CV-19 has brought cuts
to advertising budgets and so the imperative is to at least maintain, or, if
possible, grow share of voice. Brands that can grow share of voice will have a
larger share of the market as recovery comes.
Consumers have wanted
to hear from brands through the crisis, but they are wary, and so association
with trusted brands has never been more important. Marketers will need to pay
close attention the media vehicles they associate with.
The most sensible
course of action for marketers, especially during a recession or when emerging
from crisis, is to play the long game, stretching campaign evaluation periods
into the future.
Brand growth is
achieved by targeting as broadly as possible, and this has never been truer
than now. Consumers have been forced to set their consumption habits aside and
reconsider all purchase decisions.
Broad reach is key, and
marketers must stay abreast of rapidly changing media consumption and
perceptions. Self-isolation has caused a sudden and dramatic change in media consumption
and the changes will linger as the recovery comes.
Reach alone is not
enough. Media decisions need to be made in terms of “effective reach” where
brands reach as many people as possible and the impact of the reach is
multiplied by the channel’s ability to ensure the ad is seen.
that give consumers help for right now, and hope for a better future are
needed. Brands that stay on equity will be reassuring and will build brand
Reduced budgets often
mean large gaps between advertising bursts. The best campaigns will utilise
media channels that imprint advertising messages in consumer’s memory banks for
During CV-19 it is imperative for advertising to be humanistic. Marketers should feel confident that emotionally-driven storytelling can consolidate brand share now and into a post-pandemic world.
Commercial TVs Nova and Prima participated in educational
activities relating to the ongoing COVID-19 pandemic. In addition to tens of
hours of their own news and journalistic content and new public awareness
programmes launched, commercial broadcasters supported the official educational
campaign of the Ministry of Health focused on prevention of the coronavirus
infection and provided the Ministry with ad space for free.
April 2020 – The campaign has been under way since 19 March 2020 and will continue until
further notice on channels of the Nova and Prima TV groups. More than 1,000
spots have been aired to date in the aggregate length exceeding 1,500 minutes.
The key objective of the campaign is to inform the public of the most
appropriate hygiene measures to prevent the spread of COVID-19. The videos are
available on the website of the Ministry of Health at https://koronavirus.mzcr.cz/spolu-proti-koronaviru/.
“The current wave of solidarity, consistent adherence
to the Government’s regulations and consideration of people in the Czech
Republic are really impressive. Every day, our news desk colleagues seek to
capture the most inspiring stories and distribute the most useful information
to as many viewers as possible. Therefore,
we joined the official preventive campaign and provided space for information
spots of the Ministry of Health as a matter of course,” says Marek Singer, President of AKTV.
“We very much
appreciate the fast involvement of commercial TVs in our preventive activities.
Thanks to the high reach of TV broadcast, our public awareness campaign will
hit the maximum number of people, which significantly facilitates containment
of the disease,” adds Gabriela Štěpanyová, PR Manager and Spokeswoman of the Ministry of Health.
The situation around the COVID-19 disease is
completely new for all of us. On that account, the Together Against the Coronavirus campaign (#Spolu proti koronaviru) is
aimed at providing people with universal and simple rules on how to behave
under the current conditions and how to care of their health. The Ministry of
Health has prepared six TV spots using an amiable and original approach to
inform viewers of the rules to be followed now. In the first spot named How to Protect Yourself and People Around You,
an actress, Alena Doláková, presents the current hygiene rules. She gives
viewers an idea that protection of our eyes, nose, mouth and hands is of the
utmost importance and shows how to protect ourselves properly. Other spots of
the Ministry of Health called How to Behave
in Public Transport, How to Proceed
with a Doctor’s Appointment, How to Proceed
in Shops or Why Protect Health Care Workers
feature renowned science experts: Director of the National Institute of
Public Health, MUDr. Pavel Březovský, MBA; Rector of Czech Technical University
in Prague, doc. RNDr. Vojtěch Petráček, CSc.; Head of the Department of Health
Care Disciplines and Population Protection of Czech Technical University, prof.
MUDr. Leoš Navrátil, CSc., MBA, dr. h. c; and the medical microbiology
specialist, MUDr. Emil Pavlík, CSc. In
a simple and entertaining way, the four experts present important hygiene
measures and rules to be followed in our daily routines. The last one of the
Ministry’s video spots, What You Should Know
about the Coronavirus, is an animated video providing a summary of the key
information on COVID-19.
