Stakeholder briefing
HFSS advertising restrictions - experience to date and next steps
12 December 2007 Contents
1. Background
2. Data and Definitions
3. Trends in Children’s TV Viewing
4. Trends in Core Category Impacts seen by Children
5. Media Spend
6. Conclusions and next steps
1 Background: current and planned restrictions
• Phase 1 (March 2007): – end to HFSS advertising in programmes made for / of particular appeal to children aged 4-9 on all channels except children’s channels – on children’s channels, cut in HFSS advertising to 75% of 2005 levels (pro-rated) – Stricter content rules: any HFSS advertising targeted at primary school children must not use celebrities and characters licensed from third parties (e.g. cartoons), refer to promotions (e.g. toys) or incorporate health or nutritional claims
• Phase 2 (January 2008): – extension of HFSS advertising restrictions to cover programmes made for / of particular appeal to children aged 4-15 on all channels except children’s channels – on children’s channels, cut in HFSS advertising to 50% of 2005 levels
• Phase 3 (January 2009). End to all HFSS advertising on children’s channels.
• Definition: programmes of particular appeal to children are those where the proportion of children in the audience is 20% or more higher than their proportion in the available TV audience
2 Contents
1. Background
2. Data and Definitions
3. Trends in Children’s TV Viewing
4. Trends in Core Category Impacts seen by Children
5. Media Spend
6. Conclusions and next steps
3 Data and definitions Data
• The data analysed in this report uses the Nielsen Media database and is based on all food & drink advertising (referred to as Core Categories). As this analysis does not specifically look at HFSS advertising there may be some Core Category advertising in children’s airtime as non- HFSS foods continue to advertise • All analysis is based on April-September 2007, the first full six months since the restrictions came into operation. Comparisons made to the same period in 2005 and 2006 • Reliable, detailed data on food & drink advertising spend on the internet is not available
Definitions
• Core Category definition: – Total Food (including all sub-categories) – Total Soft Drinks (including all sub-categories) – Total Beverages (previously included in the Food category, now moved to Drinks category – Chain Restaurants – Analysis is based on Nielsen Media ‘product’ categories - a product category is allocated to the product being advertised rather than the advertiser, for example an advertisement for Sainsbury’s chocolate is found in the product category ‘Food’ rather than ‘Retail’. – see following slide for details • Impacts provide a measure of advertising exposure. One impact is equivalent to one member of the target audience viewing one commercial spot
4 Definitions: Core categories
Nielsen sub-categories 02 FOOD 02 FOOD cont. 02 FOOD cont. 04 DRINK 01 Bakery Goods 04 Dairy Products & Substitutes 08 Prepared & Convenience Foods 02 Soft Drinks 05 Biscuits 05 Butter 05 Baby Foods 05 Soft Drink Mixer 10 Bread & Bakeries 10 Cheese 10 Cereals(Ready To Eat) 07 Mineral Water 15 Cakes & Fruit Pies 15 Cream & Substitutes 15 Cereals(Requiring Preparation) 10 Cordials 20 Cakes (Frozen) 20 Eggs 20 Convenience Desserts 15 Fruit Juices/Still Fruit Drink 25 Crispbread/Crackers 25 Margarine 25 Dehydrated,Canned Ready To Eat 20 Other Carbonated 02 Confectionery 30 Milk & Milk Products 27 Pizza - Frozen 25 Athletes/Health/Energy Drinks 05 Cereal Bars 35 Yoghurt/Fromage Frais 30 Prepared Food Range 95 