The Association of Commercial Television

OVER CZK 119 BILLION SPENT ON MARKETING IN THE CZECH REPUBLIC LAST YEAR test

AKA (Association of Communications Agencies) published its annual report on advertising for 2019.

In 2019, CZK 119.5 billion were invested in advertising in the Czech Republic. This is an expert estimate of net marketing spend based on a research conducted among advertisers by AKA in cooperation with Nielsen Admosphere last March. It is 5% more than last year’s 113.5 billion. “The shift is slightly above inflation and was reported for the fourth time in a row, which indicates that the industry is doing well,” said Marek Hlavica, Director of AKA, at today’s presentation of the latest figures. 

The media (including traditional media types, such as TV, radio, outdoor ads and display advertising on the Internet) to non-media (other Internet advertising including searching, social networks or cooperation with influencers plus point-of-sale ads, PR or events) marketing investment ratio remains about the same, i.e. fifty-fifty. More precise figures on non-media investments are expected to be available in spring.

“TV is still the leader among media channels and despite the increasing spend on digital, for the time being there is no risk that the Internet might soon overcome traditional channels on the local market,” said AKA. In price list comparison, TV has grown by 8% year-on-year, i.e. faster than other traditional media types, such as press, radio and outdoor ads. “A comparable growth dynamics is reported by non-media forms of communication, such as promotion events, direct marketing, social networks and content marketing, or consumer competitions,” concluded industry representatives.

In terms of media spend, Alza.cz, Kaufland and Lidl are the three major advertisers of the year again, just their ranking changed compared to the previous year – the two German brick-and-mortar retailers were outperformed by the largest local e-shop. The top 10 of the major media advertisers includes Billa (which spent 65% more on communication than in the previous year) and Internet Mall; apart from traders, the highest ranks were achieved exclusively by food and fast-moving goods producers. “Sazka is the only exception in the top ten. Our effort to find prior years’ champions – mobile operators and banks – in the ranking would have been vain for several years,“ said AKA.

In AKA’s opinion, this year the industry will discuss regulation of alcohol advertising, development of a Professional Communication Platform (refer to below), awareness initiatives against disinformation directed at advertisers, efforts to win support for creative industries from relevant ministries through the Czech Chamber of Commerce and, in a dialogue with clients, market standard innovations, specifically methods and models of agency ratings and orchestration of communication tools which keep growing in number.   

Against Disinformation, for Self-Regulation

“There was a merger of several agencies, which, however, did not include any local investment,” reminded Hlavica the recent mergers between Wunderman and JWThompson to establish Wunderman Thompson and between Young & Rubicam and a digital agency, VML, into a new entity, VMLY&R.

Another shift in the industry was the implementation of technical measures to block ad buying on disinformation webs and informing clients accordingly. “Cutting off these sources from digital ad financing is one of the ways to democracy and our industry declares its support for it,” said Hlavica. AKA as one of three national associations of communications agencies in Europe joined the signatories of the Code of Practice on Disinformation. “The fight with disinformation is monitored by the European Commission to which AKA has to report on its activities in this field on a regular basis,” states AKA, which considers the January conference in the Senate as the initial act to be followed by specific practical steps.

The industry may soon be impacted by the efforts of the Ministry of Health intended to regulate alcohol advertising, specifically to reduce the content of advertisements and the time when they are aired. “What the Ministry endeavours to do now is not a realistic solution to a problem with alcohol in the Czech Republic. Nowhere around the world these activities resulted in what the Ministry strives to achieve,” said Hlavica, Director of AKA. AKA tends to seek self-regulation or other awareness campaigns, such as Not Drinking Is Normal. “Unfortunately, our proposals went unheard,” says Hlavica.  

Alcohol advertising should not show living creatures, thinks the Minister of Health. 

Self-regulation has been applied in the industry in respect of marking commercial activities of influencers operating on social networks who are frequent ad carriers. The above-mentioned Professional Communication Platform was established to associate academic institutions (IKSŽ FSV UK), professional organisations (AKA, APRA) and market entities and start to push for self-regulation of the commercial use of influencers. The purpose is to clearly identify any paid content and differentiate it from the editorial one to comply with effective legislation. “SPIR is working on codification that will go through the approval process in the nearest future,” said Jan Binar from McCann, President of AKA, informing on the progress of their efforts.  

