Linda Yaccarino, Chairman, Advertising and Client Partnerships at NBC Universal, has been outlining the company’s change vision for the year ahead, and re-iterating her determination that one of the world’s most important media companies will not settle for the status-quo and intends to ‘set the new standard’ for what ad-supported TV means for both consumers and marketers.
In terms of viewer experience, NBCU has enjoyed success with its Prime Pods, where the first or last ad break in a show is reduced to 60-seconds of national advertising and shared between two sponsors, with a strong focus on matching the advertiser to the context of the programming. This is part of a wider effort to reduce ad load and clutter (the company is famously reducing total advertising time by 10% and ads-per-break by 20% in original primetime programming).
The Prime Pods represent a major commercial innovation across the NBCU networks and have resulted in higher likeability, brand recall and conversions, the company reports. Prime Pods are going to expand across the NBCU portfolio during 2019.
The broadcaster has just launched its Contextual Intelligence platform, which uses machine learning and proprietary emotional algorithms to find contextual alignment between an advertisement and programme content. For the advertising creative, the company receives a client brief and then performs a video inspection to get the context. This creates a ‘context module’ for the advertisement.
Context modules are also created for each show, harnessing closed-captioning, scripts data and other data sets that NBCU holds on its upcoming programming. The context modules are then ‘run against each other’ for analysis.
The AI platform finds good matches and NBCU then traffics the client creative to an ad position that follows the relevant programme scenes. The company reports that when content and ads are positively aligned, likeability, recall and brand awareness are all improved.
Contextual Intelligence is viewed as phase two of NBCU’s data-enabled advanced advertising journey, with phase one being the use of data to align media buys – especially linear TV buys – with strategic audience targets. “Now, we’re adding content- and sentiment-based contextual alignment as a core data capability,” Yaccarino said in an end-of-year update recently.
Contextual Intelligence will be used for linear TV placements across the NBCU broadcast and cable TV portfolio. “We’ll make ad placement smarter, more targeted and more relevant by pioneering ‘Contextual Intelligence’,” the company says.
[Channel 4 is also pursuing the use of machine learning to create what it calls ‘contextual moments’ that better match programming to advertising, as you can read here.]
NBCU is also focused on measurement and metrics as part of its change agenda. CFlight is the cross-platform measurement solution the company created to, in its own words, “finally show how real people consume our content across all screens”. Yaccarino says: “For too long, we have been tied to traditional metrics. We will continue setting the new standard in measurement.”
CFlight will be scaled across the entire NBCU portfolio and, alongside this, the company is moving to create outcome-based measurement. “Marketers deserve to base their decisions on business results, but ratings don’t even come close,” Yaccarino comments.
NBCU is going to continue its push into digital. In 2018 it deepened its digital partnerships withApple, Buzzfeed, Snapchat and Vox. There is a determination to prove that digital advertising can be both safe and a valuable experience for people and marketers.
NBCU has been accelerating its transformation to what ad-supported TV needs to become, as a medium, in a data-driven and hyper competitive marketing environment. The arrival of NBCU on the OpenAP platform (with the media company licensing its technology to the collaborative multi-broadcaster venture) marks an important expansion for what is one of the most important linear TV advertising initiatives on earth.
This year the company has evolved its organisational structure around mass reach and targeted audiences, strengthened its creative capabilities and launched an ROI programme for direct-to-consumer businesses (D2C brands). It has also doubled its investment in technology, with a focus on automation.
The company is determined to build on TV values like quality, transparency and safety and the call from Yaccarino to “go even further and set new standards” across measurement, metrics, relevance, viewer experience and digital will require more collaboration, it is acknowledged. The broadcaster talks of liberating itself from legacy processes and moving towards a system that accurately reflects consumer behaviour and client needs. “This is what transformation looks like,” Yaccarino says of both the initiatives and the mindset that NBCU is adopting.
Video is firmly entrenched in our lives. Whether we’re snuggling on the sofa for an evening of telly or killing time on our mobiles before the bus arrives, the opportunities to watch have never been greater.
