RESILIENCE AND EFFECTIVENESS OF TV
STRUCTURE Growing TV ad revenue Delivering high reach Cross-platform TV viewing Delivering trust and security Emotional connections Bringing families together Encouraging conversation Premium effectiveness Source: Ipsos Affluent Europe 2017
TV AD SPEND CONTINUES TO GROW TV Ad spend in Europe US$ (billion) 40.3 Projected Europe TV ad spend in 2018 35.5 36.4 37.0 38.0 39.0 +24% Projected growth in Europe TV ad spend 2009 to 2018 2013 2014 2015 2016 2017 Five year trend Source: Zenith Ad Forecast Dec 2016
HIGH TV PENETRATION AMONG ALL AGE SEGMENTS % Daily reach 95% Of affluent Europeans watch TV at least once a day TV remains very important for us. It s still a very important way for us to drive mass reach and the right reach as well. 93% Of affluent Europeans aged 21-35 watch TV at least once a day Andrew Clarke, CMO, Mars, Feb 2017* Source: Ipsos Affluent Europe 2017, * The Global TV Group
Digital Digital HEAVY TV VIEWERS ARE HEAVY DIGITAL VIEWERS TV still works, obviously, how we plug it with digital is becoming more and more important. You can t separate digital from what happens on air. Index where 100 = average affluent Europeans TV Seth Kaufman, CMO, Pepsi, Oct 2016* All Affluent Light Medium Heavy Light 115 102 88 Medium 98 111 91 Heavy 90 90 117 TV Millennials Light Medium Heavy Light 143 103 58 Medium 115 118 68 Heavy 87 93 120 Source: Ipsos Affluent Europe 2017, * The Global TV Group
MILLENNIAL TV VIEWING INFLUENCED BY LIFESTAGE Should millennial-minded marketers even be considering TV advertising anymore? Yes, they most definitely should. Average TV hours viewed per day by Italian consumers Mark Ritson, Columnist and Marketing Professor, Marketing Week, Nov 2017 3:16 2:01 2:28 16-24 25-34 25-34 with children Age Source: Auditel Audiweb Objects 2016 (Main Italy TV broadcaster)
TV SETS CONTINUE TO DOMINATE VIEWING 54% Of affluent Europeans only watch TV on a TV set TV is still really powerful for us. It is still the most mass reaching audience and it still works for us. 41% Of affluent Europeans watch TV on a TV set and on other platforms Marisa Thalberg, CMO, Taco Bell, April 2017* But less than 5% Only watch TV on other platforms Source: Ipsos Affluent Europe 2017, * The Global TV Group
TV VIEWING EXTENDS THROUGH THE HOME Where UK consumers watch television via tablets, laptops and/or smartphones 56% 46% Living room Bedroom 24% 19% Study Kitchen 46% Of Affluent Europeans also watch TV on other platforms* 12% 9% Garden Bathroom Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox * Ipsos Affluent Europe 2017
FIRST SOURCE FOR NEWS AND SPORT Media platforms affluent Europeans turn to first for news 33% 31% 13% 10% 9% 41% Of UK consumer media time taken up by TV every day * 2% 2% TV Desktop Newspapers Radio Mobile Magazines Social media Media platforms affluent Europeans turn to first for sport 41% 31% 11% 7% 6% 2% 2% Source: Ipsos Affluent Europe 2017 *Touchpoints 2016, IPA. Base: adults 15+. Includes only media which people choose to consume. TV Desktop Newspapers Mobile Radio Magazines Social media
GROWING NUMBER OF TV ADS SEEN EVERY DAY 45 (+6 TV ads viewed every day by UK consumers in 2016 more ads than 2006) TV, at least in the foreseeable future, is always going to have a place in big brands. David Christopher, CMO, AT&T, Jan 2017* 3:32 98% Average length of time UK consumers view TV every day Of all UK viewers watch TV on a standard TV set Source: BARB, 2006-2016, * FORTUNE 2017
DOMINANCE OF TV SHARE OF VIDEO 20 Minutes of video advertising watched per day in the UK Every medium has a place in your mix. We think about it as video, not TV. That s how we buy it and how we think about it. 94% Of all Video advertising in the UK is TV (18 minutes, 53 seconds) David Christopher, CMO, AT&T, Jan 2017* Source: 2016, BARB / comscore / Broadcaster stream data / OFCOM Digital Day / IPA Touchpoints 2016 / Rentrak * FORTUNE 2017
BENEFITS OF COMBINED TV AND ONLINE VIDEO % average increase on business effects* of using TV and online video combinations +54% +25% +32% TV is great for effectiveness, but what online video does is increase the efficiency of TV. It's the best of both worlds. WARC, Opinion, March 2017 +0% No activity Online video Only TV Only TV and Online video % increase in business effects* by adding Source: Effectiveness in the digital era, 2016, Binet & Field IPA Base: all IPA cases *business effects = market share, brand loyalty, profit, sales etc.)
