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TV Drives Mass Reach and Boosts the Effectiveness of Other Media

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TV Drives Mass Reach and Boosts the Effectiveness of Other Media TVNZ AdEffect Series TV drives mass reach and boosts the effectiveness of other media Seven case study series summary What we did This case consumer campaigns study series 6,647 interviews represents the 7 largest and most Local and categories comprehensive 6 global brands research study into campaign All major media channels effectiveness conducted in TV Online Video Online Display Social Media Radio New Zealand OOH Cinema eDM PR Print TVNZ | AdEffect Series Summary Page 2 Delivering impact through effective marketing is a combination of both great ideas and an effective delivery mechanism X = Creative Media mix Results i.e. 100 X 0 = 0 0 X 100 = 0 100 X 100 = 10,000 TVNZ | AdEffect Series Summary Page 3 The TVNZ AdEffect Series understands these two essential components to provide holistic insights on how to deliver impact through effective advertising How effective is the campaign overall and what actions could be taken to improve its effectiveness in the future? How effective is the media mix? How effective is the creative execution? Reach and Media mix Impact Standing out Change brand Change frequency perceptions behaviour How does each channel What campaign Does the campaign perform? How well do outcomes result from stand out from other Does the media plan How does the ad What is the effect on different channels work the media allocation? campaigns? generate enough impact the way the short- and long- together? exposure? consumers think about term KPIs of the brand? the brand? TVNZ | AdEffect Series Summary Page 4 Depositing memories: how much does it cost to deliver your message? There are two components to this question Cost of X Average = Cost of conversation / number of delivering impression impressions a message required TVNZ | AdEffect Series Summary Page 6 CPM differs significantly by channel, but TV’s economies of scale mean TV can deliver mass reach economically CPM by channel (Local currency, WARC 2016)1 217. 2 55.4 66.5 21.2 8.4 10.4 14.0 OOH Broadcast Radio Magazines Newspapers Online Cinema TV 1. Source: WARC media spend database 2016 TVNZ | AdEffect Series Summary Page 7 Within online, CPM also varies significantly as does the advertising product being sold, i.e. display vs. video and skippable vs. not CPM by channel (Local currency, WARC 2016)1 CPM by channel (Local currency, TVNZ AdEffect Series 2017)2 Different data sources lead to different results at total level 10.4 66.5 14.4 31.9 73.6 Broadcast Online Online Display YouTube OnDemand TV 1. Source: WARC media spend database 2016 2. Source: TVNZ AdEffect case study series average of 4 case studies with data supplied to a sufficiently granular level TVNZ | AdEffect Series Summary Page 8 New Zealand is different to other western markets. A relatively low level of TV media fragmentation helps TV deliver strong economies of scale and low CPM compared to the market average CPM by channel by market (USD, WARC 2016)1 OOH Broadcast TV Radio Magazines Newpapers Online Cinema Market average 7.0 New Zealand 38.0 27.3 Australia 41.9 8.6 UK* 12.5 43.6 USA 34.6 NOTE See appendix page 39 for details on WARC calculation methodology 1. Source: WARC media spend database 2016, *UK 2015 data as 2016 is unavailable TVNZ | AdEffect Series Summary Page 9 On average it takes 3.3 exposures to get a viewer to remember your ad, with the exact number required varying by channel and category Average number of exposures to deliver message 4.2 3.9 2.3 2.8 (Range 1.0 – 7.9) (Range 1.9 – 5.9) (Range 1.0 – 4.0) (Range 1.4 – 3.5) Broadcast TV Radio Print Online NOTES: Source: TVNZ AdEffect case study series; measured as number of impressions required to deliver 20% of awareness; not available for Cinema or OOH; Newspapers and Magazines combined into print. TVNZ | AdEffect Series Summary Page 10 Overall average On average it takes 3.3 exposures to get a viewer to remember your ad, with the exact number required varying by channel and category 3.3 Average number of exposures to deliver message 4.2 3.9 2.3 2.8 (Range 1.0 – 7.9) (Range 1.9 – 5.9) (Range 1.0 – 4.0) (Range 1.4 – 3.5) Broadcast TV Radio Print Online NOTES: Source: TVNZ AdEffect case study series; measured as number of impressions required to deliver 20% of awareness; not available for Cinema or OOH; Newspapers and Magazines combined into print. TVNZ | AdEffect Series Summary Page 11 A direct comparison between TVNZ OnDemand and YouTube shows that TVNZ OnDemand is significantly more efficient than YouTube Average number of exposures to deliver message 2.0 15.0 VS TVNZ OnDemand YouTube NOTES: Source: TVNZ AdEffect Series – Vod Case study; measured as number of impressions required to deliver 15% of awareness, extrapolated to 20% to be comparable with slide 39. TVNZ | AdEffect Series Summary Page 12 Overall average Putting all this together, on