The Association of Commercial Television

THINKTV REPORT: VIDEO ADVERTISING HAS MONTH-LONG AFFECTS test

New research from marketing science academic Professor Karen Nelson-Field reveals the extent to which video advertising affects consumers’ product choices for up to a month after they are exposed to an ad.

The ‘Decay Edition’ of Professor Nelson-Field’s ongoing Benchmark Series, commissioned by ThinkTV, contains a number of findings that are designed to help advertisers and their agencies get the best out of video advertising.

Professor Nelson-Field found that ads placed in a TV content feed, viewed on any screen, positively impact sales for far longer than ads on either Facebook or YouTube.

In fact, memory retention for TV advertising was so strong that its impact on sales after 28 days was greater than Facebook or YouTube could generate at their peak, that is, immediately after viewers saw ads on those platforms. Professor Nelson-Field puts this down to TV’s superior viewability.

Professor Nelson-Field used bespoke A.I. machine-learning technology and eye-tracking software to remove human bias in her team’s data gathering for the Benchmark Series, which is explained below and here, in these short videos:

This latest tranche of the Benchmark Series sought to understand and compare the length of time after exposure that an ad can impact consumer product choice (sales) on the three major video platforms – Facebook, YouTube, and TV – across different screens.

Earlier findings had revealed short term sales impact scores for the three platforms by asking more than 2,500 participants to visit an online supermarket to choose products they wanted to purchase immediately after being exposed to a series of ads.

In this latest tranche, Professor Nelson-Field asked participants to re-visit the online supermarket 14 days and then 28 days after initial exposure.

Professor Nelson-Field discovered that the residual effect of an ad exposure varies significantly by platform and screen, specifically that:

  1. Upon re-testing, TV and Broadcaster Video-on-Demand (BVOD) advertising was shown again to have the strongest impact on sales immediately after exposure compared to Facebook or YouTube, irrespective of screen.
  2. Ads watched in a TV content feed, viewed on any screen, generated a stronger impact on sales immediately after exposure than ads watched on YouTube or Facebook, and continued to generate greater impact long after Facebook and YouTube advertising memories had stopped influencing consumers’ product choices.
  3. Advertising on Facebook and YouTube faded from memory quickly and had an impact on sales for little more than six days, whereas TV advertising’s impact on sales lasted 10 times longer.
  4. For every one day of impact generated from Facebook or YouTube advertising, the equivalent impact from TV/BVOD advertising was nine days.

Commenting on the results, Professor Nelson-Field said, “These new results show that some platforms work better than others when it comes to delivering that other crucial element of media effectiveness, the ability to be remembered over time.

“Not only does TV advertising generate a greater sales impact in the short term, it also sustains that sales effect by remaining in consumers’ memories for longer.

“TV continues to have this impact because of viewability. Tranche One of Benchmark showed that screen coverage and pixels are the dominant factor in generating attention and cut-through.

“TV commercials play full screen, are 100 per cent viewable and do not suffer from playing ‘below the fold’ or scrolling.

“So TV wins in two ways. Its sales impact is high up front and its decay rate is slower than competitors.

“It’s important to note that advertising works by reaching lots of people close to the buying occasion. Our decay results highlight one single group of people that were exposed to an ad on a particular day.

“But there will always be a new group of unique TV watchers tomorrow. So buying fewer impressions because the decay rate on one single exposure is superior to online would be the wrong conclusion to draw from this research. All you would do is simply miss reaching lots of new people who are close to a purchase occasion.”

ThinkTV chief executive Kim Portrate said: “The latest Benchmark findings clearly demonstrate that TV is not only the best video media platform for short-term sales impact, TV is also the best for long-term effects by enabling creative to be remembered for longer.

“And long-term effects are important for brand growth. All advertising fades over time but TV ads shine brightest and fade slowest, leading to stronger cut-through and impact on sales and longer campaign retention.

“On mobile, BVOD is the optimal choice if you want your ad to continue to impact of your target audience’s product choices over time. And when it comes to the longer-term, TV content on a TV screen remains king for influencing consumer behaviour.”

ThinkTV director of research, insights and education Steve Weaver added, “It is fascinating to discover that the residual impact from advertising in a TV content feed on mobile after 28 days is at around the same level that online platforms can deliver at their peak, immediately after the exposure.”

Source: https://www.bandt.com.au/thinktv-report-video-advertising-month-long-affects/

TOO MANY STREAMING CHOICES LEADS SOME VIEWERS BACK TO TRADITIONAL TV test

Content abounds on streaming services like Netflix, Hulu and Amazon Prime Video. But when viewers are faced with too many choices of what to watch, some end up tuning out. 

That’s the main finding from Nielsen’s Total Audience Report from the first quarter of 2019. What some have dubbed the golden age of TV led to 495 original scripted programs across various TV platforms in 2018, per AdAge, but all of these choices might be paralyzing viewers.

