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Market Insight - Television Advertising Insight

Market Summary - Television Advertising Insight

Media Update:

Television Advertising Insight

Date:

QTR 2 2017

Sponsor:

Thinkbox
Thinkbox - Television Advertising Effectiveness

At a Glance

Thinkbox is the marketing body for commercial TV in the UK, in all its forms. It works with the marketing community with a single ambition: to help advertisers get the best out of today’s TV.

Its shareholders are Channel 4, ITV, Sky Media, Turner Media Innovations and UKTV, who together represent over 99% of commercial TV advertising revenue through their owned and partner TV channels. Associate Members are Discovery Networks Norway, Disney, London Live, TAM Ireland, Think TV (Australia), thinktv (Canada), TNV Media (Poland),TV Globo (Brazil), TV2 (Norway) and Virgin Media. Discovery Networks UK & Ireland, and STV also give direct financial support.

TV today has more to offer advertisers than ever before, not least because this growing medium remains at the heart of popular culture and advertising effectiveness. From understanding how audiences engage with TV advertising, uncovering what the latest technological developments mean, explaining innovative and affordable solutions, and encouraging creativity to providing the rigorous proof of effectiveness that advertisers need, Thinkbox is here to help businesses meet their marketing objectives.



TV is the most effective medium

The findings reveal the impact of television. Investing in TV increases effectiveness by 40% - making it the most effective media channel.



 TV accounts for 74.8% of UK video viewing

This compares to 76% in 2015. Total video consumption increased year on year from an average of 4 hours, 35 minutes a day in 2015 to 4 hours, 37 minutes in 2016.


TV accounts for 89.5% of video ad viewing for 16-24s

This compares with 88.6% in 2015. 16-24s watched an average of 13 minutes of video advertising a day in 2016. TV accounted for 11 minutes, 31 seconds of this total.



Case Study:

www.getmemedia.com/ideas/CompOpps.aspx?id=49

Email Contact:

info@thinkbox.tv

Website:

http://www.thinkbox.tv/
Case Study
Email Contact
Website

Hot Topics


  1. TV is the best profit generator
  2. TV is the lead effectiveness medium
  3. TV drives response
  4. TV has unbeatable scale and reach
  5. We spend more time with TV than any other media
  6. TV is the most talked about media
  7. Multi-screening brings viewers closer to content and brands
  8. TV is the catalyst for other media
  9. TV is everywhere
  10. TV is the emotional medium and builds brand fame
  11. TV is great value

For all the evidence - https://www.thinkbox.tv/s/Killer-Charts 

It’s important to know the facts about advertising effective and have the proof that it works.  To help, we have distilled the key findings from three of our major research studies below. You can explore the latest Thinkbox’s research studies, the latest viewing numbers from BARB and a library of handy, nickable charts.  For more information visit: https://www.thinkbox.tv/Research

Effectiveness in a Changing Media Landscape (published 2016)

In brief

The advertising world is changing – and the direction of travel is towards audio-visual.  And landmark new research by the IPA revealed that TV advertising works best of all, especially when used in combination with online video.

In the world of marketing effectiveness research, two people stand above all others: Les Binet and Peter Field. In 2007, they published their first seminal meta-analysis of the IPA’s Databank, ‘Marketing in the Era of Accountability’, to identify which media strategies performed the most effectively at driving business effects such as profit growth and market share increases. The Databank contains every IPA Effectiveness Awards paper submitted since 1980 and as such, this was the largest and most thorough effectiveness study of its kind.

Fast forward nearly a decade, and Binet and Field have revealed their latest analysis of the IPA Databank, ‘Marketing in the Digital Age’, which is designed to identify marketing best-practice at a time when usage of online channels is widespread. As stage one of four separate analyses, this work sheds plenty of new light on the effectiveness of advertising and the role of different forms of video within it.

Key Points:

  • Short-termism in marketing is undermining effectiveness - it boosts ROI but not profit growth
  • Reach, scale and emotion are vital ingredients in effectiveness
  • Adding TV to an ad campaign increases effectiveness by 40%, making it the most effective medium
  • TV is the best for generating top-line growth that drives profit, with a 2.6% average market share point gained per year when using TV
  • TV advertising is getting more effective, thanks in part to the internet
  • TV and online video work in synergy, the most effective campaigns use both


Creative Drivers of Effectiveness (Published 2016)

In Brief:

Creativity is the magic ingredient at the heart of TV advertising’s power.  Delivered at scale, it’s the biggest lever you can pull to drive advertising effectiveness.  It makes brands famous, gets them talked about and boosts a campaign’s efficiency tenfold.

We wanted to build on this belief by providing the creative community with more evidence to support the importance of storytelling and brilliant creativity, but also, we wanted to better understand what else matters when it comes to effective creative execution and just as importantly, what doesn’t? 

