Broadcast TV Builds Long-Term Brand Fame and Drives Sales At

Broadcast TV builds long-term brand NZ’s fame and drives biggest advertising sales at the till. stage

“Nobody watches broadcasts no TV these days so there’ point in advertising my brand on there!” Busted! NZers watch more TV on TVNZ than any other NZ platform making it the place to make your brand famous.

Source: Nielsen TAM, 5+, ATV(Univ) 1 Jan - 30 Jun 19, All time, Consolidated where available. ©2019 TVNZ Brand fame is the key to unlocking the best business results. And, it’s proven you can’t get fame on a diet of short-term activation.

In a review of more than 1,000 case studies, brands that achieved the best business outcomes balanced short-term activation with long-term brand building. The perfect balance of brand vs activation advertising across all categories is proven to be 60:40.

©2019 TVNZ Across 7 campaigns studied in the AdEffect case study BRAND series, it was revealed that broadcast TV drove the most FAME awareness and was by far the most recognised channel. = 1. REACH Strong reach was a massive factor behind this. + Advertising recognition by channel (% NZers 18-54) 2. EMOTION

Min Average Maximum 55% + 43% Broadcast TV minimum 34% 33% 27% 27% 3. TIME 19% 20% 20% 16% 16% 11% 9% 11% 10% 7% 4% 3% 1% 1% 1% NZ’s biggest advertising Broadcast TV Radio Online Display Online Video OOH Print Cinema stage

been 24% lower on average. 1. REACH

Average overall campaign recognition (% NZers 18-54) +

2. EMOTION 59% + 3. TIME -24% 35%

NZ’s biggest All channels Net impact on total All channels advertising campaign recognition EXCLUDING stage Broadcast TV

1. REACH “ Reach is the primary +

driver of media 2. EMOTION 2.0% 1.8% effectiveness. Our 1.6% research shows that + 1.4% 1.2% about 91% of media 3. TIME 1.0% 0.8% effectiveness can 0.6%

Annual mkt. share growth mkt.Annual share 0.4% be explained just by 0.2% NZ’s 0.0% reach alone. biggest Acquisition strategy Reach strategy Loyalty strategy ” advertising stage Les Binet, TVNZ Speaker Series 2018

Base: 2008-16 IPA cases. Source: Peter Field and Les Binet, Media in Focus and Effectiveness in Context. ©2019 TVNZ BRAND Reach is essential. The more people you talk FAME to, the more it impacts on your business. =

1. REACH Average number of very large effects reported + 6.7 Existing customers 2. EMOTION 5.4 New customers + Whole market 3. TIME

2.4 1.8 1.7 NZ’s biggest 0.6 advertising Business effects Total effects stage

Source: Les Binet and Peter Field, The Long and the Short of It, IPA, (Figure 18). ©2019 TVNZ BRAND Proof: FAME In a major telco campaign, our AdEffect case study found that = broadcast TV drove high levels of awareness as would be expected PLUS had the most impact on specific actions when compared 1. REACH with other campaigns tested. +

Generic classification of Average impact of campaign’s channels 2. EMOTION campaign KPI targets on KPIs (index, 18-54)(1)(2) +

3. TIME e.g. For those Specific highly exposed to TV advertising, 159 128 116 131 actions performance on the specific actions KPIs NZ’s e.g. Visit store, were 59% higher than biggest search online advertising the control group. stage Broadcast TV Online Display Billboard Video / Ad shells

Source: AdEffect case study, 2018. NOTES: 1. Sample size n = 100. 2. Control group (low exposure) index = 100, i.e. an index of 120 indicates an impact 1.2 times greater than seen with the control (low exposure) group. ©2019 TVNZ TVNZ reaches over 2 million New Zealanders BRAND FAME every day on air and OnDemand. = Average weekly reach: 1. REACH +

