,362 £3,366 £2,592 £5,389 £1,872 £10,568 £11,635 £3,621 £3,060 £3,060 £2,232 £14,919

AIR Women

AIR ABC1

Ratecard Mono SCC

Pg Mono

Pg Col

78,000 89,900 29,800 74,400

101,000 76,200 26,300 79,700

£22.48 £15.75 £9.90 £13.25

£6,115 £4,284 £3,029 £3,604

£8,866 £6,212 £4,241 £4,434

AIR Women

AIR ABC1

Ratecard Mono SCC

Pg Mono

Pg Col

278,966 28,332 5,964 285,938 33,422 68,935 47,470 16,926 42,872 38,231 45,703 37,856 51,977 13,758 37,007 261,566

175,288 25,953 6,625 237,133 23,596 69,346 46,627 7,244 41,886 72,277 92,405 33,565 92,984 10,489 69,096 224,174

£42.80 £7.14 £11.32 £59.60 £19.50 £26.75 £18.10 £7.20 £17.85 £30.74 £10.00 £15.00 £19.00 £8.15 £30.74 £48.50

£10,186 £1,942 £2,694 £14,185 £4,505 £6,179 £4,181 £1,663 £5,462 £6,271 £2,880 £4,320 £11,286 £2,152 £6,271 £11,543

£13,752 £2,428 £3,637 £19,149 £6,081 £8,342 £5,435 £2,079 £7,338 £7,613 £2,880 £4,320 £11,286 £3,227 £7,760 £15,006

Source: ABC Jan-June 15 (daily circ figures Mon-Sat where possible) ICREG data as of 01 Nov 15 *Readership: NITGI15 **Oct 15 ABC Regional press website delivery: publisher statement *** Readership: NRS Jan-Jun 15

35

Regional Press

36

Wales

Publication

Website

Wales Cardiff Swansea Wales Wales Newport

Daily Post – Wales South Wales Echo South Wales Evening Post Wales on Sunday Western Mail – Wales South Wales Argus – Newport

www.dailypost.co.uk www.walesonline.co.uk www.southwales-eveningpost.co.uk www.walesonline.co.uk www.walesonline.co.uk www.southwalesargus.co.uk

Wales

Publication

AIR Adults

AIR Men

Wales Cardiff Swansea Wales Wales Newport

Daily Post – Wales South Wales Echo South Wales Evening Post Wales on Sunday Western Mail – Wales South Wales Argus - Newport

63,990 51,019 67,913 42,115 49,353 32,973

33,270 26,136 35,158 21,639 25,645 16,908

Packages

Name

Website

UK UK UK UK

Big City Sunday Best The National One Local

n/a - see individual data n/a - see individual data n/a - see individual data n/a - see individual data

Packages

Name

AIR Adults

AIR Men

UK UK UK UK

Big City Sunday Best The National One Local

3,396,000 3,361,000 3,291,000 4,218,000

1,796,000 1,714,000 2,102,000 2,218,000

Fact Book 2016

Monthly Unique Users (000)

Twitter Followers

Facebook Likes

Sales House

ABC Circ

222 775 146 775 775 428

50,125 89,594 39,225 8,832 89,594 41,600

72,559 175,693 53,059 175,699 175,699 29,672

TMS TMS TMS TMS TMS Mediaforce

24,713 19,158 26,144 14,789 18,641 12,671

AIR Women

AIR ABC1

Ratecard Mono SCC

Pg Mono

Pg Col

30,721 24,883 32,754 20,476 23,708 16,066

37,817 24,942 30,443 17,296 28,552 13,640

£11.07 £15.00 £10.70 £13.73 £27.02 £5.63

£2,635 £6.035.68 £2,910 £3,268 £6,431 £1,621

£3,557 £8,148 £3,638 £4,411 £8,682 £1,621

Monthly Unique Users (000)

Twitter Followers

Facebook Likes

Sales House

ABC Circ

n/a n/a n/a n/a

n/a n/a n/a n/a

n/a n/a n/a n/a

TMS TMS TMS Mediaforce

1,437,652 1,480,347 1,500,906 1,787,400

AIR Women

AIR ABC1

Ratecard Mono SCC

Pg Mono

Pg Col

1,600,000 1,647,000 1,542,000 2,000,000

1,248,000 1,281,000 1,938,000 1,974,000

£200.00

unpublished unpublished unpublished £40,000

£40,000

Source: ABC Jan-June 15 (daily circ figures Mon-Sat where possible) ICREG data as of 01 Nov 15

37

Affiliates

Radio Lauren Croly / Kirsty Poole / Ella Mitchell MarketPlace Manager / Connect Manager / Connect Planner lauren.croly@mediacom.com / kirsty.poole@mediacom.com / ella.mitchell@mediacom.com

Highlights •

Radio streaming has increased 16% vs 2013

•

The Audio Digital Market has become much more simple

•

XFM is rebranded as Radio X, with an exciting line-up of big talent

•

Bauer media streamline their radio offering

A look back at 2015 The growth of digital audio As RAJAR published its third quarter results for the radio market, they reported a 15% growth for adult listening via the internet over the last two years, equating to 4.7m listeners (14%) per week. Seven hours of radio are now consumed via the internet every week compared to six in Q3 2013, an increase of 16%.

With all the streaming and audio digital platforms on the market, Global Radio identified a gap to simplify this arena with the introduction of the Digital Audio Exchange (DAX) in 2014. DAX allows a single entry point, offering a one-stop shop for the management and delivery of audio adverts across 141 Digital Audio Brands.

38

38

Fact Book 2016

Improved insight, better targeting In 2015, Xaxis Audio extended its audience targeting capabilities from general broad reach and regional targeting, to the ability to target one of any top 20 interest segments through Turbine, their Data Management Platform (DMP).

We also saw platforms such as Acast offering detailed audience data and improved insight into the podcast market as advertisers look to capitalise on the explosion of the digital audio industry.

Bauer’s implement network changes Bauer Radio had a number of changes across their local and national brands in 2015 – this strengthened their proposition and increased their footprint across the country.

•

Magic joined D2, becoming a fully national brand to closer compete with Heart

•

Kisstory had an increased DAB presence in London and a selection of local multiplexes

•

Kiss Fresh was also made available in London via DAB

•

Bauer’s Place Portfolio took over Magic’s regional stations and The Hits, meaning for each regional FM station you now also have a second and third. These are aimed at different demographics; 15-24s, 25-44s and 45-64s

Global Radio launch Radio X September 2015 saw the re-brand of XFM to Radio X, with the station focussing on drawing in a 25-44 male audience. The new line-up contains big name talent like former Radio 1 DJs Chris Moyles and Vernon Kay, as well as Johnny Vaughan, and Kaiser Chief, and Ricky Wilson. Since launch, Global Radio have seen great success; within the first month Radio X has exceeded XFM’s performance in 2014, they have seen 4.8m pageviews to radioX.co.uk (XFM 2014: 2.5m), 7m app streams and over 7m video views on the Chris Moyles Radio X Facebook page.

39

Radio

A look forward to 2016 2016 projected revenue In 2016, we expect revenue to be around +4% for radio. This is due to more categories/advertisers using the channel as well as the continued support from the motor, government and retail sector.

Key moves on the horizon For a while there’s been speculation that talkSPORT would be the next station to be bought by another media owner. This rumour looks increasingly likely now that UTV Media has sold its television services to ITV for £100m. Many believe that they will continue to operate as a radio business under a new name. We suspect Bauer Media will be first in line to try to attain this business in 2016.

New stations The second national commercial radio DAB multiplex has been awarded to Sound Digital, a combination of Arqiva, Bauer Media and UTV Media.

UTV will launch two original speech stations, talkRADIO and talkSPORT 2, which will increase choice and variety for speech stations and challenge the BBC’s dominance in this sector. UTV’s proposed business radio station talkBUSINESS has given up its slot on Digital 2 in favour of a deal with Share Radio. Virgin Radio will return under a partnership between the Virgin Group and UTV. Spotify explore programmatic Spotify have announced that they are moving into the programmatic space, with more sophisticated targeting available within a private, invite only, marketplace for the leaderboard format. Playlist targeting is also a programmatic first, utilising Spotify’s targeting capabilities. Audio will be available programmatically in the coming months as negotiations with Xasis are currently taking place. This is expected to become a big part of the Spotify business.

40

Fact Book 2016

41

Affiliates

Out Of Home Gill Reid Head of OOH gill.reid@mediacom.com

Highlights •

Out of Home sector continues to grow - forecast +4% for 2015

•

Digital continues to be the key driver for growth, increasingly becoming more of a national offering as the footprint expands

•

Technology evolution is playing an increasingly important role with dynamic delivery becoming more commonplace

A look back at 2015 Digital developments 2015 has been a buoyant year across the majority of formats both classic and digital. Longer lead-in times across the market are now common place.

JCDecaux won the tender for TfL London 6-sheets. This award consolidates London’s bus shelter contracts into a single proposition of 15,000 back lit 2sqM panels, paving the way for a significant digital transformation, as well as big changes to media owner share in this format.

Digital development and technology continued throughout the year across all formats and in all major cities. This was in line with infrastructure development, such as in Birmingham, with the opening of the New Street Station expansion.

42

42

Fact Book 2016

Digital OOH Throughout the year there have been further developments in more audience-led solutions via Route, plus the use of other data sets such as Touchpoints, CACI and mobile data, leading to a more targeted approach.

We’ve also seen a more connected approach with other media channels, specifically with the way OOH and mobile, and OOH and radio, have interacted to create integrated campaigns.

We estimate that digital OOH revenue will hit £351m in 2015, representing approximately a third of all Out of Home media. Digital growth reflects the continued investment by media owners into new locations, increasing the digital footprint nationally. It’s also forecast that 33% of revenue will be driven by digital by the end of 2015.

Innovation: Jurassic World Jurassic World’s takeover of Waterloo station was the biggest station takeover ever, with complete domination of every available screen, as well as live tweets and the trailer on Motion at Waterloo. i-beacon technology allowed commuters to listen to the audio via their smartphone which accompanied featurettes on Transvision. Visitors also had the chance to learn about dinosaurs through audio guides of the museum gallery on digital 6-sheets, where sound content was connected through smartphones via a dedicated URL.

43

Out Of Home

Innovation: Tap To Beat Cancer The Cancer Research contactless payment window is a world first.

It leverages existing and emerging technology to reflect changing consumer behaviour and deliver an innovative new way for Cancer Research to raise funding.

The solution comprises a purpose-built digital screen totem with an embedded contactless payment device which is pushed flush against the store window. The screen is visible outside and the payment device works through the glass. The window is wrapped with vinyl to hide all but the screen.

On the window is a large call-to-action, stopping passing shoppers and asking them to tap their contactless card on the window to donate to CRUK. On screen, a scientist sits idle in her lab until someone donates, then she gets up and conducts a lab task and the screen plays a thank you message.

The campaign ran in Cancer Research stores in Marylebone, High Street Kensington, Guildford and Brighton and was planned to be installed into 6s but was trialled on store fronts.

44

Fact Book 2016

Innovation: Coca-Cola Snow Globes Coca-Cola brought a snowy Christmas to the high streets with their snow globe 6-sheets. The snow globes were in fully branded bus shelter 6-sheets and activated through a ‘touch’ button on the panel that played the Coca-Cola Christmas jingle and released ‘snow’ in the unit.

Ten snow globes were installed on the high streets of London, Manchester and Birmingham, alongside the Bluewater, intu Metrocentre and Bullring shopping centres.

45

Out Of Home

Innovation: Google’s AI Poster Google launched the first artificially intelligent poster campaign which displayed different ads depending on how people reacted to them.

The technology used a genetic algorithm to test executions based on features such as copy, layout, font and image.

Each poster was installed with a camera that allowed M&C Saatchi to measure people’s engagement with the ads based on whether they looked happy, sad or neutral.

Ads that failed to trigger an engagement were eliminated, and those that prompted a reaction will be reproduced in future executions.

During the initial launch period, the project automatically generated and displayed 1,540 adverts and tracked more than 42,000 interactions.

46

Fact Book 2016

Innovation: Women’s Aid ‘Look At Me’ Women’s Aid partnered with Ocean to create interactive billboards to recognise when people were actively paying attention to an image of a bruised woman on screen.

This was the first digital OOH campaign ever to use people’s attention to trigger an immediate change in the creative. Those who looked at the billboard received feedback via a live video feed that ran along the bottom of the ad as a visual ticker-tape, registering an increasing number of viewers.

As more people took notice of the image of the woman, her bruises slowly healed, demonstrating to passers-by that by not turning a blind eye, they can help confront the signs of domestic violence.

47

Out Of Home

A look forward to 2016 Digitisation Increased digitisation across the country will continue from all media owners – expectation that a 35% of OOH revenue will be driven by digital come the end of the year. This digital development programme will fast-track dynamic trading models based on impacts and automated delivery.

We’ll also see a move towards live availability which will allow greater audience optimisation.

Underground, overground The full effect of the JCDecaux win of the TfL contract in London will be felt. A transformation programme will be put in place across the year with a move to develop 1,000 digital 6-sheet units.

The London Underground contract will also be announced in 2016; this is the biggest of all the OOH contracts so any move of media owner will have a significant effect on share.

If JCDecaux also win the London Underground tender this could have huge implications, significantly shifting the overall share within the UK market.

The continued expansion of digital is leading to discussions on greater trading efficiencies. This will start with automated delivery possibly leading to the potential programmatic trading within some sectors/environments.

48

Fact Book 2016

Media

Computers

Govt, social and political

Food

0

Drink

10

Retail

20

Motors

30

Travel & Transport

40

Finance

50

Telecoms

60

Entertainment & Leisure

Top spending OOH categories H1 2015

OOH revenue 2008-2016 Forecast +3.5% for 2015 +3% for 2016

938

886

880

1084

1052

1010

990

970

782

2016 (f/cast)

2015 (f/cast)

2014

2013

2012

2011

2010

2008

2009

ÂŁm

2.5

2014

2013

2012

2011

4

3

3

2009

2008

2010

4.4

2016 (f/cast)

6

2015 (f/cast)

OOH industry inflation

-4

-8.7

Source: Category Expenditure NMR. H1 2015 Expenditure Outdoor Media Centre

49

Affiliates

Cinema Amy Anderson / Gary Cook / Mesha Williams Associate Director – Connect / MarketPlace Manager / Senior Buyer- Investment amy.anderson@mediacom.com / gary.cook@mediacom.com / mesha.williams@mediacom.com

Highlights •

2015 was all about agile planning and brands building closer strategic relationships with film through partnerships and naming rights opportunities

•

The availability of the adult ‘gold spot’ offers an unprecedented opportunity for brands

•

2016 is all about using tech to enhance impact through a multisensory experience of cinema

•

We’ll also see advertisers connect foyer messaging with on-screen messaging to drive relevance and recall

50

50

Fact Book 2016

A look back at 2015 A record year for film As anticipated, 2015 was one of the biggest years for film ever with estimated revenue predicted to be up 20% year-on-year, admissions up 9% and brand count up 30%.

This success has been driven by the top 30 films of the year, many of which far exceeded expectations. Fifty Shades of Grey now holds the record for the biggest box office haul for an 18 certificate film, Fast and Furious 7 was the fastest film to reach $1bn globally, and in April we saw Avengers: Age of Ultron deliver the biggest ever UK box office opening.

