The Association of Commercial Television

MARKETING SUPERSTAR MARK RITSON WILL START HIS EUROPEAN TOUR IN PRAGUE

The Association of Commercial Televisions has been continuing their education activities by organizing their third conference aimed at marketing professionals in the fall. For the first time they will join forces with the Slovakia’s Association of Independent Radio and TV Stations (ANRTS) to give Czech and Slovak marketers the opportunity to hear one of the most outstanding contemporary marketing experts, Australian professor Mark Ritson, live. In addition to him, the conference “Boost Your Media Performance“ will host the head of research at Thinkbox, GB, Nicole Greenfield-Smith, marketer Chris Goldson from the British commercial leader ITV, and other representatives of Czech and Slovak advertisers, who will speak about up-to-date topics within the client panel. Petr Šimůnek will be the host of the conference.

Last year, AKTV began their operations with a conference on the most common myths about television and online advertising with a presentation by Les Binet, British effectivity guru. At the beginning of this year, Australian professor Karen Nelson-Field accepted AKTV’s invitation to came and present the results of her research on effects of advertising via various platforms. The star of the third conference, which will take place on October 1st in Prague, will be university professor and marketing expert Mark Ritson.

Apart from world-recognized expert Mark Ritson, the conference will also host the head of research at the British marketing association Thinkbox Nicole Greenfield-Smith, who will present the results of this year’s research Profit Ability: the business case for advertising. Chris Goldson, Director of Creative Works and Commercial Marketing, from the most watched British commercial TV Group ITV, will share his best practice with the participants of the conference. Together with discussion participants in the client panel, we will discover the focus on Czech and Slovak conditions and needs.

“After enthusiastic reaction to our previous event we decided to expand the concept of our conference to more topics and speakers, invite our Slovak colleagues as co-organizers, and thus give the opportunity to participate to significantly more interested parties. Our goal is to provide Czech and Slovak advertisers with the newest findings directly from leading world experts, who do not usually present in the Czech Republic, without the necessity of travel to London or Paris,” says Jan Vlček, AKTV President.

 ”I’m personally very excited about our first Czech-Slovak conference, in particular about our star speakers, leading marketing experts renown from major conferences abroad. It is a unique opportunity for us, as well as our guests, to get access to the newest findings and trends which will then help us in local business, too,” adds Marcel Grega, ANRTS President.

Media partners of the conference are Hospodářské noviny, industry-focused website Mediaguru.cz, and Slovak marketing and media magazine Stratégie.

For more information please go to www.AKTV.cz/konference.

 

Mark Ritson is a Professor of Marketing at Melbourne Business School and Adjunct Professor of Marketing at Singapore Management University and other world leading business schools. He has a PhD in Marketing from Lancaster University. He is widely acknowledged as one of the world’s best marketing experts. Outside the academic sphere, Mark has worked in brand strategy, market research, segmentation, CRM, and marketing communication. He has worked as an in-house expert for LVMH – the largest luxury group, which includes Louis Vuitton, Dom Perignon, Fendi, Tag Heuer, Dior and Hennessy.

Mark has been writing columns for Marketing Week regularly for 10 years. He has received numerous awards, both for journalism and academic work, including one of the most prestigious prizes in marketing, the Ferber Award, for his doctoral thesis.

AVMSD REVIEW: A STEP IN THE RIGHT DIRECTION, WITH MORE WORK AHEAD

egta – the association of television and radio sales houses – commends EU policymakers for reaching an agreement on a new Audiovisual Media Services Directive. Two years of challenging negotiations have delivered some welcome flexibility in commercial communications which should contribute to a more competitive environment for European broadcasters.

We are encouraged by the liberalisation of the rules on advertising minutes and the much-needed protection of media service providers’ signal integrity. In tandem with the new responsibilities that video sharing platforms will have to abide by, sales houses see this as a first step towards a level playing field for European content producers.

egta and its member sales houses saw the revision as an opportunity to modernise the European audiovisual regulatory framework. Despite a constructive dialogue with the European institutions, it should be acknowledged though that the net result is one of modest progress rather than a future-proof legislation that reflects market realities.

Malin Häger, egta President, comments: “We sincerely welcome the positive progress made on the rules that govern audiovisual commercial communications, particularly with regards to advertising time limitations. However, we must also recognise that on some aspects, the text is less ambitious than we hoped for at the beginning of this process. Broadcasters remain far more heavily regulated than online actors who are competing for the same advertising revenue. In order to provide long-term value, it is therefore crucial that the measures foreseen in the reform are applied and enforced consistently”.