For Better Government tenders, Not Only in Brno

Public administration advertisers investing in information campaigns initiated tenders in the amount of CZK 2 billion last year, which was nearly double the prior year’s amount. “Although the Czech Republic fails to achieve the share of communication tenders in the total market as the developed European countries do, i.e. 15-20%, the shift forward is obvious,” thinks the Association.   

Professional associations of local agencies – both communication (AKA) and those focused on public relations (APRA) – have recently made Brno concerned. “There were no problems before but now, they managed to invite a tender for a creative solution at 100% cost. They even declared that if there were multiple highest bids with the same prices, lots would be cast for the winner,” said Lucie Češpivová from Dorland, Chairwoman of the Czech Independent Agencies Section of AKA, referring to the tender in the amount of CZK 10 million invited in Brno for the selection of an agency to communicate parking changes in the city.

“In the past, AKA cooperated with the Municipal Authority of Brno on certain tender documentation to the satisfaction of both parties. The contracting authority is thus well-informed in AKA’s opinion and its current approach is more than surprising. AKA addressed the Municipal Authority of Brno on 12 December to express its objections and offered methodological assistance in making adjustments to the tender documentation. There was no response from the city. Only after having delivered a reminder, we received a response a day before the deadline. The response by the Head of the Transportation Department of the Municipal Authority of Brno did not satisfy us – far from it. Contrary to the published tender documentation, he declared that the engagement did not contain any creative work,” describes Hlavica, Director of AKA. According to the tender documentation, the future supplier is required to make videos, write for the web and participate in the communication strategy.   

Why Aetna No Longer Wants to Work with Brno

Due to the approach adopted by Brno, the local agency Aetna, one of AKA members, has just decided not to continue their cooperation. Aetna received many prizes for its destination campaign called #BrnoTrueStory, including Effie for the most effective communication in public administration. However, it could not continue even though it was the winner of a tender which was held several months after the agreement between the city and the agency had expired.

“A new agency was not selected due to a legal mistake in the tender documentation. It took the city additional six months to invite a new tender together with lawyers. But the problem is that the tender is the same in fact, just with some cosmetic adjustments. Newly, a minimum amount was set, participants are required to prepare a more precise media plan and the formulation of the need to keep the defined brand book is less strict,” said Roman Šťastný, Aetna’s Executive Manager. “Given its very nature, the tender cannot be fair. And what is more important, time is flying and has no mercy. If the city does not mind to thwart its investment we have to come to terms with it. Fourteen months have elapsed between the agreement termination and the tender deadline. We can see such a critical gap in consistent brand building that there is nearly nothing to continue with. You can’t but start from scratch again. That is what we let other people do. We are so proud of Brno brand book that we wouldn’t change a single thing. We considered it to be a document that would survive and consolidate communication for the years to come – we didn’t mean it to be a template for a one-year campaign.”

“The recent approach of Brno to communication public tenders is unfortunate. Brno acts to its own detriment, i.e. regardless of all the people who are committed to providing the city with professional and effective communication,” highlights AKA.  

“Performance Marketing Got Depleted”

How do industry professionals look at the development of ad spend in future? “I can’t see any downsides. Brexit is a local issue in a way. For the Czech Republic it is an opportunity if we have enough offices. We also need more confidence. What the Netherlands or Scandinavia are able to do that we can manage as well if we want to,” anticipates Petr Chajda, Leader of Dentsu Aegis in the Czech Republic and Slovakia and Chairman of the ASMEA Committee (Association of Media Agencies). In retail consumption, Chajda can see advertisers’ optimism in respect of media ad spend. David Čermák from Momentum Praha, Chairman of the Activation Agency Section of AKA, confirms the optimistic outlook, stating that non-media investments will increase by 5-7%, same as last year.

“The conversion cushion of performance marketing got depleted and a brand combat at the storytelling level has just started,” thinks Jan Binar based on discussions with clients. He can feel that advertisers have more courage to take a healthy risk in communication.   