Apart from the TV spots, the Ministry of Health has
prepared posters to be displayed in public transport and in the streets across
the Czech Republic as part of the same campaign.
week’s egtabite features an in-depth ROI study of the Finnish market –
conducted by Screenforce
Finland, the national TV trade body and Sellforte, an independent
tech company specialised in granular marketing ROI measurements – which
proves that Total TV (in this case meaning linear and online, with no
programmatic) brings the highest incremental sales in the long-term and
delivers a strong argument for advertisers to invest in Total TV.
Finland, 99% of the population watches TV content on any device. The viewing
time of just under 3 hours per day (2h 42min) has remained pretty stable for
the past decade, with commercial broadcasters representing 52% of the market.
Nonetheless, there was a need for an in-depth ROI study, with advertising
measurement added to Total TV.
Therefore, Screenforce Finland, in
collaboration with Sellforte,
conducted a unique piece of research by analysing purchase data from Gigantti, the largest
retailer of electronic and household appliances, with over 41 stores
nationwide. With the huge amount of data, the research takes into account,
among other things, the effect of discounts made by Gigantti.
objective of the study was to discover the strengths of TV from a brand that
uses both tactical and brand-building marketing and to understand which media
channels generate the highest incremental sales.
study compared more than ten million receipt lines collected over Gigantti’s sales and
marketing data. The advertiser’s data showed that 18% of their media budget
goes into Total TV, while one-third of the total media budget goes in direct
mail, as their marketing is driven via weekly promotions.
part of the study, two years of extensive sales data (item, location, date)
were analysed together with marketing data and media spend, which enabled the
researchers to obtain a comprehensive, reliable and actionable model and
Sales data was split into three components, the base sales, that would occur without any promotions, the offer, as an uplift for the promotion of a product and
finally the media, an ad for a certain promotion. ROI was
calculated by dividing media-driven uplift by media investments.
of the study demonstrate that search engine marketing stands out with the
highest ROI in the short term, but TV generates a much higher ROI than any
other media in the long term. In the incremental sales that occur the following
week after the campaign, search engine marketing is the most efficient turnover
TV has a positive spill-over effect on web traffic and it is the
biggest media driver of total turnover. The results show that 4% of search
engine marketing-driven incremental sales belong to Total TV.
study proves that Total TV has the best total performance and is the best media
channel to drive incremental sales over a long period. Each euro invested in
Total TV generates 17 euros of total turnover
ROI study sparked a dialogue between TV, agencies and advertisers. “Gigantti is one of Finland’s largest
advertisers, and the results of the study certainly give food for thought in
many corner rooms,” said Anna Lujanen, Executive Director, Screenforce Finland.
„We spend a significant portion of our marketing budget on TV advertising because it effectively generates demand. Our industry is highly competitive and hectic, and we need to know the return on our marketing investment. The efficiency of marketing can only be increased with the right information, ” says Sami Särkelä, Marketing Director, Gigantti.
There are very few upsides for anyone right now. A record number of companies, big and small, find themselves just weeks from insolvency. Employees are being let go in record numbers. And the media is collapsing as advertising dries up and a long, difficult and painful recession lumbers into view.
It’s a struggle
to find even the faintest flash of a silver lining with so many grey clouds
above us. But there is one. And perhaps only one.
We are about to
find out who the great chief marketing officers are. And, with the other side
of the tape measure, we will identify all those imposters who aren’t worth
their big salaries.
events that now engulf us are entirely unprecedented. But what follows next
will be nothing new. After our global lockdown ends, we will head directly into
a recession. Economists are divided about whether it will be a long one or a
short one. But it’s as inevitable as it is familiar.
And that is good
news, because recessions, unlike COVID-19, are nothing new. We’ve lived through
them before. And we know a lot about how to manage brands and businesses when
As long as there
have been marketers, we have been studying advertising’s impact on sales during
and after a recession.
In 1920, in 1974, in 1980, in 1991 and, of course, in
2007-08, analysts looked at which companies spent what on advertising and what happened
as a result. And the pattern has been remarkably similar, time after time.
