Posts Tagged ‘advertising’

RESPONSE, BRAND-BUILDING & THE AD BREAK OF THE FUTURE

October 16th, 2012

 

If we ever stop to think about it, one of the most remarkable aspects of the digital revolution is how much people are prepared to sit through advertising, even though most of them now have the technology to edit all broadcast ads out of their lives. When TiVo first became a reality, it was naturally assumed that people would use it primarily as an ad avoidance device, almost obliterating the 30 second spot overnight.

Of course, that never happened, and even today DTRs actually contribute to more viewing to TV commercials at normal speed. Despite DTRs being in more than half of UK households now, commercial impacts have grown by almost 20% across the last five years.

This is the one element of the TV ‘story’ against which I get most bounce-back, even though there is now a torrent of consistent data to prove it is the case. Fundamentally, people are watching more TV ads than ever before despite the array of alternatives they have for avoiding them.

The strength of the broadcast schedule (people still usually look for what’s on now before they consult with their planners or players) and a sense of inertia help. Also, as we heard from the Thinkbox research last week, 2-screening is helping to improve engagement in the advertising, although it is still a minority activity. The big question is; will things stay this way?

I happen to believe that broadcasters – and agencies – will have to work harder in future to keep this audience. Their implicit agreement to remain present and tuned in to the commercial breaks has to be nurtured, because the range of options to find something else to do for that precious few minutes is increasing all the time.

That is why initiatives like Channel 4’s themed breaks and ‘event’ breaks like the Honda sky-dive are to be encouraged. These tend to create a sense of occasion, increase engagement and keep viewers tuned in. We need more of this sort of innovation than ever before, otherwise audiences will begin to drift off.

This could actually snowball quite quickly, because there is another consequence of 2-screening that has already had a huge impact on TV advertising. Online offers a brilliant response channel for TV advertising and the rise in tablets and smartphones are only going to make it more powerful and effective. The danger, from my perspective, is that response starts to take over, the ads become unwatchable (or the calls to action become more irritating) and the audience starts to flick over to that 3 minute YouTube compilation on their connected sets, before you can say “go to www….”.

It’s already started to happen in off-peak. I’ve seen breaks recently that are 100% response- every ad with an entreaty to call this number, visit this website, enter this competition with a simple text NOW! That will teach me to watch Jeremy Kyle.

Since TV became a point-of-sale medium, and its role in influencing online response was finally acknowledged, there has been a transformation in its fortunes. It achieved a record share of the advertising cake over the past two years. Much of the new money has come from the online industry itself, which is now edging towards 10% of total TV spend. It is estimated that two thirds of all TV ads have some form of call to action.

The big question is whether this is going to be instead of brand-building or in conjunction with it. It should be the latter – strong, creative branding has both a short-term impact on response but a much longer-term effect on profitability and price sensitivity. However, in times of recession, there is always a temptation to go for the former.

If it is the latter, and brands do invest in building the brands as well as creating response, TV companies are going to have to find ways of harvesting that response, and at the same time keeping those viewers engaged with the rest of the ad break. They will need to find ever more innovative ways to keep a restless audience entertained. That, I think, is achievable, if the ads themselves do their job.

If, however, TV becomes one big call to action, with all of the creative deficiencies that usually implies, then there may not be an audience around to respond.

WHY DO WE NEED BARB? SIGH!

October 16th, 2012

I was fortunate enough to attend Mediatel’s Media Playground last week and enjoyed the lively debates, especially around the new screen opportunities and the value of data. Unfortunately, I arrived late, and so the Screen panel session was already in full swing, and as the room was packed full of delegates, I had to sidle my way to one of the few vacant seats, right on the front row.

That wouldn’t have been too much of a problem except, not long after I sat down, the debate shifted to the perennial topic of why do we need BARB? Apparently, I sighed very audibly (thanks for pointing that out, Rhys!) which prompted a ripple of laughter.

As it happens, I was sighing because I’d just realised I’d left my mobile phone at home, but my opinions are apparently so well known that it was easily misconstrued: which is fair enough, because if I hadn’t been so pissed off about my iphone, I’m sure I would have sighed, if not wept tears of frustration. I’ve heard so much recently about BARB’s irrelevance to the digital media landscape of today that I feel I ought to add my voice to the case for its defence.