Add to this the release of Jurassic World (as of writing, the third biggest film released worldwide), Spectre, The Hunger Games and Star Wars, and it seems 2015 was destined to be a stellar year for cinema.

Family films have also performed incredibly well in 2015. Pixar released two films in the same calendar year; Inside Out and The Good Dinosaur.

On top of this, family features Inside Out, Minions and Home all reached the top 10 for the year, over-delivering +30% compared to expectations.

The gold spot The most significant change in 2015 for Cinema has been the availability of the adult ‘gold spot’ in the absence of an annual deal taken up by a single brand. With 100% of audience attendance at this point in the reel, this offers an opportunity for brands to create increased standout, maximum impact, and a further premium offering to the ‘silver spot’.

51

Cinema

Improved agility In 2015, we continued to see brands capitalise on cinema’s increased planning agility. This has included bespoke day-of-week and time-of-day planning, in line with in-store promotions or TV launches. We’ve also seen an increase in proximity planning using postcode mapping tools, which have allowed advertisers to run bespoke creative based on the audience’s proximity to the nearest retailer, driving both relevance and recall.

As content creation continues to be the centre of brands’ connected media planning strategies, we have seen increased interest in the content spot positioned after the main ad reel and before the silver spot. An opportunity for brands to showcase their longer, most engaging creatives on the big screen in a premium position in reel.

We have seen the quality of the cinema experience continue to improve with 4K capable projectors being installed across the network to ensure the strongest, sharpest picture available, as well as Dolby Atmos sound technology ensuring theconsumerexperience is as premium and impactful as ever.

Non reel/in foyer activity has extended to owning naming rights of specific chains/sites, including the IMAX. Naming rights opportunities exist across screens, signage on building exteriors as well as the seat head rests and bars – an incredibly effective way for a brand to align with both the film itself and the leading film technology at the heart of British cinema.

It is unsurprising that in a year where we have seen the release of film’s most anticipated blockbusters, we have seen a rise in pre-booked ticket sales. On average, a third of sales are pre-booked, with 26% online via laptop, tablet or PC and 4% on mobile.

52

Fact Book 2016

UK top films 2015 Box office performance Star Wars: The Force Awakens 007 Spectre Jurassic World The Avengers: Age of Ultron Minions Inside Out Fast & Furious 7 Fifty Shades of Grey The Hunger Games: Mockingjay Part 2 The Martian

£113.96m £94.74m £64.48m £48.34m £47.71m £39.24m £38.64m £35.05m £29.96m £23.51m

53

Cinema

A look forward to 2016 Enhancing the user experience Investment into improving the user experience is set to continue into 2016, with the roll-out of more 4DX cinemas. 4DX gives a glimpse into what the future of cinema might be. The state of the art technology delivers a fully immersive cinematic experience, meaning movies are no longer bound by their visual and acoustic limits. The experience is meant to stimulate all your senses, not just sight and hearing.

Vibrating motion seats move in synchronisation with the action on the screen, while jets of air recreate the temperatures and conditions depicted on screen. These extra sensations heighten the excitement and keep the audience involved.

Cinema gets personal As a result of the continued modernisation of the industry through developments in digital technology, brands now have the ability to personalise their adverts on and off screen. Innovations in the cinema space will continue into 2016, with brands having the opportunity to influence the big screen and the foyer in a more personalised way.

Content generated in the cinema foyer via interactive digital 6-sheets can be connected with on-screen adverts, repeating messages, making ads personal and unique. Cinemagoers are fully engaged and very receptive, meaning that a brand’s message is more likely to be at the forefront of their mind. According to research conducted by Millward Brown, cinema has the strongest combined brand impact of any medium, and with the introduction of 37 Degrees, it is now possible for brands to capture audience’s undivided attention in a new and refreshing way.

37 Degrees technology allows two different images to be projected onto a cinema screen simultaneously with the viewer only seeing one due to the specially adapted 3D glasses. This means that a cinemagoer may not have the same experience as the person sat next to them. We believe that the technology is an exciting way to spark powerful awareness in a creative way.

2016’s most anticipated releases Cinema in 2016 is expected to be stronger than ever, with an estimated 168m industry admissions due to a spectacular slate of films.

In 2016, there will be a selection of main releases and blockbusters such as Captain America: Civil War, Star Trek Beyond, X-Men: Apocalypse, The Hateful Eight, and Batman v Superman: Dawn of Justice. Next year will also see the release of the new Star Wars: Rogue One, which has a conservative box office prediction of £60m. Further to this superb line-up, family films are expected to continue to perform well at the box office, solidifying the strength of this genre. Four of the top ten predicted box office films are family focused, with Finding Dory, and Fantastic Beasts and Where to Find Them, having box office expectations of £45m each.

To put this into context, blockbuster Avengers: Age of Ultron took £48m at the box office last year.

54

Fact Book 2016

UK top films 2016 Predicted box office performance Star Wars: Rogue One Fantastic Beasts and Where to Find Them Finding Dory Batman v Superman: Dawn of Justice Captain America: Civil War The BFG X-Men: Apocalypse Star Trek Beyond The Secret Life of Pets Bourne 5

£60m £45m £45m £35m £35m £35m £28m £25m £25m £20m

55

Cinema

Cinema is alive and well

175 172m

170 Admissions (m)

172m

165

168m

166m

160 2016

2015

2014

2013

150

158m 2012

155

Calendar Year

Source: CEA Admissions 2012-2015

Cinema buying routes

Audience Guarantee Pack (AGP)

Premium/Youth/ Male/Female/Family AGP

Film Package

Geo Targeting

56

Fact Book 2016

Cinema pushes buttons the other media can’t

Happy

Engaged

Uninterested

Excited

Bored

Distracted

Attentive

Focused

Tired

Passive

Relaxed Involved

Stimulated Cinema TV Internet Magazines/newspapers Radio

Source: CAA FAME 2014. Base 11+ Q.

95%

of copy used on cinema Is TV copy (people just think its better)

Source: DCM

57

Cinema

5 key takeaways

Cinema creates a brand love story

Cinema makes brands feel different

Cinema turns audiences into customers

Cinema wins influential fans for brands

Five Four Three Two One

Cinema makes brands memorable

The cinema ad reel Ident Standard Pricing Main Ad Reel

Cinime

+15% Content Spot Ident +30%

Silver Spot

Trailers

+60%

Gold Spot

Film

58

Fact Book 2016

Our core audience are light TV viewers

172 million Admissions per year

67%

49%

65%

25%

ABC1

Men

15-44s

London & South East TV Region

Source: CAA/IMS Coverage & Frequency 2014

8x

More Stand Out

3x

More Brand Attribution

2x

More Memorable

Source: Hall and Partners

59

Affiliates

Direct Response James Hyams / Jody Aird Business Directors james.hyams@mediacom.com / jody.aird@mediacom.com

Highlights •

2015 was a year in which we saw the mass market consumer responding through multi-channel journeys, with brands addressing this behaviour through their communication infrastructure

•

Advertisers are now having to make larger optimisation decisions to drive performance, and these optimisations are being made in real time to drive efficiency through the entire communications system

•

In 2016 we’ll see previously untapped conversion opportunities opening up thanks to new technologies that facilitate purchase, with brands determining the incremental gains

•

The decision-making across the complete communication plan, and the understanding of the interdependencies within the communication system, will be a major focus to ensure all potential demand is extracted from the market

•

The advances in mobile, coupled with an increase in ‘showrooming’ among consumers, will need to be turned into opportunities to drive incremental response

60

60

Fact Book 2016

18%

13%

Bricks & Mortar 40%

13% 13%

26%

14% 15%

17% E-Commerce 34%

A look back at 2015 Leaving linear behind Response continued to evolve in 2015. As dynamics moved away from linear response via the phone or last/first click, we saw a move towards multi-channel response with consumers choosing the most convenient route depending on the task at hand. For example, people will respond to a press advert or TV advert via the device or method they feel most comfortable with. Instead of using a phone or test response, consumers are much more likely to pick up a mobile or tablet and search for something related to the advert rather than call the number included.

This has led to both the method and the time of consumer responses changing dramatically. Mobile is now the go-to platform for consumers responding to marketing stimuli, though for some, desktop remains important for actual transactions. A focus on activity across the entire communications system is now vital.

The evolution of mobile has meant that daytime TV response is now upwards of 70% on the web, with TV driving on average 13% of total online response. This was illustrated by our recent work with Thinkbox on the new rules and new roles of TV response.

Source: TV response: new rules, new roles 2015. Based on 8 brands

61

Direct Response

Shifts in optimisation Text response continues to perform well, offering incremental responses to TV – in particular for charity and telecommunications advertisers who have seen text response become a mainstay of their DRTV planning.

Micro-optimisation has since become less important and the testing of new routes to market outside of traditional DRTV buys, such as sponsorships and early peak, are showing positive results as we take into account total response impact.

Within TV these routes have included areas such as buying specific audiences akin to brand buys and post peak proving cost-effective alongside increased use of TV sync and DRTV Extend (VOD). Audience-specific buys in particular are showing significant traction despite the increased cost.

This is not limited to TV however, as traditionally high-performing channels (such as DR Print) have fast become difficult to optimise on short-term response metrics, so audience planning combined with econometric learning is now key for justification.

We are starting to see other channels, which have been historically less effective on a linear basis (like radio), begin to play an important role in response driving plans. This is particularly the case since the advent of digital radio buys combined with programmatic through Xaxis.

Radio CPA

250 200

212

207 160

150 CPA

Nat Press

DRTV Peak

Inserts

95

67 DR Radio

PPC

DRTV

55

50 0

60

DR Display

100

Performance Index

62

Source: Business Science Economiser

Fact Book 2016

Optimising the system This has meant there is now an increasing need for broader performance frameworks that take into account all forms of response to ensure justification for broadcast channels within a media plan.

This in turn has lead to the need for greater understanding of the consumer purchase journey and the context behind consumers’ decision-making to ensure that response comms are relevant and persuasive. It’s not enough to focus on the areas that traditionally performed well, we need to understand and measure the whole system of communications.

Investment in response channels has moved proportionally towards digital to better match the way consumers are spending their time and being influenced by media. 58% of all spend across response driven media is now devoted to digital. Testing has also been consistent on newer routes to market such as Xaxis TV sync, Sky advance and Group M LIVE Audience.

Mobile investment is starting to grow for MediaCom Response clients as smartphone use becomes an integral part of the retail experience.

Shopping with a mobile device, checking prices and searching for deals is now commonplace and will only become more prevalent in years to come. Because of this, there will naturally be value in testing new routes-to-purchase early in a bid to outsmart competitors and discover untapped methods of reaching consumers on their purchase journey.

63

Direct Response

A look forward to 2016 Systems, not silos In 2016, brands with a complete understanding of their communication system will see the biggest gains. This understanding will enable brands across all sectors to respond to their performance needs in a timely fashion, maximising business return. The alignment of communication teams will ensure the response strategy is driving optimum returns by developing and understanding the full impact of the system. Brands which are at the forefront of system-based planning already have four core components in place for the coming year: 1. Total ROI impact – in the short- and long-term of channel investment decisions 2. Time to response – increases in investment and an understanding of when the return should be delivered 3. Scalability – content distribution plans that can be deployed at scale delivering tailored/personalised consumer journeys through AV, programmatic and CRM 4. Test and learn plan – with the purpose of activating strategy and approach in the most impactful and effective method The short-term response drivers – PPC, daytime TV (DRTV) and affiliates – are all expected to inflate in the coming year. These factors already account for 40-45% of a brand’s marketing investment. Brands are looking for response solutions that offset inflation primarily through onsite optimisation, investment limits, and content. Onsite optimisation and sales attribution will include greater path-to-purchase understanding on all variables incorporating onsite attribution to the relevant media, dynamic web chat-based on orientation, increased localised understanding, dynamic landing pages and effective use of digital retargeting across VOD, display and Facebook. We’ll also see investment into further understanding the dark side of media optimisation, the aspects which make a difference but are challenging when determining the ROI i.e. operations and external factors.

64

Fact Book 2016

The components of a direct response framework

Onlin e

Exte rna l

e flin Of dia Me

Sea son ali ty

etitor p m Co

omy Econ

W st Di

eb rib site/ uti on

Social

Sales

Operations

ice Pr Promo

65

Direct Response

In-market moments In-market content plans that trigger on identifiable purchase signals to drive relevancy and ‘reasons to buy’, will create a natural uplift on SEM traffic.

The in-market content will have to cut through with the right consumers as the volume of content grows exponentially.

Every minute 4.2m Every minute 4.2m Facebook posts and Facebook posts and 300 hours of new YouTube content are uploaded. In 2015, a home improvement 300 hours of new company made major media saving of YouTube content £3.7m by investing in an in-market are uploaded. content plan with scalable distribution.

The adoption of key media developments within programmatic, AV, SEM and mobile conversion will provide brands with incremental response gains. Programmatic will offer greater data segmentation, utilising Live Audience to identity the responsive audience’s through the use of data management platforms.

In TV, there have been three key developments: •

DRTV Extend – supplying scalable and cost efficient video on demand that is optimised in real time

•

TV and digital sync through Xaxis Sync and Sky AdVance – maximising presence to potential impact consumers

•

Spotlift – maximising optimisation through responsive allocation across mobile, web, tablets, text and telephony

We’ll see the Identification of Micro In-Market Buying Moments that trigger personalised messaging and propositions across display, VOD, search and email. Through mobile, contactless and OOH response, every offline touchpoint could become a conversion/ecommerce opportunity.

Take Cancer Research’s ‘Tap to Beat Cancer’ campaign in which window displays in select Cancer Research stores were turned into a contactless donation channel. This sought to combat the potential fall in donations as we move towards a cashless society. On making their contribution, donors would see a short video of a scientist at work in a lab, providing immediate feedback to their actions.

In-market mobile response continues to grow, with consumer showrooming (viewing merchandise in a traditional retail environments, and then buying online) becoming mass and habitual. Brands that are able to capitalise on this will see incremental conversion gains particularly if linked through Apple Pay, which will allow brands to take advantage of moments of impulse.

66

Fact Book 2016

Summary 2015 represented a transition period for the discipline of response based marketing activity. 2016 promises to be the year in which both clients and agencies will fully embrace system-based planning. The means by which consumers consume and respond to media has changed to such a degree that this shift is inevitable.

While this evolution will involve an initial ‘leap of faith’ the rewards are already proving to be vast. Brands who have moved from linear based planning into a system approach are seeing improvements in marketing return on investment from anywhere between 10-20%.

Simply by understanding the consumer’s motivations at particular stages of the purchase cycle and ensuring we feed them a relevant message we can both improve performance levels and sow the seeds for a longer-term conversation.

Technology will be at the forefront of this development. New and bespoke tracking and reporting systems now provide advertisers with clear insight into their optimum mix of media channels alongside the ability to optimise their campaigns on a real-time basis, aided by the growth of mobile.

For those brands willing to embrace the new environment, 2016 promises to be a year of opportunity.