As the recession looms, there are two kinds of
marketer. The first sees the decline in sales demand as a signal to cut
advertising budgets and save money. They slash their marketing and advertising
spend, batten down the hatches and wait months for the green shoots of recovery
And then we have the other type of marketer. Unlike
most of their peers, they have a formal education in marketing and know the
case studies of old. Thanks to their training, they also know that advertising
works on an immediate level to drive short-term sales, as well as on a much
longer-term, multi-year basis to build brand and deliver enduring success.
Rather than cut the budget, this marketer heads
straight upstairs to talk to their CFO or CEO and make the case for maintaining
the advertising budget. And if they are really good, they even propose an increase
in the advertising spend.
Yes, you read that right. They increase their
advertising budget in the face of a recession.
The reason they are right to push for more money and
more advertising is partly because branding is a long-term game. Waiting until
the recession ends to kickstart an increase in advertising is like firing the
starter’s gun 10 seconds after the sprinters have left the blocks. But the main
reason they are smart to spend more in a recession is because their rival
marketers are cutting budgets.
Market share is a function of many things. But one of
the biggest drivers of sales is a brand’s share of voice. The more a brand
spends on advertising versus its rivals, the more it will grow. Analysts call
this proven relationship “ESOV”, excess share of voice. If a brand has a 20 per
cent share of the market but a 30 per cent share of the voice, it has an
excess, an ESOV, of +10.
In almost every recorded instance, a brand with a
positive ESOV will gradually grow its share of the market to a level that will
eventually match its share of voice.
In a recession, brands go bankrupt and disappear.
Other brands, run by poorly trained marketers or those without the support of
their executive board will cut their advertising spend. Those marketers that
maintain their spend or even increase it will survive the tough times a little
better and then grab huge increases in market share when the recession ends.
This is not some spurious argument to help save our media
companies. It’s one of the few hard facts of marketing and advertising.
For a century, we have watched thousands of companies
go into a recession and have recorded their advertising investment. Those that
maintained or increased their budgets during the recession grew their
subsequent market share tremendously at the expense of those that cut back.
There are famous historical examples of companies that
discovered the inherent opportunity of recessions and acted accordingly.
Consumer goods giant Procter & Gamble is notorious for upping advertising
investment levels when recessions hit. It increased its ad spend by 7 per cent
during the difficult post-GFC period, following flat investment levels in the
more positive growth years that preceded 2007.
It’s a smart play but it depends on three important
factors. First, and most obviously, you need the money available to maintain
your advertising budget. Next, you need a board of directors who understand
that marketing and advertising are an investment and not something you cut when
the going gets tough. Australia is notorious for boards of old white sales guys
who see marketing as little more than costly window-dressing. No guesses what
these old duffers will all be doing in the weeks ahead.
Finally, you need a marketer who knows about marketing
things. That might sound a given, but there are plenty of senior marketers out
there without the faintest clue about any of this, who simply spend the budget
they are presented with by the company they work for.
But smarter, “proper” marketers do exist. I talked to
two top CMOs last week about the coming recession. One was steadfast that she
would not be cutting the advertising budget by a single dollar. The other had
already been to see his board and received a multimillion-dollar increase.
They are the rare ones. The ones who will reap the
benefits when this horrible period of isolation and recession ends.
TV advertising has an
important role to play in keeping commerce going through the coronavirus
When people’s livelihoods are threatened and we all
fear for the people we love, everything else can feel a little beside the
point, a bit trivial.
So I have to keep reminding myself that there is a
point. That life goes on. We can’t all stop and dwell. “The best way
out is always through,” Robert Frost said.
I look at the incredible response from the team at
Thinkbox, atomised like so many teams for the time being but adapting and
pushing forward, and I watch as stories of solidarity and collective effort
from around the world come through, and I am reassured.
This is a time when we are so much more aware and
hopefully far more appreciative of society’s key workers. The NHS staff, care
workers, delivery drivers, police, the people keeping our supermarkets going,
to name just a handful.
There is a long list of people to be grateful to and I
would add our broadcasters to it. They are being fleet of foot, keeping our
shows on and keeping us informed and entertained.
Witness the record audience for
ITV’s Ant & Dec’s Saturday
Night Takeaway at the weekend, recreated without its studio
audience. Look at Channel 4’s Jamie:
Keep Cooking and Carry On, a new show to help people cook during
self-isolation. Millions are glued to Sky News as a trusted source.