The audiovisual advertising sector contributes positively to the European Digital Single Market, and egta is confident that we can work together with regulators to ensure that this revision delivers tangible benefits to the industry.

About egta:

egta is the association representing television and radio sales houses, either independent from the channel or in-house, that market the advertising space of both private and public television and radio stations throughout Europe and beyond. egta counts more than 140 members across 40 countries. www.egta.com

AGREEMENT REACHED ON NEW MEDIA SERVICES DIRECTIVE (AVMSD)

EP negotiators and the Bulgarian Presidency of the Council of the EU agreed on substantial rules for audiovisual media services, including digital platforms, on Thursday evening. 

The revised legislation will apply to broadcasters, but also to video-on-demand and video-sharing platforms, such as Netflix, YouTube or Facebook, as well as to the live streaming on video-sharing platforms. EP negotiators managed to secure enhanced protection for children, stricter rules on advertising, and at least 30% of content in programmes of TV channels and VOD platforms must be European.

Protecting minors from violence, hatred, terrorism and harmful advertising

MEPs introduced “effective and efficient” new rules into the law that prohibit any content inciting violence, hatred and terrorism, while gratuitous violence and pornography will be subject to the strictest rules.

While co-regulation and self-regulation are prioritised, video-sharing platforms will now be responsible for reacting quickly when content is reported or flagged by users as harmful. At the request of the Parliament, platforms need to create a transparent, easy-to-use and effective mechanism to allow users to report or flag content. Technical solutions to explain the nature of the content in the hosted videos and follow-up when a video has been flagged are also needed.

Health and safety concerns regarding minors are also addressed. The new law includes strict rules on advertising or product placement in children’s TV programmes or content available on video-on-demand platforms. Measures should be put in place to effectively reduce children’s exposure to publicity on unhealthy food or beverages. Product placement and teleshopping will be prohibited in children’s programmes, while member states can decide individually whether they also want to exclude sponsorship from children’s programmes.

EP negotiators also secured a personal data protection mechanism for children, imposing measures to ensure that data collected by audiovisual media providers are not processed for commercial use, including profiling and behaviourally targeted advertising.

Advertising limits redefined

The new rules impose a maximum 20% quota of advertising of the daily broadcasting period between 6.00 and 18.00, giving the broadcaster the flexibility of adjusting their advertising periods. A prime-time window between 18:00 and 0:00 was also set out, during which advertising will only be allowed to take up a maximum of 20% of the broadcasting time.

30% of audiovisual content on the video-on-demand platforms’ catalogues must be European

In order to support the cultural diversity of the European audiovisual sector, MEPs ensured that 30% of content should be European, also in the video-on-demand platforms’ catalogues.

Video-on-demand platforms are also asked to contribute to the development of European audiovisual productions, either through a direct investment in content or a contribution to national funds. The level of contribution in each country should be proportional to their on-demand revenues in that country (member states where they are established or member states where they target the audience wholly or mostly).

The Parliament also secured measures to ensure the integrity of the signal. It applies to smart TVs and means that the media service provider cannot add a window with content to the screen during a programme, without first having the agreement of the broadcaster. Rules are also foreseen to ensure that media services providers continuously and progressively make audiovisual services more accessible for people with disabilities.

Quotes

EP negotiator Petra Kammerevert (S&D, DE) said: “We made major breakthroughs in the negotiations and now have a political agreement on all pending key issues. The outcome is well balanced, especially with regard to the scope of the directive, including video-sharing platforms and audiovisual content on social media, a more level playing field for all communication stakeholders, and protection of European works.

EP negotiator Sabine Verheyen (EPP, DE) said “By applying similar rules to similar services, irrespective of whether the media content is consumed online or offline, we have made EU regulation fit for the digital era. Protecting children and minors has always been a top priority for us. We have now negotiated a level of protection for internet media services similar to that in place for traditional broadcast media. The transparency rules on advertising, and in particular on product placement and sponsorship, now also apply to user-generated content uploaded to video-sharing platforms. This will protect consumers, especially children and minors.”

Next steps

Following the informal agreement, the text will have to be voted on by the Culture and Education Committee, which is leading the negotiations. A vote in plenary to endorse the new rules is likely to take place in September (tbc).