67

Direct Mail Matthew Oram Associate Director, Response One matthew.oram@mediacom.com

Highlights •

Direct mail is the UK’s third largest media channel with an ad spend of £965m in H1 2015, the highest since 2010, and on a par with Online

•

Changes to EU Data Regulation and developments within the charity sector have brought consumer privacy into sharper focus

•

Integration, personalisation and programmatic buying are key areas for direct mail in 2016

A look back at 2015 ‘The private life of mail’ In many ways, 2015 felt like the year that direct mail stepped out of the shadows and back into the minds of both media professionals and the wider UK public. A huge catalyst for this was MarketReach’s comprehensive and compelling study ‘The Private Life of Mail’, supported

by MediaCom’s own Chairwoman, Karen Blackett OBE, as part of Royal Mail’s Mailmen campaign.

68

68

Fact Book 2016

The impact of mail Focusing on the impact of mail on the home, heart, head and wallet, the research delivered actionable insight and revealed the following:

•

39% of mail recipients say they have a dedicated display area in their home where they put mail

•

Mail is kept in a household on average for 17 days for advertising mail, 38 days for door drops, and 45 days for bills and statements

•

57% of consumers claim that receiving mail makes them feel more valued

•

The total communications ROI for campaigns which included mail was 12% higher than those that didn’t

Taken as a whole, the key message to marketeers was that mail as a medium has a unique power to cement the presence of brands in the minds of consumers, but only if used correctly and properly integrated with other channels.

Tighter regulations In the public arena, mail was cast in a less favourable light in what were perceived aggressive marketing campaigns by the charity sector, a topic which attracted significant coverage in the latter half of 2015.

Though much of the ire was directed at telemarketing techniques, the resulting changes to the Institute of Fundraising Code of Practice have impacted mail too, limiting charities’ fundraising abilities through tighter enforcement of donor data broking and sharing. On a broader scale, new EU Data Regulations are reaching the final stages of drafting and will be ratified this year. As such, the onus for 2016 onward is to deliver mail solutions which still maximise the strengths of the channel (tangibility, emotional impact, personalisation) without compromising the protection of consumers and their privacy.

69

Direct Mail

A look forward to 2016 This time it’s personal One of mail’s greatest strengths is its ability to put a relevant message in the hands of every person it reaches. Advertisers have known this for years, but to date, the uptake and implementation of advanced personalisation has been slow. Developments in digital printing, web-to-print software and CRM segmentation mean that the barrier to entry is now lower than ever (both in terms of resource and cost).

Advertisers must realise the tangible benefit to long-term response and ROI which better personalisation brings, and embrace it across all of their campaign activity. Royal Mail MarketReach’s ‘This Time It’s Personal’ research includes many practical recommendations on how to make the most of what you know about your customers and prospects. A great case study is Homebase’s use of customer lifecycle data to develop personalised communication strategies, resulting in a 350% uplift in ROI. Another key factor in the success of the Homebase campaign was its integration with email and in-store campaigns. As noted in last year’s Fact Book, multi- and omni-channel marketing is fast becoming the norm in response to changing consumer behaviour and mail must be embraced as part of the modern marketeer’s armoury. At a brand level, mail can reinforce mainstream messaging by putting it directly into consumers’ hands and homes. It demands attention and can deliver the knockout blow which can be difficult to achieve through broadcast media alone.

Thinking implementationally, the ability to track communications and response at an individual level through the use of personal data means that it is entirely possible to develop and deliver a tightly structured communications plan across social, email, mobile and mail for each and every one of your prospects and customers. The next stage, already underway at leading advertisers and agencies (including MediaCom), is the marrying of offline data to online behaviour (referred to as ‘onboarding’). Doing so both increases the depth of known attributes, increasing relevance, and broadens the cross-channel media mix to include display and video.

Programmatic mail These last two channels have provided inspiration for the final key area of development; programmatic mail. The mail industry is challenging itself to evolve the long established processes of campaign delivery and to start aligning the channel with the buying mechanisms and metrics more closely associated with online media. Doing so could bring numerous benefits, namely; the ability to use online behaviours to create and deliver personalised mail media in real time; automation of the buying process, reducing media and production costs; more effective implementation of complex customer segmentations and communication strategies.

Although still very much in its infancy, a programmatic future for mail is one which all forward thinking agencies and advertisers should be keen to embrace.

70

Source: mailmen.co.uk/campaigns/inside-stories/the-importance-of-personal-relevance mailmen.co.uk/case-studies/homebase

Fact Book 2016

Share of UK display advertising expenditure by medium H1 2015

6.4 billion Total

TV Spot

£2,364m

Internet pure play

Direct Mail

National Newsbrands

Out of Home

Regional Newsbrands

Radio

£1,091m

£478m

Consumer Magazines

£237m

£965m

£495m

£272m

£239m

Business Magazines

Cinema

£137m

£84m

Source: AA/Warc UK Expenditure Report

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Affiliates

Real World Insight Pauline Robson Head of Real World Insight pauline.robson@mediacom.com

A look back at 2015 A year of political change and economic recovery 2015 saw political change as the first Conservative government took power since 1997 after a surprise general election win, leaving The Labour Party (and the British polling industry) in disarray.

Economic recovery continued apace in 2015, with Q3 growth up 2.3% from the previous year. This represents 11 successive quarters of economic growth. The employment rate was at its highest since comparable records began in 1971 and rising wages and low inflation resulted in consumer spending reaching its highest level since records began.

It’s not all economic plain sailing though. Growth is expected to slow in Q4 2015 as a result of a drop in manufacturing and construction output.

However, we’ve seen a two-speed recovery, largely driven by London and the South East. Unemployment rates in the North East, for example, are more than double those in the South East. This means that it is crucial that we understand the UK consumer landscape, not just at a national level, but also at a regional one.

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Fact Book 2016

The way we pay is changing On the high street we’ve been seeing an important change in payment mechanisms. According to the Payment Council, 2014 saw the balance of payments shift away from cash for the first time, with 52% of payments being made by debit card or electronic transfer, and 48% by cash. Much of According to the this is driven by contactless payment, Payment Council, which is removing the necessity of paying 2014 saw the cash for smaller transactions. There was balance of payments a 331% increase in contactless payments shift away from cash in 2014.

for the first time

July 2015 saw the introduction of Apple Pay in the UK. In a bid to drive uptake, Mastercard launched ‘Fare-Free Mondays’ four months later, offering free travel in London on Mondays for those using Apple Pay to touch in.

The hope is that the initiative will share some of the success seen when TfL introduced contactless payment onto the system in 2014 – 11% of all contactless transactions in December 2014 were made on London Transport (UK Card Association).

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Real World Insight

A look forward to 2016 Consumers will be more demanding than ever We’ve long seen trends in technology shifting power and control away from brands and business into the hands of consumers.

The digital age has allowed us to access information and content whenever and wherever we want, at the click of a mouse, or the swipe of a touchscreen, and more often than not for free. The exception, of course, is when it comes to acquiring physical goods, where we can often wait for days to get our prized item delivered. As people become ever more demanding we will see this delivery time reduce drastically. This will start to become a key battleground for retailers.

Research from nVision has found that one in two people have already used, or would be interested in using, a twohour delivery service for items bought online. Amazon Prime is leading the way with its same day and two-hour delivery options. In 2015, it launched Amazon Prime Now – one-hour delivery for certain products (only in London at present), and it doesn’t require much effort to order the products in the first place.

Amazon Dash (currently in the US only), is a collection of branded buttons that you can stick up around your home and press when you run low on an item. The button connects to your Amazon account via WiFi and automatically orders the product for you. This represents an interesting opportunity for FMCG brands to prompt repeat purchase and increase loyalty.

Brands need to blend online and offline worlds to bring convenience and instant gratification to consumers

Away from Amazon, smaller outfits are springing up to cater to consumers’ every whim. Uber Eats brings the convenience and immediacy of Uber to your lunchtime, promising to pick up and deliver your lunch to you in minutes, so you don’t even have to leave your desk. While in the US, Magic is a start-up that promises to bring you anything you want, as long as it is legal, and you are prepared to pay the price. Brands need to ask themselves how they can blend online and offline worlds to bring convenience and instant gratification to consumers.

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Fact Book 2016

Data will be the new commodity for consumers People have long been aware of the monetary value of their physical possessions, and more recently the value of their space (Airbnb) and their time (TaskRabbit). But as more of our lives are lived out online, consumers are starting to realise and understand the value of their data too. This reflects the broader political context. The European Commission is debating tighter regulations around data which will include explicit rather than assumed consent, the right to be forgotten, easier access for citizens to their own data, the right to transfer personal data from one organisation to another, increased responsibility and accountability of those processing personal data, and prompt notification of data breaches.

A new service enables consumers to put themselves back in control of their data; Citizenme.com is an app developed in association with Cambridge University which allows people to see, control and trade the data they share with companies. As CitizenMe points out on their website, data is the commodity of the digital world and consumers will want to join the marketplace to take control of their most valuable asset in this space.

This means that it is no longer enough for brands to be transparent about how they use people’s data. Brands will need to recognise the value of consumers’ personal information, allow the consumer to be in control of it, and increasingly, should people decide to share that data, they will expect to be rewarded.

Buyer beware Could the balance of power be starting to shift away from consumers?

The rise of the peer-to-peer economy is changing the relationship between supplier and consumer. In the world of Amazon reviews and TripAdvisor ratings, the consumer does the rating and holds the balance of power.

In the sharing economy however, the ratings work both ways. Both Airbnb and Uber providers can rate the buyers (as has been the case on eBay for years). This could usher in an age where the customer isn’t always right, but is now judged and rated by the same standards as their suppliers, or where customers are incentivised for exemplary custom. We could start to see a two-tier system emerge where five star customers can access special benefits or deals.

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Real World Insight

Robotics and AI A further shift could be on the horizon. We have long been used to the idea of machines taking over manual jobs, and in recent years we have seen increasing automation in the manufacturing sector as robotics have advanced. Now robotics and AI are starting to have an impact outside of the manufacturing sector. For example, greater dexterity and sensitivity in robots means that many roles in transportation and logistics are now fully automatable, and with the advent of driverless cars and delivery drones, the role of the bus, taxi or delivery driver could completely disappear.

Rise of the machines White collar jobs are now also in the robots’ sights. Repetitive and transactional tasks have already been computerised across many industries, however, the advent of big data has meant that even non-routine cognitive tasks can now be carried out by computers.

A study by Deloitte has claimed that 35% of jobs are at risk of being lost to automation over the next two decades, with the sectors most at risk being accounting, auditing and administration.

A study by Deloitte has claimed that 35% of jobs are at risk of being lost to automation over the next two decades, with the sectors most at risk being accounting, auditing and administration

We’ve already seen the impact of this on our industry with the advent of programmatic buying and the ability to serve dynamic creative based on a consumer’s demographics, characteristics and behaviour. AI will continue to transform the way we target and engage consumers and the way we trade media.

The good news is that, according to Deloitte, this shift is creating new jobs, and they are better paid than the jobs that are being replaced. The not so good news is that this is creating a skills gap as the new roles are more highly skilled than the ones that have been lost. This shift in the longer term will change the balance of employment versus leisure. This may also pose real challenges for people’s incomes as their working hours reduce and perhaps disappear altogether.

These developments also represent an interesting area for brands from a Corporate, Social, Responsibility (CSR) perspective.

They should already be thinking about how to help fill the digital skills gap. Barclays, for example, are looking to tackle this with their Digital Eagles and Code Playground initiatives.

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Fact Book 2016

77

Affiliates

Programmatic Sarah Treliving / Graham Field Joint Head of Digital / Head of Programmatic & Joint Head of i-Lab sarah.treliving@mediacom.com / graham.field@mediacom.com

A look back at 2015 A stellar year 2015 was a strong year for programmatic, one that saw a significant rise in publisher and client uptake that lead to increased branding budgets diverted towards programmatic buying. The IAB reports that over half of all brands are buying mobile inventory using programmatic with almost two-thirds (64%) of mobile display ads being traded using programmatic media buying technologies.

Premium publishers evolved their offerings to embrace viewability and tackle the rise in open market fraud. We evolved our offering too, with GroupM seeking to guarantee that our clients’ investment in the ad verification space achieved the desired results across the board. GroupM now have a dedicated team of eight individuals vetting domains from campaigns manually, a unique and essential product within the market.

2015 was also the year that Data Management Platforms (DMPs) started to deliver on their promise, with clients reaping significant benefits in both insight and business performance. As we predicted in last year’s Fact Book, 2015 saw an uptake in DMP technology as brands sought to reduce wastage.

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Fact Book 2016

Mobile and video Mobile continued to grow in importance with volumes of viable inventory, rivalling desktop display. You can read much more about the changing face of mobile in the Mobile section of Fact Book on page 104.

Programmatic video also had a great year with a rise in premium content being made available to market and great steps made in the field of video verification that helped ensure that clients budgets were being put to good use.

79

Programmatic

A look forward to 2016 Adapt and learn Programmatic is one of the fastest moving sectors in the media industry, so it’s especially difficult to make predictions as to where we’ll be in three months, never mind the rest of the year. But this is also what makes the programmatic space so exciting and competitive, forcing us to adapt and learn at remarkable speeds.

But despite the rapid uptake in programmatic buying from brands in 2016, the IAB’s report warns that many brands do not yet have a comprehensive understanding of the technologies and methods involved in this burgeoning form of media buying.

Mike Reynolds, Mobile Marketing Manager at the IAB, states that despite programmatic establishing itself as an effective way to buy mobile media “there is a clear disconnect between this buying technique and knowledge levels… strengthening this knowledge base across the industry remains a top priority of ours for 2016”. This is why MediaCom, and Group M as a whole, Following on from last years strong uptake of DMPs, we expect to see a wider adoption of such platforms in the coming year, and we foresee an increase of viable in-market data that will fuel further growth in the programmatic space.

The ability to track users across multiple devices remains the Holy Grail for advertisers as they seek to engage with multi-screening consumers whose attention spans have become notoriously short. With large players looking to launch scaled individual/device-led deterministic cross-device solutions, 2016 will see a need for a flexible sequential messaging approach being needed to capitalize on the potential of display. With the advent of connected TVs, wearables and the Internet of Things, the concept of cross-device is expanding to include anything that gives off a signal.

Increased uptake of attribution tools and device mapping will offer marketers a clearer view than ever on the effectiveness of their digital marketing strategy. This could see mobile becoming a much more accountable part of the digital mix.

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Fact Book 2016

Ad-blocking 2016 will also see the ad-blocking battle intensify with its increased uptake becoming a genuine challenge for brands looking to reach the tech savvy users of such tools.

Publishers look to be the ones most affected by the uptake in ad-blocking, with Techcrunch reporting that ‘sites who tried using messages to ask ad blocking users to whitelist their sites have seen almost no effect’, actually seeing an increase in the ad-blocking rate by alerting users who weren’t already using ad-blocking.

81

Affiliates

Search & SEO Peter Young / Edward Cowell / Claudia Ziegenbein Head of Digital, MediaCom i-Lab Manchester / Head of SEO / Head of Paid Search peter.young@mediacom.com / edward.cowell@mediacom.com / claudia.ziegenbein@mediacom.com

Paid Search and SEO Highlights •

Search spend is still growing and exceeded £2bn in the UK in H1 2015

•

2015 saw the launch of Google’s Customer Match, allowing advertisers to target based on CRM email addresses

•

In 2016 we expect audience targeting and subsequent ad personalisation to mature, and attribution to become crucial

•

The value of being well positioned in organic search increased significantly, in line with CPC inflation

A look back at 2015 Alphabetical order 2015 was another eventful year in search. Google introduced Alphabet as their new parent company and made a number of changes, including the unveiling of a new slick logo in line with their evolving identity.