Broadcasters are making the tough choices of putting
some shows on hold, quickly changing formats and reducing the output of certain
shows, even while large chunks of content and revenue – like sport – disappear
from the schedules.
TV journalists are rightly on the government’s key
As society becomes temporarily withdrawn, TV is there
for us all as a source of trusted information and much-needed distraction.
TV is and always has been a social glue. It brings us
together. It comforts and connects. It also lets us escape. It is a faint
professional silver lining at the moment.
During times of crisis, we always turn to trusted
media. But our media habits in this crisis are being more directly affected
because we’re being forced to spend more time in our homes and less time
outside and commuting. This means media consumed at home will see increased
Rediscovering the value of TV
We are already seeing a dramatic effect on TV viewing,
which grew by 17% year on year last week, having been tracking down about 4%
this year. So, people watched an average of 28 minutes more a day.
Daytime average TV audiences have grown 29% and daily
reach has increased by 18%. Viewing among children has grown by 20% (and
this was before the schools were closed). Monday’s prime ministerial
address to the nation was watched by 27 million people on TV.
Media consumption and the impact of advertising are
linked. So the crisis is also having an impact on advertising; it is changing
how advertising should – or, in fact, can – be approached.
Thinkbox’s role is to help advertisers, to offer the
best advice through uncertain times. And when we do get through the current
uncertain times, it will be vital that businesses are in as strong a position
as possible to help rebuild our economy.
Those businesses are of course under immense pressure,
which inevitably puts pressure on their advertising budgets.
Some sectors will be affected more – travel is the
obvious example. Some, though, will likely see a surge of interest because
their products and services will be vital in this period.
There can scarcely be a better time to be an online
retailer, for example. Home entertainment, too, has never been more central to
our lives. Disney+ is launching at a good time, if this time can ever be
described as good.
As some advertisers, like travel, have little choice
but to reduce their TV spend and TV viewing shoots up, the average price for a
TV spot will come down (in TV terms, this means demand is down and supply is
The impact of this for advertisers is that TV
advertising pricing will offer ridiculous value over the next couple of months.
This presents an opportunity to brands that can earn
market share growth through well-established marketing mechanics such as extra
share of voice.
For every 10% points of extra share of voice (a brand
with 10% market share but 20% share of voice will have 10% points extra share
of voice) on average, you will earn 0.5% market share growth, according to Les
Binet and Peter Field.
Going after this growth is not mercenary panic-buying;
it would be a sensible business decision that would not only offer competitive
advantage, but fuel the economy (and, obviously, fund TV shows).
Now is the time to back up your brands. For most,
there is little point in a focus on sales activation at this point with the
world in retreat. But when we emerge, brands that maintained or built will be
much stronger for it.
It may feel weird to be talking about opportunities at
a time like this, but it is weirder still to ignore them. The worst thing to do
would be to grind everything to a halt.
We must engage with the real world and its future
still. And advertising has an important role to play in keeping commerce going.
Not all advertisers will be able to take advantage of
the value on offer but, for those that can, competing via advertising is an
important way through this and out the other side.
Time spent in front of a TV
screen has increased on average by 45 minutes per day, TV news rating has even doubled.
Since 10 March when the Government prohibited all
cultural, sports and social events attended by more than 100 people due to the coronavirus pandemic and declared that
schools would be closed starting from the following day, the Czech data has shown
a rapid growth in daily TV rating.
Further tightening of government measures has recently
contributed to an increase in rating of 45 minutes per day (compared
to previous weeks) in the 4+ target group. In the recent seven days, the rating
has been even higher than in February 2018 when the Winter Olympic Games were
held. This is revealed by ATO’s
data supplied by Nielsen Admosphere.
Daily Total TV ATS (h:mm), target group 4+
Source: ATO – Nielsen Admosphere, live + TS0-3, calculated on 20 March 2020
Rating of the news
has grown significantly. The increase is noticeable in the main news programmes of all major TV
stations and continuous news broadcast.
In the past seven days, an average Czech above 15 years who owns a functioning
TV set watched on average 67 minutes of
news programmes on TV per day, which is more than double compared to the
In the last ten years, only the results of elections
to the Chamber of Deputies (26 October 2013 and 21 October 2017), the
presidential elections in January 2013 and 2018, floods in early June 2013 and
Václav Havel’s funeral (23 December 2011) drew the same attention to TV news.
