The Generation Media AV Update August The UK s No.1 Specialist Kids and Parenting Agency

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1 The Generation Media AV Update August 2014 The UK s No.1 Specialist Kids and Parenting Agency

2 UK AV Update

3 YoY % Change in CH Eq. TVRs Year-on-Year Growth: Toys and Games Market CH Eq. TVRs, 1 st January 30 th July 2013 vs % 20% 21.1% 10% 9.0% 9.0% 7.0% 0% -10% -20% -30% -40% -6.1% -11.6% -20.2% -31.1% January February March April May June July Year-To-Date Source: BARB August 2014 Ad pressure in the Toys & Games market was down 11.6% year-on-year in July. Overall, the market YTD is down 6.1%. This can likely be attributed, in part, to advertisers such as Mattel who have decreased their TV ad. output year-on-year.

4 Toys & Games CH Eq. TVRs as a % of all TV Advertising Toys & Games CH Eq. TVRs Children s Exposure to Toys and Games TV Advertising Toys and Games CH Eq. TVRs as a % of all TV Advertising, 1 st January 30 th July 2013 vs % 14.7% % 12.4% % 10% 8% 6% 4% 4.6% 5.4% 9.9% 8.3% 10.9% 9.0% 7.0% 8.0% 4.6% 6.3% 6.9% 6.8% 8.1% 8.4% % % Jan Feb Mar Apr May June July YTD Toys and Games % share of All Advertising 2014 Toys and Games % share of All Advertising 2014 Toys and Games CH Eq.TVRs Source: BARB August 2014 In July Toys & Games TV advertising accounted for 6.8% of all children s viewing of TV advertising down 0.1% YoY. However, exposure is up 0.3% YTD no doubt a result of the increase seen YoY April through June.

5 % of Total Viewing that is 'Time Shifted' Time Shifted Viewing In The Toys & Games Market % of Toys & Games CH TVRs Recorded Viewing, 1 st January 30 th July 2013 vs % 8% 7% 6% 5% 4% 3% 2% 1% 6.46% 6.37% 5.81% 5.65% 7.82% 6.87% 6.37% 6.39% 6.10% 5.90% 5.72% 5.94% 5.77% 5.75% 0% Source: BARB August 2014 January February March April May June July % TVRs Viewed Time Shifted 2013 % TVRs Viewed Time Shifted 2014 The chart above shows the percentage of viewing within the Toys and Games market that is viewed as time shifted year-on-year. The percentage of viewing that was time shifted in July was 5.75% - the fifth consecutive month that has not seen year-on-year growth. This comes after continuous year-on-year growth for the previous 14 months.

6 % Distribution of CH Eq. Impacts Toys and Games Advertising as a Percentage of all Advertising on the Commercial Kids Sales Houses 1 st 30 th July % 90% 80% 25% 21% 21% 18% 16% 12% 18% 70% 58% 60% 50% 40% 30% 75% 79% 79% 82% 84% 88% 82% 20% 42% 10% 0% Itv Breakfast Citv Breakfast Turner Disney Group Citv Sky Kids Five Milkshake & Shake Kids Channels All Other Advertising CH Eq. Impacts July Toys and Games Advertising CH Eq. Impacts July At this period of low demand for the toys & games category, kids channels help fill their inventory with advertising from other categories such as cosmetics, insurance and FMCG brands. This is to such an extent that on average on the specific kids channels, just 18% of advertising emanated from the toys & games category across the month, the same percentage as last year. Source: BARB August 2014

7 % Distribution of Toys and Games CH Actual TVRs 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Source: BARB August 2014 Second Length Strategy Analysis CH Actual TVRs, 1 st January 30 th July 2013 vs % 1.6% 26.5% 26.6% 0.86 (20 ) 56.8% 57.4% 15.3% 14.3% Seconds 20 Seconds 30 Seconds Other Average Time Length Factor 20 commercials increased YoY by 0.6% and, as such, still account for the majority of toys & games viewing. This is shown by the average toys & games commercial length lasting approximately (20 )