 

Source:  European Parliament

ASSOCIATION OF COMMERCIAL TELEVISION STARTED A DIALOGUE WITH ADVERTISERS AND GOVERNMENT AUTHORITIES IN THE FIRST YEAR OF OPERATION

In the first year of its existence, the Association of Commercial Television (AKTV) set two main goals: to spread awareness among advertisers about television being a key advertising mediatype and to do so through marketing activities as well as to engage in law-making processes with a direct impact on commercial television business. During its first year, AKTV also joined the Chamber of Commerce, where it has been an active member of the Creative Industry Section, and it also became an associate member of the EGTA Association, which brings together television and radio media representatives.

The Association of Commercial Television (AKTV) was formed in spring 2017, in response to the growing need to defend and promote the common interests of commercial broadcasters in the Czech Republic. The founding members of the Association are the Nova, Prima and Óčko television networks and the first presidential mandate was headed by Jan Vlček from Nova.

As part of its marketing activities, in response to frequent unsubstantiated statements made by global players in online advertising, AKTV focused on direct communication with the most important advertisers in the Czech Republic. In the first year of its existence, AKTV organized two educational seminars for senior management of the largest advertisers as well as for CEOs and marketing directors. The common denominator of both conferences were exceptional foreign speakers and premium and highly relevant content.

Les Binet, a renowned expert and an author of marketing books from the adam & eve DDB London agency, gave a lecture at the first conference, and Karen Nelson-Field, an Australian university professor and researcher, presented the results of her latest research, which compares the performance of television and online advertising, at the second conference. AKTV will continue with its activities this year so as to respond to the demand of the advertisers for relevant and undistorted information on the current status of the individual mediatypes and the trends in their use.

“We have heard more and more often that television is dead and online advertising is the only option in the future. However, as the data show, the time people spend watching television does not decrease. In fact, people spend more time in front of the TV and we feel the need to emphasize this fact to the advertisers. Last year, for example, viewers aged 15 years or more watched television for 3 hours and 45 minutes a day, which is almost 15 minutes more than five years ago and 30 minutes more than ten years ago. In addition, television remains the most popular type of media among viewers of all age groups,” says Jan Vlček, President of AKTV.

Marketing activities of AKTV also include active involvement in the global initiative called The Global TV Group, an unofficial grouping of associations of television companies and media representatives in Europe, United States, Canada, Australia and Central America, which aims to promote TV broadcasting.

In addition to the raising of public awareness about marketing, AKTV has also focused on legislative processes, both at national and European level. For example, AKTV and ACT, its partner association, organized a seminar on European audiovisual legislation for Czech and Slovak Members of the European Parliament in Brussels.

TELEVISION IS STILL NUMBER ONE. EVEN TODAY’S INTERNET SAVVY CHILDREN PREFER TV

Even though children mostly moved from the television screen to a computer monitor or smartphone, television is still number one for them. Research shows that even today’s children still prefer TV over other types of media.

Lifestyle Survey of Children conducted by the Association of Television Organisations (ATO) shows that television is still a number one daily (or almost daily) media activity for almost three-quarters of Czech children aged 4-14 years. The frequency of children’s TV consumption even surpasses their watching Internet content or playing games.

71% of children watch live television broadcasts on a regular basis. Another 13% of children turn on the TV at least once a week. Number two media activity for children is watching videos on YouTube and similar sites. 30% of children watch them daily or almost daily and 38% of children watch them at least once a week.

It is similar to listening to music, songs and radio. However, compared to watching television, more children do these activities on a daily basis (37%). One-quarter of children claim that they listen to music once a week. This activity is followed by reading books, magazines and comics, either daily (26% of children) or once a week (35% of children).

Playing Games and Time Spent in Front of TV

The fifth most common media activity for children is playing electronic games. One-third of children spend their time playing games daily and a little more than one-fifth of children play games at least once a week.

As to the time, children usually spend on the media per day, the youngest children, aged four to six years, spend most of their time watching TV. Older children, on the other hand, prefer watching online videos or playing electronic games.

According to the ATO Lifestyle Survey of Children, compared to younger children, older children also usually sleep less during the day, spend less time with their parents and more time at school. They have more free time, especially at weekends, and therefore spend more time using electronic devices (computers, notebooks, smartphones or tablets). The research was conducted last year and 531 children participated in it.

 

Source: iDNES.cz

EUROPEAN SALES HOUSES URGE LEGISLATORS TO STRIKE THE RIGHT BALANCE IN THE FINAL AVMS DIRECTIVE NEGOTIATIONS

The European Commission’s proposal for a revised Audiovisual Media Services Directive in May 2016 promised to create a fairer environment for all players, to ensure adequate protection for consumers, especially children, to sustain the production of original European content and to introduce more flexibility on the advertising rules for broadcasters.