Key Points:

  • It’s not about shouting the loudest – hard facts often fail to deliver
  • It’s all about the classic story-telling techniques – make the brand intrinsic to an ad
  • People are paramount – focus on human interaction
  • Music can make an ad…or break it – it works best when it drives the action
  • Branding’s in the timing – don’t tell the brain it’s over too soon

Download the deck: Creative-Drivers-of-Effectiveness

TV response: new roles, new roles (Published 2015)

In Brief

The world of response planning has become increasingly complex over recent years.  Understanding the key drivers of response over the short, medium and long-term is a constant challenge, but one that’s essential if advertisers are to optimise their investment.

GroupM were commissioned to analyse the response effects of a wide range of channels.  These included both brand and direct response TV, radio, print, outdoor, direct mail, affiliates, online display and paid online search. Through a unique combination of analytics methodologies, including econometric modelling and GroupM’s Spotlift tool the effects of communications were measured over the immediate, short to medium-term and long-term.

Key Points

  • TV creates the highest volume of short to medium-term sales.   It drives more media-driven sales than any other communication channel
  • TV advertising drives the highest volume of cost-efficient response:  because of its reach and scale, TV advertising keeps generating a cost-efficient level of response at higher levels of spend than other media.
  • TV advertising dominates longer-term response.  Half of all media driven response comes 3-24 months post campaign and TV is responsible for 52% of the impact that media has in the longer-term. 
  • Direct response TV should be planned to maximise coverage above frequency – c.90% of total response was generated after a viewer had seen a TV ad once or twice, therefore in most cases, reach should be prioritised.

Download the deck - www.thinkbox.tv/TVResponse

What is Television Advertising?


TV is also one of the most accountable media channels. An independent household panel administered by The Broadcasters Audience Research Board (BARB) measures television viewing in the UK, with its audience figures used as a trading currency by the whole advertising industry (TV impacts / ratings). 

TV is available to advertisers of all budget levels as the arrivals of new and different formats has pushed costs down and created far more commercial opportunities.

Television is a high impact medium. It delivers immediacy, mass coverage, flexibility, movement, colour and crucially, spot-by-spot accountability. TV's ability to engage audiences emotionally, to tell stories and demonstrate ideas is key to delivering effective advertising.

TV is also one of the most accountable media channels. An independent household panel administered by The Broadcasters Audience Research Board (BARB) measures television viewing in the UK, with its audience figures used as a trading currency by the whole advertising industry (TV impacts / ratings). 

TV is available to advertisers of all budget levels as the arrival of digital television has pushed costs down and created far more commercial opportunities.

Television is a high impact medium. It delivers immediacy, mass coverage, flexibility, movement, colour and crucially, spot-by-spot accountability. TV's ability to engage audiences emotionally, to tell stories and demonstrate ideas is key to delivering effective advertising.


How Does Television Advertising Work

TV is without doubt the most effective medium for launching brands.  It combines the scale and reach that a new brand needs with impact and persuasiveness.  No other medium can offer both these qualities.
Changing perceptions about a brand is one of the hardest tasks an advertiser has to address.  They have to erase current associations, beliefs and feelings about a brand and replace them with new ones. This task demands a medium that can create powerful new associations and rewire the brain, like TV.

TV is also brilliant at changing behaviour through powerful persuasion and can also be used as a highly effective response generator.

It’s truly innovative. One of the biggest myths surrounding TV is that it only offers 'traditional opportunities' to advertise. But with new technologies and imaginative developments in programming, there are now more opportunities than ever to innovate on TV.

For instance:

Key Features & Benefits of Television Advertising

We’ve pulled together a handy deck that will are packed full of useful and inspiring stuff from advertising response and talkability to the power of emotion and fame. Whether you’re working on a pitch or just looking for facts to share with your teams, you should find everything you’re looking for here - TV advertising's killer charts


Key Audience Strength of Television Advertising



When choosing an audience to target with TV advertising, advertisers can define it by gender, social class and age at a national or regional level. The total number of people in this audience is then known as the universe.  

There are a huge number of possible target audiences that we can measure, however the number that we use to actually trade TV is much smaller and so one of the key tasks when planning a TV campaign is to identify which audience should be traded in order to reach the target audience most efficiently. 

Should an advertiser have a specific target audience that cannot be traded on TV then it is common practise to convert to a trading/buying audience that will give them access to the best performing and most appropriate TV channels and programmes for their target audience. 

So, for example, a brand may want to reach a target audience of adults 55+. This isn’t a traded audience so converting to a trading (or buying) audience of ABC1 Adults is likely to give  that campaign access to the best suited and performing programmes for adults 55+.



You can download this in excel right here - www.thinkbox.tv/Audience-profiles


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