Viewers spend just over 7 minutes browsing a streaming service for something to watch, per Axios. Younger adults — those between 18 and 49 — spend 8 to 10 minutes looking for something before calling it quits, whereas older adults give it just 5 minutes. Just over 20 percent who go in unsure of what they want to watch wind up giving up and tuning out, per Nielsen. 

Uncertainty plus too much choice ends up turning many viewers off: Almost 60 percent reported being more likely to go back to favored traditional TV channels if they don’t know what they want to watch via a streaming service. 

Plus, only one-third of adults find the content menus — where content is sorted by category and algorithms are used to make suggestions to viewers — helpful when it comes to figuring out what to watch.

“Content discovery…is crucial to consumers in an era when they’re inundated with ads and content,” Peter Katsingris, Nielsen’s SVP of audience insights, is quoted in the report, per The Drum. “Conversely, these same consumers are connecting to this fragmented content at unparalleled rates — well over 11 hours each day across screens and devices.”

The findings support what researchers have observed when it comes to choice, which is that when faced with too many choices, we revert to what’s familiar. We think we like choices, but too many options leaves us stressed trying to make a decision. 

Seven in 10 homes have a subscription video on demand service, per Nielsen, and more than 70 percent use streaming-capable TV devices. Video viewing through TV-connected devices has increased by 8 minutes per day, reports Deadline.

Axios points out these findings come as even more companies get into the streaming game. Disney is set to launch its streaming service, Disney+, which will offer Disney, Marvel and Star Wars films, and Apple has announced its forthcoming Apple TV+ streaming service, joining Netflix, Hulu, Amazon Prime Video and ESPN+.

Some hope to grab viewers by boasting exclusive rights to a beloved show, like NBCUniversal taking “The Office” and WarnerMedia announcing its HBO Max will have every episode of “Friends.”

For those who do know what they want to watch, it can be frustrating to manage the subscriptions needed to watch the shows or content they’re interested in, especially as content arrives and disappears from certain platforms, NPR reports. Some experts believe the best streaming services will rise to the top in the next few years, whittling down the competition. 

Nielsen notes streaming companies might want to refine recommendations and update content menus to better appeal to users. 

Media research data indicates people will spend a total of about $38 a month on streaming services, per the Wall Street Journal

Source: https://www.bizjournals.com/bizwomen/news/latest-news/2019/07/too-many-streaming-choices-leads-some-viewers-back.html?ana=RSS&s=article_search&+Marketing%29

EGTA’S CEO SURVEY – A TV AND RADIO ADVERTISING INDUSTRY IN TRANSFORMATION test

Results of an exclusive egta survey confirm top management’s expectations for the industry.

Over 100 CEO’s and senior executives from surveyed egta members – leading TV and radio sales houses across Europe and beyond – expect growth in ad spend for both Total Video and Total Audio in the next three years. An exclusive survey carried out by the Brussels-based trade association sheds light on the continued transformation the advertising industry is expecting.

Opportunities ahead lie in targetability and personalisation

With change comes opportunity. Approximately 88% of respondents perceive targetability – enabling advertisers to pinpoint their target markets – and personalisation – creating relevant and unique experiences that hold attention for longer – as a priority for their company in the coming years.

Other particularly important growth areas highlighted by senior executives are streaming/online audionew ways for audiences to access content (additional screens and devices), new sources of data shared by advertisers and or telco providers, and addressable TV.

Reaching audiences where they are today

While opportunities abound on the horizon, senior executives also identified some of the challenges they foresee in this changing media landscape. More than 80% of C-suite executives state that they are relentless in their attempt to reach audiences where they are today – thus making up for the decline in linear TV ratings. Their focus is on building the right infrastructure that will allow today’s TV to compete with international online platforms and speed up the process around the identification and adoption of cross-platform measurement solutions.

Shaping the future of advertising

77% of TV members and 78% of radio members are positive about the future advertising market. Optimism remains – if slightly higher this year compared to two years ago – that both the Total Video and Total Audio ad markets continue to grow.

Broadcast TV and radio currently remain by far the biggest advertising revenue sources for broadcasters. However, respondents aim for online to take a larger share in the future. Approximately 90% of C-suite executives believe that advertising on online properties will represent a greater proportion of their revenue sources by 2022.

Commenting on the results of the survey, Katty Roberfroid, egta’s Director General said: “The homogeneity in the results we received from a vast majority of select top executives does show the way forward. If we are to future-proof today’s TV and radio’s business, both on air and online, we must continue to cooperate and innovate on all fronts: infrastructure, formats, measurement, and more. This will help advertisers reach the consumers around the premium content they love – in an always brand-safe environment that is respectful of their experience and privacy.”