TV IS THE MOST TRUSTED ADVERTISING PLATFORM TV is by far the most trusted form of advertising by UK consumers 42% 13% 9% TV Newspapers Websites 8% 8% 5% We will prioritise investing only in responsible platforms that are committed to creating a positive impact in society. Keith Weed, CMO Unilever, Feb 2018* Radio Magazines 5% 4% You Tube 3% Social Media Search Outdoor Source: *The Guardian Feb 2018, TV Ad Nation 2016, Ipsos Connect/Thinkbox Q. In which of the following places are you most likely to find advertising that makes you feel
IMPORTANCE OF BRAND SATEFY There s no escaping today s brand safety and some broadcasters have actually seen ad spend increase, as advertisers have flocked back to TV as a safe haven for their brands. Kevin O Reilly, CTO, TVSquared* Trust and transparency is dominating conversations Consumers becoming more selective Online brand safety a growing concern Brands increasingly seeking trusted advertising environments Advertisers are becoming increasingly wary of online s quality and so are unlikely to shift money aggressively from TV to online. Ian Whittaker, Annick Maas, Analysts, Liberum** TV is a safer haven for brands TV content and advertising is tightly regulated TV ad measurement based on completed, full screen, human views Source: The IpsosGlobal Affluent TV Europe Group, 2017 INTV *Media Post, Sept. 2017, **The Guardian Feb 2018
TV IS THE EMOTIONAL AND ENGAGING MEDIUM Media where UK consumers most likely to find advertising that makes them feel emotional 58% 9% 9% TV Social media YouTube 6% 6% 5% Good advertising creates emotion. Newspapers Websites Radio Deborah Wahl, CMO, McDonald s, Jan 2015* 3% 2% 1% Magazines Search Outdoor Source: Source: Ipsos TV Ad Affluent Nation Europe 2016, Ipsos 2017, Connect/Thinkbox INTV daily TV, desktop Q. In which and mobile of the index following places are you most likely to find advertising that makes you feel * BBC newsbeat 2015
TV BRINGS FAMILIES TOGETHER 68% Of UK adults agree that watching TV brings the family together 62% Of UK adults consider watching television together as a form of family relaxation Source: Ofcom Communications Report 2017, Mintel 2016 Source: Ipsos Affluent Europe 2017, INTV monthly cross-platform reach
TV ADS ENCOURAGE TALKABILITY Medium most likely to find ads to talk about face to face/on the phone in the UK 53% 14% 9% 8% 7% 7% TV Social media Websites Newspapers Radio Magazines Medium most likely to find ads to talk about online in the UK 26% 19% 7% 4% 3% 2% Source: TV Ad Nation 2016, Ipsos Connect/Thinkbox Q: Source: On which Ipsosmedium Affluent are Europe you likely 2017to find advertising that you talk about either face to face or over the phone / online (e.g. on Facebook/Twitter)? TV Social media Websites Newspapers Magazines Radio
TV IS THE MOST EFFECTIVE ADVERTISING MEDIUM % average increase on business effects* of using different media types TV has demonstrated that it gets broad reach and high engagement, the quality of the content has become significantly better and it s very efficient and effective. A lot of our campaign recall comes from TV Marc and Pritchard, not Digital. Chief When Brand ads on Officer, Facebook P&G, just Oct 2017** flow by, with TV ads we re really able to tell our story. Per Carleo, Marketing Director Sweeden of Volvo +29% +20% TV Outdoor +17% +15% Radio Print +7% +2% Digital Cinema Source: Effectiveness in the digital era, 2016, Binet & Field IPA: All IPA cases *business effects = market share, brand loyalty, profit, sales etc.) ** Campaign Oct 2017
WRAP UP 95% daily TV reach in Europe Maintaining high reach among millennials First source for news and sport Extending TV reach via other devices Heavy TV viewers are heavy digital users Consistent TV ad revenue growth Trusted brand safe environment Making an emotional connection with consumers and bringing families together TV encourages conversation #1 medium for advertising effectiveness Source: Ipsos Affluent Europe 2017
ABOUT INTV INTV is an industry body consisting of marketers from the leading international television brands. INTV brands cross borders and distribution platforms to reach hundreds of millions of homes around the world and account for the five largest channels in Europe. For audiences, INTV brands provide a trusted global perspective on news, business, sport and culture. For marketers, INTV brands provide an opportunity for advertisers to connect with an internationally-minded and upscale audience around the world in a trusted brand environment.
RESILIENCE AND EFFECTIVENESS OF TV