Category Archives: Production

RECENT STUDY RESULTS: The DVR is an advertisers friend!

Ad Avoidance and The DVR : recent study results

One of the topics  looked at in a recent study with special interest was the whole issue of ad-avoidance, not least because half the sample have the technology to avoid ads altogether, via the DVR.

In fact, one overwhelming conclusion from this study is that the DVR is used to enhance program viewing, not to avoid commercials. As a range of studies conducted last year found that PVR owners actually watch more commercials at normal speed as a result of owning the DVR. This is because only 12 per cent of their viewing was to time-shifted material (much less for younger respondents) and around 40 per cent of the commercial breaks were watched without fast forwarding. At the same time, owning a DVR appears to increase broadcast TV viewing by around 15 per cent, mainly to commercial channels, resulting in an increase in the number of commercials viewed. It is counter intuitive, but it is true, and has been supported by studies from BARB, Sky and the London Business School. The DVR is an advertisers friend!

‘Skipping’, or fast forwarding, does occur, but even the households who claim to skip most of the time only skipped ads for a small proportion of their TV viewing. Whether it is because they are aware of the short length of some breaks, they just forget they are viewing in time-shifted mode, or because they want to see the ads (quite often people fast forwarding would rewind to watch an ad that caught their eye) there seems to be no massive desire to edit out the ads.

Decades before the DVR was a glint in the eye of the electronics companies, people would often claim to leave the room when the ad break started, to make a snack  or attend to some vital chore. In our study, several respondents claimed to always get up and do something else as soon as the program credits rolled. Again, the reality does not match their claims. Even the most adamant only left the room two or three times during the four hours of their that breaks we recorded and, in total, less than 5 per cent of breaks suffered.

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GM’s Super Bowl commercial helped Ford

Super Bowl Ad Aftermath: Ford Boosted By GM’s Fallout?

Playing dirty might be de rigeur in politics, but it seldom helps in selling products—even dusty pickups ravaged by the apocalypse.

That might end up being GM’s tough lesson from its Super Bowl XLVI ad which, to some, spoke less about the strengths of GM products than it did attack Ford’s reputation for durability and longevity.

GM’s Super Bowl commercial helped Ford

Based on traffic and visitor data collected by the shopping and pricing site Kelley Blue Book, more visitors browsed Fordafter the GM commercial—a lot more—even though Ford didn’t have a big Super Bowl ad. Whether looking at the controversy in the days surrounding, or specifically at the window of time during and after the ad aired, Fordappeared to benefit most, if an immediate browsing or shopping of new vehicles was the goal.

Full-size pickup truck visitors on Super Bowl Sunday, 2012 – Kelley Blue Book

KBB.com data shows consumer interest in the Silverado lifting during the commercial airing, leveling off after the commercial and declining after the game, as interest in the F-150 surged, curiously. Despite the Silverado’s lift during the game, Ford’s F-150 still drew a greater share of week-over-week attention from KBB.com consumers.

In comparing consumer interest on kbb.com among the Full-size truck segment, KBB analyst Akshay Anand noted that the share of visits to the F150 surged over 26-percent week-over-week, while the Chevrolet Silverado 1500 saw a 25-percent drop in traffic during the same period.

“Looking at the data for that whole day, Ford did see some lift, and I don’t think that’s a coincidence,” said Anand.

That leads to how some might have heard the commercial…something along the lines of this: What kind of truck do you drive to the impending apocalypse? If it’s a Ford, oh you sorry sap, you’re just not going to make it.

Advertising 101: Don’t make the competing product your punchline

And that hits hard at one very important factor: brand loyalty. To many, the commercial was less a declaration of the strengths of GM products than it was the buildup to an attack on Ford’s trucks. And it may have sent Ford loyalists to their laptops and tablets to search for reassurance about Ford’s reputation, as their GM counterparts gloated and stayed on the sofa.

“Truck owners tend to be more loyal than those in any other segment,” said Anand, and when a product with that level of loyalty is mentioned negatively in an ad, argued Anand, the response is likely to be one that’s on the defensive.

Other potential explanations: Ford was mentioned bluntly and clearly right near the end of the ad, so is that somehow the name that stuck with viewers? Or does the lesson to be learned really have more to do with etiquette?

