Download Thinktv

Home , Snapchat

what we do

thinktv is a marketing and research association dedicated to the advancement of commercial television.

About US and THEM

Female Male 55% 44%

Female Male 50% 50% 18-34 35-54 55+ 28%|27% 56%|34% 17%|39%

41% 17% 16% 15% 11% Advertiser Creative Publisher* Media Digital agency agency agency

* Publishers include TV, print, radio, Google, etc. About US and THEM

SMARTPHONE TV STREAMING DEVICE SMART SPEAKERS SMART TV Us 97% 66% 58% 67% Them 78% 27% 19% 49% About US and THEM

NETFLIX AMAZON PRIME APPLE TV DISNEY+ Us 95% 77% 31% 39% Them 61% 35% 7% 16% Our lens appears to be colouring how much we think Canadians are consuming media

Daily Time Spent on Different Media Types (mean number of hours) Canadian public Industry professionals Industry’s estimate of the general public 4.1 3.7

3.0 2.8 2.5 2.3 2.2 2.0 1.8 1.7 1.8 1.5 1.6 1.3 1.0 1.0 0.5 0.5

Watching on TV Watching Watching a Using YouTube Social networking Online for on-demand subscription service or social media practical tasks

In an average day, approximately how much time do you spend doing the following activities? What percentage of time do you think that the average adult Canadian spends doing the following activities in an average day? Our lens appears to be colouring what we think Canadians are doing – app usage

Apps Used in the Last Month Canadian public Industry professionals Industry’s estimate of the general public

99% 96% 93% 94% 93% 91% 93% 89% 88% 78% 74% 74% 71% 71% 71% 70% 68% 63% 57% 42% 36% 25% 25% 26%

Facebook YouTube Netflix Instagram Twitter Spotify Amazon Prime LinkedIn Video

Which of the following websites, apps, or services have you visited or used in the last 1 month? Which of the following websites, apps, or services do you think that the average adult Canadian has visited or used in the last 1 month? Our lens appears to be colouring what we think Canadians are doing – app usage

Apps Used in the Last Month Canadian public Industry professionals Industry’s estimate of the general public

74% 64% 59% 56% 54% 44% 46% 46% 39% 34% 31% 33% 27% 25% 25% 24% 18% 13% 14% 13% 6%

WhatsApp Pinterest Tik Tok Disney+ Snapchat Apple TV+ Reddit

Which of the following websites, apps, or services have you visited or used in the last 1 month? Which of the following websites, apps, or services do you think that the average adult Canadian has visited or used in the last 1 month? We’re not watching what they watch – does this influence our opinion?

At least One Episode Watched in P6M Canadian public Industry professionals

53% 47%

26% 26% 24% 21% 20% 20% 20% 17% 18% 12% 11% 8% 8% 9% 6% 5% 4% 4% 5% 2%

Tiger Ozark Insecure Little Fires The Dead Love is What We Hamilton Succession The King Everywhere Morning to Me Blind Do in the Mandalorian Show Shadows

Which of the following shows have you watched at least one episode of in the last 6 months? We are underestimating TV and overestimating Social Media Which media draws your attention to a product/brand you hadn't heard of?

Canadian Public Industry Professionals

40% 15% TV

18% % Social Media 49 (second highest)

In which of the following media are you most likely to find advertising that …? Assuming that your total marketing budget returns to a normal level next year, how will you adjust your spending for the following media (if at all).

Significantly up ( ) / down ( ) from 2017 But we also recognize TV’s strengths Which media makes brands, products or services more recognizable/famous?

Canadian Public Industry Professionals

51% 57% TV

14% 20% Social Media (second highest)

In which of the following media are you most likely to find advertising that …? But we also recognize TV’s strengths Which media carries advertising that sticks in your memory?