Soft Drinks Genl 10 Chewing Gum 99 Dairy Range 35 Frozen Ready To Eat Meals 04 Beverages 15 Chocolate-Bars & Countlines 06 Fruit, Vegetables, Pasta 40 Jam & Spreads 05 Coffee (Fresh) 20 Chocolate-Boxed 15 Fruit(Fresh) 45 Soup (Canned) 10 Coffee (Instant) 25 Chocolate-Other 25 Rice & Pasta(Dried & Fresh) 50 Soup (Packet) Dry & Fresh 15 Health Drinks 30 Ice Cream & Lollies 30 Vegetables & Pasta (Canned) 55 Potato Crisps & Snacks 20 Tea 35 Sugar Confectionery 35 Vegetables(Fresh) 56 Dips/Dippers Snacks 25 Other Beverages 40 Mixed/General Confectionery 40 Vegetables(Frozen) 09 Organic Foods Rge 03 Cooking Products & Seasoning 07 Meat, Fish & Poultry 05 Organic Foods 30 RETAIL 05 Cakes & Pastry Mixes 05 Bacon 99 Food Corporate 01 Entertainment & Leisure 10 Condiments 10 Fish(Canned) 99 Food Corporate 15 Chain Restaurants 15 Cooking Fats 15 Fish(Fresh & Frozen) 25 Meat & Vegetable Extracts 20 Slice Meat,Meat/Fish Sprd,Pate 30 Sauces (Cooking & Mixes) 25 Meat & Poultry(Canned) 35 Sauces 30 Meat(Fresh & Frozen) 46 Artificial Sweeteners 35 Meat Pies & Sausages 40 Poultry(Fresh & Frozen)
5 Definitions: Children’s airtime
Channels 2005 2006 2007 ITV1 Mon-Fri 1515-1700 ITV1 Mon-Fri 1500-1630 ITV1 Sat 0600-1200 Cbeebies CBBC ITV1 Sat 0600-1300 ITV1 Sat 0600-1130 ITV1 Sun 0600-1130 Boomerang ITV1 Sun 0600-1100 ITV1 Sun 0700-1030 Boomerang +1 Cartoon Network Cartoon Network Plus C4 Mon-Fri 0600-0700 C4 Mon-Fri 0600-0700 C4 Mon-Fri 0600-0700 Cartoon Network Too CITV C4 Sat 0600-0700 C4 Sat 0600-0700 C4 Sat 0600-0700 Discovery Kids C4 Sun 0600-0700 C4 Sun 0600-0700 C4 Sun 0600-0700 Jetix Jetix+1 Nick Jr Five Mon-Fri 0630-0930 Five Mon-Fri 0600-0900 Five Mon-Fri 0600-0900 Nick Jr 2 Nickelodeon Five Sat 0700-1330 Five Sat 0700-1130 Five Sat 0700-1000 Nickelodeon Replay Five Sun 0630-1230 Five Sun 0600-1230 Five Sun 0600-1000 Nicktoons Disney Cinemagic Disney Cinemagic +1 Disney Channel Disney Channel +1 Toon Disney Playhouse Disney Trouble Trouble +1 POP Tiny POP Toonami./Cartoonito
Note: Children’s slots may vary throughout the year. Also, dayparts during which children’s programmes are shown may be treated as slots targeted at ‘housewives with children’ by advertising agencies based on the audience against which advertising is sold – we have included these dayparts based on the programming shown. Disney Channels do not carry commercial advertising.
6 Definitions: Channel groups
Music channels PSB and PSB related digital channels (spin-off channels) B4 MTV R Bliss MTV Two BBC ITV Channel 4 Five Bubble Hits Musflash TV Channel Fizz Music Choice BBC1 ITV1 Channel 4 Five Channel U p-rock BBC2 ITV2 Channel 4+1 Five Life Chart Show TV Q Channel BBC3 ITV2 +1 Film4 Five Life +1 Classic FM TV Rockworld TV BBC4 ITV3 Film4 +1 Five US Flaunt Scuzz BBC News 24 ITV3 +1 FilmFour Extreme Five US +1 Kerrang Smash Hits CBBC ITV4 FilmFour Weekly Kiss TV The Box Cbeebies ITV Play FilmFour World MTV Base The Hits BBC Parliament CITV E4 MTV Dance The Vault E4+1 MTV Flux TMF More4 MTV Hits VH1 More4 +1 MTV One VH1 Classic
7 Contents
1. Background
2. Data and Definitions
3. Trends in Children’s TV Viewing
4. Trends in Core Category Impacts seen by Children
5. Media Spend
6. Conclusions and next steps
8 Viewing to non-terrestrial channels has increased year-on-year across both dedicated children’s channels and ‘adult’ channels