It is, after all, one of the first commercials in some time to blatantly call out a competing product without mention of a number or metric as basis.


Here are the latest online video advertising numbers

December 29, 2011
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Though advertisers and agencies are often increasing their investments in digital video advertising at the expense of offline/traditional branding/advertising efforts, findings from DIGIDAY and Adap.tv suggest funding also comes at the expense of current display advertising budgets.

According to a November study, advertisers were more likely to fund their online video advertising efforts from offline channels such as print and broadcast TV than their agency counterparts. Advertisers most often planned to shift budget from print (41%), while 29% said they would take dollars from broadcast TV to fund their digital video advertising efforts. Just 24% planned to pull from display.

Agencies said boosts to online video budgets would most come at the expense of display (43%), indicating a general move away from less dynamic ad formats, such as banner ads, in favor of those with greater engagement potential.

Channels Their Clients Plan to Shift Budget from to Fund Online Video Ads According to Agencies and Advertisers in North America, 2010 & 2011 (% of respondents)

In addition, 39% of agencies said they would fund video from broadcast TV budgets. Though findings appear to suggest advertisers and agencies are shifting budgets away from TV toward video ads, more than half (56%) of respondents viewed online video as a direct complement to—and not a replacement for—their TV ad programs. Just 11% looked to online video to replace their TV ads, reported eMarketer.

In the past year, both advertisers and agencies have shifted their primary video advertising objectives from brand awareness to brand engagement, perhaps suggesting marketers are moving away from viewing digital video as a mere extension of TV ads and moving toward embracing online video for its ability to more directly engage viewers in a dynamic way.

By enabling video ads with social sharing and other calls to action, marketers can use digital video as a springboard to additional online engagement on social networks, their website and even mobile apps.

Online Video Ad Objectives According to Advertisers in North America, 2010 & 2011 (% of respondents)

Mobile is a growing area of interest for video advertisers, yet publisher offerings lag brand adoption. For example, 42% of advertisers and agencies have purchased iPhone-compatible video ads, yet only 35% of publishers supported such ads. Differences for Android video ads (31% vs. 28%, respectively) and iPad ads (41% vs. 35%) were similar.

Netflix 15th most-watched U.S. TV “network.” Service has “more than twice the viewer hours of CNN, Discovery, MSNBC and BET, would be No. 2 in homes that subscribe to Netflix — second only to CBS.

According to an analysis of newly released figures by BTIG analyst Richard Greenfield, Netflix would be the 15th most-watched U.S. TV “network.” The video streaming service has “more than twice the viewer hours of CNN, Discovery, MSNBC and BET,” said Greenfield, who added it would be No. 2 in homes that subscribe to Netflix — second only to CBS.

His data is based on recent news from Netflix that its subscribers streamed more than 2 billion hours of TV shows and movies in Q4.

“Netflix must be eating into traditional TV viewing time,” Greenfield said “Netflix streaming usage is exploding and is far, far bigger than traditional media executives give it credit for. Netflix is actually number 15 with 666 million hours monthly or 2 billion per quarter — our prior analysis estimated number 25.”

Looking at Nielsen data for TV networks, Greenfield highlighted that after the top 15 channels, monthly viewing hours are below 500 million. “With an estimated 667 million hours of viewership per month in October, Netflix would rank as the 15th most-watched ‘network’,” he said. “Netflix had more hours of viewing in October than FX, HGTV and History…pretty amazing, given that Netflix is only in 21 million homes.”

However, Greenfield also said that looking at aggregate TV viewing in the 100 million pay TV homes, Netflix represents only 2.4% of total time spent watching: “While Netflix may be very popular in Netflix homes, it is rather meaningless when put into the context of total television viewing.”

Shift in future TV habits as content goes cross-platform

 

A new study finds 54% of broadband Internet users watch TV content streamed or on an alternative platform weekly.  Non-traditional viewing now accounts for 10.8 hours a month, or 7% of total viewing time, with 149.4 hours still dedicated to traditional TV.

Horowitz Associates’ Multiplatform Content & Services 2011 says 18-34 year-olds spend substantially more time with TV content across all platforms.  Incidence of non-traditional TV viewing is higher among young adult broadband Internet users, with three-quarters (74%) of 18-34 year-olds doing so weekly— accounting for 10% of their total viewing time.  Broadband users 18-34 who watch on non-traditional platforms also spend more time with traditional TV, reporting an average of 167.7 monthly viewing hours—18+ hours more than average.