“Brands invest in their values in order to build their positions for less favourable times. The brand value provides producers with more room for manoeuvre at times when sales go down and competition escalates,” adds Hlavica, Director of AKA.

What Agencies Expect from Research

“We as media agencies will bring TV research into a sharp focus,” said Ondřej Novák, Chairman of ASMEA, responding to Médiář’s question. “At the same time, it is obvious that the “non-TV” part of research which is able to reflect the trends of non-linear online video content consumption in measurement (such as timeshifted viewing, HbbTV, IPTV, mobile viewing) will rise in importance. As media agencies, we would like to have consistent and comprehensive video content measurement across platforms and individual devices at hand, i.e. including all quantities that are important for media planning. In terms of technology and methodology, TV research goes full steam ahead of other common currencies and is on the top in Europe.”      

“Unfortunately, it is benchmarked with other currencies – Media Projekt, Radioprojekt and, to some extent, NetMonitor. Their quality is high, they have cutting-edge methodologies (after all, Media Projekt is the longest continuous research ever conducted in the Czech Republic, including sociological surveys; it has been carried out since 1994) but their practical importance for the sector is questionable for various reasons. At least in case of Radioprojekt – although we perceive the changes in ownership taking place on the radio market and we do not play them down – certain (at least ideological) direction to real measurement, which is by far not unusual in Europe, would be worth following.”  

And what about the Internet measuring? “The first problem is the definition of the Internet and what should be measured. Online environment has an essential generic problem – the field of measurement is nearly infinite. An important aspect for agencies is that records should include crucial players – Google, social networks, YouTube. In general, there is an enormous global problem to include these players in measurement just because they don’t need or want to. Even though the playfield is marked out, another issue is what to measure there – display, RTB? Or quantities such as impressions, Internet GRP? It will be complicated to make up measurement that will be helpful for everyone. Prospectively (which I emphasize), we tend to see a possible way out in a platform, such as video content consumption, on which measurements might mingle and industry associations might cooperate because this may be what major players in all positions – media, agencies, advertisers – might need. However, we are not living in an ideal world and there are plenty of business interests.”    

Source: https://www.mediar.cz/do-marketingu-slo-loni-v-cesku-pres-119-miliard-kc/

ALZA.CZ IS POURING MORE MONEY INTO ADVERTISING THAN KAUFLAND AND LIDL test

In 2019, TV aired more ads again in the Czech Republic with ad spots going up in price. According to Nielsen Admosphere, Alza.cz, the Czech largest e-shop, was the most powerful advertiser of the year.

The leading advertiser in 2019 was Alza.cz, the largest local e-shop spending on ads nearly CZK 1.8 billion, thus outstripping the previous year’s number one, Kaufland, and number two, Lidl. Kaufland, ranked second this year, placed ads in the amount of 1.7 billion in the media and was followed by Lidl on the third place with its spend exceeding 1.5 billion. The following positions were taken by Sazka, Procter & Gamble, Ferrero ČR, Nestlé, Henkel, Internet Mall and Billa while Unilever, Mountfield and L’Oréal dropped off the top 10 last year.

This results from the latest figures of Nielsen Admosphere’s monitoring. The data show price list costs, advertisers’ real spend is usually lower.

Top 10 advertisers by the price list value of ad space, 2019

Ranking Advertiser Spend
Alza.cz 1.80
Kaufland Česká republika 1.65
Lidl Česká republika 1.50
Sazka 1.36
Procter & Gamble International Operations 1.18
Ferrero Česká 1.16
Nestlé Česko 1.10
Henkel ČR 1.06
Internet Mall 1.05
10  Billa 1.03

In CZK billion. Rounded. Excluding the companies’ own advertising. Source: Nielsen Admosphere

TV continues to be the strongest media type in terms of advertising and it made its position even safer last year as the TV ad spend increased by 8% to CZK 57.4 billion. The amount of press advertising grew by 1% last year to 19.8 billion. By contrast, radio advertising decreased by 1% to 7.9 billion. Outdoor ads rose by 3% to CZK 5.4 billion.

