Around the cornerwith

TV IS BACK. BUT IT NEVER REALLY LEFT.

BACK TO BASICS

Technology has advanced more in the last thirty years than in the previous two thousand. At the same time, the

human brain has not evolved since the Stone Age.

Thus, as one could imagine, it is almost impossible to grasp the entirety of the media landscape, let alone new

technology.

However, at Tre Kronor Media we do our best to help, as we are driven by two things: We allow ourselves to

be ambitious on the behalf of our clients and we have a great passion for media.

The outcome of our ambition and passion is this overview report – to give you the impossible grasp.

Have you watched TV lately?When was the last time you watched TV? This morning, yesterday or last week?For 57% of the Swedish population the answer is yesterday. The tall tale that TV is dead is not close to the reality. We still consume TV to the extent that TV is still the number 1 media channel when it comes to build reach and brand awareness. On average the swedish population watch TV 127 minutes per day.The advertisers in Sweden invested over 6 billion SEK in TV during last year. So far this year we see a small decrease (-2,6%) but the estimation is still that the full year 2019 will show similar investments levels as last year.

I have read articles about that television viewing is a passive, one-way activity that doesn´t engage the youth of today by contrast with putting their thumbprints on their smartphone in average 2.617 times per day.It is a fact the PUT, (People Using Television), has shown a declining trend for several years now but what about the effect of your brand advertising in TV and the ROI on your TV investments?

A recent eye-tracking study shows that TV has twice the active viewing than Youtube and 15 times more active viewing than Facebook!You can´t ignore that fact in a time of ad-blocking and high advertising fatigue.

In this issue of Around The Corner we will discuss and share facts and trends about TV and other traditional media channels.

What role will they play in the media mix? What effect can you expect and how will you measure it in the future?

A lot of questions and we can´t give you all of the answers but one thing is for sure, TV and other traditional medias still have a reason to be a part of your media mix.

Happy reading.

Best rgds,

Håkan JernerCEO & Partner Tre Kronor Media

If it isn’t broken, don’t fix itWhy the fuzz?In today’s fragmented and frankly complicated media landscape, it’s hard to keep track of the “next new thing”. Industry moguls and self-proclai-med media specialists are quick to declare time of death on traditional media and point to new technological advances as the future of advertising. Last week it was augmen-ted reality, this week it was programmatic, and we can only guess what next week’s innovative wonderchild will be.It undeniably looks good throwing such hot topics onto the agenda in the conference room, but are they truly representative of how the media lands-cape looks right now? And more importantly, do these cutting-edge media approaches really reflect consumers’ media consumption? The quick answer: Not quite.

Back to basicsTraditional media is far from dead. We still watch TV and we still listen to the radio. Naturally, with the emergence of endless alternatives, we don’t watch as much TV as we used to or listen to the radio as exten-sively. Since 2012, the daily reach of commercial television has decreased

with 15%-points and radio with 5%-points in Sweden. Mobile and social media reach, on the other hand, have incre-ased with 19%-points and 5%-points respectively in the last 5 years.A similar developme-nt appears to happen in Denmark, where TV consumption has dropped with 21%-points and radio with 7%-points since 2012. Likewise, mobile and social media consumption has grown with 12%-points and 21%-points respectively in the same years.These numbers might seem staggering and when presented without context, it’s tempting to write off traditional me-dia completely. However, TV and radio are still, without a doubt, two of the most popular chan-nels in the Scandinavian consumer’s daily media intake.In 2018, 57% of the Swedish population watched commercial TV and 52% listened to radio on a daily basis.

As a result, TV and radio respectively accounted for 19% each of the to-

tal daily media consumption, making them the most popu-lar media chan-nels in Sweden. Social media closely followed suit, accoun-ting for 14% of the daily media intake.In Denmark, 68% of the population watched flow-TV and 58% listened to the

radio on a daily basis. As such, TV accounted for 14% and radio for 12% of the Danish consumer’s daily media consumption, making these channels just as popular as social media that accounted for 13% of the total daily me-dia consumption.So, although mobile and social media have beco-me bigger competitors in the fight for consu-mers’ attention, traditio-nal media is still at the forefront of the media craze. This of course also comes across in adverti-sers’ media spend, who invest a large share of the marketing budget in traditional media. In 2018, SEK 6 billion were inve-sted in TV advertising in

Sweden, whereas DKK 1,9 billion were invested in Denmark. Although these are large sums, the investments made in digital media are equally potent. In Sweden, the total investment in digi-tal display exceeded TV advertisements and lan-ded at SEK 8,1 billion. In Denmark, TV is still the heaviest economic player. But digital investments are breathing down its neck with a total invest-ment of DKK 1,8 billion in 2018. These enhanced investments in new media indicate that advertisers are trying to better cater to the gradually changing media habits of the Scan-dinavian consumer – but as of yet… no one has jumped ship on traditio-nal media, and with good reason.