8 Top Toys and Games Advertisers 1 st January 30 th July 2014 Rank Advertiser January July 2014 CH Actual TVRs SOV Avg. Com Length YoY % 20" 20.0% Rank Advertiser July 2014 CH Actual TVRs SOV Avg. Com Length YoY % 18" 28.5% % 23" -29.0% % 23" -17% % 21" -1.7% % 20" 7.4% % 15" 793% % 28" 56.2% % 22" -26.7% % 20" -21.5% % 21" -64.9% Advertisers: 60 Average TVRs: % 26" 163.9% % 20" -6.6% % 33" -21.5% % 20" 11.6% % 25" -60.5% % 20" N/A % 20" -57.4% % 15" 3.8% % 10" 239.3% Advertisers: 34 Average TVRs: 134 Source: BARB July 2014 excluding Argos & Smyths

9 Top Toys and Games Brands 1 st January 30 th July 2014 January July 2014 July 2014 Rank Campaign CH TVRs SOV 1 PANINI WORLD CUP STICKER COLLECTION Avg. Com Length % 15" 1 2 LEGO FRIENDS % 18" 2 Rank Campaign CH TVRs SOV HASBRO TRANSFORMERS CONSTRUCT BOTS HASBRO TRANSFORMERS AUTOBOT DRIFT Avg. Com Length % 24" % 17" 3 ZURU ROBOFISH & ROBOSHARK % 13" 3 HASBRO NERF REBELLE % 20" 4 LEGO CHIMA % 25" 4 FLAIR WWE STACK DOWN % 30" 5 BUILD A BEAR WORKSHOPS % 20" 5 ZURU RC ROBOFISH % 20" 6 BANDAI TAMAGOTCHI % 28" 6 7 HASBRO MY LITTLE PONY RAINBOW FRIEN HASBRO MY LITTLE PONY RAINBOW FRIEN % 20" % 20" 7 SPIN MASTER ACTION DRAGONS % 20" 8 LEGO CITY % 22" 8 HASBRO SUPER SOAKER % 20" 9 HASBRO NERF REBELLE % 20" 9 CREATIVE TOYS SOCCERSTARZ % 10" 10 FLAIR TEENAGE MUTANT NINJA TURTLES Campaigns: 279 Average TVRs: 189 Source: BARB July 2014 excluding Argos & Smyths % 30" 10 TOTTENHAM HOTSPUR TURFIES GAME % 30" Campaigns: 106 Average TVRs: 50

10 YoY % Change in CH Eq. Impacts CH Eq. Impacts 100% 80% 60% 40% 20% Year-on-year Growth of the Kids Commercial TV Stations CH Eq. Impacts, 1 st January 30 th July 2013 vs % -20% -40% -60% -80% 44% 17% 7% -2% -4% -11% -14% -16% -17% -19% -21% -23% -24% -41% -47% -64% N/E N/E -2% Source: BARB August 2014 YoY % Change Jan - July 2014 Eq Impacts The majority of children s channels experienced year-on-year audience decline in July the seventh consecutive month. However, thanks to the additional viewing now being recorded on Disney Channel and Disney Jr total viewing on commercial children s channels remained flat year-on-year. The children s audience on Pop continues to grow with the station up 44% year-on-year which can be attributed to it recently becoming a free-to-air channel in selected regions an increase of 9% month-on-month which is in part due to the introduction of Pop+1 in July.

11 Commercial Kids Stations Audience Share CH Eq. Impacts, 1 st January 30 th July 2013 vs CITV 9% CNToo 3% Cartoonito 4% DXD 6% Boom 12% Disney DJR 1% 0% Disney Group 8% Turner 32% CITV B 3% Five 3% ITV B 0.5% CN 12% Nick 12% Sky Kids 44% Kix! Pop Girl 3% 2% Pop 3% Nicktoons 8% NJR2 4% NJR 7% Tiny Pop 5% Disney XD 5% Disney CH 9% Disney JR 4% CNToo Cartoonito 1% 2% CITV 8% Disney Group 18% Boom 10% CITV B 3% Five 3% ITV B 1% Turner 27% CN 14% Nick 11% Sky Kids 41% Kix! Pop Girl 2% 1% NJR2 4% NJR 7% Tiny Pop 6% Nicktoons 6% Pop 4% Source: BARB August 2014

12 Average Viewing Hours Average Monthly Viewing Hours for Children by Station st 30 th July Analysis ordinarily centres on commercial impacts, but this can be misleading due to the limited commercial mintage available on some channels (for example Disney Jr runs only 2 minutes of spot airtime per hour). Viewing hours provides a good indication of how engaged with and loyal to a channel the audience is Source: BARB August 2014 The bars represent the average monthly viewing hours per commercial children s channel (hours reported as a decimal). On average, Disney Channel continues to be watched for longer than any other channel on a daily basis. This has been aided by longer format programming such as Good Luck Charlie, Jessie and Austin & Ally.