Several CEO’s who participated in the survey added their comments:

“If we – as an industry – are to compete against international online platforms, it is all about competing on content, and collaborating on tech, currency, measurement and more. This common sense will help us create a truly seamless total video experience for both advertisers and users.”

Malin Häger, Sales Director & Chief Commercial Officer, TV4 Sales

“In an age of audience, it’s all about finding new ways for listeners to access the great content we have in abundance. In this battle for time and attention, Total Radio embraces innovation with plenty of opportunities with regards to personalisation, podcasting, streaming, on-demand radio and more – which will all contribute to a growing advertising market.”

Saskia Schatteman, Chief Executive Officer, VAR

“We need to experiment and continuously push the envelope with regards to targetability, personalisation and more to advance our industry. As addressable advertising is going to vary per market, we need to dig deeper into the data value, the return on investment and the scalability.”  

Christian Kurz, Senior Vice President Global Consumer Insights, Viacom

“We’re living in an era where it’s no longer about linear or non-linear TV. When we’re in contact with marketers every day, we see they’re overwhelmed with solutions and fragmented media. We need to be the guiding light that helps them find the audiences where they are today, helping advertisers and their brands as a trusted partner with insights in this Total Video ecosystem.”

Stéphane Coruble, Chief Executive Officer, RTL AdConnect

“For us at the Canadian Broadcasting Corporation, the bar is set high. As streaming video grows and younger viewers move online, we’ve been incessantly innovating to follow audiences online – as a multiplatform player amid fast-changing viewer habits. In our unique position, bridging the US and European market, we’re focussing on building the right infrastructure as we expect more revenue from online in the coming years.”

Jean Mongeau, General Manager & Chief Revenue Officer Media Solutions, CBC/Radio-Canada

Source: http://www.egta.com/?page=press-release-individual&idRelease=631

TRADITIONAL TV IS NOT DEAD test

Manatt, Vorhaus Digital Strategy Study Reveals Traditional TV Is Not Dead Despite Continued Online Video Ascendance

Research uncovers surprising trends for the future of cord-cutting, SVOD and esports

Manatt, Phelps & Phillips, LLP, a multidisciplinary, integrated professional services firm, and digital media consulting company, Vorhaus Advisors, today released their inaugural Digital Strategy Study, which analyzes the state of media and content consumption. Through a comprehensive consumer survey focusing on topics including connected TV, subscription video on demand (SVOD), mobile and esports, the report identifies a number of key trends that illustrate how consumers are interacting with technology to consume digital content, including:

  • Online video is on the rise, but traditional TV is not dead. Traditional television continues to fall far behind digital devices for consumers between the ages of 18 to 34, with 72 percent in that group using a smartphone to watch online video once a week or more, compared with only 56 percent who used a television set connected to the internet. However, despite a preference for digital devices among 18 to 34 year olds, television is still the top-rated device for the broader population over the age of 18.
  • SVOD continues to impress and has room to grow. Of online users, 74 percent subscribe to a service, with nearly six in ten using Netflix. Furthermore, half of all SVOD viewing is consumed on an internet-connected TV, proving that related subscription apps are critical for connected TV’s popularity. Consumers also say they are likely to buy up to another 1.6 SVOD services, beyond what they already have.
  • Skinny bundles might be a saving grace for pay TV companies. While cord-cutting is likely to continue at a steady pace, 35 percent of consumers are interested in subscribing to a “skinny bundle” as a streamlined alternative to cable packages. With 47 percent of respondents saying cost is the primary reason for cord-cutting, traditional pay TV companies have found traction with this customized offering.
  • Livestreaming remains strong and esports’ future is bright. More than half of online users watch livestreaming video every day on a wide variety of topics. Within that category, esports is quickly gaining market share as the sixth most popular type of content. Forty-six percent of respondents said they watch more esports now than they did six months ago, and 43 percent anticipate spending more time watching esports in the upcoming six months.

“In addition to the surge in online video viewership more generally, the market for esports is massive and an area that our team is deeply involved in as companies assess investment and M&A opportunities,” said Ned Sherman, digital and technology partner and director with Manatt. “We’ve represented some of the major players as well as negotiated team and player agreements for the top esports competitors in the industry, and this research reinforces that the market for this will only continue to grow.”

“SVOD and OTT continue to grow and traditional pay TV remains under pressure from cord-cutting,” said Mike Vorhaus, CEO of Vorhaus Advisors. “Our data suggests that skinny bundle offerings are an effective strategy for winning back traditional pay TV consumers. Furthermore, traditional television consumption remains highly attractive, particularly among the population 35 years and older.”

The study analyzes survey responses from more than 2,000 respondents over the age of 18. The sample was matched to the U.S. Census for age, gender and race, and questions focused on media attitudes and the behaviors of consumers on a broad range of topics. 

Source: https://www.manatt.com/Insights/Press-Releases/2019/Manatt,-Vorhaus-Digital-Strategy-Study-Reveals-Tra