“With a significant lead, TV keeps its position of the most powerful local media type. In aggregate, TV companies once again aired more ads and increased their prices,” said Tomáš Hynčica from Nielsen Admosphere.

Price list value of ad space, CZK billion

Media type 2018 2019 Difference
TV 53.1 57.4 8 %
Press 19.6 19.8 1 %
Radio 8.0 7.9 -1 %
Outdoor 5.3 5.4 3 %

Rounded. Excluding the companies’ own advertising. Source: Nielsen Admosphere

In the forthcoming weeks, the media type ranking will be completed with the Internet data, published as usual by the Association for Internet Development (SPIR). The Internet is also expected to grow. “The total value of advertising in the Czech media is assumed to be about CZK 120 billion in 2019,” said Nielsen Admosphere. In the previous year (2018), the amount exceeded 113 billion.

Source: https://www.mediar.cz

LINDSEY CLAY: 6 TV MYTHS THAT NEED TO BE DEBUNKED test

It’s a new decade. Or is it? It depends on how you like your decades. Is the old one finished or is that not until the end of 2020? ‘Who cares you pedantic twat, Clay?’ you might ask.

Fair enough, but 2020 is certainly a good moment to reflect. And why not reflect on some of the myriad myths about TV and TV advertising that still swirl about in industry discourse?

So, here is a handy guide of what to say when people accidentally regurgitate nonsense about TV….

Online advertising is better than TV

Let’s start with one of the oldest chestnuts (not quite as prevalent as it once was, true, but it still makes an appearance.) It should be enough to point out that tonnes of TV advertising is watched online – TV is online advertising. But, if that doesn’t work, pointing out that there is no such thing as online advertising to compare TV to can help. Online advertising is a fruit salad of many forms of marketing investment – including search, email and, the juiciest fruit of all, TV.

TV’s just about brand building

TV is certainly excellent at turning products into brands thanks to its scale and emotional connection with viewers. But TV is a marketer’s Swiss Army knife. Its brand-building blades are razor-sharp, but it has the magnifying glass, the corkscrew, and the tweezers too.

TV is increasingly sophisticated at the bottom end of the purchase funnel, delivering massive short-term impact and innovative data-led solutions (see below). In the first two weeks of a campaign, TV delivers an average of 23% of the media-driven sales, the most of any demand-generating media, according to econometric analysis by Gain Theory, Wavemaker and Mediacom. Only TV’s best mate, online search, does slightly more in the same amount of time. Look at the number of online brands on TV to see how much they value both its brand and activation qualities.

TV advertising is old fashioned

TV is 100% digital. You can watch it and advertise in and around it on any screen in every environment. And that advertising is transforming. I can’t think of many industries that are more vibrant or driving more change than TV advertising. As TV becomes a mass addressable medium, no other addressable video ad offering comes close. TV’s advanced advertising solutions are fuelled by willingly-given first-party data which can be data-matched with advertisers’ own customer data. TV can now surpass other online advertising for targeting, but in a high quality, proven brand-safe environment. And rich contextual tools are giving advertisers access to perfect programming environments: AI is being used to allow DIY retailers to access specific TV episodes where characters are redecorating, for example.

If you still think TV is old fashioned, then perhaps you’ve had too many Old Fashioneds.

TV advertising is pricey

This is all about cost vs. value. Buying a great car may seem pricey, but you get what you pay for. In fact, with TV, you actually get more than you pay for because advertisers only pay for the audience they have bought, but most TV viewing is shared so they get loads of extra viewers thrown in for free (and broad reach is what builds brands). The reverse is true in other online advertising btw; there, advertisers must pay for every exposure, whether they are in-target or not.

The truth is that TV has been incredible value for years. Look at the effectiveness evidence – it delivers 71% of total profit generated by advertising (on 54% of the spend), and it does so at the greatest efficiency (a profit ROI of £4.20), and for the least risk.

TV sometimes suffers because competitors seem cheaper. But there is often a huge gap between perception and reality. Take the respective cost of online video and TV advertising: online video accounts for just 4% of the time people spend watching video advertising yet gets 26% of all video ad spend. TV accounts for 95% of ad viewing but gets 70% of ad spend. Based on ad spend figures from the Advertising Association, the average cost across TV advertising (linear and BVOD) for 30 seconds is just over £6. For non-broadcaster online video, it goes up to £45.