Their mobile experience was also overhauled; doodles now appear, followed by three (previously two) ads, with the top ad often relating to shopping. Google streamlined their Google My Business local search offering and increased the visibility of their local results, whilst advertisers looking to influence organic positions took an increasingly brand lead approach, moving away from traditional stand alone ‘link building’ tactics.

Microsoft took ownership of customer relationships for Bing Ads (leaving Yahoo! only selling their own products such as Gemini ads) and put a spotlight on search in everything they do, from Cortana to Windows 10.

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Fact Book 2016

Google introduced their new logo and visual identity in September 2015

Mobile optimisation Mobile is still going strong, surpassing the search volume of desktop and tablet combined according to Google. The challenges for advertisers remained unchanged from previous years; from ensuring that websites are mobile device optimised, to understanding how a mobile visitor’s needs, expectations and overall user journey may be different to those arriving from, say, a laptop. Apps continued to be a discussion point, with some wondering whether they may in fact replace websites, or at least certain functionalities which is often already the case in retail, travel and gaming.

Research online, purchase offline 2015 was also the year of a highly anticipated Google Research Online, Purchase Offline (ROPO) beta test, to evaluate the paid search ad click to store footfall relationship. Google determines a store visit based on proximity to the brand’s location on Google Maps from users that have location history enabled on their phones. Similar to cross-device conversions, store visits are an estimate, with Google using anonymised user data and extrapolating it.

Customer match With Remarketing Lists for Search Ads (RLSA) now widely adopted, Google announced another audience-focused targeting option, Customer Match, towards the end of Q3 2015. Available for Search, Gmail Ads and YouTube, customer match allows a brand to upload their CRM and then target as part of a re-engagement tactic or negatively target to maximise clients investment. This opens up possibilities like customised set-ups based on audience segments, re-engaging existing customers, or reaching new ones who resemble the existing customers through automatically generated similar audience lists (on YouTube and Gmail).

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Search & SEO

Search strategies With paid search spend in the UK exceeding ÂŁ2bn for the first time in H1 2015, 2016 will be another significant year for digital, paid and organic search in particular. As audience targeting and personalisation become increasingly sophisticated, aligning search and wider marketing strategies has never been more important.

The steep rise in search ad spend over the last ten years S

K

A

H1

C

B

H2

2006

H1

D

H2

2007

E

F

H1

H2

2008

G

H

H1

H2

2009

I

J

H1

H2

2010

H1

L

H2

2011

M

N

O

P

H1

H2

H1

H2

2012

2013

Q

R

H1

H2

2014

H1

2015

Billion A B C D E F G H I J

84

531 634 762 857 958 984 1,067 1,030 1,114 1,031

K L M N O P Q R S

1,293 1,415 1,496 1,592 1,719 1,732 1,916 1,873 2,073

Source: IAB/PwC Digital Adspend H1 2015

Fact Book 2016

A look forward to 2016 If 2015 was a whirlwind year, 2016 promises more of the same across the organic and paid landscapes. The new features available to us as search experts will push the opportunity beyond a focus on in-channel customer journeys, and will allow combining data sets to enrich our understanding of a potential consumer. This will enable us to personalise the search journey from initial interaction via multiple touchpoints through to conversion.

Customisation Last year we confirmed that search is no longer just about keywords, we also need to understand and target audiences in order to unlock search’s full potential. This remains true for 2016. Reacting to audience signals, and then tailoring the search experience, requires complex account set-ups but continually proves to be worth the effort, usually triggering higher CTR and conversion rates. Recent features, such as Google’s ad customisers, help to facilitate a tailored-to-the-audience experience.

With the increasing demand for custom scripts, some may be reminded of the humble beginnings of search when it was seen as a technical discipline which very few truly understood and mastered. Scripts are code snippets which enable anything from automated account changes, to the delivery of customised performance extracts. Whilst common template scripts may be in use already, we will look to programmers and developers to write custom scripts as we set out to tackle individual client challenges.

Google operates an online portal with a number of sample scripts

85

Search & SEO

Mobile As mobile usage continues to grow at a pace, apps and cross-device tracking will be discussion points. Many brands still need to manifest their app strategy and offering (e.g. is the app for new/existing customers or both), before apps may become a destination via search ads.

Increased use of voice search will furthermore challenge established search query patterns. For all clients, but perhaps retail in particular, we believe that the key trend for the coming year is going to be the continued rise of mobile as a traffic channel. This is likely to involve some decisions around responsive and adaptive mobile sites for some of the brands, but there are also specific mobile initiatives such as Accelerated Mobile Pages that we are convinced will have an impact on mobile Search Engine Result Pages (SERPs). Alongside, there will undoubtedly be an increase in the importance of local signals and visibility of local search results, particularly for brick-and-mortar retailers.

Audience 2015 saw a significant shift towards audience segmentation and optimisation. Dynamic ad elements may see wider adoption, for example, when communicating to previous website visitors via Google RLSA, and Google’s Customer Match.

Cross-device use, second screening and attribution Data will remain at the heart of many paid and organic search products.

With more complex customer journeys across different touchpoints, and the use of multiple devices, brands are increasingly looking at holistic attribution conclusions to inform their (digital) media investment and strategy above and beyond traditional last-click performance insights.

But it does not end there, technology providers like TVTY are able to paid search campaigns with the exact time of broadcasted TV spots while GroupM’s SpotLift technology measures the minute-by-minute website impact.

Ad extensions After Google changed its AdWords ranking system to incorporate ad extensions as a third influencer in 2013 (next to maximum bid and quality score), the search engine market leader will continue to offer a range of brand new ad extensions in 2016. This will include the widely anticipated relaunch of image extensions. Elsewhere, Bing Ads will be rolling out some of the same new and established extensions as Google, including image and video. This clearly marks a visual transformation of ads and blends them with the organic listings.

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Fact Book 2016

New website technologies new challenges We also expect to see significant growth in the number of new websites using single page application (SPA) frameworks such as Angular. js and React.js. These frameworks allow the content within the web page to be updated without loading new URLs. Websites designed using SPAs offer a number of benefits for users and developers, for example, the speed (page content can be quicker to load on a website using AJAX), flow and accessibility of content can be more easily controlled. However, there can be drawbacks and challenges for both paid and organic search, so the choice of using an SPA needs to be well researched and carefully implemented in order to remain fully accessible to search engines and to avoid creating disadvantages.

Influencing Search 2015 saw a huge increase in the amount of creative activity with influential bloggers and vloggers, and a move away from traditional link buildings tactics to influence organic search, in 2016 this trend will continue as brands look to maximise value by integrating their digital brand and performance budgets.

This growth has lead MediaCom to develop and new approach to influencer and outreach scoring, the ‘Digital Influence Score’ (DIS).

DIS rates an influencer on a scale of 1-100 on three pillars – Search, Social and Content, which allows us to take a balanced approach to comparing blogs, news, vloggers and other websites on a better like-for-like basis in order to assess their value to your digital and search objectives.

87

Search & SEO

MediaCom’s multi-layered approach to search optimisation

88

Source: Travel client

Fact Book 2016

MediaCom Wins ‘Best Large Integrated Search Agency’ UK Search Awards 2015

89

Affiliates

VOD/Online Video Tim Lawrence Digital Director tim.lawrence@mediacom.com

Highlights •

In H1 2015 the online video market grew 45% to £292m, and is forecast to surpass £600m by the end of 2015 and £800m in 2016

•

Mobile video spend is up 107%, representing nearly half of all video spend

•

The market will evolve further in 2016 with advertisers increasingly turning to programmatic video, bringing with them a greater focus on viewable impressions

A look back at 2015 Market shift In 2015, the market continued to grow and fragment, as more platforms were used to view video online. Ad spend has risen 45% year-on-year, a slightly slower growth than the previous year (+58%). Mobile video spend has doubled year-on-year, making it representative of 43% of all video spend.

The majority (86%) of the market is pre/mid/post roll as agencies plan in an AV neutral manner. This involves re-distributing TV budget into digital and following viewing behaviour, taking advantage of the benefits that digital delivery brings. Pre/mid/post roll format is most akin to TV and is generally the format in areas of premium content.

90

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Fact Book 2016

Viewing trends Broadcasters Audience Research Board (BARB) research shows the proportion of time-shifted TV viewing has increased to 12.3%, up from 11.3% in 2013 – a figure that creeps higher each year.

This figure differs dramatically by age group: viewing from the 75+ group is up 9% year-on-year, whereas 14-17s are down 13%, and 35-44s down 8%. TV viewers are increasingly from the same, older audience, and advertisers will need to turn online if they want to reach new, younger audiences.

Advertisers will need to turn online if they want to reach new, younger audiences

The number of videos viewed online has increased by 13% year-on-year (source: comScore), up 11% amongst 25-34s. Mobile viewing shows the fastest growth with 40% claiming to be watching more video on their smartphone than in 2014 (source: On Device/IAB).

H1 2010

H1 2011

H1 2012

H1 2013

H1 2014

H1 2015

£22m

£54m

£83m

£128m

£187m

£292m

Viral video & other £10m, 4% Outstream/in-read £32m, 11% Pre-post roll £250m, 86%

Source: IAB/PwC Digital Adspend H1 2015/Warc

91

VOD/Online Video

Market reach Increased spend coming into the market continues to put pressure on high quality pre-roll inventory. This, in turn, forces the market to evolve and develop new ways of reaching consumers. We have seen growth in the in-read format, placing video ad content within premium non-video environments. Facebook and Twitter also continue to develop their video offering, adding video to the social nature of their platforms.

Constrained by supply, broadcaster share of the market is now at 34%, a 50% reduction since 2011. Despite having best-in-market inventory, share is being eroded due to the consumer definition of ‘must view’ changing from programmes like The X Factor, to the latest videos from YouTube stars.

Campaign objectives 36%

Maximise view through rate

27%

Maximise CTR

22%

Audience index

10%

Reach Maximise viewability

5%

Inventory source

29%

Programmatic Guaranteed

Fixed Price Open Volume

9%

31%

Private Exchange

92

31%

Open Exchange

Source: Newsworks

Fact Book 2016

Performance at-a-glance The following graphic shows an index of Click Through Rates and Video Completion Rates over three categories: Age, Ad Length and Device.

The index is compared to average VCR and CTR for entire combined impressions in each category.

CTR (Click Through Rate) VCR (Video Completion Rate)

By Age

By Device

18 - 24

By Ad Length

Agnostic 87 101

10” 95 101

25 - 34

70 113

Connected TV 4

129

15” 86

97

129

35 - 44

106

Mobile

20” 222

206 101

101

45 - 54

PC

30”

149 113

93 107

121 96

103 97

55+ 124 107

Source: Videology EMEA Market Report 2015

93

VOD/Online Video

A look forward to 2016 Growth of video The market is expected to expand further and is predicted to reach over ÂŁ800m in 2016, with this year touted as the year that mobile video spend will surpass desktop.

Although year-on-year growth will slow as the market matures, online video will continue to be one of the fastest growing sectors in media, driven by consumer viewing habits. According to Cisco, by 2017, video will account for 69% of all consumer internet traffic. As a result, video will increasingly become the norm for online brand campaigns, cannibalising the online display market as advertisers switch from standard display creative to video.

A recent Millward Brown study highlighted how effective video is in comparison to static display, with pre/post roll up to eight times more effective for message association and four times more effective for purchase intent.

5.3% 3.4%

Aided Brand Awareness 1.5%

8.3% Online Ad Awareness

4.2% 1.8% 7.5%

Message Association

1.6% 0.9% -0.1%

Brand Favourability

-0.3% 0.8% 1.3%

Purchase Intent

0.8% 0.3%

In-stream video (e.g. pre/post roll) In-banner ads (video that sits in a standard display unit) Static banner

94

Source: IAB Millward Brown 2015

Fact Book 2016

Video market 22% of the display market is now video, and we expect this trend to continue with the market growing in both AV VOD and video distribution.

Changes in the year ahead will be driven by the demand in the market for premium quality video. Broadcasters will further open up and make inventory available in more ways, with Channel 4 leading the way and ITV following suit with ITV Adventures – ITV’s take on 4 Shorts – and a partnership with RadiumOne for ad syncing. Sky have also announced a programmatic partnership with Videology to boost inventory management and optimisation.

Following the display market, more ads will be sold both programmatically and via exchanges as demand for inventory grows. In a brand-focused channel this means the importance of ad verification and viewability will increase. The balance between reach, data and safety/premium content will be challenged and there will be an increased opportunity to buy viewable impressions.

Game changer Over half of all videos on YouTube, and nearly a third of long-form content 4oD, is now watched on a mobile device, having a profound effect on viewing expectations. Completion rate from ads longer than 15" is only 56% on mobile, compared to 81% for the same second length on desktop.

Despite this, the market hasn’t reacted and still 83% of VOD ads in 2015 were over 15" in length.

Vertical video poses a new challenge on mobile as well – a likely issue for production. There needs to be a step change in creative or consumers will turn off.

Completion rate for UK pre-roll video ads, by ad length and device, Q1 2015

Desktop 7-10"

86%

11-14"

84%

15"

81%

Mobile* 7-10"

77%

7-10" 7-10"

68% 56%

Note: Represents activity on TubeMogul’s platform. Broader industry metrics may vary. *includes mobile phone and tablet.

Source: TubeMogul as cited in company blog. April 15, 2015

95

Affiliates

Affiliates Daniel Lancioni Head of Affiliates daniel.lancioni@mediacom.com

A look back at 2015 A year of record growth 2015 was another fantastic year for the affiliate industry. According to the IAB/PwC Online Performance Marketing Study (OPM) 2015, the industry has posted record growth figures. Spend was up to £1.1bn (+8%), revenue generated for advertisers has increased to £16.5bn (+14%) and Return on Advertising Spend (ROAS) sits at a record 15:1 – so for every £1 spent, £15 is generated in return. One slightly concerning figure is the amount of affiliates in the industry which currently rests at 12,000 – unchanged from the previous IAB/PwC OPM study. In order for the industry to continue to grow, the number of affiliates needs to grow along with it.

Cross Device Tracking One of the biggest developments to come to market is Cross Device Tracking (CDT), which was launched by leading affiliate network, Affiliate Window, in March 2015. The technology was built on the basis that affiliates were losing out on sales, and subsequently, commission, as their users were researching on one device and then shifting over to another to complete a purchase. Affiliate Window’s CDT operates using deterministic information, by using customer login data to track them across multiple platforms. Since launch, the technology has posted some very interesting numbers – in particular, the average affiliate programme has grown by 6% from using CDT alone.

96

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Fact Book 2016

6.9m

57,000

customer profiles built for Cross Device Tracking and targeting purposes

cross device transactions tracked since March 2015

£4.2m

6%

of revenue tracked via Cross Device Tracking since 2015

average growth of total sales for an affiliate programme tracked through cross devices

Online to Offline Another big development in the industry is around Online to Offline (O2O) tracking. Similar to CDT, there have been concerns from advertisers when it comes to understanding the full customer journey; from researching online, to purchasing offline. Without the ability to make this connection, footfall to stores will continue to drop and our high streets will continue to struggle. As part of the O2O Green Paper which was produced by the IAB, 100% of advertisers want to track O2O, but only 32% have an actual strategy around it.