There’s always a “but”... Even though traditional media like TV and radio are still highly popular and effective amongst the Scandinavian population, there is no denying that they are more effective in reaching certain target groups than others. Whe-reas the older segments still prefer watching their

favourite sitcoms on TV and reading about the daily news in the paper, the younger segments have to some extent replaced these tradtional media with on-demand streaming, social media and the always-on mobile phone.The majority of Swedes in the age of 45-59 watch commercial TV at least once a day, whereas under half of 16-24-year olds do the same. On the other hand, over 90% of these younger consu-mers use social media on a daily basis, unlike the older segment who more seldomly check Facebook, Instagram, etc. Morning papers arguably hold the biggest contrast, as just under half of the older, Swedish segment read them on a daily basis. This number is more than halved between 16-24-year olds. In Denmark, the numbers are just as exaggerated. Nearly 80% of Danes in the older seg-ment watch flow-TV on a daily basis, whereas this only applies to under 50% of the 16-24-year olds.

The latter age group are instead distinctly heavy users of social media un-like the former segment. Newspaper-consumption is also scarce amongst the younger segment in Denmark, where only 15% read them on a daily basis. As these consumption patterns stress, it’s naïve to think you can effecti-vely and efficiently reach a younger segment with merely TV and magazi-nes. You cannot. But it’s equally naïve to think that exclusive investments in digital media can compen-sate for the omitting of TV and radio. As media consumption is becoming much more fragmented and selective, it necessita-tes a more holistic app-roach to media planning, where more possible con-tact points are covered. In fact, this not only applies to the younger segments, but to all age groups.But one thing is certain: TV is far from dead. In fact, is thriving.

Source: Index Danmark

INSPIRATION

A new media-premiseThe days of linear TV are long gone. Very few of us wait until 8pm to watch that last episode of our favourite TV, as it finally airs. And many of us are seldomly restricted by the comfort of our own home, when we consume our daily intake of televised en-tertainment. In fact, many use their daily commute to stream the latest episo-de or newest Hollywood blockbuster. With our options becoming manifold and our consump-tion-patterns becoming more scattered, surely

TV advertising must have suffered some blows in the last couple of years?As it turns out, it hasn’t.

TV still delivers the most profit at the greatest cost-efficiency with the lowest possible risk – both in the short term and long term. Much research and countless of studies have time after time shown that nothing outperforms TV. Why? Well, consumers simply pay more attention to TV advertising. According to a study done on consumers’ eye-tracking, TV proved to

demand twice the active viewing than YouTube did. In comparison to Face-book, TV required 15 times the active viewing. This ma-kes the TV ad significantly more impactful than any website banners or soci-al media posts. Actually, advertisers would need to run two weeks’ worth of digital advertising in order to attain the same reach of a single day’s broadcast ad-vertising. Given these numbers, it’s understanda-ble why most advertisers still centre their media planning around the all-ti-me favourite TV ad.

TV’s Back. But it Never Really Left.

What does TV have to show for it?In today’s data-driven industry, it mostly comes down to fact and figures. Sure, we can talk the talk, but can TV walk the walk? Just how effective is the traditional TV ad, and why should we keep investing in it when a multitude of alternatives are waiting to replace it?The answer is quite simple: Because TV advertising works – and very well, might we add. TV adver-tising accounts for 71% of the total ad-generated profit and is on top of that the ad investment with the lowest involved risk. Research has shown that the average ROI in a period of three years is €4.72 per every € spent and the likelihood of profit return is set at 70% within the first 3-6 months. This number increases to 86% within three years. But the effects of the TV ad reaches far beyond just KPI outcomes. The traditional ad is equally as effective in generating consumer awareness, interest and desire, and as such actually fosters many indirect outcomes such as website visits, inbound calls, and organic search. In addition to this, the cross-product halo-effect on a brand’s product portfolio is rather substan-tial. A study concluded that an average of 35% of non-advertised products

were sold as a result of a TV advertisement for another product.How come? Because once a consumer is exposed to a broadcasted product that they perceive to be relevant, they typically dig deeper into the brand behind it and the wider assortment of products that it offers. With consumers’ increasing brand-switching and asurplus of brands tochoose from, such ad-benefits can be valua-ble for a brand to harvest. Perhaps that is why more advertisers have been returning to televised ads since 2013.