Average hours of television viewing per week Children 4-15 Children 4-9 Children 10-15 Other - All other 4.0 channels 3.6 3.9 4.6 4.8 4.9 5.6 5.5 5.8 Other - Dedicated Children's Channels Five 4.2 5.9 4.3 4.6 5.8 6.4 2.7 2.8 2.9 Ch4 + S4C 0.6 0.6 0.5 0.4 0.5 0.5 1.3 1.0 0.6 0.5 1.3 1.2 ITV1 1.0 0.9 0.6 0.7 0.5 0.7 1.9 1.7 Hours of viewing per week Hours of 1.8 1.7 1.6 1.6 1.6 1.6 1.4 0.7 0.6 0.7 0.6 0.6 0.6 0.6 0.6 0.6 BBC2 1.7 1.7 1.6 1.5 1.5 1.4 1.9 1.9 1.8 BBC1 Apr-Sep April- April- Apr-Sep April- April- Apr-Sep April- April- 2005 Sept Sept 2005 Sept Sept 2005 Sept Sept 2006 2007 2006 2007 2006 2007 Total 14.5 14.6 14.7 14.4 14.8 15.0 14.6 14.4 14.4
Source: BARB Note: Minor variations due to rounding 9 The increase in non-terrestrial viewing during ‘adult’ airtime has been driven by the increase in viewing to PSB digital channels – at the same time viewing to music channels has fallen
Average hours of television viewing per week : Non terrestrial channels excluding Children’s Channels Children 4-15 Children 4-9 Children 10-15
All other
3.6 Music channels 3.9 3.7 3.2 3.3 3.3 2.7 2.9 Commercial PSB 2.7 spin offs ex. 0.6 Children's
Hours of viewing perweek 0.4 0.7 0.8 0.6 0.5 0.3 BBC spin offs ex. 0.3 1.0 1.2 Children's 0.3 0.9 0.6 0.7 0.6 0.8 0.7 0.4 0.2 0.2 0.3 0.1 0.20.2 0.20.20.3 Apr-Sep April- April- Apr-Sep April- April- Apr-Sep April- April- 2005 Sept Sept 2005 Sept Sept 2005 Sept Sept 2006 2007 2006 2007 2006 2007 Source: BARB Note: Minor variations due to rounding
10 Contents
1. Background
2. Data and Definitions
3. Trends in Children’s TV Viewing
4. Trends in Core Category Impacts seen by Children
5. Media Spend
6. Conclusions and next steps
11 Has exposure to Core Category television advertising changed?
12 Core Category impacts fell 20% from 8bn in 2005 to 6.4bn in 2007 - driven by 59% decline in children’s airtime
Core Category Impacts: Children 4-15
Children’s Airtime Other Airtime
8.0bn 7.9bn
6.4bn
5.1 5.3
5.2 Impacts (bn)
2.8 2.5 1.2
Apr- Sept 05 Apr – Sept 06 Apr-Sept 07
Source: Nielsen Media Note: Minor variations due to rounding
13 Core Category impacts fell 20% from 8bn in 2005 to 6.4bn in 2007 - driven by 59% decline in children’s airtime - and in particular in children’s non-terrestrial airtime (49%)
Core Category Impacts: Children 4-15 Children’s - Terrestrial Children’s – Non-Terrestrial Children’s Airtime Other Airtime Other - Terrestrial Other – Non-Terrestrial
8.0bn 7.9bn 8.0bn 7.9bn
6.4bn 1.9 2.5 6.4bn
5.1 5.3 2.4 3.2 2.9
5.2 (bn) Impacts Impacts (bn) 2.8 2.2 2.8 2.5 2.2 1.2 1.1 0.6 0.3 0.04 Apr- Sept 05 Apr – Sept 06 Apr-Sept 07 Apr- Sept 05 Apr – Sept 06 Apr-Sept 07
Source: Nielsen Media Note: Minor variations due to rounding
14 Core Category impacts fell 20% from 8bn in 2005 to 6.4bn in 2007 - driven by 59% decline in children’s airtime - and in particular in children’s non-terrestrial airtime (49%) Core Category impacts increased by 26% in ‘adult’ non-terrestrial airtime
Core Category Impacts: Children 4-15 Children’s - Terrestrial Children’s – Non-Terrestrial Children’s Airtime Other Airtime Other - Terrestrial Other – Non-Terrestrial
8.0bn 7.9bn 8.0bn 7.9bn
6.4bn 1.9 2.5 6.4bn
5.1 5.3 2.4 3.2 2.9
5.2 (bn) Impacts Impacts (bn) 2.8 2.2 2.8 2.5 2.2 1.2 1.1 0.6 0.3 0.04 Apr- Sept 05 Apr – Sept 06 Apr-Sept 07 Apr- Sept 05 Apr – Sept 06 Apr-Sept 07
Source: Nielsen Media Note: Minor variations due to rounding
15 The fall in CC impacts was higher for 4-9 year olds: - minus 27% between 2005-7 - especially in children’s airtime (minus 57%) Core Category impacts increased by 24% in ‘adult’ non-terrestrial airtime
Children’s - Terrestrial Children’s – Non-Terrestrial Children aged 4-9 % change % change Other - Terrestrial Other – Non-Terrestrial (05 vs 07) (06 vs 07) Change in Core Category impacts All Airtime -26.9 -26.8 3.8bn 3.8bn