The original proposal was a step in the right direction and was welcomed as such by European sales houses and broadcasters, in particular the flexibility on advertising time as well as the simplification and liberalisation of the rules on sponsorship and product placement.

As the trilogue negotiations come to a conclusion, egta members would like to urge decision-makers to keep those initial objectives in mind when agreeing on the final balance of the text.

Broadcasters are increasingly concerned at the potential erosion of what was a modest evolution of the rules in the first place. Since the publication of the initial proposal, online advertising sales have been growing steadily and in 2016 became the main media for advertisements on a pan-European level, with €36.8 billion in revenue, surpassing TV advertising (€31.4 billion)1. As things stand, apart from the moderate liberalisation of the advertising time, there will be little to no discernible flexibility in the qualitative advertising rules, the articles on sponsorship and product placement and the other linear specific advertising provisions.

We strongly urge the Parliament, Member States and the Commission to take the opportunity of the final trilogue meetings to ensure that this revision process delivers on its original objectives of a competitive, creative and safe European audiovisual landscape.

This could be achieved by introducing measures safeguarding broadcasters’ signal integrity, simplifying the rules on product placement and sponsorship as per the Commission proposal, liberalising isolated adverting spots in article 19.2 and ensuring that no further measures adversely impact broadcasters’ current revenue streams.

To secure a robust level of consumer protection, a fair environment for business and competition with other actors, all content providers, including video sharing platforms, should also adhere to the basic advertising principles in articles 9, 10 and 11. In a fast-changing market place where all content providers, both online and offline, linear and non-linear, are competing for audience and advertising revenues, qualitative prescriptions should be simplified and harmonised in order to secure a more equal environment, so that the financing of quality content shall be sustainable in the longer term.

As noted throughout the studies that informed the Commission’s impact assessment, Europeans have never been presented with more choice of audiovisual content. It is in this context that broadcasters need to secure future proof revenue streams that will allow them to continue offering the content that viewers expect and are interested in.

Therefore, the European audiovisual sector needs a regulatory environment that reflects the current market place, provides proportionate and balanced rules and will remain relevant as technological developments occur. We strongly believe that simplification and legal certainty in the AVMSD will match those objectives.

   

egta is the association representing television and radio sales houses that market the advertising space of both private and public television and radio stations throughout Europe and beyond. egta counts 140 members across 40 countries. www.egta.com

 1 The EU online advertising market – Update 2017, European Audiovisual Observatory, 2017.

WE WATCH MORE TV AND IN BETTER QUALITY

95% of Czech households currently own a television. Moreover, the time we spend in front of the TV is constantly growing. Czech people aged 15 years or more watch TV for 3 hours and 45 minutes a day on average, which is 31 minutes more than ten years ago. They also watch TV broadcasts in better quality: almost two thirds of households watch TV in HD quality. Households are more often turning into smart households as people own increasingly more notebooks, smartphones and tablets and commonly use them to consume TV video content.

The data regarding the use of technology in Czech households come from the Continual Survey 2017, which was conducted by Nielsen Admosphere for the Association of Television Organisations. The survey is an integral part of the Project of Crossplatform Electronic Measurement and Content Consumption in the Czech Republic.  The survey was conducted in 2017 and 27,506 respondents aged 15 years or more from 19,038 households participated in it.

Television still remains the most powerful medium: not only do Czechs spend more time watching it (3 hours and 45 minutes a day on average), but they also watch it in better quality. 62% of television households watch TV stations in HD quality (which is 8% more than in 2016) and almost 90% of television households currently have at least one flat TV at home.

 (The changes in average daily viewership of television broadcasts in 10 years among viewers 15+)

There has been a rising speed of adoption of technology in households: for example, compared to 2016, the number of households with at least one smartphone has risen by 10% (59% in total), there are 4% more households with a notebook (56% in total) and there is currently 25% of households with a tablet, which is 3% more than in 2016. The year-on-year growth of the number of households owning a desktop computer is stagnating (37%). However, television with its 95% still remains the most common media device in Czech households.

(Media devices in Czech households)

Source: ATO 

TELEVISION INCREASES THE NUMBER OF DELIVERED ADVERTISING TRPS

As the results of the first month of 2018 show, the increase affects all players in the market.

The Czech television advertising market had a successful first month this year. Based on the number of delivered advertising TRPs, 2018 started off favourably. Compared to the same period last year, the number of TRPs delivered to the target group of people aged 15+ increased by eight percent, in the age group 15-54 by 6.5 percent and in the age group 15-69 by nine percent.

