Effectiveness In A Changing Media Landscape - ScreenForce

Effectiveness in a changing media landscape

Previous research and this How has the changing media landscape modified earlier media observations? Part 1 of 4 500 for profit cases, 120 in 2014/16

number of other very large business effects reported Penetration is still the main driver of success 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 1.8 1.9 New customer acquisition only Both 0.9 Existing customer purchasing only Very large effect observed on: Base: 2014-16 cases

So reach is still vital 100 OOH Total video 90 Weekly reach % 80 70 60 50 40 Broadcast TV Radio Email Texting Other online Social media Newsbrands Search Shopping online Messaging Online video 30 Internet at work 20 Subscriber VoD 10 Cinema 0 0.0 0.5 1.0 1.5 2.0 2.5 Average daily hours 3.0 3.5 4.0 4.5 Source: IPA Touchpoints UK 2016

% increase in avg. no. VL business effects from adding TV has become more effective 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 27% 1998-2006 2008-2016

TV is best for market share growth Avg. market share points gained per annum 3.0% 2.6% 2.5% 2.1% 2.0% 1.5% 1.1% 1.0% 0.5% 0.0% No TV DRTV TV ads Base: 2012-16 cases

VoD makes TV more effective Increase in avg. no. of VL business effects from adding 40% 36% 35% 30% 27% 25% 20% 15% 10% 5% 0% TV without VoD TV with VoD Base: 2014-16 cases

Online video makes TV more effective % increase in avg. no. VL business effects from adding 60% 54% 50% 40% 30% 32% 25% 20% 10% 0% Online video only TV only Both Base: 2014-16 cases

Number of very large business effects Effectiveness has fallen 2.0 1.9 1.8 1.7 1.6 1.5 1.4 1.3 1.2 1.1 1.0 2006 2008 2010 2012 10 years ending 2014 2016

Sales uplift over base The deception of short-termism Sales activation Short term sales uplifts Short term effects dominate 6 months Brand building Long term sales growth Time Source: Binet & Field 2013

Short-termism in action Short-term 48 52 Channel share for brandbuilding objectives Channel share for activation objectives Long-term 38 62

Short-termism in action Short-term Long-term Video-based 38 42 58 62 Non-video

Short-termism has been rising 30% % cases short-term 25% 20% 15% 10% 5% 0% 2006 2008 2010 2012 10 years ending 2014 2016

Reducing ESOV boosts ROI 450% 386% Average ROI 400% 350% 312% 300% 250% 200% 150% 100% 50% 0% ESOV median Larger budgets ESOV median Smaller budgets

ESOV has been falling Ave ESOV 16% 14% ESOV all 12% ESOV long cases 10% 8% 6% 4% 2% 0% 2006 2008 2010 2012 10 years ending 2014 2016

ESOV is getting more important % growth epxlained by share of voice alone 14% 12% 12% 10% 8% 6% 6% 4% 2% 0% 1998-2006 2008-2016

SOV Efficiency (cases 6m) Even long cases have lost efficiency 1.2 1.0 0.8 0.6 0.4 0.2 0.0 2006 2008 2010 2012 10 years ending 2014 2016

Balancing brand and activation for best success Very large share growth cases 38 62 Strongest brand-building cases 42 Most efficient cases Channel share for brand-building objectives 36 64 Channel share for activation objectives Very large profit growth cases 36 58 64 Base: 2016 cases

Average % of comms budget spent on activation Activation levels have exceeded optimum 47% 50 45 40 35 30 25 20 15 10 5 0 31% 2014 Case study year 2016

Summary 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Penetration, not loyalty, is still the main driver of brand growth. So broad reach media are still crucial for effectiveness. Share of voice is more important than ever. Video is the most powerful medium for long term success. TV, VoD & online video work together to boost effectiveness. So effectiveness should still be growing across the board - but it isn’t. Short-termism and an excessive focus on ROI are partly to blame. They encourage lower share of voice levels, but efficiency has fallen too. They also lead to a focus on activation rather than brand-building. Budget allocations are now activation over-weight, and are sub-optimal.

Conclusions Marketers need to return to a more balanced perspective on long vs. short term objectives. The activation/brand-building pendulum has swung too far towards activation. Dial up brand-building instead of activation, especially with newer channels. Value video over non-video. Design campaigns and evaluation for long-term effects Monitor and restore ESOV – the link with growth is getting stronger. Thank you

2. So broad reach media are still crucial for effectiveness. 3. Share of voice is more important than ever. 4. Video is the most powerful medium for long term success. 5. TV, VoD & online video work together to boost effectiveness. 6. So effectiveness should still be growing across the board - but it isn't. 7.