Back in 2013, we investigated what viewer motivations underpinned the TV we chose to watch. What drove someone to watch live TV over VOD or vice versa? What needs did these video formats satisfy? That study discovered there were six TV ‘need states’.
Since then, the video landscape has changed considerably. We wanted to revisit these need states and broaden the lens to encompass all video formats, including online.
Partnering with MTM, we detangled the role that video plays in our lives to determine how the different video formats coexist and why viewers choose to invest their time in a range of video platforms.
Human needs are enduring but some are more closely tied to age or life-stage than others.
As video formats have multiplied, the range of needs fulfilled by video has expanded since we first created the need states model five years ago.
TV satisfies the widest range of viewing needs for a greater number of people than any other video format.
Live TV excels at delivering a shared experience and allowing us to stay in touch with the wider world.
The desire to escape into a world of quality TV content is a major driver of viewing to both TV and subscription VOD platforms – all of which excel at fulfilling this need.
Online video platforms (including YouTube and Facebook) serve more distinct need states that tend to be driven by function or distraction.
The proliferation of video means that each format has been liberated to do what it does best.
The need states methodology
We recruited the research consultancy, MTM, to determine the fundamental needs that drive our video choices.
Thirty people were given camera glasses to enable them to capture their TV and video viewing in real-time. The camera glasses ensured that all viewing, regardless of location or screen, was recorded.
This resulted in over 150 days’ worth of analysable footage. By the nature of a camera glasses task, it also encompassed viewing from other household members in addition to the wearer’s own video exposure. Once the task was completed, each respondent was interviewed at length about their viewing choices and the motivations behind what they watched.
In addition, we ran an online survey of 6,000 adults to map the size of the trends we observed in the first stage of the research.
Key questions we wanted address included:
What are the fundamental needs that drive our viewing choices and how do these needs differ for newer video platforms and forms of content? How have they evolved since our last analysis?
What role does context have in influencing our viewing choices?
How do viewer needs and behaviours differ across age and life-stage? What needs are most likely to endure throughout different life-stages?
Finally, we worked with a behavioural scientist to contextualise the findings within the wider framework of human behaviour.
We discovered that the role of video has diversified since we first devised the need states model back in 2013 and the different forms co-exist in our lives. There are now eight different needs that drive the majority of video consumption.
Overall, human needs stay relatively constant and the motivations for video viewing are enduring. However, the way in which we satisfy these needs with AV content has been influenced by the development – and critically the mass availability – of technology. As the video landscape has evolved, and the take-up of smart devices has risen, our appetite for AV content has increased. Video provides a means to satisfy needs that were previously fulfilled in other ways.
Critically, our research allowed us to size the need states (by time spent) across all different forms of video – including online; something that we were unable to do back in 2013.
It became apparent that TV satisfies the need states in a way that other forms of video struggle to replicate. Relaxation, entertainment and the shared experience are key.
Broadcaster TV content is the most likely to fulfil all need states bar one: ‘Do’. The motivation to unwind, to experience to escape and distract ourselves is fundamental to the reason why TV is, and will continue to be, so entrenched in our lives.
The qualitative work reaffirmed that broadcaster TV is a cherished, trusted and valued way of fulfilling a wide range of needs, but the development of newer platforms and services has been integral to future-proofing the status of broadcaster TV in the eyes of viewers.
Video on Demand
The proliferation of VOD services, which now account for 10% of the average person’s video consumption, have enhanced TV’s ability to serve different needs. This is because entire series are available on demand through both the BVOD and SVOD platforms. In fact, binge-watching has become such a commonly recognised behaviour that the term entered the Oxford English Dictionary for the first time in 2018.
The take-up of online video on platforms such as YouTube and Facebook has not only enabled video to better fulfil some of the need states, but it has also driven the development of new ones.
Online video accounts for 18% of all video viewing but it generally serves different functions from broadcaster TV and SVOD services. Since 2013, we’ve seen the ‘distract’ need state emerge as a key driver of online video consumption due to the prevalence of short-form content that can be watched in bite-sized chunks.