This demand for O20 tracking has driven the industry forward, with the emergence of card-linking providers (Eagle Eye, Reward Insights, Cardlytics) and the increase in spend through in-store voucher platforms (Vouchercloud, Vouchercodes.co.uk and O2 Prority Moments). Whilst there still isn’t an industry standard for O2O, we expect it to continue to play a big role in affiliate programmes across the UK in 2016.

Is tracking 020 traffic important?

Do you have a 2015 strategy to track 020?

100%

32%

Who will pay for 020?

Yes 20%

60%

24% 8%

8%

48%

No Don’t know Online In-store Other

Source: IAB – Online to Offline Green Paper

97

Affiliates

A look forward to 2016 The role of attribution For 2016, attribution will continue to play a big role in affiliates.

Attribution has been a topic in the affiliate industry for over 5 years, but mainly when discussing the channel in silo. 2016 will, however, bring about a much higher level of data analysis, as advertisers begin to study spend and return across all their channels. This will allow brands to acquire 2016 will bring customers at a much cheaper rate, about a much higher more and eliminate channels which aren’t level of data analysis, necessary to convert a particular user. as advertisers begin Content sites continue to struggle in the affiliate industry due to their lack of call to study spend to actions, and we are seeing more of and return across them venture into other areas of media all their channels to make up for those losses. In November 2015, Skimlinks – who work with over 1.5m editorial sites internationally – invested in programmatic technology to allow them to sell their inventory on different metrics. We will see other big affiliate brands turning to other paid channels unless the affiliate market can reward them for upper funnel traffic. Currently attribution is one of the best ways to do this.

New payment models in 2016 With arguments around the death of Last Click Cost Per Acquisition (CPA), we are expecting more advertisers, networks, agencies and publishers to look at different ways of working. Companies like Rakuten Marketing have brought Cost Per Engagement (CPE) tracking into their platform, which will allow advertisers to pay affiliates based on different KPIs such as ‘amount of time on site’, ‘number of pages visited’, or even ‘number of products viewed’. This will allow advertisers to understand the value of every single affiliate outside of simply driving a sale, so a different strategy can be brought forward to allow for fairer remuneration.

The evolution of networks Over the last 5 years, the affiliate industry has remained fairly stagnant when it comes to technology, with most decisions on which network to use coming down to price, level of service and expertise. In 2016, however, we expect the role of affiliate networks to change. Finally, we are seeing the full evolution of networks which will allow advertisers to choose between full-service networks, self-service networks, DMPs, full attribution technologies and automated ad servers. As affiliate networks continue to diversify and offer different technologies (some of which are market leading), advertisers will be able to mould their affiliate strategy around a particular network and have a more bespoke approach to their activity.

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Fact Book 2016

SEM Brand

Display

Email All Advertising

Affiliate

SEM Generic ChannelUnmapped Source: Abakus – hypothethical data

99

Affiliates

Paid Social Jenny Carrick Head of Paid Social jenny.carrick@mediacom.com

A look back at 2015 The growing influence of social As we predicted in last year’s Fact Book, 2015 was the year where social became a much more integral part of the overall media mix. As a result of data fuelled audience profiling, providing real actionable insights, we’re now able to target audiences to a level of granularity never before achieved in this channel. Layer on customer intent and sentiment tracking and the picture becomes richer still, allowing us to reach real consumers in a way which feels natural to their social platform of choice.

Twitter embraces native In the world of Twitter, we’ve seen huge strides taken within their native ads dashboard and the way in which advertisers can serve rich content over and above the traditional 140 characters. It will be fascinating to see how Twitter position themselves going into 2016. Historically, it was set up as an engagement-led platform where dialogue and personal interaction with brands was the name of the game. They’ve now set up a native DR focused ads editor and bolstered their DR offering with an ever increasing number of ad unit formats entirely geared to driving trade, granular behavioural targeting opportunities (forged through their partnerships with Acxiom and Datalogix), and an increased number of campaign objectives and models from which we can further focus our media buying.

100 100

Fact Book 2016

Instagram’s growth

£200m

£300m

2014

2015

2011

£10m

2012

£80m

2013

£150m

2010

£1m

Source: Kleiner Perkins Internet Trends, 2015

Facebook and Instagram move fast Twitter are by no means the only social platform who have seen huge innovation over the last 12 months. At one time, Facebook would proudly proclaim that ‘move fast and break things’ was an integral value for the network. They’ve since revised this to simply ‘move fast’, testament to the amount of test and learn, hacks, innovation sessions and company acquisitions that have been integral to their business as they’ve grown.

Facebook have undoubtedly learnt from past challenges they’ve encountered, learning and adapting on the go as they scaled their advertising offering. As such, the way they have approached monetising the Instagram platform has been a much more streamlined process.

Instagram’s ads proposition was initially tested through IO buying, targeting only on an age and gender basis for branding campaigns.

However, over the last year they have shifted to an integrated buying platform, incorporating both brand and DR objectives accessible through Facebook’s API, with virtually all targeting options we’ve been accustomed to now available on Instagram too.

101

Paid Social

The evolution of mobile video In the UK, mobile video consumption has more than doubled in the last year, and that leap is reflected within the social sphere as well.

On Facebook alone, we have seen an 88% growth in UK video posts.

The medium within which this content is consumed is also critical here.

Of the four billion global video views Facebook count daily, 75% of this traffic comes via mobile devices. Therefore, there has never been a more critical time to consider a mobile-first strategy when planning and buying across social.

Video specifically has been the big game changer in the last two years or so, with platforms evolving their native video product and also rolling out auto-play functionality. The power of utilising social for video content seeding has yet to be fully harnessed, but we can all agree the huge potential to capitalise on already incredibly strong learnings and tests in the space next year. Whether that’s through short-form video, gifs/moving images or 360° swipeable formats, social offers the perfect creative canvass to test, learn and tailor content to the audience you’re talking to.

The evolution of Twitter’s video product can be seen in the corresponding timeline. Since auto-play launched in June 2015, we’ve seen the same staggering improvement in performance as was reported on Facebook in last year’s Fact Book. This is hardly surprising, but what is crucial here is that rather than counting three second views as a measure of success, we’ve seen significant improvements in view-through rates as well, with a 7x increase in completed videos, suggesting a real appetite for this form of content within mobile timelines. A large part of this success has been through second-screening; syncing Twitter activity directly with the activity being bought by our TV teams.

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Fact Book 2016

Evolution of video and storytelling on twitter Vine Jan 2013

Video cards Apr 2014

Amplify May 2013

SnappyTV Jun 2014

Video Aug 2014

Periscope Mar 2015

User video Jan 2015

Auto-play Jun 2015

Niche 2015

Moments 2015

Source: Microsoft Research May 2015

A look forward to 2016 New year, new discoveries Looking ahead, next year promises to be a really exciting time in the world of paid social. Data harvesting is becoming more sophisticated all the time, new social platforms are emerging and the major players are constantly bringing out innovative new products to test and learn with.

New products such as Twitter Moments, a new content curation discovery portal, are reflective of the changing nature of the social ecosystem.

Users want to discover relevant and meaningful content, tailored to their interests whilst they’re on the go. In 2016, we’ll see a much higher emphasis placed on the quality of content over quantity. With a mobile-first approach to the channel and the various and numerous ad units on offer across the different social platforms, the creative opportunity is huge. Take Instagram for example, users are notoriously fickle, regularly unfollowing and refollowing accounts depending entirely on what is most aesthetically pleasing on their timelines. A user can now create a glossy looking filtered image with the flick of a thumb, and as such, the creative bar for advertisers is set that much higher. It’s crucial that any advertising content not jar with the painstakingly hand-selected set of stunning creative our audiences are used to seeing on their timelines.

One of the most interesting opportunities offered by the ever increasing power of Instagram in the paid social world is the relationship between its users and those of Facebook. The majority of users signing into Instagram do so through their Facebook login and consequently the re-targeting prospects now offered by matching audiences across both platforms have the potential to be incredibly powerful, something we’ll see much more of in 2016.

103

Paid Social

Shifting brand metrics Paid social has changed and will continue to evolve in a similar fashion throughout 2016. No longer is it worth boosting posts here and there, putting small budgets behind funny one-liners, or promoting something just because it’s got a lot of likes. The change has been happening quietly in the background for the last 18 months or so, but 2015 was the year paid social got interesting. If budgets are limited, consolidate and make a big bang with the kind of cut-through that will tangibly shift brand metrics or drive trade. Otherwise we’re just shouting into an empty room.

Consideration is the key As the scale of the opportunity and the granularity of the targeting continues to improve, advertisers need to be prepared to consider social generally, and paid social specifically from the initial stages of creative development, with the same thought and consideration going into this channel as has historically gone into other media content strategies.

Within our system thinking approach, social signals are well established, but it’s the manner in which we capitalise on these conversations and reach our audience optimising through various buying models, which has seen huge improvements in 2015. Whilst a large part of what makes paid social special is the opportunity to capitalise on real-time chatter and live conversation, this shouldn’t be the only focus. The sheer momentum paid social has behind it going into next year means we need to be constantly planning ahead and future proofing our strategies and our ways of thinking. There can be no confusion between being reactive with simply being last minute. It’s crucial that we are ‘planning to be real-time’ with all our media budgets and content strategies, laddering up to an overall campaign objective and a pre-defined set of measurable KPIs, serving the right message, to the right people, at the right time.

104

References; Kleiner Perkins Internet Trends, 2015 Microsoft research, May 2015 Facebook & Twitter, Internal Data, 2015

Fact Book 2016

105

Affiliates

Mobile Rhoanna Glenn Associate Director – Mobile rhoanna.glenn@mediacom.com

Highlights •

2015 was an exciting year for mobile, with spends continuing to grow exponentially

•

We saw the release of the highly anticipated Apple Watch and Apple Pay

•

Android and Apple will go head-to-head to take on the auto space with CarPlay: the era of ‘conspicuous hardware’ has arrived, with mobile devices at its fulcrum

•

Brands will have to employ even more customer-focused strategies as Amazon and Apple passively collect individuals’ data, shaping markets and driving them to focus closely on their mobile CRM and external data partners

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Fact Book 2016

A look back at 2015 Mobile growth Mobile continues to disrupt business models and has transformed the way we lead our lives.

There have been some bold predictions this year, particularly that mobile spends would overtake TV in 2016. Spends in H1 2015 for mobile showed 51% growth, accounting for nearly 80% of digital ad revenues. It’s clear that mobile is now the catalyst for growth in the digital market. This spend increase saw display as the growth driver, but with content and native growing at 47% this year, we predict they will take the largest share in 2016, and as a result content will play a key role in the growth of digital.

Wearable tech Wearables have been a massive consumer conversation in 2015.

Following the Apple Watch launch in April, Apple have been discreet on sales figures. Smartwatch penetration is currently at 1.3%, so still pretty modest, however predictions estimate that this figure will be in the 20s by the end of 2017. But the space that has really started to excel in wearables is the B2B market, particularly in the health industry where Fitbit launched their corporate division in a bid to place Fitbit at the heart of company wellness programmes.

Explosion of contactless Contactless card payments have been around for a number of years now, but 2015 was the year that contactless truly exploded. Britain is now the contactless capital of Europe.

Three things are most likely to have Britain is now caused this rise; TfL accepting contactless the contactless payments, the launch of services like capital of Europe Apple Pay and Google Wallet, and the maximum contactless spend increasing to ÂŁ30. This revolution in commerce will help to drive new opportunities in personalised communications and introduce new touch points in communication systems that brands will need to be fully cognizant, of both for their own communications and their competitors.

Data strategies This year we have seen mobile strategies mature and evolve. Data continues to be a hot topic, particularly with regard to tracking, attribution and LTV (Life Time Value). But data is an area that the industry has successfully adapted to over the course of 2015, driven hugely by the success of native mobile players. Models that can define LTV from a number of initial interactions with an app (such as those created by the likes of app developers King) will drive the future of mobile success. There are some great pieces of tech out there which have enabled us to look beyond the click and download.

107

Mobile

A look forward to 2016 PPC spend As PPC becomes more expensive to invest in, we will see brands capitalise on in app indexing, deep linking and App Store Optimisation (ASO).

Apps and mobile sites will start to dominate online visibility. If executed in the right way, brands will be able to decrease their PPC spend but still have the same share of voice. This will undoubtedly have a positive effect on the app ecosystem as more apps will be released. But in order to capture the modern consumer’s attention, these new apps must be first rate.

Mobile traffic With the digital sphere changing rapidly, the term ‘digital’ will soon refer solely to mobile. Mobile traffic has already overtaken desktop, with more than 50% of searches on Google coming from mobile devices, a figure that will only rise in coming years. Google’s move to penalise sites that aren’t mobile ready was dubbed ‘Mobilegeddon’ by the media, and it aptly demonstrated the extent to which mobile is overtaking desktop.

However, simply having a mobile site won’t ensure a site is indexed; sites will need to work in unison with an app.

Mobile data leads the way In 2016, ‘data’ will replace ‘native’ and ‘programmatic’ as the industry’s big buzzword. But what makes data so exciting? That depends on what you do with it. Refining data to make something tangible is the difficult part, not collecting it. Brands and advertisers are utilising this influx of information and will rely on mobile as the leading measurement.

Does this mark the beginning of the end for last click attribution modelling? Data and passive data collection is something that brands need to start considering. Google, Amazon and Apple collect data 24/7 which is great for personalisation but could pose dangers. The holy grail of advertising is to deliver an audience across multiple screens.

Tech and media stakeholders, such as Google, Facebook and Amazon, are in a strong position to deliver this as, through deterministic data, they are able to recognise the user via their login irrespective of device.

However, these are walled gardens and the walls are getting higher and higher. Advertisers cannot export campaign learnings and data outside of such ‘gardens‘ and apply them across the rest of the digital landscape. Agencies and advertisers require open partners with cross-device technology, which will allow them to deliver an audience on any device across the whole of the digital ecosystem. The expertise of audience-buying platforms such as Xaxis will help advertisers realise this vision.

108

Fact Book 2016

A new age of mobile video Historically, the uptake of mobile-first creative strategies has been slow. In recent years this was partially due to limited access to the right tools and experts. In 2015, we saw the death of Flash, which forced brands to reassess their creative delivery and formats. 2016 will see a transformation in video. It will become HD, In 2016, ‘data’ 360°, rich and immersive, shot in portrait will replace ‘native’ for mobile only. Though we have seen the and ‘programmatic’ explosion and dominance of native in 2015, creative and content go hand in hand. For as the industry’s brands to truly master native, they need to big buzzword create great ‘thumbstopping’ moments.

Data, privacy and fraud Ad-blocking, viewability and fraud will be addressed in 2016. In H1 2016, the IAB will be setting their viewability standards for mobile, and their L.E.A.N principles also will be rolled out alongside this. As more brands invest in viewability tech, we may see media owners trading on viewed ads only. The solution to ad-blocking is not just creating better content, it’s creating the right experience, at the right time and on the right device.

As our homes and lives become more connected, we will become increasingly reliant upon our devices, the internet and instant connection.