On non-traditional platforms, YouTube remains the most popular destination.  Study findings suggest, however, that TV brands developing a strong online and mobile presence can translate their success to new platforms.  ESPN is the most frequently mentioned destination for sports on the PC/laptop and on mobile devices.  CNN (closely followed by YouTube) is the main destination for news, as is HBO/HBO GO for those who view premium TV content.

As business and revenue models for non-traditional platforms evolve, the study suggests an increase in customers’ receptivity to online advertising.  Among broadband Internet users, self-reported incidence of clicking on banner and pop up ads increased by 127% since last year.

Content is content, and whomever owns it is going to get eyeballs and ad support for it, regardless of the way it is distributed. Many of the spots created for traditional TV are the same spots that roll into mobile and online TV programming. The money still gets spent on the traditional network and production company content holders, many of which are current networks that have migrated programming online. The losers in this migration may well be the cable operators and satellite companies from folks cutting the cord. For instance, Time Warner Cable just lost 128,000 video subscribers in its residential services in Q3.

Pandora hits the road with Toyota Entune system

Toyota is now offering an embedded version of Pandora on the 2012 Camry and 2012 Tacoma. That’s big for the streaming audio service, since the Camry is America’s best-selling car and the Tacoma is the best-selling compact pickup truck in the US market.

According to the announcement by Pandora Media, both vehicles began to appear on dealer lots in September 2011.

Pandora is available via the Toyota Entune system. With Entune, Pandora controls are made available via the radio dashboard, allowing drivers to easily select stations, thumb songs up and down, and skip songs using the vehicle’s controls. The key to connecting Pandora with Entune is the smartphone; Entune is currently compatible with Android, Blackberry and iPhone smartphones.

“Incorporating Pandora into the native environment of the car makes turning on personalized radio as easy as traditional radio. We’re thrilled that Toyota is offering our service to their drivers,” said Pandora executive vice president of business and corporate development Jessica Steel.

Report: Mobile Ad Spend to Hit $1 Billion, dramatic increase in banner, search, rich media, and video ads predicted

EMarketer has released analysis of mobile ad spending that predicts decreased investment in message-based ads and dramatically increased investment in banner, search, rich media, and video ads on the mobile platform.

mobile-ad-spending-share-2011-2015

As the iPhone 4S is released, featuring the Siri personal voice assistant that understands what you mean when you talk, it’s clear that smartphone technology is stepping forward. The increased presence of these high-tech tools, as well as decreasing costs, has pushed smartphone ownership toward becoming the “norm.” eMarketer predicts that smartphone ownership will reach 38 percent in the U.S. by the end of this year.

The increase in smartphone ownership coincides with a significant increase in mobile ad spending, which should reach $1.23 billion for U.S. advertisers by the end of the year, up 66 percent from last year’s $743 million figure. eMarketer predicts that the figure will continue to see escalating growth, reaching $4.4 billion by 2015.

Total investment isn’t the only big change, though. Advertisers are focusing less on message-based ads (ads sent via text message, usually after the mobile user sends a subscription message via short code) and more on visual and search ads. While message-based ads are currently in the lead with 36.1 percent of spend, eMarkter predicts that will have changed by the end of 2012.

eMarketer specifically predicts that rich media and search ads will win 33 percent of spend each, leaving message-based ads at 28.2 percent of spend. This divide will grow further in the coming years, with eMarketer’s 2015 figures showing messaging at just 14.4 percent to search’s 40.2 percent and rich media’s 36.4 percent.

The fastest growing segment, however, is video advertising. While it still holds a very small portion of the mobile ad market (at 4.7 percent currently), eMarketer predicts video “will grow at a compound annual rate of 69 percent between 2010 and 2015,” reaching 9 percent of ad spend (an estimated annual figure of $395.6 million) by the end of 2015.

eMarketer’s figures are based on “mobile advertising estimates from other research firms, company data from major mobile ad networks and vendors, marketers’ mobile marketing strategies, and smartphone and tablet adoption and usage trends.”

Speaking of advertising, online advertising hit a new high in the first half of this year, $14.9 billion, the IAB announced last week – with $7.3 billion of that from search advertising.