So, the potentially brand unsafe, often small screen, often partially viewable world of online video costs advertisers 7 times more than TV. And that is just the cost – the quantity – it doesn’t consider the vast differences in the quality of the ad exposures, nor the relative effectiveness.

Netflix is replacing TV

Netflix is TV, it just doesn’t offer advertising (yet) or live viewing (yet).

No one can doubt the incredible rise of the subscription streamers, though. But, equally, no one should underestimate the resilience and popularity of the broadcasters. In the UK, Subscription VOD (SVOD) accounts for around 10% of video viewing in total. Broadcaster TV is two thirds of it.

Even the biggest Netflix fans also watch plenty of broadcaster TV – they just love TV generally. And studies by Ofcom and MTM agree that UK broadcasters have a distinct competitive advantage over the global SVOD services because of their expertise in the British content that Brits love.

It might be worth Netflix considering adding a live TV string to its bow as that is part of what drives so much broadcaster viewing. There are needs that watching TV/video satisfies, but some needs are better served by on-demand, some by live TV. For example, on-demand is brilliant for losing ourselves in other worlds. Think Game of Thrones. But on-demand can’t satisfy all the things live TV does, especially our more social/communal needs, which are so important. Think The Great British Bake Off, I’m a Celebrity… Get Me Our of Here, or live sport.

Young people don’t watch TV

Yes, Love Island is horribly unpopular, isn’t it? Hardly makes a dent on the front pages.

The fact is that young people do not watch as much linear TV as they once did. But don’t judge their attitude towards TV on just that. That would be like judging Serena Williams by her incredible backhand alone or David Attenborough just by his coverage of penguins. There’s a lot more to it.

Watching TV makes up well over half of 16 – 34 year-old’s video diet, most of it is broadcaster TV, and most of that is watching linear TV. But because an increasing amount of it isn’t linear viewing is why it is now essential that we plan TV advertising across all TV. No advertiser bases performance on high street sales alone; TV shouldn’t be treated any differently.

TV is only for big brands

They often end up big, but they don’t always start that way – over 1,000 advertisers on TV in 2018 spent less than £50k (2019 data isn’t in yet, but the story will be the same). And TV creates the majority of smaller businesses’ advertising-generated sales, some 80% according to Data2Decisions’ client data.

TV supercharges smaller businesses because it creates new customers, which is what needs to happen once the effects of online activation plateau. TV rapidly drives sales, dramatically grows the customer base, increases trust, and creates fame.

The dawn of advanced TV advertising means getting on TV is becoming ever easier for advertisers of all sizes. From Sky’s AdSmart – which has encouraged more than 1,000 businesses to use TV for the first time – to the range of opportunities on the ITV Hub and All4, and funding initiatives such as UKTV Ventures, TV’s increasing flexibility means it is available to businesses of all sizes. They just need to be ready to grow.

Source: https://www.thedrum.com/opinion/2020/01/20/lindsey-clay-6-tv-myths-need-be-debunked

FUTURE TV ADVERTISING GLOBAL 2019: THE BIG TAKEAWAYS test

Videonet has published detailed accounts about each of the big takeaways from Future TV Advertising Global 2019, and you can see links to those stories at the bottom (click on the original link at the bottom). Here is a summary of our analysis.

No.1: Television is back on the offensive

When it comes to competing for advertising budgets in an increasingly data-driven world, television has been on the back-foot for more than five years. Some people think the ad-supported version of this medium is dying. But it looks like we have already passed peak disruption in markets where media owners are transforming their ad capabilities with better audience segmentation, targeting, attribution and even measurement. This was the first Future TV Advertising event when the determination to win back budget that has shifted to digital was expressed so forcefully and so often, and it feels like the television advertising ‘recovery’ has moved to the next level. The television industry has switched from defence to attack. We need to recognise this moment.

