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 per week 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