In addition, online video is three times more likely than the average video type to be the go-to destination for practical help because of the multitude of ‘how to’ guides and AV advice.
The impact of life-stage is generally secondary to overall human needs – most are universal but the ways we fulfil those needs differ with age. The research highlighted some key differences. For example, young people are generally more in need of distraction and less likely to stay abreast of what’s happening in the wider world through video.
The question lies in the behaviours which will endure versus those which are a product of age. Typically, young people have always had more time on their hands and a greater need for distraction, but the role of video in satisfying this need may well stay elevated later in life. The truth will come with time and further research.
The Need States:
Unwind (26% of viewing time)
The need to relax is universal. We all need to spend time decompressing and de-stressing from the pressures of the day and video, particularly linear TV, plays a major role in allowing us to do that.
It is therefore unsurprising that this is the most enduring need state and the driver behind over a quarter of all time spent viewing video content.
From a behavioural perspective, we become increasingly fatigued as the day progresses and this impacts the way we make decisions. This is true regardless of age or life-stage. (Behavioural economists call this ‘ego depletion’). We tend to favour ‘safer’, familiar options that minimise mental exertion and maximise potential satisfaction.
This explains why many of us have similar evening routines. After we finish the activities of the day, most of us eat, wind-down and go to bed. TV is a reliable and easy source of entertainment during this period. Linear TV tends to win out over VOD in this need state, where the more deliberate act of selecting something to watch can seem like too much effort.
Linear TV is prevalent for this need state but both BVOD and SVOD are playing a role in fulfilling this need, particularly for younger audiences.
The sofa is the go-to destination to unwinding (even for younger viewers) and we tend to unwind in the evening, after work, school or college.
Familiarity is key. Content which lightens the mood, such as comedy, light entertainment or familiar dramas are preferred. People will happily watch programmes they have already seen when in this need state.
For 16-34s, online video can sometimes fulfil this need via the passive serving of watching amusing videos, music videos or TV clips.
Distract (18% of viewing time)
This need state builds on our 2013 model.
With the proliferation of smartphones, distraction is now no further away than the end of our fingertips and video consumption is just one way in which we satisfy that need. The flexibility of mobile devices means that regardless of location, content can be found to punctuate the wait for the bus, the morning commute or a break at work. We can often find video to fill whatever gaps we have in our day.
This need for instant gratification is a universal trait, but for younger people – who tend to have more time to spare – it’s particularly prevalent. Video is just one way (alongside social media surfing, gaming and general browsing) to distract ourselves and generally, content that can be consumed in short, bite-sized sessions, wins out.
29% of 16-24s video consumption is within the ‘distract’ need state whilst it only accounts for 6% of time among 65+
Online content is key to distraction. Short sessions (averaging 2-15 minutes) dominate and platforms are selected based on viewing context and time available.
Short videos – generally under 5 minutes in duration – are actively selected based on the tastes and interest of the user rather than the passive serving of content. Humour, short TV, film or sports highlights, games and music dominate this need state.
The afternoon is the most prevalent time of day for distraction, indicating that this is the time when it’s needed the most.
Online video plays a significant role in fulfilling this need for all audiences bar the 55+, who are most likely to use the TV.
Comfort (16% of viewing time)
Humans are social creatures and we all need to spend time with those we love – particularly our partners and immediate family. This is true regardless of age or life stage and most of us recognise TV’s role in bringing households together.
TV plays an essential role in facilitating time with the people closest to us by providing a common point of focus. TV unites households in a familiar, comforting and relaxing way. The time we spend together around the TV is often planned and usually cherished. This is especially true for families with children.
Comfort accounts for 14-17% of our viewing time across all age groups
Comfort is a more important need amongst families, accounting for 19% of all viewing for families with children under 10 versus just 8% of viewing for 16-34s who live alone or with housemates.
Familiar programmes and viewing routines are common within Comfort and linear TV tends to dominate.
TV provides a way for household members to catch up with each other and spend quality time in each other’s company
Early evening viewing is key with viewing focused on the main TV set – most usually within the comfort of the living room.