Children’s Airtime -56.8 -51.5 0.7 1.0 2.8bn Other Airtime +0.4 -8.2
1.2 0.9 1.2 All terrestrial -32.4 -18.5 Impacts (bn) Impacts All non-terrestrial -23.1 -31.7 1.1 1.4 1.4 Children’s Airtime - Terrestrial -92.2 -84.4 0.8 0.4 0.2 Children’s Airtime – Non-Terrestrial -46.8 -46.9 Apr- Sept 05 Apr – Sept 06 Apr-Sept 07 Other Airtime - Terrestrial -13.0 -7.2 Other Airtime – Non-Terrestrial +24.0 -9.5 Source: Nielsen Media Note: Minor variations due to rounding
16 The fall in CC impacts was lower for 10-15 year olds: - minus 13% between 2005-7 - especially in children’s airtime (minus 63%) Core Category impacts increased by 31% in ‘adult’ non-terrestrial airtime
Children aged 10-15 % change % change Children’s - Terrestrial Children’s – Non-Terrestrial (05 vs 07) (06 vs 07) Other - Terrestrial Other – Non-Terrestrial Change in Core Category impacts 4.2bn 4.1bn All Airtime -13.0 -10.2 3.7bn 1.2 Children’s Airtime -62.7 -56.0 1.5 Other Airtime +2.6 +2.0 1.6
2.0 All terrestrial -23.0 -3.8 Impacts (bn) Impacts 1.7 All non-terrestrial -2.3 -15.5 1.7
Children’s Airtime - Terrestrial -94.9 -86.3 0.8 0.8 0.4 0.2 0.1 Children’s Airtime – Non-Terrestrial -52.9 -52.6 Apr- Sept 05 Apr – Sept 06 Apr-Sept 07 Other Airtime - Terrestrial -14.4 +0.5 Other Airtime – Non-Terrestrial +30.9 +3.6 Source: Nielsen Media Note: Minor variations due to rounding
17 Which channels are driving the increase in Core Category impacts seen during ‘adult’ non-terrestrial airtime?
18 PSB spin-off channels and music channels are behind the growth in impacts on non-terrestrial ‘adult’ channels between 2005-2007
Change in Core Category impacts on non-terrestrial channels: April-Sept 05 vs April-Sept 07
Total non-terrestrial 'other' PSB Spin-offs Music channels All other non-terrestrial channels 113.5% 114.4%
42.5% 35.4% 28.3% 30.9% % change in impacts 2.0% 4.8%
Children 4-15 Children 10-15
Apr-Sept 2007 2.4bn(100%) 821m (34%) 267m (11%) 1,360m(56%) 1.6bn(100%) 532m (34%) 185m(12%) 848m (54%) impacts:
Source: Nielsen Media – analysis excludes dedicated children’s channels
19 However, between 2006 and 2007 the growth in impacts delivered on music channels appears to have slowed down while impacts continue to grow on PSB spin offs
Change in Core Category impacts on non-terrestrial channels: April-Sept 06 vs April-Sept 07
Total non-terrestrial 'other' PSB Spin-offs Music channels All other non-terrestrial channels 63.3% 57.1%
-0.3% 3.6% 2.8%
-1.5% % change in impacts -15.5% -19.7% Children 4-15 Children 10-15
Apr-Sept 2007 2.4bn(100%) 821m (34%) 267m (11%) 1,360m(56%) 1.6bn(100%) 532m (34%) 185m(12%) 848m (54%) impacts:
Source: Nielsen Media – analysis excludes dedicated children’s channels
20 Top 20 rating programmes on PSB digital channels: Children 4-15
Title Channel Average Audience (000s) Index1 FILM: WILLY WONKA AND THE CHOCOLATE FACTORY ITV3 274 153 THE X FACTOR ITV2 244 110 BIG BROTHER'S BIG MOUTH E4 207 81 XTRA FACTOR ITV2 194 96 KATIE & PETER: THE BABY DIARIES ITV2 178 79 HOME AND AWAY Five Life 166 111 KATIE AND PETER: THE NEXT CHAPTER ITV2 165 71 HOLLYOAKS E4 144 78 FILM: CHITTY CHITTY BANG BANG ITV3 144 163 MEN IN BLACK (TOON) ITV2 143 96 AMERICA'S GOT TALENT (2007) ITV2 130 78 FRIENDS E4 129 145 BRITAIN'S GOT MORE TALENT ITV2 125 80 UGLY BETTY E4 116 96 FILM: LETHAL WEAPON 3 ITV2 113 86 FILM: COYOTE UGLY ITV2 107 68 FILM: SPACE JAM (1996) ITV2 102 150 FILM: THE MUMMY RETURNS ITV2 99 89 FILM: THE FLINTSTONES ITV2 98 131 FILM: SISTER ACT ITV2 97 102