Canadian Public Industry Professionals

53% 51% TV

9% 13% Social Media (second highest)

In which of the following media are you most likely to find advertising that …? Canadians watch a lot of TV

15 Canadians watch a lot of

AVERAGE WEEKLY HOURS

ADULTS 25-54 ADULTS 18-34

14.6** 10.1 *

6.8 6.2

2.2 1.6 0.7 1.3 1.1 0.1 0.6 0.2 0.4 0.2

Total TV YouTube Facebook Instagram Snapchat TikTok Twitter Total TV YouTube Facebook Instagram Snapchat TikTok Twitter

* 85% of A25-54 TV viewing is LIVE * 87% of A18-34 TV viewing is LIVE

Total Canada | Fall 2020 16 and so do Western Canadians

AVERAGE WEEKLY HOURS

ADULTS 25-54 ADULTS 18-34 * 13.2*

8.5*

5.2 5.6

2.3 1.4 0.5 0.6 1.2 1.1 0.2 0.2 0.4 0.1

Total TV YouTube Facebook Instagram Snapchat TikTok Twitter Total TV YouTube Facebook Instagram Snapchat TikTok Twitter

* 85% of A25-54 TV viewing is LIVE * 86% of A18-34 TV viewing is LIVE

Western Canada| Fall 2020 17 10.5 million Canadian HH’s have a paid TV subscription

Cord cutting has been far overstated: total subs are down less than 1%.

The notion that “no millennials subscribe to TV” is also false: 57% of 18-34 year olds subscribe to TV, and they’re also accessing linear TV out-of-home and via streaming (which is how TV is able to reach 78% of A18-34 on a weekly basis).

2021 Jan ‘20 Jan ‘21 Index TV SUBSCRIPTIONS Total Subscribers 10,548,341 10,483,436 99.4 Cable Basic/Digital Cable 5,634,299 5,497,952 97.6 30% DTH 53% Telco/IPTV Satellite 1,933,180 1,786,392 92.4

Telco/IPTV 2,956,769 3,175,139 107.4 17% Other 24,093 23,953 99.4

Total Canada 18 Canadians pay most attention to ads on

Q. Which one of the following media carries video advertising that best captures your attention?

51%

24% TV Online Video 20% Social Media

Total Canada | Feb 2020, Adults 18+, TV = TV in all its forms; Live, On Demand, Online 19 is most trusted across all demos

Q. Which one of the following media carries video advertising that you believe to be most trustworthy?

MOST TRUSTWORTHY

70% 60% TV

12%

Online Video 20%

8% 12% Social Media Adults 18+ Adults 18-34

Total Canada | Feb 2020, TV = TV in all its forms; Live, On Demand, Online TV is incredibly effective

21 TV works throughout the funnel

TV is your best store-front window

Top of the Funnel • Awareness • Brand building • Interest / purchase intent

Bottom of the Funnel • Activation via sales promotions messages • TV ads drive website visits • Thanks to digital, you can literally buy online while watching the TV commercial TV delivers the best ROI TV’s ROI is $14.34 for every dollar spent

ATTRIBUTED SALES ROI BY MEDIA CHANNEL OVER A ONE YEAR PERIOD $14.34 $13.52 $12.71 $11.79 $11.45 $9.99

$6.95

Overall TV Display & Other Paid Search Paid Social SFVC Other Media

% of Media Spending: 42% 18% 14% 6% 2% 18% 23 Source: Canadian Media Attribution Study TV delivers the best ROI In the long term, TV’s ROI grows to $23.40

ATTRIBUTED SALES ROI BY MEDIA CHANNEL (OVER 4 YEARS) $23.40 $20.21

$15.20 $14.32 $13.10 $9.49

MULTIPLATFORM TV Display & Other Search Social SFVC Other Media

% of Media Spending: 42% 18% 14% 6% 2% 18%

Source: Peak Performance: Driving Advertising Effectiveness That Lasts TV improves online performance

TV’s halo effect amplifies the sales ROI of digital by 19%

Standalone Digital ROI Without TV’s TV’s Adjusted ROI halo effect, digital advertising’s +23% average ROI would decline by 19%. -19%