The choice of content is often secondary to the need to spend quality time together – compromise is common.
In Touch (12% of viewing time)
Most of us feel an innate desire to stay connected to the world around us by keeping abreast of political, social and cultural events. Developments in video mean that the ways in which we can do this are more varied than ever.
Although TV does account for the majority of ‘In Touch’ viewing, this disparity is reflected for ‘In Touch’ when it comes to age. Behaviour is relatively comparable for most of the need states, but this one sees the biggest variation of all.
For 16-34s, online video plays a more significant role, allowing them to snack on bite-sized chunks of content without the need to watch content in full. That said, this age group will happily immerse themselves in content around topics that particularly interest them, such as documentaries.
For older audiences (45+), the reliance on TV to stay in touch with the wider world is more profound.
Live TV accounts for 77% of total viewing, online video 13% and SVOD only 2% within this need state
Mornings features heavily for this need state, although evenings are still key. This is true for both TV and online video.
The need to stay in touch through video is much larger amongst those aged 65 or over, accounting for 17% of all viewing time for 55-64s versus only 7% for 16-24s.
Younger audiences tend to favour short, online video to fulfil this need, whereas older audiences prefer TV.
Long form content plays a distinct role for 16-34s when they have a keen interest in a topic (All4, iPlayer – especially BBC3 – are key).
For 45+, live TV, including scheduled news, and recorded or BVOD documentaries dominate.
Experience (10% of viewing time)
In many ways, the video landscape has changed beyond all recognition over the last few decades but TV remains the primary means of providing a mass shared experience. We’re hard-wired to share experiences with those around us. It provides social currency and a point of connection.
The way TV satisfies the ‘Experience’ need state has been significantly enhanced over time. Online has amplified TV’s ability to provide an all-encompassing experience as conversations that would have traditionally taken place on the sofa or over the water cooler now have no boundaries. Viewers can connect with others all over the world and they can do it instantly.
This has altered the dynamic that viewers have with the video they value the most. The desire to watch in the here and now is enhanced so people can keep up with the conversation and ensure their enjoyment of their favourite programmes isn’t compromised by spoilers.
Experience accounts for 8-12% of our viewing time across all age groups
Live TV is an integral – and valued – way of satisfying the enduring human need to experience content at the same time as others.
Broadcaster TV accounts for 82% of the time people spend viewing in this need state, online video 11% and SVOD just 4%.
Online media amplify the effects of TV.
High quality drama and entertainment shows, sporting or cultural events and big soap stories are crucial to this need state.
The desire to watch on a big screen in the company of others is strong.
BVOD and SVOD enable viewers to share an experience more flexibly, but the desire to watch as close to the live event as possible or watch a boxset as soon as it drops is immense. If not, the value of the overall experience diminishes.
The viral nature of some online video also fulfils a role in this need state, particularly for younger audiences.
Indulge (9% of viewing time)
We all have our personal interests, passions and guilty pleasures and video content provides an increasingly perfect means of pursuing them.
As online video has proliferated, the ability to feed our personal interests has increased significantly and we can now fulfil this need state easily through a mix of TV and online video. This is true across all ages.
There are two sides to this need state. Firstly, the desire for ‘me time’ and to seek out personally appealing content that interests the individual rather than the household. Linear TV, BVOD and SVOD excel at this.
Secondly, the indulgence of personal and niche interests such as hobbies (e.g. gaming, make-up, photography) which would have been traditionally sated by books, websites and magazines but are now served easily by online video platforms, such as YouTube. This is particularly prevalent for the under 35s.
Online video platforms have also facilitated whole communities around niche interests that would probably never have been satisfied before, such as unboxing, spot squeezing and joint cracking.
Trusted channel brands (via linear TV, BVOD and SVOD) offer personally appealing content (such as documentaries, reality or sci-fi) that fulfil the need for ‘me-time’.
Online video – particularly for younger viewers – allows individuals to indulge their personal interests quickly and easily.
Online video has, in many respects, created areas of niche interest or surfaced hidden guilty pleases such as present unwrapping, ASMR and even Mukbang.