Source: BARB – April-Sept 2007, based on multichannel individuals 1. 1. Where BARB data indicates the child component of the audience is 20% higher than its representation in the total viewing population, the programme is deemed to be of particular interest to children.
21 Between 05-07 CC impacts have increased across almost all dayparts - with above average increases during daytime and late night
Change in Core Category impacts by daypart: Children 4-15, April-September 05 vs April – September 07
40.0 % change Impacts 28.3 70.0 61.7 61.2 900 55.7 20.0 46.5 800 42.7 40.0 764 700 0.0 600 5.2 500 -20.0 -13.9 -19.6 400
% change in% impacts -40.0 -6.1 300 283 258 % change in impacts 200 -60.0 147 109 120 103 120 100 All airtime 'Other' - 'Other' - Core Category impacts (millions) Terrestrial Non -60.0 0
terrestrial 9 9 29 9 65 75 959 -0 -1 -1 -2059 -2229 -2 0 00 15 00 800 100 Source: Nielsen Media 06 0930-1229 1230-1514 15 17 1 2 223
22 Contents
1. Background
2. Data and Definitions
3. Trends in Children’s TV Viewing
4. Trends in Core Category Impacts seen by Children
5. Media Spend
6. Conclusions and next steps
23 Core Category advertising spend has increased since 2005 - Television’s share of spend has fallen from 68% to 64%
Core Categories: Spend by media Core Categories: Share of spend by media £476m £483m £462m
TV
64.1% 64.4% 304.8 310.7 Radio 68.0% 314.3
Press
3.3% Media spend, £m spend, Media 14.3 3.0% 15.7 Outdoor 4.0% 18.5 Share of media spend, % spend, media of Share 19.1% 99.4 92.4 15.9% 20.9% 73.7 Cinema 10.3% 44.7 45.2 49.7 9.7% 9.5% 11.0 10.7 15.5 2.4% 2.2% 3.2% April-Sept 2005 April-Sept 2006 April-Sept 2007 April-Sept 2005 April-Sept 2006 April-Sept 2007
Source: Nielsen Media
24 Cereal and dairy product manufacturers have increased total media spend since 2005
Total media spend by sub-category £483m £462m £476m
100.9 109.3 109.2
76.1 80.7 All other food 66.9 Dairy Products 28.0 44.2 35.8 19.7 17.8 15.5 All other Prep & Conv 47.1 52.8 59.9 Savoury Snacks Cereals 73.6 69.2 69.5 Total media spend, £m spend, media Total Confectionery 70.4 75.9 67.2 Soft Drinks Chain Restaurants 47.3 39.1 44.8
Apr-Sep 2005 April-Sept 2006 April-Sept 2007
Source: Nielsen Media
25 The marginal growth in television spend between 2006-7 was driven by categories such as meat/fish/poultry and bakery goods
Television advertising spend by sub-category Includes: Bakery goods +44.4% £314m £305m +1.9% £311m Fruit & veg +19.2% Meat, fish & poultry +154.3% 71.6 59.1 +17.6% 69.4 m All other food 48.3 55.3 +2.3% 56.6 Dairy Products 15.6 -3.6% 14.1 23.6 22.7 All other Prep & Conv 11.0 -10.3% 9.8 41.0 Savoury Snacks 45.0 +2.9% 46.4 Cereals Television spend, £ Television spend, 45.4 47.7 -0.5% 47.4 Confectionery 44.6 Soft Drinks 37.8 -14.6% 32.3 33.6 Chain Restaurants 25.3 +2.5% 26.0 Apr-Sep 2005 April-Sept 2006 April-Sept 2007
Source: Nielsen Media
26 Contents
1. Background
2. Data and Definitions
3. Trends in Children’s TV Viewing
4. Trends in Core Category Impacts seen by Children
5. Media Spend
6. Conclusions and next steps
27 Conclusions
• Core Category impacts fell by 20% between April-September 2005-2007, driven by the 59% decline during children’s airtime: – Impacts during children’s airtime on the terrestrial channels have fallen to a negligible amount – Accompanied by a marked decline in impacts on dedicated children’s channels
• There has been an increase in exposure during ‘adult’ non-terrestrial airtime
• The fall in impacts has been greater amongst children aged 4-9 • the 57% decline in 4-9 year old impacts during children's airtime contributed heavily to the overall 27% decline in exposure among this group – the increase in exposure during ‘adult’ airtime has been driven by the non-terrestrial channels