Total TV rating in %, target group: pupils, students and apprentices
— 5 business days before school closing
— 5 business days after school closing
Source: ATO – Nielsen Admosphere, live + TS0+3, calculated on 20 March 2020
Rating of young viewers, such as pupils, students and apprentices who are home from schools due to
the Government regulation effective as of 11 March, has increased. In the Czech
population, there are 1.6 of these individuals. The graph above compares this
group’s rating curves (% of people watching TV in a given time) showing the
average for the last five business days before school closing and for the
following five days after the closing. A dramatic increase is apparent namely
in the usual time of school attendance between 8 am and 3 pm and also late in
the evening because there is no need to get up early next morning. This is also
the reason why rating around 7 am has decreased.
TV viewing experience has been changing drastically in the last years,
especially with the rise of streaming services and all new devices for
accessing them. The way audiences consume TV daily is constantly evolving.
Therefore, there is a rising need for most recent figures that precisely show
people’s viewing behaviour.
week’s egtabite puts the spotlight on a project conducted by ViacomCBS in
collaboration with the Global TV Group.
A closer look
project, aiming to shed light on how and why global audiences watch TV,
involved 10,000 respondents aged 13-54 from 10 different countries (Australia,
Argentina, Germany, Hungary, Mexico, Poland, Spain, Thailand, UK and US)
through 60+ hours of filmed footage. Using GoPro cameras, in-home ethnographies
and online surveys, ViacomCBS got to see how consumers are watching TV today.
main insights of this extensive research unanimously prove the undeniable power
people all over the world love TV more than ever before, as it remains central
to their lives. TV is big and nuanced enough to have something for everyone. It
is perceived as a companion, a unifier, and a source of inspiration. One of the
respondents from Germany said: “For
me, TV is a great way to be inspired and entertained.” While 69% of
respondents feel that TV is an inevitable part of their daily lives, 70% say
it’s an important source of entertainment.
TV is bigger and better than before, in terms of content rather than devices or
platforms that have been proliferating in the last years. 62% of all the
respondents define TV as “TV shows and movies”. They perceive TV as content and
not as the tools they use to get their shows and movies.
people use TV to reduce stress and unwind after a tiring day. However, the
amount of content that is available to viewers is overwhelming. Searching for
content is time-consuming and frustrating, especially on VOD services.
Therefore, audiences are seeking out viewing experiences that are easy and
seamless, allowing them instant access to the content they love. If that is not
the case, the viewers are turning to watching movies or shows that they are
familiar with. The respondents admit that they occasionally turn to linear TV
as a way of simplifying their choices.
indulges us, brings us together and broadens our horizons
project proved that some viewing habits have remained the same. Despite a
changing TV landscape, well-established needs continue to be served by TV.
still indulges us today, giving us a break from our busy lives and satisfying
our need to unwind. It serves as a wonderful escape that lets the viewers get
their “me time”.
from offering a relaxing solo time, TV serves as a strong social connector,
bringing audiences closer to each other. People prefer to spend quality time
together with their close friends and families while watching TV, cooking and
chatting. The most popular place for gathering remains a living room with a big
TV serves as a great mind opener. People are watching shows from all over the
world, featuring different cultures which expand their views. TV allows them to
learn new things and have a fresh perspective. One of the respondents said: “You feel like you are sitting and not
doing anything when in fact you are exploring the world and going on a journey.”
“Our research proves that we are living
in TV’s Golden (or even Platinum) Age. TV is no longer limited to one screen at
home – Today’s TV is a concept for consumers and tomorrow’s TV will be more
important than ever,” says Christian Kurz, Senior Vice President,
Global Consumer Insights, ViacomCBS. “The
research shows that while TV continues to satisfy many crucial needs, such as
personal indulgence, togetherness and broadening perspectives, consumers are
increasingly craving ease and seamlessness in their viewing experiences.”
We Love TV
Finally, the ViacomCBS/Global TV Group project showed that TV today is loved more than ever, it is bigger and better than ever and also more complex. Whether we are viewing TV as a social ritual, getting out of our heads for a while, or expanding our mind, it remains the best way to relax and unwind in today’s complex world.