Escape (7% of viewing time)
There’s no denying that we’re in a golden age of TV. Hollywood stars regularly adorn the small screen, production budgets dwarf those of the past and top-notch producers turn stories into AV works of art.
The high quality of TV programming and the availability of content enables viewers to lose themselves in video content by escaping into different worlds or lives. It’s all about the strongest sense of personal engagement.
This need state is very much the terrain of the broadcasters and SVOD providers. For live TV, there’s the impetus to watch at the first opportunity but BVOD and SVOD services allow viewers to immerse themselves in multiple episodes of their favourite programmes if they so wish. This is particularly true of younger audiences who have a greater tendency to binge-watch TV content. This has, however, lead to some interesting new behaviour where the VOD destination is pushed to the top of the choice hierarchy until a series is finished. This means that services such as Netflix can be erratic or cyclical as they’re the top choice when viewers are immersed in a series, but quickly fall down the hierarchy as soon as that series has been watched.
Escape accounts for 5-8% of our viewing time across all age groups
Highly engaging content such as drama (and sometimes films and high quality documentaries) win out in this need state.
Recency is less of an issue, it’s about deep engagement and personal appeal.
BVOD and SVOD are significant destinations when viewers want to escape into TV content.
BVOD has universal appeal and audiences trust services such as iPlayer and Sky boxsets to be trusted gatekeepers of quality content.
SVOD (particularly Netflix) is a go-to destination for the under 45s, particularly those aged between 16-24.
Platform choice tends to be driven by where the desired content is most readily and easily available (be that playback TV, BVOD or SVOD).
Do (2% of viewing time)
This need state builds on our 2013 model.
Occasionally, we all need to work out how to do something or to find an elusive fact. The need to seek out useful information quickly and easily is a fact of life for virtually everyone and the internet means the answers are available in seconds.
The availability and accessibility of online video (typically YouTube) means that online video now provides a more functional role for audiences than it has before. And whilst you can find videos on virtually any topic – from make-up tutorials to car reviews – within this need state, these videos are typically not fulfilling an entertainment role.
Unlike other forms of online video, channel subscriptions and personal recommendations are less influential here. Results are generated through searches and clicked on due to relevancy.
TV can play a role in this need state, (e.g. cooking, DIY and Open University programmes) but online video has freed up TV to focus on what it does best. Shows that would typically have a functional bias, such as The Gadget Show or Top Gear, have evolved to become more entertaining since online video became more adept at serving this need.
This need is typically fulfilled via online video sites such as YouTube.
This has freed TV up to focus on the thing it does best – entertainment and the shared experience.
Practical guidance and functionality is far more important in this need state than entertainment.
The proliferation of content and ease of availability across platforms means that all forms of video coexist in harmony but each has now been liberated to do what it does best.
For TV, it’s about the high quality, immersive and trusted environment that the broadcasters offer. It’s about platforms that help the viewer relax, bring households together and connect countless viewers by providing a valued shared experience. TV takes up the vast majority of our viewing time and will continue to do so for the foreseeable precisely for these reasons.
SVOD has developed to super-serve certain needs when we watch TV. It provides a valued means of binge-watching and delving into the long-tail of TV content.
YouTube fills gaps in the day with short bites of video and is a go-to destination for practical help.
In short, the current video landscape offers a multitude of opportunity for viewers to fulfil all of their viewing needs.
Investments in TV programmes approaches 140 billion dollars.
TV professionals around the world are celebrating World Television Day on 21 November to remind us that TV – as in Total Video – is so much more than linear viewing. As part of the annual United Nations initiative, a 30 second-spot will be shown by broadcasters on air and online across the globe.
TV content that entertains, informs and inspires.
The topic of the 22nd edition of this global celebration is quality content. The outstanding quality of TV programmes is reflected in how this proven medium has the unmatched capacity to entertain, inspire and inform viewers, across all platforms.
Last year alone the production of TV fiction in the European Union amounted to about 920 different titles, representing over 16 400 episodes and more than 11 000 hours, according to the European Audiovisual Observatory’s latest report.