Source: Accenture “The Moneyball Moment for Marketing in Canada”

Sales uplift over base The deceptionof the short Short termuplifts only sales No enhancement of pricing power pricing of enhancement No Creativityhas little noor impact Tacticalprompts behavioural Sales activation Short Tightly targeted Tightly - term sales uplifts sales term Time Source: Binet & FieldSource: Binet 2013 -term model Sales uplift over base The deceptionof the short Short term effects dominate ~6 months ~6 dominate effects term Short Short termuplifts only sales No enhancement of pricing power pricing of enhancement No Creativity has little or not impact not or littlehas Creativity Tacticalprompts behavioural Sales activation Short Tightly targeted Tightly - term sales uplifts sales term Long term sales growth termLong sales Strategic associations emotional Strengthened powerpricing Creativity boosts stronglyCreativity boosts Long Brand building Time - term sales growthtermsales Broad reach Broad Source: Binet & FieldSource: Binet 2013 -term model As short-termism took off, effectiveness fell 2.0 30%

1.9 Effectiveness 25% 1.8

1.7 20% % short-term term 1.6 15% 1.5 Avg. no. VL business effects business VL no. Avg. 1.4 10% - short % cases

1.3 5% 1.2

1.1 0% 2002 2004 2006 2008 2010 2012 2014 2016 6 years ending

Source: IPA Databank, 1998-2016 for-profit cases Optimum balance: The “60:40 rule”

Very Large Strongest Most Very Large Share Growth Cases Brand-Building Cases Efficient Cases Profit Growth Cases

38 42 36 36 62 58 64 64

Source: IPA Databank, 2016 cases The sweet spot is shifting to brand

100

90 24 37 80 45 43 Activation 70

50 Brand 40 76 Optimum budget split % budget Optimum 63 30 55 57 20

0 98 to 10 00 to 12 02 to 14 04 to 16 Period Source: IPA Databank, 1998-2016 for-profit cases Very Large Business Effects

Profit Sales gain Market share Penetration Price sensitivity Loyalty Activation ROI You need brand and activation

Profit 2.5 Sales gain 2.4 Market share Penetration Price sensitivity 2.0 2.0 Loyalty Activation ROI 1.5 1.5

1.0 0.8

Number of very large business effects effects business large of very Number 0.5

0.0 Low Brand, Low Activation Low Brand, High Activation High Brand, Low Activation High Brand, High Activation Balance of brand and activation effects

Source: IPA Databank, 1998-2016 for-profit cases, based on scale of activation effects and number of brand effects Brand building boosts short-term effects

45% 42% 40% 36% 35%

30%

25%

20% 17% 15%

10% % Reporting very large activation effects. activation very large % Reporting

0% 0 1 ≥2 Number of very large brand effects reported

Source: IPA Databank, 1998-2016 for-profit cases Brand to Activation ratio – varies by category

100 90 20 36 80 42 40 49 70 56 Activation 60

50 40 80 Brand Optimum budget split % budget Optimum 64 30 58 60 51 20 44

0 Durables CPG Financial services Other services Retail NFP

Source: IPA Databank, 1998-2016 cases Brand-building media are becoming more important Established brand media are working harder

45% 40% 40% 35%

30% 27% 27% 27% 25% 22% 22% 20% 14%

% increase in avg. no. VL VL no. avg. in increase % 15% 13% business effects from adding from effects business 10% 5% 0% TV Press Radio Outdoor

Source: IPA Databank *Outdoor = 2012 - 2016 Web 1.0 (1998 - 2006) Web 2.0 (2008* - 2016) TV is still best for market share growth

3.0% 2.6% 2.5% 2.1% 2.0% 1.8%

1.5% gained per annum per gained 1.1% Avg. market share points share market Avg. 1.0%

0.5%

0.0% No TV TV sponsorship DRTV Brand TV

Source: IPA Databank, 2014-16 cases Conclusions

• Brand building is becoming more important: the 60:40 rule has shifted closer to 80:20 • This is making brand-building media even more important • We need to restore balance to budget deployment: allocate the recommended balance for your brand’s context “You must have TV in your consideration set … TV continues to represent a significant majority slice of video for most demographics.”