  1. BARB is an accepted currency. It is rare that we get the advertisers, agencies and media owners all in agreement, but the structure of BARB is such that they all have a stake in its development and implementation. A £3bn market needs a recognised currency, which is why the online industry is doing its best to replicate BARB via UKOM.

 

  1. BARB stands alone. One of the frustrations of online research and analytics is the plethora of data sources, meaning buyers and sellers can pick and mix the data that most suits them. It creates confusion, contention and conflict, rarely to the satisfaction of either party.

 

  1. BARB is constantly reviewed and quality controlled, so that the recruitment, measurement and analysis of the data is all conducted to the highest standards and the accuracy and consistency of the data is optimised. Having sat on more BARB committees and working parties than I care to remember (the Rim Weighting Working Party still gives me nightmares, twenty years on!) I can vouch for the huge amount of work that goes into ensuring the quality of the outputs.

 

  1. BARB is highly representative of the whole of the UK population, not just the online population – or worse, the tiny percentage of the population that decide to take part in online surveys.

 

  1. BARB measures people, not clicks. As such, it enables us to understand the profile of an audience, measure reach and frequency of campaigns and track individuals’ viewing over time; all hugely important for a display medium like television.

 

  1. BARB measures behaviour, not attitudes or estimates. The people meter methodology means respondents aren’t asked to recall their viewing or to record attitudes or perceptions; both of which are subject to inconsistencies and mistakes. It merely asks them to press a button whenever they enter or leave a room when the TV set is on (and BARB coincidental surveys indicate they do that accurately).

 

  1. BARB stands up to rigourous comparison with other respected data sources. For example, the IPA Touchpoints survey regularly shows a 99%+ correlation with the comparable BARB data, despite being measured via a different methodology.

 

  1. BARB is fit for purpose. Although it has been criticised for being slow to measure new forms of viewing, such as on demand, and cannot be deemed reliable in its measurement of individual programmes on the smallest channels, it measures the bulk of TV viewing accurately and reliably. It was interesting in the Screen debate that there was also a complaint from the on demand aggregators that BARB doesn’t measure their output yet (although plans are being developed), which kind of suggests even they see the point of BARB really.

 

The most common criticism of BARB from the online industry is that a sample size of 5,000 is almost archaic in the age of big data. Such complaints display ignorance in themselves; BARB’s sample size is over 12,000 people in more than 5,000 households. It is enough to provide an accurate and consistent measure of most TV viewing, certainly the viewing which attracts the vast bulk of TV revenues.

This is not to say that BARB shouldn’t evolve to match the changing demands of the digital media landscape, but so far it has managed pretty well. The main criticism is that it has been slow to measure on demand viewing via other screens, but this still accounts for less than 3% of total TV viewing, so it has not been a priority until now.  That said, BARB is already moving away from its core objective of ‘measurement of in-home viewing via the TV set’

I think, over the coming years, we can expect to see BARB measure more forms of TV viewing, wherever they occur. In order to keep up with the viewing shifts that are constantly evolving, we can also expect to see it fuse or merge with third party data – perhaps from server data or separate research studies – to provide a ‘Silver Standard’ service for the less mainstream forms of viewing.

What we won’t see in the foreseeable future is a rival service based on ‘big data’ and very different methodologies. There has been talk recently of social TV services such as zeebox providing alternative viewing measurement based on possibly hundreds of thousands of contributors. Good luck with that, I say, but until such a service can address the points I have raised in the case for BARB’s defence I think we can safely say that it will be around for quite some time to come.

TRANS-EURO EXPRESS

October 16th, 2012

I have been presenting a great deal in mainland Europe over the past year or so, and I have to say that I am having some of my preconceptions challenged by what is going on over there.

One of the major benefits of a career in media research in the UK is that, on most indicators, we have the most digitally advanced market in the world and the levels of creativity and innovation used to harness digital technology for marketing purposes has been well recognised. Most European broadcasters would accept that the UK is a year or two ahead in most respects, and they are interested in what we are doing here as a result.

Things are beginning to change, though, and the UK could learn a thing or two about what is happening elsewhere in Europe.

For example, I presented in Poland recently and saw firsthand some of the creative solutions that are being presented to advertisers to enable them to more effectively integrate into TV content. It rivalled many of the case studies I have seen from the UK demonstrating how broadcasters, agencies and brands can work together.