The strongest players in the advertising television market are Media Club and TV Nova. The former has a strong position in age groups 15+ and 15-54 as far as the number of delivered TRPs is concerned. The situation is more balanced in the age group 15-54. The share of delivered TRPs of all subjects increased in January of this year, compared to the same period last year. Atmedia and TV Nova scored the highest percentages.

Source: Mediaguru

TELEVISION ADS OUTPERFORM YOUTUBE AND FACEBOOK ADS

This is the result of a research that focused on the interconnection between the attention that people pay to advertisements and the influence it has on the sales of goods.

According to the research conducted by Australian professor Karen Nelson-Field, television ads command more attention than YouTube or Facebook ads. The professor introduced her research at a meeting organized by the Association of Commercial Television (AKTV) in Prague. The research showed that 58% of people actively watched an average ad second on the television screen, while only 31% of people did so on YouTube and only 4% on Facebook. “Facebook is a rather passive platform, the primary focus being on friends, not advertising. But passive consumers of ads are also somehow significant,” she said.

Karen Nelson-Field also mentioned that attention is a key factor influencing product selection and that it directly impacts sales. “There is a strong interdependence between the attention paid to advertising and the volume of sales. The probability of people making a purchase when exposed to a certain ad increased by 17% when compared to people who have not seen the ad,” she said. Therefore, each video has a positive effect on the sale of goods. The comparison of the above-mentioned platforms (TV, YouTube and Facebook) yet again demonstrates that advertising on the television screen achieved the best results.

Based on the research, the attention paid to ads is highly correlated to screen coverage (the percentage of a screen occupied by an ad) on any platform. Television advertisements, at 100% screen coverage, provide three times more screen coverage than YouTube and ten times more screen coverage than Facebook. Ad visibility is thus directly proportional to attention that people pay to ads, which in turn impacts sales. The research claims that ad visibility is more important than the time people spend watching a particular ad. “Full screen advertising experience always has twice the impact when compared to an ad half its size, regardless of the time spent watching the ad,” said Karen Nelson-Field.

The data was collected using artificial intelligence, machine learning and eye cameras. The sample included 2,583 Australians who viewed 18,219 ads from nearly 39,000 brands.

 

Source: Mediaguru

THE MEDIA MARKET SUPPORTS THE NEW AMENDMENT TO THE PHARMACEUTICALS ACT WHICH GOVERNS ADVERTISING

Media operators and advertising agencies from professional associations support the new amendment to the Pharmaceuticals Act, which will be voted on at the plenary session of the Chamber of Deputies on Friday and which proposes to repeal the latest amendment to the Act on Regulation of Advertising. In the last year, the Act on Regulation of Advertising was amended as a rider to the Pharmaceuticals Act. The responsibility for the compliance of advertising content with the law was extended to the broadcasters and it concerns selected types of product – medicinal products for human use, food supplements and foodstuffs intended for particular nutritional uses and for infant nutrition. Until then, it had only been the subjects, which had helped create the advertising content, who had been responsible for the compliance of advertising of such products with the law, as is the case with other types of products. The amendment seeks to return to the original form of the Act on Regulation of Advertising.

The problematic amendment, which introduced the joint liability of the disseminator of advertising for the compliance of the advertising content (medicinal products for human use, food supplements and foodstuffs intended for particular nutritional uses and for infant nutrition) with the law, has been effective since April 2017. The amendment has not contributed to increasing the level of consumer protection. Instead, it has proved to be easily misused in the competitive fight among the producers of the products concerned. In the spring of last year, the entire media sector warned that extending the responsibility for the compliance of advertising content with the law to the disseminator of advertising could not contribute to increasing the level of consumer protection. The reason for this is that the advertisers do not have any professional qualification or legal tools to gather the necessary background information that would help them professionally assess, for instance, whether the advertised product actually strengthens one’s immune system or not.

“Media operators understand that the aim of the amendment was to provide greater consumer protection but transferring responsibility to the advertiser is not the right way to do so. Consumer protection can only be enhanced by effective enforcement of legal obligations of advertisers. We hope that the legislators will understand this and that they will support the amendment, which will return the text of the law on regulation of advertising to its original form. We also hope that they will reject the current amendment to the Act as non-conceptual and non-systemic,” commented Ján Simkanič, Chairman of the Executive Board from The Association for Internet Progress (SPIR).