average it costs 9.3 cents to deposit your advertising into a 92.7 customer’s mind... Cost of delivering message by channel (CPM multiplied by required frequency, local currency, WARC 2016)1 183.5 88.8 43.6 54.9 Broadcast TV Radio Print Online NOTES: Source: WARC media spend database 2016, TVNZ AdEffect Series, Kantar TNS analysis. TVNZ | AdEffect Series Summary Page 13 Overall average ...with Broadcast TV proving to be the most cost effective 92.7 Cost of delivering message by channel (CPM multiplied by required frequency, local currency, WARC 2016)1 183.5 TV proves to 88.8 be the most 43.6 54.9 cost effective Broadcast TV Radio Print Online NOTES: Source: WARC media spend database 2016, TVNZ AdEffect Series, Kantar TNS analysis. TVNZ | AdEffect Series Summary Page 14 Building a mass reach campaign without TV: is it possible? TV was the top performing channel in all seven case studies; in fact no other channel evaluated ever achieved recognition higher than Broadcast TV’s lowest performance of 34% Advertising recognition by channel (% NZers 18-54)1 Min Average Maximum 55% 43% Broadcast TV minimum 34% 33% 27% 27% 19% 20% 20% 16% 16% 11% 9% 11% 10% 7% 4% 3% 1% 1% 1% Broadcast TV Radio Online Display Online Video OOH Print Cinema NOTES: Source: TVNZ AdEffect Series. TVNZ | AdEffect Series Summary Page 16 If TV had not been included as a channel, recognition of the campaigns would have been 24% lower on average Average overall campaign recognition (% NZers 18-54) 59% -24% 35% All channels Net impact on total All channels campaign recognition EXCLUDING Broadcast TV TVNZ | AdEffect Series Summary Page 17 By modelling additional media spend, we can see the potential of other channels: all channels are limited in generating additional awareness and don’t come close to the level of reach that TV offers Potential recall – Maximum (% NZers 18-54)1 68% Potential 42% 44% 33% Average 43% 27% 22% 10% Broadcast TV Radio Online Print NOTES: 1. Source: TVNZ AdEffect case study series TVNZ | AdEffect Series Summary Page 18 TV also helps make other broad reach channels more memorable Advertising recognition by channel by exposure to Broadcast TV1 High exposure to Broadcast TV 30% 18% 37% 28% Increase Increase Low exposure to Broadcast TV 22% 14% Radio Online Display NOTES: 1. Source: TVNZ AdEffect case study series. TVNZ | AdEffect Series Summary Page 19 This is also true for radio, however TV’s superior reach means other channels are more likely to be leveraging off the power of TV Broadcast TV advertising recognition by exposure to other channels1 High exposure High exposure to Radio 49% to Online2 43% 37% 4% Increase Increase Low exposure Low exposure 2 to Radio 36% to Online 41% Broadcast TV Broadcast TV NOTES: 1. Source: TVNZ AdEffect case study series. 2. Exposure information only available to online as an overall channel. TVNZ | AdEffect Series Summary Page 20 Effecting change: which channels influence consumers’ actions? While digital may have disrupted the traditional linear purchase funnel, as marketers we are still ultimately trying to move consumers closer to a point of purchase or action Awareness Purchase Intent Active evaluation Awareness Consideration Consideration set Loyalty loop Moment of purchase Purchase Intent Trigger Purchase Post-purchase Consideration Purchase/ Loyalty Static & linear Looped Dynamic NOTES: Kantar Asia Pacific, Getting Digital Right – Reflections for a better digital world. TVNZ | AdEffect Series Summary Page 22 The following slides use indices to show the impact the campaigns we’ve studied have had on the advertiser’s KPIs Impact of exposure on general brand KPIs (index) High TV exposure increases High TV exposure increases KPI performance from 50% to 60% KPI performance by 20% 60% 50% To facilitate interpretation, the impact 120 of high channel exposure is converted 100 in to an index using the below equation High Exposure Index = Control Control High TV Control High TV exposure exposure TV TV TVNZ | AdEffect Series Summary Page 23 TV performs well across all stages of the funnel, but is most powerful in establishing the campaign and driving core brand metrics Generic classification of Average impact of campaign on KPIs (index, 18-54)(1)(2)(3) campaign KPI targets Average Broadcast TV Specific actions e.g. Visit store, search online 137 120 Targeted brand perceptions e.g. Product is available, brand is easy to deal with 134 134 General brand measures e.g. Awareness, consideration, preference 111 120 NOTES: 1. Source: TVNZ AdEffect case study series 2. Control group (low exposure) = 100 3. FMCG targeted sales case study excluded as an outlier TVNZ | AdEffect Series Summary Page 24 In both short and long purchase lifecycle categories campaigns as a whole drove similar results, however TV’s role in the media mix differed significantly Generic classification of Average impact of campaign on KPIs (index, 18-54)(1)(2)(3) campaign KPI targets Average Broadcast TV Specific actions 138 132 134 e.g.
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