If you’re like me, then your LinkedIn feed has been
all about the resurgence of branding and traditional media recently. Companies such
as Amazon, Facebook, and Google began 2020 with Super Bowl ads. Executives from adidas admit having prioritized activation over branding,
saying they were focused on the wrong metrics because of their responsibility
to shareholders. Lately, even experts who believe most strongly in the
importance of results-driven advertising have been acknowledging the critical
brand building to long-term success.
Some, though, have been “team branding” all
along. For Marci
Cohen, vice president of market insights
Reach, the advertising sales division of
Charter Communications, brand-building is step one in any successful
advertising campaign. “Advertisers need to be part of the consideration
set to be purchased,” Cohen says. “Advertising builds trust and
awareness and desire. Over recent years, there’s been so much noise, so many
‘shiny things’ for advertisers to consider, that it was easy for some companies
to just focus … on media towards the bottom of the marketing funnel. That’s
Cohen, who leads a team of more than 40 research
experts across the country —advising on both traditional and advanced
advertising — recently helped develop a campaign and whitepaper aimed at educating local advertisers about what
national advertisers already know: When it comes to brand building, television
in all its forms is vital. “Every single person uses media
differently,” she says. “But, between the amount of time consumers
spend with television, television’s broad reach and brand-safe and fraud-free
premium environment, and the impact of TV creative on the big screen where most
people watch, TV does unparalleled things for businesses of all sizes.”
Those benefits, she says, make the activation side of
advertising more effective. Consider direct-to-consumer
advertisers such as
UNTUCKit and Wayfair, which have also begun investing heavily in traditional
media, producing what the Video
Advertising Bureau calls
“short- and long-term success.”
Amy Bobchek, chief revenue officer of real-time
advertising optimization platform Advocado agrees, comparing businesses that focus only on
search engine advertising to a restaurant that advertises only in the back seat
of taxicabs because most of its customers arrive that way. She says that not
only is TV the number one way to build brands, but also “it boosts online
ad effectiveness. People choose brands online that they’re familiar with
Results and branding are also important for Miriam
Quart, president of agency Madison Avenue Consortium, known for its work with national beauty and packaged goods
advertisers. I caught up with her as she was punching up the script for a TV
commercial for a regional hospital. For her, the conversation about branding
versus activation is about impact. “With so many ways to activate online,
I’m seeing the pendulum swinging back to big ideas and the strategic
planning and creative concepting that bring
both parts — brand-building and executions, which are more sales-focused —
together. There’s no divide between traditional media and digital anymore;
it’s all just content and how it works best for the brand’s strategy.”
Even advertising consultant and speaker Tom Ray, who
wrote Branding Is Out, Results Are In, asserts that branding is one
of the most important elements of an advertising campaign. “It’s a myth
that TV is just for branding, and that digital is for activation,” he
says. “Traditional media, particularly television, can do both. If we
allow advertisers to believe that it can’t and let them run only commercials
that don’t give customers a real reason to buy, visit, or sign up for
something, we’re doing them a disservice.”
Nicole Penn, president of EGC Group, whose clients
include brands in automotive, education, healthcare, and retail, says that the
balance between branding and activation depends on the marketer’s strategy. EGC
worked on a campaign for an urgent care center in the Northeast last year,
which had previously been focused completely on activation at the point of need
— when people were making the decision to see a doctor — because the advertiser
assumed that sick people would just choose the nearest center.
“Our hypothesis was that if customers understood value the brand offered — specially trained doctors, no wait times — they would be willing to drive a little further.” EGC kept the activation-focused search and social advertising, adding broadcast and cable television, including ads during sporting events. “The results,” Penn says, “were ‘ginormous.’ By the end of flu season, we had a client who understood that traditional media truly makes an impact on results and on the long-term value of the brand.”
Spectrum Reach’s Cohen says she expects more
advertisers to be focused on branding and, in turn, television in 2020, even as
companies selling traditional media offer advertisers more ways to measure
advertising impact through platforms such as her company’s AudienceTrak.
“Marketers do need to track sales performance — it’s not really an
either/or,” she says. “They need both results and branding … but
branding should come first.”
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.
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.
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.
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
should not show living creatures, thinks the Minister of Health.
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
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 LucieČešpivová 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.
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.”
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
“Performance Marketing Got
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.
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
“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.”
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.”
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….
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.
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.
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.
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
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
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.
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.
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.