So what impact will this have on our everyday lives? Recent news of hacking show the importance of security software, highlighting this as an area of concern in this ever evolving digital world. Hackers will continue to figure out how to make apps appear trusted, meaning the likes of Apple will become much stricter in controlling the use of their private API.

109

Mobile

Disruptive audio With 76% of the UK population using a smartphone and 53% checking their phone within five minutes of waking up, it’s clear we’re a mobile addicted society. 4G’s penetration is forecast to reach 24.9m people in the UK in 2016. This will make content even more accessible, resulting in us becoming more addicted and, therefore, more distracted. With nearly a quarter of 4G’s penetration all adults stating that they ‘almost always’ is forecast to reach and ‘very often’ use their phone to consume 24.9m people in content while watching TV or a film.

the UK in 2016

With distracted individuals the impact of traditional ATL and product placement will be significant. Understanding the communication system, and how mobile can disrupt or augment a communication, will become crucial for all brands.

Channel planning will be influenced by mobile’s ability to distract; as a result we believe audio will play a key role in disrupting the distraction.

Unique audio experiences will define creative messaging, making audio connection a key component to all media executions. And what better way to connect to these audio experiences than with your 4G smartphone?

Apple’s next steps Each year we wait in anticipation for the latest release of the iPhone, but what makes 2016 different? Apple may be late to market with some of their products, jumping on the tablet and smartwatch bandwagons after other manufacturers had already tested the water, but their reticence often means that Apple learn from the mistakes of others, allowing them to deliver the best. This year the uptake of the Apple watch was slower than anticipated, but many fans have been waiting for the second iteration. In true Apple style not much is known about the next set of features, however, rumours include native app support, tetherless WiFi and the ability to watch videos and possibly facetime calls.

Rumours surrounding the iPhone7 are inevitable, waterproofing and wireless charging being two of them, which we have seen already from LG, Samsung and Sony. As each manufacturer strives for the largest screen possible Apple may do away with the home button all together and possibly develop a wraparound screen. However, Apple fans will have to be patient as it’s not due to be released until September 2016.

110

Fact Book 2016

Display increased share of mobile spend

H1 2015 total £1.079bn Display 48%

Category

H1 2014 Share

Search Display Other*

55% 44% 1%

*Other: classified, SMS and remaining formats

Paid for search 52% Source: IAB/PwC Digital Adspend H1 2015

Content & Native (inc. in-feed) is half of mobile display

Content & Native, inc. in-feed, 47% £239.5m Standard display* 27% £137.9m

H1 2015 display total £512.4m

Mobile video 25% £126.1m Remaining display formats** 2% £8.9m

*Standard display includes standard banners, rich media banners, intersitials and MPUs **Remaining display formats include music and tenancies Introduced in 2014: Content marketing = paid for sponsorship, advertisement features, in-feed and native distribution tools Source: IAB / PwC Digital Adspend H1 2015

111

Affiliates

Content Tom Curtis / Ben Bleet Head of MBA / Content Strategy Associate Director tom.curtis@mediacom.com / ben.bleet@mediacom.com

Highlights •

There has been an uplift in spend in content marketing

•

Video is set to become a dominant medium in 2016 with vertical video, 360° video, AR and VR all gaining traction

•

The spotlight is set to turn towards measurement and evaluation

A look back at 2015 Context of content Despite its ubiquitous use within the industry, throughout 2015 the word ‘content’ continued to stimulate debate. MediaCom have remained, and continue to remain, clear on this point: for us content includes both brand content that people choose to engage with, as well as more traditional interruptive advertising formats across all media. It has to. We cannot define a 30" TV spot as content only once it’s uploaded to YouTube for people to seek out.

112 112

Fact Book 2016

More than

40%

of 16-19 year-olds in the UK are using Snapchat

Content marketing The Content Marketing Association (CMA), of which MediaCom is a member, describes content marketing as “the discipline of creating quality branded content across all media channels and platforms to deliver engaging relationships, consumer value and measurable success for brands”.

With that in mind, 2015 was another big year of growth with the CMA, in their 2015 Content Marketing and Data Intelligence Report, estimating that content marketing represents around £1 in every £4 spent on marketing.

Ad-blocking Sure enough, consumers also indicated their growing fatigue for disruptive forms of advertising, with IAB research showing one in seven (15%) of British adults online currently using ad-blocking software. Much chin-stroking and debate ensued at conferences throughout the year. Publishers reacted in different ways. Bild.de, in Germany, asked users to pay for their editorial if they kept their ad blocker on. News Corp, meanwhile, announced the relaxation of its paywall. Many content marketers cited the growing integration of native advertising into campaigns as the answer to the threat of ad blockers. Although, like ‘content’, the interpretation of ‘native’ has remained controversial. The IAB’s own ‘Content and Native Definitions Framework’ (version 2.1 was published in September) categorised it as distribution advertising formats only.

The power of mobile apps Mobile overtook desktop as the primary access point and 2015 was the year messaging apps showed they were here to stay; more than 40% of 16-19 year-olds in the UK are using Snapchat. As consumers’ behaviour has evolved, so have established publishers in their mission to engage audiences. Snapchat’s Discover platform – with deals from established media brands such as Sky Sport, MailOnline, Vice and Mashable – is a great example of these type of developments.

113

Content

Engage and inform The Advertising Standards Association (ASA) continues to be vigilant when it comes to branded content on social media. They introduced a set of guidelines for brands and YouTube creators wishing to work together. This highlighted the importance of transparency to ensure consumers understand that the content is paid for. Meanwhile, YouTube introduced 360° video, demonstrated by our partnership between Shell and the Telegraph, in September: ‘The Virtual Reality Drive: A 360° lap with former Stig, Ben Collins’.

MediaCom’s Cannes Lions winning Bose Listen For Yourself campaign showed how a consistent approach to content, and a clever use of data, can deliver impressive results. This was a campaign that truly embraced the principles of our content framework and its three I’s: Inspire, Inform, Involve. Grab your audience’s attention with content designed for widescale appeal and awareness, and then make it relevant to them with content that is both informative and useful. Then grow brand advocacy through ongoing engagement.

Alongside the growth in interest and investment in content, measurement has become critical. We believe success should be defined by proper marketing objectives. The number of views (or even shares), while important, is a means to an end. Driving awareness and ultimately sales, is becoming the main goal for most marketers.

It’s fair to say, however, that 2015 did not see the unified approach to measurement that many marketers are craving. We expect this to be very much a focus for 2016.

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Fact Book 2016

A look forward to 2016 A continued shift towards longer-term partnerships We expect to see continued growth in spend on content marketing in 2016, driven by partnerships with a broader mix of publishers, production companies and brands. Content, media, editorial and brand partnerships will become less campaign-led, and more ambitious with longer-term goals. ‘Episodic content’ will likely be an overused phrase by the end of the year. Acquisitions in 2015 such as Dentsu Aegis Network’s purchase of John Brown, prove the industry is pushing this agenda. As platforms develop, so will the importance of editorial verticals to enable platforms and brands to engage audiences around their passions. Interesting examples include Vice’s Broadly, a video-led channel for women (in partnership with Unilever), and YouTube Gaming.

Developments in video Video will see continued growth as numerous tech companies push their products. We’ve already seen several examples of this; from Google featuring video in search results, to Facebook’s forthcoming video feed, and Snapchat’s geo-fenced ‘Our Story’ feature.

As part of this growth we will continue to see a move towards the use of more visual language among audiences, with the consumption and creation of video alongside GIFs, photos and emojis. More brands will invest in vertical video (why ask a viewer to turn their phone round just to watch your ad?) and in the longer term it will be interesting to see if creative agencies embrace vertical before other video technologies begin to take over.

115

Content

New realities Augmented reality and virtual reality will continue to provide opportunities for brands to supply visceral entertainment and product demo experiences through technologies such as Facebook’s Oculus Rift and Google Cardboard.

We expect to see the market split: on one hand, casual usage through portable devices that smartphones are able to slot inside, versus more advanced equipment favoured by the gaming community. Artificial intelligence, through personal assistants such as OK Google, Google Now and Siri, should become ‘Beneficial Intelligence’, presenting more opportunities to brands to increase content relevance.

Personalisation Personalised content will continue to permeate marketing strategies.

Broadly speaking, as humans we elicit a strong emotional response towards a person who proves that they understand us, make us feel good, or inform us (these three actions are of course not mutually exclusive).

As brands, the key purpose is more or less the same, just with the aim of selling a product or service as the end goal. Therefore, using personal and local data to create meaningful moments will be further embraced in the coming year. Campaigns like 2015’s Share a Coke and EE’s BufferFace are great examples of the effectiveness of personalised content.

Unification As technologies develop and devices become more unified, we will see a continued focus from publishers and brands on content created with specific platforms and audiences in mind, ensuring content is delivered to the audience in the correct context.

Ad-blocking vs subscription In 2016, the debate will continue. With the proliferation of ad-blocking software and premium services like Netflix and Amazon Prime squeezing out the opportunities for ads to get seen, brands will need to integrate content into other marketing disciplines. This will allow them to ensure consistent content strategies that reinforce brand equity and guarantee access to their consumers.

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Fact Book 2016

Buy buttons Brands will start planning content for the arrival of buy buttons on social platforms, including Facebook, YouTube and Pinterest to name a few.

Content discovery In 2016, we’ll be hearing a lot more from content discovery platforms like Taboola and Outbrain. One thing we hope will happen is that the quality of some of the content many of these products link to will improve.

Google is also expected to join the fray with its own native distribution product. Watch out for the rise of WPP’s own plista as well.

Content measurement and effectiveness We expect 2016 to see a spotlight turning towards establishing industry standards for measurement and evaluation of content marketing.

This will likely focus on two areas. Firstly, a more universally agreed set of metrics for trading purposes (clicks, engagements etc). Secondly, and for most brands far more importantly, more business oriented outcomes e.g. an increase in propensity to purchase (or far more preferably; actual purchases) alongside elements such as footfall, sign-ups and brochure requests.

117

Affiliates

AV Partnerships Chris Fuller Associate Director of AV Solutions chris.fuller@mediacom.com

Highlights •

The broadcast sponsorship market has shown positive growth in 2015

•

2016 will build on a strong 2015 to deliver further market growth

•

Diversification has increased the breadth of AV partnerships offered in the market

A look back at 2015 Growing demand The appetite for broadcast sponsorship has grown in 2015, building on a strong 2014. A lower than usual supply in the market, as well as an opportunity for deeper partnerships, contributed to market conditions which have enabled broadcasters to command better prices for their properties.

The broadcast sponsorship market has grown by around 5% year-on-year, with a market worth of around £194m. Channel 4 have been the real star of 2015, driving the market with a 10% growth.

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Fact Book 2016

Channel 4’s growth has been down to a combination of factors

•

The ability to leverage successful formats like Gogglebox and First Dates for higher value via renewals

•

Being able to ensure all new opportunities have a significant short form element, via 4 Shorts, attached to the package, as well as increased licensing and product placement opportunities

•

Selling standalone 4 Shorts branded content as seen in Scope’s ‘What Not To Do’ series (pictured above)

•

Selling all their inventory across the network

ITV’s powerhouse entertainment formats ITV have also had a very good year selling their properties, once again proving that TV is a powerhouse of reach. The broadcaster maintained appetite for their sponsorships while their entertainment formats still offered appointment to view; the final of Britain’s Got Talent delivered an audience of 13.4m viewers, and the latest series of I’m a Celebrity Get Me Out of Here drew 10m viewers for the launch episode.

Big changes at Sky Sky Media will also be buoyed by a strong 2015, however, the impact of Viacom’s acquisition of C5, and the resulting effect on performance may not be felt until 2016, as Sky take control of the channel’s £250m TV ad sales. Sky also seem to have changed tact with regards to the packaging of their sponsorships, offering much larger strands that are more attractive to advertisers.

119

AV Partnerships

A look forward to 2016 Market developments The appetite for broadcast sponsorships in the market looks set to remain high in 2016. Because of this high demand, inflated pricing and packages with multiple elements – either from licensing, talent involvement, additional short-form content, or product placement – will become the standard market offering moving forward. Whilst the broadcast sponsorship market is the single biggest part of the AV market landscape, it’s the offerings in the rest of this market that will become really interesting in the coming year.

Dynamic partnership opportunities The breadth and quality of AV partnership opportunities is going to be greater than ever before in 2016. Whilst All4’s short-form video series ‘Shorts’ may not have delivered the scale to date on Channel 4’s digital VOD platform, we believe this is something that will only improve in time. Their biggest contribution is ensuring a benchmark of quality that digital short-form has to deliver and live up to. ITV are following in C4’s footsteps in their approach to digital AV with the launch of ITV AdVentures in partnership with Believe Entertainment – a company with a heritage of distributing short-form digital with high production values stateside.

Production companies back digital It’s not only the broadcasters who have evolved their offerings, powerhouse production companies have also put great support behind the new digital broadcaster market. Endemol Shine’s numerous YouTube formats and acquisitions, Fremantle’s Shot Glass productions and All3Media’s Little Dot are all pushing high quality branded content and sponsorship opportunities, largely via YouTube.

Digital publishers offer new opportunities Large digital publishers such as AOL and Yahoo have an exciting slate of new programmes and formats for sponsorship, offering broadcast level delivery and quality with the added accountability that digital brings. There are also some really interesting companies diversifying to meet the demand in the marketplace. Red Bull Media are a prime example of a dynamic company that are investing heavily in their own production capabilities to deliver highly produced films, most recently illustrated by the Sony Xperia Z5 partnership (see images).

120

Fact Book 2016

An increase in quality, a more diverse range of content and genres, and an entry price far lower than your typical broadcast partnership, means 2016 will be a very exciting year for digital AV partnerships. It’s an area we expect will drive the market to new heights in the future.

121

Affiliates

Events Katie Holland Senior Events & Sponsorship Manager katie.holland@mediacom.com

A look back at 2015 Captivating consumers It’s been an extremely interesting year for experiential marketing and events, with brands embracing digital, social and new technology.

2015 has seen brands reaching out to their active audience, providing experiences that will captivate consumers and make them want to share what they see or experience. By encouraging social activity with our audiences, word of mouth remains one of the strongest endorsement.

Brands have become far more open to experimentation with technology, disruption and sustainability. Dell’s recent launch for their new XPS 13 and 15 laptops saw them positioning the XPS as a modern day canvas for art and life, with an oversized laptop housing a selection of custom-made animations activated by stepping on the laptop keyboard.

As the animations play out, they escape the screen to fill the wall with dynamic colour movement. The experience also houses a digital art gallery and an art inspired photobooth.

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Fact Book 2016

Changing the landscape New venues continue to change the events landscape, offering new and exciting possibilities that can help shape the experiences we create.

2015 saw the opening of venues such as The Steelyard beneath Cannon Street Bridge. The space houses a listed steel crane and track (where trains would be hauled into the space to be maintained) which gives it an industrial feel along with the beautiful exposed brick. The event space is uniquely multi-purpose and works hand-in-hand with technology advancements, offering a juxtaposition between old engineering and future tech.

Sustainability As brands became more environmentally aware in 2015, we saw more brand experience campaigns that sought to fundamentally change the way we think about the world around us. Shell worked with Pavegen on the ‘Power of Sport’ campaign, which used game-changing technology to encourage the next generation to think about energy in a different way.

