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Audience Measurement and programme Ratings

PREPARED BY: ABDUL MATHEE FEBRUARY 2016

BROADCASTERS VIEW


BROADCASTERS VIEW

The doyen of black broadcasters, King Edward Masinga

One of three SABC Mobile Recording Units, which accompanied the South African troops to North Africa, during the second World War

MEDIUM SALES RESEARCH ADVERTISER AUDIENCES

RADIO

1 May 1950

Springbok Radio made

its first broadcast.1952,

SPRINGBOK RADIO

WAS BRINGING IN R

MILLIONS WORTH OF

ADVERTISING

REVENUE.

THE FIRST NATIONAL

MARKET RESEARCH

SURVEY INTO A RADIO

STATION WAS DONE IN

1952, TWO YEARS AFTER

THE BIRTH OF SPRINGBOK

RADIO

FIRST COMMERCIAL EVER TO BE BROADCAST ON THE SABC RADIO WAS A TEN WORD SLOGAN FOR EDBLO MATTRESSES ON SPRINGBOK RADIO

SPRINGBOK HAD 632 000 ADULTS LISTENING TO IT ON AN AVERAGE DAY – AT THE HEIGHT OF ITS POPULARITY, IT HAD AN AUDIENCE OF OVER TWO MILLION!

TV

1 JANUARY 1978

THE SABC INTRODUCED

TV COMMERCIALS ON.

OVERNIGHT AUDIENCE

DATA IS AVAILABLE ON TV

PLATFORMS

JUST AFTER 18:00, THE FIRST EVER 30 SECOND TV COMMERCIAL FOR BIG T BURGERS WAS FLIGHTED ON SABC TV

SABC called for tenders to bid for the first slot.

3


JOURNEY OF SA TELEVISION

4


JOURNEY OF SA RADIO

0%

20%

40%

60%

80%

100%

120%

140%

1940 1950 1960 1970 1980 1990 2000 2010 2020 2030

% Share

Linear (% Share)

CHALLENGES WITH RELIABLE MEASUREMENT AND RATINGS DATA

BROADCASTERS VIEW

Challenges with reliable measurement and ratings data

PROGRAMME

TIMEBAND S1 18:30 S1 18:30 S2 21:00 S2 21:00

D.O.W TVR CPP TVR CPP

Mon 15,8 7344 18,5 8892

Tue 20,6 7479 18,1 9136

Wed 16,7 7396 15,7 10185

Thu 19,4 7998 14,7 10975

Fri 15,1 8290 15 10856

SKEEM SAAM MUVHANGO

Average %AR Deviation -27%

Average CPP Inflation -11%

Average

%AR

Deviation

-19%

Average

CPP

Inflation

-18%

SOURCE: AMPS

In the 12 years, since 2001, significant upward mobility is evident. In the 2013A report some 61% of the Adult population resides in the upper LSM 6+ segment, compared to only 35% in 2001. Notably the most disenfranchised LSM 1-2 segment has dwindled to below 5% of the Total Adult Population. Good news for the economic prognosis of South Africa is continued strong growth in the Upwardly Mobile LSM 6/7 sector. The LSM trends encapsulate the basis for a variety of phenomena evident in shifts in media consumption and adoption of increasingly more sophisticated lifestyles and purchase behaviour overall.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2001 2005 2007B 2010A 2012A 2013A

24.5 19.3 13.9 8.7 5.5 4.4

40.741.6

39.137.8 36.7 34.4

18.5 22.026.6

30.2 34.3 36.3

16.3 17.1 20.4 23.3 23.5 24.9

LSM 8-10

LSM 6/7

LSM 3-5

LSM 1/2

% Adults

Adults (000s): 30,656 31,109 34,018 34,934 37,214

BROADCASTERS VIEW

Challenges with reliable measurement and ratings data (LSM Trends 2001 to 2013

Disparity between the weightings

Affluent vs lower income levels:

•A single panel member in an affluent target group could be weighted to represent 6,000 viewers in the TV Universe, whilst a panel member in a low income group could be weighted to represent as many as 99,000 viewers.

•Weightings per panel member were 'capped' at 99,000. As such a potential for lower income groups to be under-read which worsened as the TV Universe grew YOY.

TAMS RESEARCH :

Challenges with reliable measurement and ratings data (Issues Uncovered by the TAMS Audit)

Source: SABC Pricing Grid

9

Importance of Ratings for Revenue Generation

BROADCASTERS VIEW

FORMULAE

Base CPP/CPT/CPM AR/Share Rate

INFLUENCES

Demand Demographs Seasonality

EXTERNAL FACTORS

Media Inflation Fragmentation

What

HOW

HOW

IMPORTANCE OF RATINGS FOR REVENUE GENERATION

Trading Models

FIXED RATES OR RATINGS AUCTION &

SCATTER STATION PRICE

COST PER SHARE MODEL

COMPETITIVE CHERRY PICK DEALS

Marketing to Niche audiences is expensive.

Audience fragmentation

Demand for premium spots impacts inventory and revenue

INTERNALLY

Equilibrium price

Less flexibility: need to compensate for errors

Inventory – purely based on negotiation power

Requires schedule stability

COMPETITIVE AUDIENCE DEALS

Packaging strategy: Ability to offer niche audience market offering

with low wastage to advertisers.

Inventory on terrestrials channels limited to available ratings

Predictive Modeling

Difficult to forecast: Skills needed

Audience Guarantees: Risk of running out of Ratings

Predictive modelling can become very labour and statistically

intensive require vast amounts of resource.

Create a database of trends. (i.e. by Genre and audience profile).

Spot v Audience Selling

Importance of Ratings for Revenue Generation

ADVERTISERS AND MEDIA AGENCIES

Push for lower CPP’s/CPT’s

Demand forecasting

Audience forecasting

Price linked to universe / CPT

Flexibility on inventory management

INTERNALLY

Less criticality to forecast audiences accurately

No audience guarantee

Advertisers feel in control, especially for effective reach

Push for higher discounting

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SPOT vs. AUDIENCE DEALS) STATION /SHARE PRICE AUCTION / SCATTER

Reactive Value Demand

Proactive Value Creation A period during which inventory is sold

on spot basis, in bulk with ratings

guaranteed

Value Proposition Dissemination

Proactive Value Demand Identification

TRADING MODELS

12


BROADCASTERS VIEW

Electronic “stock-market” model

based on eBay approach

Inventory is sold on spot or

audience basis,

MODELS SELLING SPOTS

Ratings not guaranteed

MODELS SELLING AUDIECES

Ratings guaranteed

Electronic “stock-market” model based

on eBay approach

INNOVATIVE SOLUTIONS FOR MEDIA PLATFORM OWNERS AND

ADVERTISERS

Continue the Brand/Content discussion across radio stations the next day via Live reads etc.


INNOVATIVE SOLUTIONS

Brand integration across platforms.

Commercial is replicated across platforms

Instantly start the social media conversation, by being

exposed to the story line in advance.

INTERGRATED MEDIA

V.O.D / MOBILITY

ON DEMAND

CONTENT CONSUMTION ON THE GO

INNOVATION

USER GENERATED CONTENT

FIXED PLAYLISTS STREAMING

AUDIENCE MEASUREMENT IN A DIGITAL AGE

…Creating an environment for a sustainable future

TV VIEWERSHIP RADIO LISTENING

STRATEGIC PARTNERSHIPS

#THEEND

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