A Comprehensive Study of TV and Addressable Advertising in a Transforming Media Landscape
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Thinking Inside the Box A comprehensive study of TV and addressable advertising in a transforming media landscape. 1 Whitepaper written by DRG in collaboration with Finecast Thinking Inside the Box Foreword. Whitepaper Guide by With the continuing developments in technology and the pace of change accelerating, we’ve all become accustomed to adapting to new approaches, tools and information. Section 01. Section 02. Section 03. Within the advertising landscape we’ve seen huge advances in the last few decades, and the advent of digital Looking Outside The role Left to your marketing has ultimately revolutionised our approach, whether brand, agency or consumer, all powered by the the Box of TV own devices use of data and granular insights. TV advertising has traditionally been a media stalwart, 18. The advertising industry 34. What is TV? 56. The device diary– the role of big and small screens a place where brands become famous with creative 21. Addressing the COVID-19 46. A modern take on TV appearing alongside viewers’ favourite TV shows. Today, effect we can apply the power of TV with the precision of data, 47. A day in the life of a viewer 59. Preferential treatment producing a compelling offering for advertisers. But is this 23. Consumer trust 50. Living up to expectations still the case today? 61. Ads on the TV screen 26. TV in a world of streaming – everything on-demand The primary objective of this research was to deep dive and online video into the impact of the evolution of TV on viewers and how advertisers can navigate this to maximise the effectiveness of their TV campaigns. With TV screens, advanced ‘Smart’ technology, and on demand services meaning we can watch the content we love at a time that suits us across a multitude of screens and devices, how can advertisers run successful TV campaigns today? The concerns arising from other data-intensive mediums receiving considerable scrutiny and goalposts being moved (think GDPR and Section 04. Section 05. Section 06. the death of the Cookie) is also leading to a widening gulf between how brands can reliably reach their audiences with TV Appetite for Appendix relevant, impactful and positive advertising experiences, and consumers’ perceptions of those campaigns. advertising addressable Are big screens getting the right consideration from 68. Playing to one’s strengths 78. The role of addressable 97. Sample composition and agencies and brands? Are they approaching TV advertising – the power of TV ads methodology details in the most effective way? Are they still in touch with how 81. Addressing knowledge gaps their audiences interact with content there? We wanted to 71. How do viewers feel about ask these questions and share our findings with you. TV ads? 83. The experiment We hope you find the outcomes as insightful and 85. People liked addressable fascinating as we did. ads more 89. Addressable ads were more memorable Harry Harcus UK Managing Director 90. Greater engagement for addressable ads 93. Physiological measures 2 3 Thinking Inside the Box. Key findings Key findings Key findings 2. Addressable TV advertising From an industry perspective, addressable TV was largely seen as positive and something 1. What is TV? that will be part of the future, adding to the strengths of TV as a channel. There remains The choice and power that viewers have over a lot of work to be done in terms of its marketing how, when and what they view, as well as and knowledge sharing, communicating to increasing ad free viewing options, gives them advertisers on how they should best put it to use. a sense of control over their TV consumption. For some this is completely different to Industry professionals cited open the door for more brands the traditional notion of TV that many of the many opportunities offered by to advertise on TV. viewers we spoke to grew up with. But, not all addressable TV, from extending viewing is equal. Viewers are gravitating to the reach of linear TV We found evidence that or building incremental reach, people both explicitly liked different aspects of TV for different needs and to creating relevance and and remembered Addressable certain viewing moments are suited to different reaching different consumers TV ads more accurately. with different messages. They also had greater platforms and devices. Some experts felt addressable subconscious engagement and TV meant campaigns could be greater external focus for them planned around more specific compared to those delivered audiences and that it throws as non-addressable too. TV is transitioning from produced, premium content, A stark generational difference a physical entity to something viewers were more uncertain was apparent when parents 40% OFF much more complex and divided. The broadcaster put themselves in the shoes and conceptual. brands are very much part of their kids. Parents felt of the modern notion of TV, their children see TV through Viewers don’t have a simple, with BVOD perceived as TV an altered lens, use it very unified answer of what TV by most, but just over half differently and have a different is now, but 60% of viewers categorising SVOD as TV. relationship with ‘TV’. felt they consider it to be For some, TV will always be something different compared a physical box, watching live to five years ago. TV or strongly connected to the home and British Whilst the industry broadcasters, but for others professionals agreed that it’s something much more TV is any professionally fluid and expansive. 