Quality content can incite viewers to broaden their mind and look beyond the everyday life through inspirational shows. It also has the power to entertain and unite scores of people around live programming, such as the recent World Cup (3.4 billion people watched some of the World Cup this year, according to GlobalWebIndex). Finally, TV informs viewers through in-depth news broadcasts, makes them aware of current societal issues and provides learning through quality children’s programming or insightful documentaries.
“Television must continue to play its role as to educate and engage viewers, especially young audiences. This includes sharing success stories about individuals or organizations that are part of making our society better and more sustainable. This is amplified by the theme ‘premium content-content that unites, inspires and informs’ of this year’s World Television day, November 21st.“ asserts Caroline Petit, Deputy Director United Nations Regional Information Centre for Europe (UNRIC).
Nothing beats the unique combination of sight, sound and (e)motion.
A clear indicator of the good health of television is the vast amount of money being invested in programmes by broadcasters around the world, both in original content as in the acquisition of shows. Figures1 gathered from IHS Markit for a total of 27 countries and a survey among egta members in 21 countries show that last year, close to 140 billion dollars was invested in programmes – with North America accounting for $ 61 bn – surpassing any investments made by OTT platforms around the world. The most notable investments² in television programmes in Europe were made by the UK (€ 8,6 bn), Germany (€ 8bn), France (€ 5,5 bn) and Italy (€ 4,4 bn).
In addition to this, figures gathered from over 24 countries by The Global TV Group in the second edition of its Global TV Deck highlight TV’s resilience and effectiveness as an advertising medium.
For more information, please visit http://www.worldtelevisionday.tv
World TV Day – spot TV Nova
World TV Day – spot TV Prima
World TV Day – spot Óčko
Marcom Manager, egta
Association of television and radio sales houses
T : +32 2 290 31 38
Senior Project Manager,
Eurovision TV, EBU
European Broadcasting Union
T +41(0) 22 717 28 88
Grégoire Polad Director General, ACTAssociation of Commercial Television in Europe
T +32 2 738 76 12
IHS Markit Channels & Programming Intelligence – TV programming expenditure 2017 by region ($ billion) – data from 27 countries
egta member survey in 21 countries
ABOUT THE GLOBAL TV GROUP
The Global TV Group is an informal grouping of broadcasters’ and sales houses’ trade bodies in Europe, the USA, Canada, Australia and Latin America, whose joint objective is to promote television and remind advertisers, journalists, tech gurus, agencies and industry peers about the effectiveness and popularity of TV.
The Association of Commercial Television in Europe (ACT) represents the interests of leading commercial broadcasters in 37 European countries. The ACT member companies finance, produce, promote and distribute content and services benefiting millions of Europeans across all platforms. ACT engages with the EU institutions to achieve a balanced and appropriate regulatory framework which will encourage further investment and growth in our sector.
The European Broadcasting Union (EBU) is the world’s leading alliance of public service media, with 73 members in 56 countries from Europe and beyond. The EBU operates Eurovision and Euroradio and is devoted to making public service media indispensable. The EBU supports and strengthens public service media, provides first-class media services and offers members agile platforms for learning and sharing.
egta is the association representing television and radio sales houses, either independent from the channel or in-house, that markets the advertising space of both private and public television and radio stations throughout Europe and beyond. egta fulfils different functions for its members in fields of activities as diversified as regulatory issues, audience measurement, sales methods, interactivity, cross-media, technical standards, new media, etc. During its more than 40 years’ existence, egta has become the reference centre for television and radio advertising in Europe. egta counts more than 140 members operating across 40 countries.
The Brussels-based United Nations Regional Information Centre for Europe – UNRIC – provides information on UN activities to 22 countries and is active on social media and websites in 13 languages. It acts as the European communication office of the United Nations and its aim is to engage and inform European citizens about global issues. It also liaises with institutions of the European Union in the field of information. Its outreach activities, joint public information campaigns and events are organized with partners including the EU, governments, the media, NGOs, the creative community, and local authorities.