The more, the merrierSo, the benefits of TV advertising are quite ap-parent. But what happens when the TV ad is left out of the media mix? Research has shown that an exclusively digital media strategy has an average negative effect on ROI of -18%. In comparison, a media strategy that includes both digital dis-play, search and multiplat-form TV increased ROI with an average of 10%. Digital display on its own decreased ROI with 18%, whereas search decreased it with 21% on its own. These results are largely due to the TV ad’s ability to drive online engagement. When left out it can serio-usly harm the online mar-keting strategy. Although

digital marketing has become immensely popular amongst advertisers, the platform is frankly unable to provide the same reach as the televised ad. TV is, simply put, the amplifier that attracts attention and provides the rest of the media mix with loader voices.

So, omitting the TV ad does not pay off and underestimating its effectiveness can have a substantially negative effect on sales numbers. Allocating the brand’s media spend cautiously without overemphasizing digital investments is crucial. With this being said, TV won’t get you there alone. As effective as the media channel is, the best results are found in campaigns that approach media buying holistical-ly. A well-rounded media strategy that cleverly distributes its resources between the vast pool of media channels, exploiting cross-channel synergies, can efficiently reap the rewards of all channels.

WHAT’S NEW?

Mini Ads Are Making Their MarkThe miniature TV format has become increasingly popular and will become commonplace this year. The six-second slot delivers quick impact, as it doesn’t allow viewers time to switch channels, look at their phone or leave the room. As a result, the ad is capable of reaching a larger audience at a moment in time, when they are fully invested in the programme. However, this type of ad is not ideal when it comes to provoking direct response, it is far more efficient when wanting to build long-term brand awareness.

The rise of new technology will make KPIs for TV more brand-specific and performance-based. With more intelligent machines, advertisers will be able to better measure the effectiveness of a TV commercial. Automated Content Recognition (ACR) data from smart TV has for some time now, been able to provide metrics on which shows and what ads are watched second-by-second. ACR is now being combined with IP-based metrics to give a more complex view of TV’s influence on the customer journey. These new KPIs for TV will ultimately make it easier for advertisers to pinpoint exactly why it is worth investing in TV advertising.

Samsung Ads and Oracle Data Clouds are the latest companies attempting to set their own over-the-top (OTT) viewability standard.Samsung’s TV wing will be integrating with Oracle Data Cloud’s Moat to measure viewa-bility and invalid traffic across Samsung’s 30m-plus smart TVs. It is Oracle Data Cloud’s first custom integration with a hardware manu-facturer. The company’s group vice-president, marketing and strategic partnerships, Michelle Hulst, said measurement tools available within the larger online video ecosystem aren’t necessarily there when it comes to OTT.

New KPIs

Samsung Ads + Oracle Data Clouds = OTT viewability standard

Through our innovative collaboration with Nent and

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Zero Rating

So, we have concluded that consumers still watch linear-TV and that commercials on linear- TV still give a very high ROI and effect. Our clients with an always-on tracking, clearly see a positive and immediate effect when running TV-campaigns and a negative effect when they go off air and are silent on TV.

But with that said, we still need to address how TV is evolving and that we mean something different when talking about TV today than only a few years ago.

The consumption of digital TV is growing every year triggered by VOD-services like Netflix and HBO. The TV-houses Play channels as well as YouTube are more and more consumed on the big TV-screen and all TVs sold nowadays are digital. This means that the line between linear and digital views start to fade out. Today, we see how linear and digital TV live in symbiose and complement each other. But from a media perspective, we still separate them as two different media platforms. When buying TV4 Play in Sweden for example, 50-70% of time spent is casted to the big TV-screen. This is something very important to consider.

One thesis is that the effect of a commercial can be bigger when you watch “on-demand” and have a more leaned forward kind of viewing rather than just putting on the linear-TV to watch anything, flipping through channels. When you choose what to watch, you are more present and attentive and hence more likely to get affected by a commercial. Furthermore, if you also choose to watch your content on the big TV-screen,

what is then difference between linear TV and on-demand TV? Then add the possibility to use data and targeting and you will gain both relevance and reach at the same time.

You might think now, is that really a problem? Does it matter how we name things? Well, not really. But the problem is not only that we treat linear-TV and Online Video as two completely different media channels, we also don’t adapt the content to this new landscape. The usage of TV and video is evolving in an incredible pace along with the actual consumption and usage pattern. But the TVC:s very much looks the same as they did 10 years ago. Long formats are still the norm and logos are often banned from the start frame, especially for linear-TV.

Furthermore, in a few years’ time we will probably think of something else when we’re saying that “we’re watching TV” and this is probably already true when looking at the younger generation. This is something we as TV-buyers and our clients need to consider as this will have an impact on the effect of TV-commercials.

So, to conclude. TV is still a very effective media channel, but the future is here so let’s keep up, so we don’t lose out.

Next Generation TV

OPINION