Pavegen worked with Shell to install 200 kinetic tiles into a local football pitch in Morro da Mineira, a favela, in Rio de Janeiro. These tiles used the movements of the players to power the floodlights surrounding the playing area and provide a tangible off-grid power source that will benefit the whole community for the foreseeable future.

The industry is focussing on sustainability in less spectacular ways too.

Many experiential agencies are repurposing roadshow kits for use with multiple clients, resulting in far less waste and letting agencies pass on fantastic cost efficiencies to clients.

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Events

A look forward to 2016 Showstopping moments Technology, disruption and sustainability will continue to define 2016 as brands focus on delivering experiences rather than events. It’s this change in terminology that has encouraged event producers to think about projects in a more integrated fashion, focussing on shareability, data and brand experience’s place within the larger communications system.

It’s highly likely that we’ll see more integrated campaigns, as brands strive to create show stopping moments with real, measurable value as part of their marketing plans. The Jurassic World Waterloo Station takeover generated astonishing results mixing live experience with digital and OOH to drive ticket sales.

Universal Pictures teamed up with with JCDecaux, MediaCom and Kinetic to transform the station into a Jurassic World adventure. The site featured 3D models of the film’s dinosaurs, accompanied by audio tours, a retail unit, banners, vinyl wraps and floor media. An immersion zone was created in the tunnel connecting the main station with the underground, featuring ambient sounds and visuals such as raptors in a jungle, a creek with a canoe and a prehistoric underwater show.

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Emotion and immersion Technology is set to improve a consumer experience by deepening immersion and making productions more shareable. But we have to think about what our audience want to see, do, hear and feel, to make their experience even more immersive, as users generate their own content from the environments and experiences we create.

By engaging consumers through experiences, brands are breaking down the traditional transactional relationship. Consumers are beginning to actively embrace brands and participate in experiences in return for more than just a product, a powerful emotional relationship is beginning to emerge through this as consumers start to consider what a brand can do for them.

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Events

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Affiliates

Sport John Scurfield Head of Sport UK john.scurfield@mediacom.com

Highlights •

Revenues in sport sponsorship are tracking in line with forecasted growth of 4.1% year-on-year from US$55.3bn in 2014, to a forecasted US$57.5bn in 2015 (source: IEG)

•

The fight between official and non-official sponsors intensified during the Rugby World Cup 2015

•

Sport’s digital system continues to thrive, the demand for mobilefriendly sports content continues to grow, and sporting events are some of the most talked about on social

•

Next year’s huge sporting calendar of events presents brands with an exceptional platform to drive sales, increase market share and deliver a significant return to their bottom line

•

Digital and social media will continue to open more avenues for brands seeking to entertain, educate and interact with consumers through sport. However, it is critical that sponsorship programmes stir emotion and passion in fans, while linking a brand or product to the sport

•

The Rugby World Cup 2015 topped their commercial revenue targets reaching £240m, representing a 50% increase on the 2011 tournament in New Zealand

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A look back at 2015 Sporting engagement In 2015 sport’s digital system continued to thrive, the demand for mobile-friendly sports content grew at pace, and sporting events were some of the most talked about on social. Forward-thinking brands recognised the need to go beyond traditional branding and communication and put audience engagement at the heart of their strategies.

Brands that did this successfully were able to generate unique and emotive content which drove loyalty and affinity, resulting in significant shifts in key brand performance metrics. However, it wasn’t only official sponsors who capitalised on this trend. Non-official sponsors also managed to take advantage of the fact that, in this digital age, everyone can create content and distribute it to consumers directly.

Winners and losers In addition to battles between competing brands, 2015 presented significant challenges to the reputations of sporting organisations.

Disappointing performances from the northern hemisphere during the Rugby World Cup 2015, and controversy surrounding key organisations in the sporting landscape, placed pressure on both rights-holders and sponsors.

The big winners of 2015 were brands who connected with consumers at scale, on a deep emotional level, in the right environment, at the right time. Brands such as Bose and Shell utilised data and insights to develop innovative content solutions. Bose’s Mercedes F1 partnership, and Shell’s ‘Power of Sport’ campaign, harnessed the true power of sport sponsorship to achieve specific business goals.

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Sport

A look forward to 2016 A busy calendar 2016 is set to be an exciting year for sport: Team GB have set ambitious medal targets heading into the Olympic Games in Rio; the home nations will be well represented at Euro 2016 (England, Wales, Northern Ireland and the Republic of Ireland will all be heading to France in the summer); and the excitement surrounding the 2016 Ryder Cup is already growing amongst core golf fans despite the competition being nearly a year away.

The sheer scale of these events and the opportunities for sponsorship hold incredible potential for brands looking to engage with sports fans.

As millions of global consumers continue to connect with sport on an emotional level, 2016’s sporting calendar presents brands with an exceptional platform to influence sales, increase market share and deliver huge returns. But sport is a people business, so the authenticity and timeliness of a brand’s marketing programme will be key to engaging with passionate sport fans in order to drive results commercially.

While digital and social media offer new avenues for brands to entertain, educate and interact with consumers, sponsorship campaigns will need to explicitly link a brand or product to the sport while stirring passion and emotion in the fan.

Carefully crafted community management strategies and the production of engaging bespoke content will allow brands into the hearts and minds of consumers

System thinking for real-time conversations To ensure sponsorships are remembered long after the final whistle sounds, brands need to own the key sporting moments through real-time conversations. These moments are not random, but can be planned through an integrated, full-service sponsorship model.

Carefully crafted community management strategies and the production of engaging bespoke content will allow brands into the hearts and minds of consumers.

Successful brands will experience the benefit of a strategic shift towards an integrated full-service sponsorship model encompassing strategy, activation and measurement rather than the traditional silo approach to partnership activations. System thinking will allow brands to be increasingly strategic in order to capitalise on their partnership rights and assets, allowing non-official partners to edge into territory previously owned by sponsors.

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Capturing attention It is critical that brands negotiate the right assets through the development of an integrated sponsorship model; tailoring a unique package to suit business needs, as opposed to the existing approach to sponsorships, where packaged rights are the norm. This approach will allow brands to activate a suite of benefits through overarching marketing initiatives across paid, earned and owned channels.

A holistic, multi-platform activation strategy will ensure a brand’s content works harder to capture audience attention, particularly as attention spans continue to decrease – from 12 seconds in 2000, to 8 seconds in 2015 (source: Microsoft). Reinventing the fan experience through real-time, emotionally engaging content – like adidas and FIFA’s ‘all in or nothing’ campaign during the 2014 FIFA World Cup – will extend sponsorships beyond a purely commercial relationship with the consumer.

Embracing new platforms Emerging platforms and trends present another opportunity for brands to extend their partnership reach and engagement as stadiums and teams become increasingly digital-savvy when it comes to commercialising their relationship with fans. NHL’s partnership with GoPro was a great example of this, bringing hockey fans closer to the action on ice by using GoPro cameras to deliver previously never-before-seen perspectives of the game and generating over 153 million impressions on Twitter in a single month.

While next year guarantees some great battles in sport, it will be the brands that use creative strategies to stir emotion in fans that will ultimately come out as the big winners.

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Game changers According to research by WPP partners IEG, sponsorship spending has increased by an average of 4.3% per annum over the past five years.

Based on this trend and market intelligence, MediaCom Sport predict the total global spend on partnerships in 2016 will be over US$59.2bn.

While this offers plenty of reasons to be optimistic, it also means brands will need to work harder to win consumers’ hearts and minds. Only by doing this will they be able to maintain market share and grow revenue in what will be a huge year for sport around the globe.

Sport is a competitive business, and in the current marketing landscape, it is critical to develop an integrated marketing strategy that will cut through and differentiate the brand. MediaCom Sport’s unique position within a media agency, enables us to help brands achieve this lasting brand impact through sponsorship.

Over the past two years, MediaCom Sport have developed and implemented a market-leading system of tools to ensure brands make well-informed decisions when investing in, and activating sponsorships. This includes tailoring a rights package that goes beyond the standard formula, to maximise cost efficiencies, engage key target markets and deliver desired sponsorship outcomes.

Working closely with MediaCom Beyond Advertising, our specialist content division and digital experts, MediaCom Sport are able to develop a full-service marketing programme that will cut through the clutter and guarantee a deeper connection with customers.

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Connected Sponsorship Developed by MediaCom Sport, combining MediaCom’s knowledge of the marketplace with the industry’s leading expertise in sponsorship evaluation and analysis, Connected Sponsorship enables sponsorship value to be assessed to the levels of accuracy and credibility that brands expect from the assessment of their advertising performance.

The 4 component elements of the tool deliver: •

Customisation to an individual client’s requirements

•

A 360° assessment of sponsorship value and effectiveness

•

Objective and consistent interpretation of different sponsorship properties

•

Accurate use of key sponsorship data points to inform decision-making

Delivering accountability to sponsorships Connected Sponsorship Selector – Assessment of a client’s business alignment to selected sponsorship properties – based on strategic factors such as brand positioning, marketplace clutter, audience profiting, sector popularity etc.

Connected Sponsorship Evaluator – The evaluator tool analyses and calculates the value delivered from branded exposure and tangible sponsorship assets. Coupling accurate audience data with media pricing, and a final bespoke calculative factor, ensures precise reporting across brand sponsorship activities.

Connected Sponsorship Factor – A proprietary approach to combine the assessments of Selector and Evaluator, allowing us to compare effectiveness of different properties like-for-like.

Connected Sponsorship Impact – Network expertise to help a client determine the impact of a sponsorship against a target audience via qualitative and quantitative audience research.

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Affiliates

CultureCom Sanjay Shabi Head of CultureCom sanjay.shabi@mediacom.com

Highlights •

Steady growth in ethnic populations leads to increased mainstream visibility

•

Ethnic audiences still favour traditional media

•

We’ll see greater accountability among ethnic media suppliers

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A look back at 2015 Growing influence The UK continues to see a steady growth in ethnic populations, both in terms of volume and mainstream influence. Recent research estimates that one in four primary school children in the UK come from BAME families, an IPPR study found that up to 300 different languages are spoken by children in London schools (with 95 spoken in Hackney schools alone).

The impact this will have on consumers, products and services is enormous and we need to future proof our businesses by learning to communicate with these audiences.

Though the rest of the media industry has been involved in a headlong rush to embrace all things digital, the ethnic sector lags behind in its adoption of these new technologies and platforms. There’s still a large reliance on traditional media (TV, radio and print) to reach the ethnic population, where there remains a reliable audience. According to BARB audience figures, Hindi language entertainment channel Star TV made it into the top 10 best performing daytime channels for housewives with children. Admittedly, we’re not talking Bake Off-sized audiences, but it is proof of the staying power of linear TV for ethnic audiences.

With a growing ethnic audience comes an increase in visibility for key cultural events. We continue to see the rising prominence of celebrations like Diwali and Eid as other cultures seep into the mainstream. Diwali celebrations on Belgrave Road in Leicester (pictured) saw approximately 35,000 people attending the turning on of the lights.

These celebrations are among the biggest outside India.

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CultureCom

A look forward to 2016 Greater transparency, insight and accountability Following the trend of the rest of the industry, we expect to see more adaptation to the digital world by media owners rooted in traditional media, albeit a little more slowly than their mainstream counterparts. We’ll see networks like Diversity Digital, One Central Point and Joinville come to prominence as networks bundle together channels and publications to offer more appealing buying options to advertisers.

As a result of this, we’ll see greater accountability amongst ethnic media suppliers as they begin to bring themselves in line with the digital standards of the rest of the media industry. We’ll start seeing ethnic suppliers offer more in the way of transparency, as well as more information on circulation figures and distribution points. Crucially, this will all serve to make ethnic media a more attractive proposition to advertisers who may previously have been wary of the lack of assurance and openness in the space.

The improved insight into ethnic audiences provided either by media owners, or independent desk top research providers, will help further unlock targeting opportunities that will help the market mature and grow.

Tools like Experian’s Mosaic (pictured) are already offering vastly improved insight when it comes to ethnic audiences. We can use these insights to plan more effectively for, say, South Asians’ equivalents of Christmas (when consumption of certain products and services is likely to spike), or Eid for Muslims around early Summer.

Though the ethnic media space isn’t sophisticated or as dynamic as other market sectors like social media or programmatic, there’s still plenty to look forward to in 2016 as Britain’s cultural richness makes the media landscape more challenging and diverse.

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CultureCom

Publication Black African & Caribbean Titles The Voice The Gleaner Nigerian Watch African Voice The Trumpet The Afro News

Publication Rating 10 9 9 8 6 4

Asian Entertainment Titles Cineblitz Movie Bollywood Post Bollywood Glitz

Rating 8 8 7 4

Publication Asian Lifestyle Magazine

Publication African Black Caribbean Women’s Magazines Pride Black Hair & Beauty Aspire Arise

Rating 9 8 7 7

Asiana Asian Women Asian Global Impact BEE

Rating 10 9 7 7

Publication Bangladeshi Titles

Publication Urban Music and Youth Titles RWD Knowledge

Rating 11 10

Weekly Desh Surma Bangla Post Bangla Mirror Janomot Notun Din Potrika

Rating 9↑ 7↓ 7 7 7 7 7

Publication Asian English Titles Asian Age Eastern Eye India Today Asian Express Asian Leader Asian Lite The Asian Today The Indian Post Asian Voice

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Rating 11 11 11 8 8 8 8 8 7

Publication Punjabi Titles Des Pardes Samaj Weekly Panjab Times Jagatwani Mann Jiff Weekly Punjab Telegraph Weekly

Rating 7 4 4 4 4 4

Fact Book 2016

Publication

Publication Rating

Gujarati Titles Garaji Gujarat Gujarat Samachar

8 8

Publication Pakistani Titles

Rating 12 9 8 8 7

Daily Jang The Nation Daily Ausaf UK Time Pakistan Post

Middle Eastern Titles

Rating 4 4 4

Al Arab Al-Ahram Arabesque

Publication Jewish Titles Jewish Chronicle Jewish News

Rating 11 8

Publication Turkish Titles

Publication Muslim Titles

Rating

Emel Muslim Post Sisters Muslim Weekly Muslim News

10 7 7 5 4

London Turkish Gazette Avrupa Olay

Rating 7 5 5

Publication East Asian Titles China Daily European Weekly Epoch Times Sing Tao Daily Zoneast The Orient The Filipino Observer

Rating 11 9 9 6 4 3

Key Pink Green

Closed New

↑ ↓

Gone up in rating Gone down in rating

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CultureCom

Publication Greek-Cypriot Titles Parikiaki

Publication Rating 3

Publication Irish Titles The Irish Post

Polish Titles Cooltura Polish Times Nowy Czas Polish Express Voice of Poland Halo TV

Rating 9 8 7 7 6 4

Rating 3

Publication Lithuanian Titles

Publication Business Titles Asian Trader Curry Life Asian Wealth Masala The Weekly Tribune Business India

Rating 11 7 6 6 6 5

Publication Sri Lankan Titles

Rating

UK Lanka Times

4

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Tiesa

Rating 4

Publication Russian Titles Kommersant Russian London Courier London Info Pulse UK

Rating 11 4 4 4

Fact Book 2016

Publication

Publication Romania Titles Zairul Romanescn Weekly Diaspora Romaneasca

Rating 7 5

Publication Portuguese/Spanish/Latin America Titles Brazilian News Express News Extra Noticias Cuba Si Leros

French Titles London Macadam ici Londres The French Paper

Rating 4 4 4

Publication Rating 6 6 5 5 4 4

Congolese Titles Pendro

Rating 5

Publication Somalian Titles Sheeko Kasmo Somali Eye

Rating 5 5 4

Key Pink Green

Closed New

↑ ↓

Gone up in rating Gone down in rating

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Affiliates

Kids Graeme Canter / Lisa Kinsella Joint Head of i-Lab / MarketPlace Manager graeme.canter@mediacom.com / lisa.kinsella@mediacom.com

A look back at 2015 A changing market 2015 has been a very topsy-turvy year in the kids TV market.