13 Orientation of the Commercial Kids Channels 1 st January 30 th July 2013 vs CITV Breakfast ITV Breakfast Shake 2014 Citv Breakfast ITV Breakfast Shake Source: BARB August 2014

14 Average Viewing Hours 2.50 The Generation Media Stickiness Quotient 1 st 30 th July Disney Jr Disney Channel CN Stickiest 1.00 Nick CITV NJR Boom Tiny Pop Pop Disney XD 0.50 Cartoonito NJR2 Nicktoons Pop Girl Milkshake Kix! Citv Breakfast 0.00 Itv Breakfast 0% 5% 10% 15% 20% 25% 30% % Reach Source: BARB August 2014 The Generation Stickiness Quotient identifies the most effective channels at holding children s attention and engagement. The higher on the y axis the bubble, the longer kids spend watching that channel. The further to the right represents the deeper the reach of the channel. The size of the bubble represents the Stickiness score. Disney Channel s combination of high reach and long-format programming means it once again tops our stickiness chart.

15 Key: Modal age group per channel Most popular channel per age group Channel Profile Hotspots 1 st 30 th July Male Female Disney XD % 25% Itv Breakfast % 44% Milkshake % 66% Boomerang % 45% Cartoon Network % 30% Cartoonito % 52% Kix! % 29% Pop % 67% Pop Girl % 77% Tiny Pop % 68% NJR % 57% NJR % 50% Nick % 63% Nicktoons % 38% Citv % 49% Citv Breakfast % 33% Disney Channel % 66% Disney Junior % 46% An analysis of the 000s that watch each channel allows for even greater targeting when running campaigns. The numbers in yellow represent the channel that is the most popular amongst the target age. For example, NJR is the most popular channel amongst four year olds. The numbers in blue represent the modal age of the channel. Using this we can see that Nick has more eight year old viewers than any other age. Source: BARB August 2014

16 ROI AV Update

17 YoY % Change in CH Eq. TVRs 40% Year-on-Year Growth: Toys and Games Market CH Eq. TVRs, 1 st January 30 th July 2013 vs % 30% 20% 10% 10.6% 5.0% 0% -10% January February March April May June July Total -3.0% -2.9% -0.1% -1.3% -20% -30% -26.3% Source: Nielsen August 2014 Ad pressure in the Ireland Toys & Games market was down just 0.1% year-on-year in July, compared to the 11.6% decrease seen in the UK. The increase can likely be attributed, in part, to advertisers such as Lego who have decreased their TV ad. output year-on-year. Overall ad pressure in Ireland is down 1.3% YTD, putting it in a better position than the UK which presents a 6.1% decline from January-July.

18 % Distribution of Toys and Games CH Actual TVRs 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Second Length Strategy Analysis CH Actual TVRs, 1 st January 30 th July 2013 vs % 0.0% 25.0% 27.2% 0.82 (19 ) 49.4% 47.6% 6.4% 6.7% Average Time Length Factor 10 Seconds 20 Seconds 30 Seconds Other 0.81 (19 ) Source: Nielsen August 2014 The average second length in Ireland is slightly shorter than in the UK (0.81 vs. 0.86). This is in part due to the fact that RTE will not allow advertisers to run combination campaigns which commonly use commercials of 30 or longer. As in the UK, the 20 commercial remains the most popular choice, however the use of 30 has seen a growth as a result of the strategies of brands such as Mattel Hot Wheels and Flair Teenage Mutant Ninja Turtles.