2. EMOTION +

TVNZ 1 TVNZ 2 3. TIME TVNZ reaches reaches over reaches 1.4 million 1 million 928,000 NZ’s 18-54 year olds biggest 25-54 year olds 18-49 year olds advertising stage

1. REACH +

2. EMOTION +

3. TIME Renowned academics Peter 1.6 Field and Les Binet have 1.4 shown that the very large 1.2 NZ’s profit effects from advertising 1.0 biggest 1.0 are almost twice as likely to 0.8 advertising stage result from emotional ads than 0.6

rational ones. efficiency SOV 0.4 0.2 0.2 0.0 Source: Field and Binet, The Long and the Short of It, UK 2013. Rational Emotional ©2019 TVNZ BRAND More proof: FAME Professor Karen Nelson-Field’s major study asked the question: = Does emotional advertising boost advertising effectiveness? 1. REACH Her findings demonstrated the link between strong reactions to advertising and resulting sales impact, the bit that really counts +

for advertisers: 2. EMOTION

Nelson-Field found that + ads which generated a high 3. TIME emotional response had a 167 128 NZ’s 30% greater sales impact biggest advertising than ads which elicited stage Strong emotional Weak emotional a low response. reaction reaction

1. REACH +

2. EMOTION Why? + Broadcast TV is THE platform that You can’t do that 3. TIME allows you to create ads that elicit in a 6-second ad with a big strong emotional responses because SKIP NZ’s long-form video works best to tell a biggest story with a beginning, middle and button in front advertising end with creative audio and visuals. of you! stage

©2019 TVNZ BRAND FAME = Why? 1. REACH + “ There is nothing like video for manipulating 2. EMOTION people’s emotions. The combination of moving + pictures with music, in particular, is amazingly 3. TIME powerful for getting people to feel things. ” Les Binet, TVNZ Speaker Series 2018 NZ’s biggest advertising stage

you get fame. 1.6 + 1.4 1.3 1.2 2. EMOTION When you get emotions at scale, 1.0 1.0 “ where you move people on mass 0.8 + emotionally, that’s when you get 0.6 fame, that’s when you get people 3. TIME

SOV efficiency 0.4 talking, that’s when you get people 0.2 0.2 sharing, that’s when you get herd 0.0 behaviour, and that is a tremendously Rational Emotional Fame NZ’s powerful amplifier of the effects of biggest advertising paid communication spend. ” stage Les Binet, TVNZ Speaker Series 2018

©2019 TVNZ Remember: play the long game – fame doesn’t BRAND FAME happen overnight but it’s worth it when it does. = One of Field and Binet’s essential messages is that if advertisers spend too little time on brand-building, it limits brand equity growth. 1. REACH +

2. EMOTION +

3. TIME Sales uplift over base uplift over Sales

Time NZ’s Short-term effects dominate - 6 months biggest advertising stage Sales activation / Short-term sales uplifts Brand-building / Long-term sales growth

Source: Les Binet and Peter Field, Media in Focus: Marketing Effectiveness in the Digital Era, IPA, (Figure 02). ©2019 TVNZ BRAND “Sustaining an audience is hard. FAME It demands a consistency of = thought, of purpose, and of action 1. REACH over a long period of time.” + 2. EMOTION Bruce Springsteen +

3. TIME

NZ’s biggest advertising stage

Bruce Springsteen, quoted in “The three C’s of customer satisfaction” McKinsey & Co, March 2014. ©2019 TVNZ Emotional campaigns are more effective on BRAND FAME almost all business metrics especially long-term. = The longer the time frame the more emotions drive profit 1. REACH % reporting very large profit growth + 43% Rational 2. EMOTION

Combined 27% + Emotional 21% 23% 23% 3. TIME

13%

NZ’s biggest 1-2 years 3+ years advertising stage Campaign duration

2. EMOTION +

3. TIME

NZ’s It’s the best place to create biggest advertising consistent emotional messaging stage that sticks in people’s minds over time.

NZ’s biggest talk to us. advertising stage