Mark Ritson Marketing & Branding Expert, Columnist, Consultant and Professor

40 digital companies know works!

TV spend by internet- related products & services* is up over 2.7x since 2015

YEAR-OVER-YEAR % INCREASE TV SPEND BY INTERNET BUSINESSES +28% +37% +30% +17%

2015 2016 2017 2018 2019

Companies like: *full list available here:

Source: Total Canada/Annual/Numerator Canada | Full Report Here 41 FAANG’s spend continues to grow

TV spend by the FAANG companies has doubled in 4 years

YEAR-OVER-YEAR % INCREASE TV SPENDING +30% +32% +29% +21% -1.5%

2015 2016 2017 2018 2019

Source: Total Canada/Annual/Numerator Canada | Full Report Here 42 March 25 2021

The HALO Effect GOAL: Assess TV’s Ability to Drive Outcomes by Brand Life Stage

140 Direct to Consumer Brands 50 Non-DTC Brands

Source: VAB analysis of Nielsen Ad Intel data, TV spend (national cable TV, national broadcast TV, Spanish language broadcast TV, Spanish language cable TV, spot TV, syndicated TV), Jun ‘16 – Jun ’20 (calendar months). VAB analysis of Comscore mediametrix multiplatform (desktop + mobile) media trend data; P18+, Jun ’16 – Jun ‘20 (calendar months). Measurement Time Period: June 2016 – June 2020. METRIC: Website Traffic

TV 3 Months Prior Launch To TV Launch Month

2016 2020

140 Direct to Consumer Brands

DTC Brands: TV Launch Month vs. Three-Month Average Prior To TV Average Website Unique Visitors

Three Years Between Four - Seven Eight Years Old or Younger Years Old or Older

Unique Visitors % Increase: +23% +19% +10%

40 Brands 60 Brands 40 Brands

DTC Brands: ‘When On TV’ Monthly Average vs. Three-Month Average Prior To TV Average Website Unique Visitors

Three Years Between Four – Seven Eight Years Old or Younger Years Old or Older

Average Monthly Unique Visitors % increase: +138% +72% +23%

Average Monthly Unique Visitors increase: +811K +1,383K +803K New-to-TV Advertisers

50 Non-Direct to Consumer Brands

Non-DTC Brands: TV Launch Month vs. Three-Month Average Prior To TV Average Website Unique Visitors

Under Twenty Over Twenty Years Old Years Old

Unique Visitors % increase: +15% +12%

25 Brands 25 Brands

Non-DTC Brands: ‘When On TV’ Monthly Average vs. Three-Month Average Prior To TV

Under Twenty Over Twenty Years Old Years Old

Average Monthly Unique Visitors % increase: +50% +21%

Average Monthly Unique Visitors increase: 25+2302KBrands 25+315BrandsK

1 Beginning TV early in a brand’s history creates a sustainable advantage

No brand is too young to benefit from TV. DTC and non-DTC brands across all life stages see an 2 immediate double-digit increase in website traffic at launch

3 Younger brands see the largest impact from a sustained presence on TV

Younger brands spend aggressively and advertise more consistently on TV…to establish their name, 4 build reputation, develop positive perceptions and grow share

Many brands that implement Test & Learn on TV see results that justify big boosts to their TV ad 5 budgets to drive even greater business outcomes ’s winning formula

1 TV dominates time spent with media 2 TV ads produce the biggest impact

3 TV improves the performance of online advertising 4 TV works @ both ends of the funnel

5 TV delivers the strongest ROI of all media

53 reach us @ [email protected]

@thinktvca subscribe to our newsletter thinktv.ca