19 Top Toys and Games Advertisers 1 st January 30 th July 2014 January July 2014 July 2014 Rank Advertiser CH Actual TVRs SOV Avg. Com Length YoY Rank Advertiser CH Actual TVRs SOV Avg. Com Length YoY % 19" 10.3% % 17" 38.3% % 19" -12.1% % 19" 32.1% % 23" 94.5% % 19" -68.9% % 19" -18.1% % 28" 30.8% % 13" 1.2% % 26" 118.0% Advertisers: 29 Average TVRs: % 19" 27.9% % 19" 72.7% % 19" 74.4% % 19" -52.3% % 20" 50.8% % 19" -45.7% % 19" % % 19" -69.3% % 19" 92.5% % 30" 100.0% Advertisers: 14 Average TVRs: 251 Source: Nielsen August 2014

20 Top Toys and Games Brands 1 st January 30 th July 2014 Rank January July 2014 Advertiser CH Actual TVRs SOV Avg. Com Length 1 LEGO FRIENDS % 17" Rank Advertiser July 2014 CH Actual TVRs SOV Avg. Com Length 1 VTECH KIDIZOOM TWIST % 19" 2 LEGO CITY % 21" 3 LEGO CHIMA % 22" 4 MATTEL COMPOUND % 22" 5 MATTEL HOT WHEELS % 30" 6 LEGO STAR WARS % 18" 7 FLAIR TEENAGE MUTANT NINJA TURTLES % 30" 8 FLAIR CUPETS % 14" 9 MATTEL EVER AFTER HIGH % 30" 2 LEGO FRIENDS % 16" 3 HASBRO ELEFUN & FRIENDS % 19" 4 VTECH SECRET SAFE DIARY % 19" 5 FLAIR WWE % 30" 6 LEAPFROG LEAPREADER % 19" 7 LEGO SUPER HEROES % 25" 8 9 HASBRO TRANSFORMER CONSTRUCT A BOT HASBRO TRANSFORMERS CONSTRUCT BOTS % 30" % 19" 10 MGA LA LA LOOPSY % 19" 10 HASBRO BOYS TOYS SUPER SOAKER % 19" Advertisers: 155 Average TVRs: 232 Advertisers: 52 Average TVRs: 68 Source: Nielsen August 2014

21 YoY % Change in CH Eq. Impacts 2014 CH Eq. Impacts Year-on-year growth of the kids commercial TV stations 50% 40% 30% 20% 10% 0% -10% -20% -30% CH Eq. Impacts, 1 st January 30 th July 2013 vs INJR2 launched on 15 th October 2013 meaning there is no YoY data. RTE2 INICK INJR INJR2 INICKTOO -6.9% -18.7% 21.2% 0.0% YoY % Change Jan - July % Source: Nielsen August 2014 The bars above represent which channels are demonstrating the largest year-on-year growth or decline. Growth, however, does not indicate size. This is the purpose of the diamonds. The higher the diamond, the larger the commercial audience of that channel. Year-on-year, July proved to be another month in decline for RTE2, INick and INicktoons. INJR, having seen 21% growth year-on-year through July, is now the biggest channel in terms of CH Eq. impacts overtaking INicktoons.

22 Commercial Kids Stations Audience Share CH Eq. Impacts, 1 st January 30 th July 2013 vs INJR2 0% RTE2 15% INJR2 13% RTE2 13% INICKTOONS 33% RTE2 15% RTE2 13% ISKYMED 85% INICK 28% INICK 21% ISKYMED 87% INICKTOONS 26% INJR 24% INJR 27% Source: Nielsen August 2014

23 In Summary... July ended with UK Toys and Games ad pressure down 6.1% year-on-year. Hasbro is the largest UK advertiser in TVR terms so far this year but Panini World Cup Sticker Collection remains the largest brand over double the size of the next largest brand. The Pop audience continues to show the most significant growth of the kids commercial TV set YTD which we would expect to continue as the channel is now a free-to-air channel in selected regions. The channel has seen further growth with the addition of Pop+1 in July. Despite the growth Cartoon Network garnered in 2013, Turner s overall share of commercial viewing has fallen 5 percentile points year-on-year. This is no doubt a result of the commercialisation of Disney Channel and Disney Jr which has taken Disney Group s share to 18% and Turner s decision to retire the CNToo station. Irish toys and games ad. pressure decreased by 0.1% year-on-year in July, with overall ad pressure down 1.3% YTD. Mattel remains the largest advertiser in Ireland YTD. However, with Panini World Cup Stickers not on air in Ireland, Lego Friends is the largest brand. Sky Ireland has increased their share to 87% - up 2% on last year, an increase that has likely been affected by the continued growth of INJR year-on-year and the introduction of INJR2.

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