• 10-15 year old Core Category impacts fell 13% – impacts during children’s airtime have dropped 63% – there has been a 31% rise during ‘adult’ airtime on non-terrestrial channels
28 Conclusions
• Entertainment channels are driving the increase in exposure to Core Category advertising on non-terrestrial channels
– PSB digital channels and music channels have been behind the growth in impacts on non-terrestrial ‘adult’ channels – However, between 2006 and 2007 the growth in impacts delivered on music channels appears to have slowed down while impacts continue to grow on PSB spin offs – This is in line with trends in television viewing as children have been increasing the time spent watching PSB digital channels since 2005 with a marginal drop in viewing to music channels
• Non-terrestrial ‘adult’ airtime activity has increased between 2005-2007 across almost all dayparts with above average increases during daytime and late night
29 Next steps
• Phase 2 (January 2008) will extend the restrictions to cover advertising in programmes aimed at older children and further reduce the amount of HFSS advertising allowed on children’s channels. Phase 3 (January 2009) will eliminate HFSS advertising from children’s channels
• Ofcom will continue to monitor effects of these restrictions, and will share the results with stakeholders. In particular, we shall look closely at:
– what the trends are in HFSS advertising in adult airtime before 9pm, and what effects these are having on children’s exposure to HFSS advertising
– the distribution of HFSS advertising across different types of channel
• Ofcom will be carrying out a review of its restrictions in July 2008 (see following slide)
30 Ofcom’s review 2008 review to look at whether: • Scheduling restrictions are achieving the objective of reducing significantly the number of HFSS product advertising impacts (i.e. each occasion when a viewer sees an advert) among children aged 4-15 years • The impact on broadcasters has been broadly consistent with the effects that both Ofcom and the broadcasters expected • Scheduling restrictions and revised content rules are being implemented as intended, or whether unexpected difficulties have emerged in interpretation, implementation and enforcement • Advertisers are evading the spirit of the restrictions, by airing advertising and sponsorship in the names of brands commonly associated with HFSS products in children’s airtime • Advertisers have (contrary to our expectations) significantly increased the amount of HFSS advertising and sponsorship in periods outside children’s airtime, at times when significant numbers of children may be watching
31 Other reviews Department of Health • Department of Health has commissioned consultants (Thomson Intermedia) to look broadly at expenditure and advertising behaviour across all media. Includes work on the techniques adopted by advertisers in TV and other media
• Aim is to publish a report during 2008, with a progress report in the next few weeks
Food Standards Agency
• FSA has commissioned an independent panel to review the nutrient profiling scheme. The panel has held a number of meetings, and has taken evidence from stakeholders.
• Further meetings are planned during the course of 2008, leading to a recommendation from the panel to the FSA in early 2009. The FSA will then consider the recommendations before reaching a conclusion, probably in the first quarter of 2009
32