Or take Italy. Since Silvio Berlusconi loosened his grip on Italian politics, many of the regulatory restrictions he placed on digital development to protect his analogue-era media powerhouses are being dismantled, leading to a technology-led transformation of the TV experience (according to a recent New York Times article) and a significant shift in viewing from the cocooned Mediaset channels to quality alternatives such as Discovery Channels, which has recently launched two free-to-air channels. The Italian experience shows just how quickly the market can change once digital regulation is opened up and competition, creativity and innovation are unleashed.

Sweden provides a very different example, which also offers potential lessons for UK media. The Swedish market is one of the most technologically advanced in the world, but the advertising powerhouse is considered to be good old-fashioned newspapers. This is because Swedes pride themselves on their education levels and interest in the world around them, and newspaper readership is considered a symbol of these values. It is also in large part due to the power of the local press to service the significant local advertising industry in Sweden; the leading free-to-air broadcasters have invested in dozens of localised transmissions to take a share of those local revenues from an estimated 36,000 potential advertisers.

The local advertising market in the UK has always been considered hardly worth bothering with, especially as television advertising opportunities for local advertisers significantly reduced with the pulling back of ITV’s regional franchise system. I think this is a lost opportunity and offers one of the few substantive opportunities for addressability. I’m generally sceptical about how important addressability will become, but unlocking the regional and local advertising opportunities that still exist could be a simple yet valuable solution to a revenue challenge.

 

 

Effectiveness Is In The Eye Of The Beholder

March 2nd, 2012

It’s only since I began regularly blogging on media matters that I have also started to ask odd questions whenever I’m confronted with a straightforward headline. I should have been satisfied with the report from the USA’s Association of National Advertisers (ANA), announcing research amongst major advertisers showing a renewed faith in television. To quote Bill Duggan of the ANA; “This survey confirms that the death of television has been greatly exaggerated. Our findings shine a spotlight on the bullish attitude that advertisers have towards the medium, including passion for new TV and video platforms.”
It confirms something I’ve always felt about USA media, ever since I went on a media ‘fact-finding’ trip to New York in 1989 and returned disappointed – in many ways, they have always been a year or so behind us. Such a headline from UK advertisers’ body ISBA would hardly raise a yawn these days, it has become so taken for granted.
But something in the article intrigued me. The report stated that, compared to 2010, the number of advertisers judging TV ads to be more effective tripled. That seems like a massive jump to me in such a short space of time and I double checked to make sure there hadn’t been some game-changing event that had taken place in the USA without my knowledge. Not really.
So, how to explain such a leap in confidence in a medium which has probably been battered and bruised even more in the States than it has here in Limey-land? I’ve come up with three possible answers;

1.   Television really IS getting more effective over there. There is a good case that it is, but the technologies that are cited by the ANA, such as new video platforms and addressable advertising, are nowhere near mainstream enough yet to have made a noticeable difference.

 

2.   American advertisers are finally getting the tools to measure and correctly attribute TV’s contribution to effectiveness. If true, this would persuade me to re-calculate our lead over the USA to two years or more. It’s often surprised me, though, how less well-established 360 degree effectiveness evaluation is Stateside.

 

3.   It’s more of an emotional thing – they just feel more confident about praising TV. I think we sometimes forget just how ingrained the ‘TV is dead’ narrative became following the emergence of Web 2.0 until just a couple of years ago. I believe the UK industry only really began to reject it as too simplistic around 2009, which would mean (if my time-lag theory is correct) the tables would begin to turn in the US in 2010 – the low base year from which TV’s perceived effectiveness has tripled.

 

Of course, as always, it is probably a combination of all three, but if I had to select one of those alternatives as my main influence, it would have to be third. On the one hand, so much of what we do is based on emotion and ‘herd’ behaviour, why not advertisers’ sense of excitement (or ennui) in TV’s place in the media landscape? But it must also be based on an increased understanding of how effectiveness works and how to attribute TV’s contribution, especially given the sterling work recently from the IPA, ARF, PWC, Deloittes and Thinkbox. So, maybe it is the second answer as well. That seems more like it – left brain and right brain working together.
Either way, come on USA – catch up! (And how often do we get to say that?)