No.2: It’s not a question of if you follow the 60:40 rule, just how you implement it

Nobody is arguing with the conclusions reached by Les Binet (who spoke at the event) and Peter Field in their now-famous effectiveness studies (harnessing the vast resources of the IPA Databank) that you need to spend 60% of budget on brand advertising and 40% on activation to optimise campaign effectiveness (all sector average). Not one person at this event challenged their work – not on the panels, not from the audience. Binet & Field, and others who have supported their findings, have won the argument. There will be a rebalancing of budget which will lead towards more brand spending. The only question is how it will be done – that was the debate at this London conference.


No.3: Addressable TV is coming fast, complementing rather than replacing ‘national’ ads

It was generally accepted that we can expect an addressable TV stampede as more platform owners and broadcasters adopt the technology, and addressable household reach is expanded. But despite the growing interest in addressable, nobody says it will replace mass-market advertising, as some commentators used to. Addressable is viewed as a complement to ‘national’ (i.e. reaches all) advertising. The most important use-case today is to deliver cost-effective incremental reach, including into light television viewers. The main obstacles preventing an addressable TV stampede are cost, complexity and inertia. There is a groundswell of opinion that we need to start standardising on audience segments across markets.


No.4: Unification of broadcast and digital is everything

This will surprise nobody, but the message was often repeated at The Future of TV Advertising Global because it is just so important: the television industry must demonstrate de-duplicated reach and frequency across broadcast TV and digital, and we have to make it easier to plan, buy and report audiences as a whole, spread across every ‘format’, which means digital (including, importantly, connected TV), broadcast and addressable (addressable is now frequently talked about in its own right, despite spanning both TV and digital).

The siloes have to be broken down and it is also clear that on the sell-side, media owners are going to take what practical steps they can, individually, to enable holistic audience planning and buying even while they support wider industry initiatives towards cross-media standardisation. Small and medium steps are being welcomed, given the difficulty with taking giant strides.


No.5: TV is an activation medium, which makes it a uniquely full-funnel offering

We are going to hear a lot about ‘full-funnel’ media in the next 24 months, and it is the TV industry that will be shouting loudest. There are a few reasons for this: Budget spend will be rebalanced towards more brand building by companies who have neglected this task; Television has successfully argued that it is the undisputed champion of long-term, brand-built, value-add; Television already helps to drive activation, but the digital advertising giants have taken the credit for much of it.

Other reasons are: Television is getting better at the direct attribution of outcomes to advertising exposure that allows it to prove its role in activation; The attribution data is becoming available faster, in time to help optimise live campaigns; The technology that enables that improved attribution is going mainstream fast; The tech vendors who are making short-term attribution easier have a realistic, TV-friendly approach to life, so can fit straight into the existing ecosystem.


No.6: The real magic is data-driven, audience-based buying

This event provided a timely reminder that addressable TV is not the only use of audience-based buying. Another key use-case, which is better known in North America than in Europe, is optimised linear buying. In simple terms, you define the audience target against need-state, interests and lifestyle, etc. and you find which homes these people are living in – as with addressable TV. But rather than seek them out on a one-to-one basis using addressable TV (and so exclude homes that are outside your audience segment), you use set-top box data to figure out what channels and shows this audience segment is watching on linear TV, and what times of day they are watching, and then buy standard (national, i.e. reaching everyone) broadcast linear TV where you can find most of this audience at the best prices.


No.7: Agencies do have a future

Every year on the eve of Future TV Advertising Global, an invitation-only Pathfinders gathering addresses some of the hottest topics in advertising. This year it focused on the future of agencies, and it will come as no surprise that leaders at those companies are convinced they have a bright outlook, despite the attentions of brand procurement officers on the one hand and media services consulting firms like Accenture on the other.

One executive summed up the value-add that agencies provide (or should provide) very neatly: They are the guardians of effectiveness for client campaigns across the whole communications ecosystem; Agencies can look at the holistic picture, working out how best to use the different media and media owners together; Agencies are the guardians of balancing the long-term and short-term goals of their clients; They are the guardians of client spend, making sure that it goes where the audiences are.

Source: https://www.v-net.tv/2020/01/06/future-tv-advertising-global-2019-the-big-takeaways/