Opinion - Generation Media

Mind the gap

This month, Jonathan looks at how overcoming the coverage gap presented by the decline in linear TV is going to be the biggest hurdle for the toys and games market to overcome in 2023.

It finally happened. 2022 marked the first year that toys and games brands in the UK spent more on digital advertising than TV. It’s no secret that TV has been in double digit decline for the past five years, so it is a good time to evaluate why 2022 was the straw that broke the camel’s back, and if there remains a long-term future for the use of TV.

Before we dive into the rationale behind this decline, we need to clarify that the blue TV section of the pie chart refers to “linear” TV spend – airtime purchased on traditional channel feeds such as CITV, Pop and Nick JR. It’s also important to note that many of the platforms included in the orange digital section can also be viewed on a TV set – Video On Demand and YouTube being prime examples of this. Moving forward, assessing the pie chart in terms of device will be equally important (especially when you consider that most of us, children especially, consider anything that appears on a TV screen as TV, regardless of the delivery method).

So, what were the reasons for TV’s decline in spend, and ultimately share? Whilst these are manifold and unique to each brand, the three main contributors were (and continue to be):

• Supply of impacts

Year-on-year (YoY) the total Children’s equivalent impacts on commercial children’s channels in the UK declined by -52%. 2022’s total supply of impacts was the equivalent of 26% of 2018’s total. In short, brands may have spent more on this traditional advertising powerhouse if there was more to buy, but supply was a limiting factor.

• Cost inflation

As a result of the above, and continued demand for airtime, sales houses have been able to increase their Cost Per Thousands (CPT) YoY, which has forced some advertisers out of the market. Even more importantly, this cost increase created a scenario in Q4 where Digital media platforms actually offered lower CPTs and in some cases higher reach (YouTube).

• Reach

We are no longer able to plan campaigns where we reach 50%+ of our target audience on linear TV (on children’s channels alone), let alone the 70%+ that was common in the first half of the last decade. For example, the UK’s number one commercial channel for kids, Pop, had a total reach of c.11% in December 2022 (Children 4-15, according to Techedge). Total reach across all commercial children’s channels in December was around 46%, meaning other platforms have to be used in order to reach critical mass and generate sales success.

The decline in coverage actually makes children the hardest audience to reach on linear TV, rather than the 16-34 market which is often cited as the lightest viewing TV group. Yet we remain in a position where despite cost inflation, CPTs remain relatively low for this audience (compared to the £100+ required to target young adults). Therefore, Linear TV will undoubtedly continue to have a place on the schedule in 2023, but its use needs to be strategic rather than generic. For years, TV has been the first line on most plans, with digital and other media types layered on top in order to provide incremental coverage and frequency. Now, YouTube commands a lower CPT (in Q4 at least) and provides the quickest way of building coverage against children’s demos. According to Giraffe Insights’ Kids and the Screen study, in October 2022, 57% of 4–9-year olds’ time spent viewing children’s commercial video platforms was on YouTube (Linear TV accounted for 22% - Live and Recorded).

For maximum impact, use TV at campaign launch in conjunction with other platforms, and consider reintroducing its usage at key beats in your campaign (taking into account that launch windows, flighting, etc. will vary greatly dependent on brand objectives and product category). Sustaining campaigns over longer periods will also require much more than YouTube and TV in 2023, with a whole host of digital options available to reach children (and that’s not even accounting for talking to parents who will be a larger focus than ever in 2023, given the greater ability to track sales effectiveness when targeting this audience online).

We will be using this column in future editions to evaluate the effectiveness that each of these platforms has in the modern media marketplace, including key platforms such as Addressable and Connected TV, Social Media and increasingly importantly, Gaming.

Overcoming the coverage gap presented by the decline in linear TV is going to be the biggest hurdle for the toys & games market to overcome in 2023. Making smart choices for advertising budgets will be a challenge, especially as fragmentation of media has generated so many options for media investment. We are therefore making this the focus of KidsCon 23, our annual summit covering all things related to children’s and parent’s media. With a provisional date of 27th April at a central London location, we’ll be delving deeper into the challenges presented above, and recommending solutions for all budget levels. If you haven’t already received your invite, please contact me at jonathan.chambers@ generationmedia.co.uk to book your place.