4 5 Key findings Thinking Inside the Box. Thoughts for advertisers 3. Big screens and small screens Thoughts for For many, viewing on smaller, personal devices doesn’t replace big screen viewing, advertisers but is an addition, allowing them to expand their by viewing across the day in different contexts and environments. There is also a clear sense Here are five key strategic takeaways that all of convenience linked to viewing on smaller advertisers should consider: devices, particularly for online video but also for TV. Watching when out and about, watching more personalised content 1. when viewing ads on the larger must be shared to enable or watching something different to the rest TV is a unique screen with evidence of slower advertisers to use it effectively. of your household are some of the benefits advertising heart rates linked to a greater Addressable can be used the small screen offers. ability to encode external to build incremental reach opportunity and information. alongside linear, complement therefore requires a other TV, provide new bespoke approach. Looking to the future, 85% of planning opportunities (using UK consumers think they behavioural or purchase As the big screen embodies We found evidence that TV as an advertising medium will always have a TV in the journey data) or to reach more the traditional idea of TV, people remembered ads more demonstrates huge advantages house. This is indicative of the specific audiences with certain it comes with emotive and accurately and had slower over other media channels, power of TV and the emotional messages. Addressable also positive ties. Pairing this heart rates suggesting greater particularly when considering attachment audiences have enables agencies and brands with the relaxing, escapist external focus when watching audience trust. It allows you to it, proving it is firmly a to more accurately track and environment its content can TV ads on a bigger screen to tell stories through the big part of a household’s media report on campaigns and gives create, viewing on the big compared to on a smaller, screen that are powerful, consumption and continues them the ability to use the screen isn’t a comparable handheld device. emotive and therefore more to remain among the best results to gain new levels of experience to watching on engaging for viewers. Our mediums to reach people with insight. This allows brands to a smaller device. The TV screen neuroscience study showed compelling messages. optimise spend and maximise is seen as a key feature in the that heart rates for viewers existing TV campaigns as home and a focal point in the were lower when watching Addressable TV creates well as engaging those harder living room, equated to a fire on a big screen than when opportunities for brands to to reach younger audiences in olden times and 85% they were viewing the same develop their TV advertising whose viewing is far more of viewers (all currently with a content on smaller screens. strategies and strengthens fragmented. big screen in their household) This suggests that viewers the power of this unique felt they will always have a TV were more ‘externally focussed’ channel, however knowledge in their home. Insight in action: Analyse and understand how ‘TV’ today can best work for your business, for example; what are the optimal combinations of creative and audience based on objectives? How can brands use their own data to better inform TV execution and design innovative campaigns using the full arsenal of opportunities the evolving TV ecosystem has to offer? 6 7 Thoughts for advertisers Thoughts for advertisers 40% OFF 2. 3. What people on demand (BVOD) is largely the new environment. Smaller Creative is key, viewers engage with and trust 24s open to TV ads stating seen as TV by respondents advertisers or those who are TV advertising. a great TV ad should be consider TV to be, and is therefore becoming new to the medium can reap especially in TV socially relevant. is rapidly evolving. an increasingly staple way to the benefits too by taking Viewers crave positivity from Brands tell stories and TV view TV content. This shift to on more experimental and TV ads, and humour is often Addressable TV also opens No longer just scheduled live the actively chosen viewing focussed strategic investments.