Total viewing across commercial TV increased in 2015. This was, however, not the trend across all channels, which definitely raises some interesting points.

The overall picture for January-November saw the commercial market up 7%, however, the effect on some of the larger commercial stations has had an impact across the market. Looking at Q4 (the key time of year for toys and games advertisers), we forecast a decline in viewing of between 1-2%, which is not great news for advertisers.

In last year’s Fact Book we reported that impact delivery across all children’s channels had dropped 2% with the total year finishing up at -1%. The Turner portfolio was facing the biggest challenges with their viewing down 12% for the year.

The 7% increase we’ve seen this year has been driven by a handful of stations that are having a particularly strong period, but on the flip side, a selection of key stations are really struggling.

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Fact Book 2016

Channel performance There has been a significant difference between viewing on the younger kids’ channels, versus the older profiling ones. The channel taking the biggest hit to date is ITV’s offering, CITV, whose key target audience is kids aged 6-11. The channel struggled for viewing figures every month last year, with January-November 2015 down 19% (yoy 2). The reasons for this rest squarely with their programming schedule as this year they have only launched two new shows; Thunderbirds and Super 4. Apart from these, the offering is very similar to that of the past few years. Case in point: Horrid Henry, traditionally a strong performer for the channel, has dropped 25% in viewing within the space of a year.

Nickelodeon, the channel with the oldest kids profile in the Nick family (targeting girls aged 7-10) has also struggled in this last year and seen a decline in audiences every month with January-November standing at -19%. Combined viewing for Nickelodeon’s most successful shows of 2014 – iCarly, Victorious, The Thundermans and Sam & Cat – was down 23% in 2015, supporting the idea that ‘wear-out’ is a big factor in impact loss for Nickelodeon this year.

It’s a similar picture for the main Disney Channel, the oldest profiling channel in the Disney Group. They have seen decline across last year of around 19%.

Conversely, channels targeting younger children (0-5 year olds) seem to be doing much better. Nick Jr. and Tiny Pop both saw viewing up 26% and a staggering 98% respectively. Tiny Pop’s figures are high, mainly due to it moving onto the Freeview platform in October 2014. Nick Junior’s success this year has been driven by Peppa Pig, Ben and Holly’s Little Kingdom and, in particular, Paw Patrol, which launched at the end of 2014. Disney Junior is performing really well with impacts up 25%, driven by favourites such as Sofia the First, Tinker Bell and some Disney classic movies such as Cinderella and The Little Mermaid.

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Handing over the remote There is some good news for TV advertisers as research from Nielsen shows that linear TV still dominates kids’ media consumption (over 2 hours per day), though the amount of TV watched decreases with age as they turn to other devices to view content.

One theory for this drop in viewing across the older profiling channels, is that older kids are moving away from controlling the main TV set (measured by BARB) and instead watching TV on other devices or taking part in other activities on tablets and smartphones. A recent Childwise Monitor Report looked at how kids watched TV over a period of a week, with 83% watching it on the main set, 33% via a tablet, 22% on a laptop/desktop, and 22% via a mobile phone. 18% also watched via a games console.

Older kids are relinquishing control of the main TV set in favour of tablets and smartphones, leaving younger kids in control of the remote.

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Ofcom tells us that instant messaging and social media are the most popular second screen activity, which leaves the younger kids as the ‘the boss’ of the main TV remote control. Ofcom also suggest that the amount of time 8-11s and 12-15s spend online has more than doubled over a 10-year period, so it’s crucial for advertisers to get a handle on how kids are consuming their programmes across all devices. BARB are currently working on Project Dovetail, which will help by measuring audience viewing habits across all devices.

Fact Book 2016

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Kids

A look forward to 2016 Online generation In last year’s Fact Book, we discussed how important it was that we target the right kids, with the right message, at the right time. This year the amount of time kids spend online has doubled, with Ofcom reporting that 8-11s are online for over 11 hours per week, up from 4 hours in 2005, and 12-15s now going online for a hefty 19 hours every week. Not only do children have more access to tablets and smartphones, but more than ever they are becoming owners of these devices as well – 63% of kids aged 5-16 own their own phone, and 84% own their own PC/laptop/tablet.

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A cluttered marketplace Let’s tackle the first issue: Who are the main players going to be in kids TV over the next twelve months?

We are expecting some new players in this area, such as Disney Life due in the UK imminently – Disney’s first venture into the ad-free subscription arena. Targeting under 8s for a monthly fee of £9.99, kids will be able to access music, books, learning tools and their favourite Disney and Pixar TV shows, through a unique interface and category selection. Disney say that parental control will be a key feature and settings will be pin locked.

Viewing sessions can also be timed which gives another layer of control to the parent. We expect this channel to be a direct competitor to Netflix, Amazon Prime, NOW TV and Sky, all of which offer excellent kids content at a price.

In recent years, children’s content has become one of the most viewed categories on YouTube, accounting for 20 of the 50 most popular channels in October 2015. So it’s little surprise to see Google getting involved in the kids TV market, with their YouTube Kids app, which launched in November 2015 in the UK, Ireland, New Zealand and Australia, following its launch in the US in February of the same year. It has since been downloaded more than 10 million times in the States. The app is served on Android and iOS devices, Apple TV, Chromecast, games consoles and smart TVs. iPlayer, however, still rules. According to Enders Analysis, the BBC’s catch up service is still the favourite with both parents (for its ad-free environment), and kids (for content). The BBC are also expected to launch a CBBC/CBeebies app in early 2016, however, there is likely to be some cross-over content available on this free application with the ad-funded YouTube kids app. But with iPlayer riding high in this particular demographic, it will be interesting to see whether the new entries to the kids TV content market are able to make a dent in its considerable popularity. So where does that leave the traditional kids TV players such as Turner, Nickelodeon and CITV? We fully expect that Nickelodeon will follow Disney’s lead with a fee-based SVOD offering, and rumours abound that their channel Noggin, which launched in the States recently, will be coming to the UK soon.

The common view is that parents don’t mind paying a little extra for educational and safe children’s content. With so many channels on offer next year, they may have a job deciding which ones to go for. This could leave the BBC in a stronger position, as some parents may just decide to go with the free option.

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Multi-device measurement Over the last few years, tablets are increasingly being used as a default entertainment screen, particularly among younger children (a 2015 OfCom report states that 75% of 5-15s watch TV on a tablet, up from 64% in 2014). This is alongside a small but important decrease in the numbers watching TV via a TV set.

Worrying for advertisers is the fact that the mobile phone has overtaken the TV set as the device 12-15s would miss the most (45% of 12-15s choose their mobile and 21% the TV set), and for the first time in 2015, 12-15s who watch TV and YouTube content are more likely to say they prefer to watch YouTube.

So if some viewing has already moved away from the main TV screen, and we’re about to see the introduction of even more platforms to the already cluttered kids market, where does this leave advertisers?

Project Dovetail will help answer this conundrum by seeking to measure viewers watching content on their laptops, tablets or smartphones, as well as the traditional linear TV set.

Project Dovetail BARB’s panel of 5,100 homes currently provides representative viewing profiles and a measurement of viewers per screen. Every time a home joins the current panel, BARB install software TV meters on laptops, desktop,and tablet devices to capture the non-linear data. This new technology is currently installed in around 25% of their homes.

The next stage of Project Dovetail involves blending the data from the analytic tags with the viewing information we get from the BARB panel.

By doing this they hope to deliver robust, cross-platform data, so that we know what’s being watched, by whom, and on which device.

The more we know about how the YouTube generation consume their TV, the more we can help advertisers make the right choices when targeting this notorious hard-to-reach demographic.

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Fact Book 2016

45% of 12-15s choose their mobile and 21% the TV set

45% mobile

21% TV set

A recent OfCom report states that 75% of 5-15s watch TV on a tablet, up from 64% in 2014

75% 2015

64% 2014

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Kids

Split of spend traded against kids by TV station 2015

150

Sales House

Spend in 2015

ITV terrestrial Sky Kids Turner CITV Disney Gr Milkshake!

ITVB

£ 31,490,000 £ 12,535,000 £ 12,500,000 £ 8,299,999 £ 3,900,000 £ 4,800,000

Total market

£73,524,999

Category

Revenue 2015

Breakfast cereal Cinema / DVD / VOD Computer games / internet Food /snacks / drinks Toys and games Music Holiday, entertainment & leisure activities Shoes/clothes Competitive channels Publishers Retailers Misc

£ 2,610,422 £ 6,554,554 £ 7,489,291 £ 6,759,740 £ 38,529,379 £ 311,199 £ 2,393,837 £ 1,823,876 £ 5,209,446 £ 250,783 £ 968,934 £ 623,538

Total

£73,524,999

Source: Based on MediaCom estimates

Fact Book 2016

Top 20 rating TV shows for kids ages 4-15: January-November 2015

Rank

Channel

Programme Title

TVR (avg)

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Milkshake!

Milkshake!

CITV CITV Channel 5 CITV CITV Breakfast CITV Milkshake CITV Disney Junior CITV Cartoon Network Milkshake Disney Junior Boomerang Milkshake Milkshake Milkshake Milkshake

Peppa Pig Special: Golden Boots Ben and Holly’s Little Kingdom Film: Horrid Henry - The Movie Film: Hotel Transylvania Noddy In Toyland Pokemon: Mega Evolutions 2 Pokemon: Mega Evolutions 2 Film: Tom & Jerry Shiver Me Whiskers Thomas & Friends The Tom & Jerry Show Little Mermaid II: Return To The Sea Ben 10: Destroy All Aliens We Bare Bears Peppa Pig Film: Cinderella (1950) Scooby-Doo! Knight Time Terror Film: Disney’s Tinker Bell: The Lost Treasure (2009) Bob The Builder Thomas & Friends: Spills & Thrills The Adventures of Bottle Top Bill

1.96 1.37 1.35 1.30 1.27 1.26 1.26 1.19 1.15 1.08 1.02 0.97 0.96 0.96 0.91 0.89 0.89 0.88 0.88 0.88

UK Commercial Kids TV

Rank

Channel

Share of impacts

% change yr on yr

Av Kids 4-15 tvrs

Av Kids 4-15 tvrs

Channel profile

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

Cartoon Network Tiny Pop Pop Nickelodeon Nick Jr. Boomerang Disney Channel CITV Nicktoons Disney XD Disney Junior Nick Jr. Too Cartoonito Milkshake!

Kix CITVB ITVB

13.08 10.95 9.78 8.80 8.57 7.79 6.37 6.07 5.87 5.38 5.07 3.31 2.12 2.11 1.90 1.65 0.51

2.36 98.08 54.35 -19.04 25.79 -9.95 -18.93 -18.81 5.58 10.37 28.11 -10.63 -4.70 -16.92 69.35 -27.80 -18.53

13.08 10.95 9.78 8.80 8.57 7.79 6.37 6.07 5.87 5.38 5.07 3.31 2.12 2.11 1.90 1.65 0.51

0.154 0.159 0.141 0.12?

0.144 0.102 0.183 0.333 0.113 0.065 0.248 0.073 0.065 0.303 0.036 0.323 0.075

Boys 6-12 Girls 0-5 Kids 7-10 Girls 7-10 Kids 0-5 Kids 4-9 Girls 7-9 Kids 6-11 Boys 6-12 Boys 6-11 Kids 0-6 Kids 0-5 Kids 0-4 Kids 0-5 Boys 6-10 Kids 6-11 Kids 6-11

Total Viewing

6.56

Source: BARB Jan - Nov 2015

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Connected kids research findings Connected Kids is MediaCom’s youth insight offering from the RWI team. It is comprised of an annual trend report, Trend Watch, and the Connected Kids Bus, a quarterly omnibus survey which answers bespoke client questions. The following are findings from MediaCom’s latest Connected Kids research:

TV rarely appears to be watched in complete isolation to other activity.

Kids and teens are glued to their smartphones from the moment they wake up to just before they go to bed in the evening; they are also heavily exposed to social media.

Social apps are the most popular amongst kids and teens. Gaming, music and instant messaging apps are also widely used.

Kids and teens today are influenced by self made organic talent with YouTube being the main vehicle for this.

Teens are more likely to be using Twitter when they’re watching live TV. Becoming part of a wider conversation when they ‘are in the moment’ enables teens to feel like they are part of their favourite show and the events that are unfolding in real time.

Programmes that veer more towards live ‘event TV’ or those that follow a continuous storyline (which could be risked by online spoilers!), are those that are most likely to be tweeted about.

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Fact Book 2016

Services that provide opportunities to personalise what young people want to watch and how they want to watch it, as well as offering exclusive content, are appealing and enhance on-demand viewing.

The most popular YouTube channels are hosted by individuals who are largely teenagers themselves.

Teens are selecting content which they feel is communicating to them in a relevant way.

Almost ½ of kids aged 8-12 have their own smartphone, which offers many more opportunities for exposure to content that is not age appropriate.

TV that is rich in content and emotion continues to be the most favoured amoung kids and teens.

8-12 year-olds are receiving an average of ÂŁ5 pocket money per week rising to ÂŁ8 among 13-16 year-olds.

Many teens are using their smartphones to make online purchases; they now have an ability to purchase at any time and in any location.

For more information on Connected Kids, contact:

Hanna Lubin Research Manager, Real World Insight hanna.lubin@mediacom.com

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Thank you Fact book team: Garreth Owen UK Marketing Manager Rachel O’Hara Marketing Executive Sam Thomas Marketing Designer

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About MediaCom MediaCom is the “The Content + Connections Agency”, working on behalf of its clients to leverage their brands’ entire system of communications across paid, owned and earned channels to step change their business outcomes. MediaCom delivers not just individual channel silo efficiencies but also connected communications system effectiveness, by developing and optimising all content – defined as any form of consumer messaging – as the fuel that drives high-performing systems.

MediaCom measures and quantifies communications systems across paid, owned and earned through their unique Connected System Audit.

MediaCom is one of the world’s leading media communications specialists, with billings exceeding US$33 billion (Source: RECMA 2015).

It employs 6,000 people in 125 offices across 100 countries around the globe. Its client roster includes P&G, VW Group, Dell and Universal.

In 2015, MediaCom have been awarded Media Agency of the Year in the US by AdAge and Adweek, in the UK by Campaign, and Network of the Year in APAC by Festival of Media. The agency captured six Media Lions at the 2015 Cannes Lions International Festival of Creativity, making it the top performer among all global media agency networks.

MediaCom is a member of WPP, the world’s largest marketing communications services group, and part of GroupM, WPP’s consolidated media investment management arm.

www.mediacom.com

@mediacomuk