Why TV in 2018? WHY KOB ADVERTISING
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1 Why TV in 018? WHY KOB ADVERTISING
2 Advertising in Today s Complex Media World Media is evolving. Media consumption habits are changing. Advertisers must engage consumers where they spend the most time, and are most influenced. All media can be effective. But they work in different ways. The early years The last 0 years hulu ROKU Facebook Banner Ads Satellite Radio Internet YouTube Now: Connected TV Targeted Video Targeted Display Geo Fence Device ID Twitter Blasts Mobile & Text Newspaper Sign/Billboard Radio Broadcast TV Yellow Pages Direct Mail Cable & Satellite TV
3
4 Live Television Dominates OTT Viewing OTT is growing, but is supplemental rather than primary in households with access to Live TV Even amongst heavy OTT households, live television viewing is still double that of OTT viewing Copyright ComScore 016
5 In the ABQ/SF Market TV Continues To Be The #1 Media of Choice For All Key Demographics Demo Local Broadcast TV in 7 days Local News past 7 days Hulu Past 0 days Netflix past 0 days A % 57.9% 10.9% 45.1% A % 68.7% 8.0% 4.% A % 77.6% 5.7% 1.% A % 85.4% 1.7% 8.8% Copyright Scarborough Research 017
6 In the Phoenix LPM Market TV Continues To Be The #1 Media of Choice For All Key Demographics Age Group Traditional TV Time Shifted TV Over the top TV (Netflix, Hulu, etc.)* Streaming on PC Internet Surfing A18-4 1:8 :0 :0 :08 5:4 A :19 4:46 :56 :0 7:55 A5-54 0:1 5: :5 :09 10:00 A :00 6:5 0: :08 7:00 NOTE: Phoenix is an adjacent LPM market. LPMs provide Minutes Watched Information. 015 Viewing Habits by Age Group for Phoenix s Local People Meter Market Source: Nielsen LPM Phoenix May 015 average viewership M-Sun 5a-5a. *Note: Over The Top stands for over-the-top, the term used for the delivery of film and TV content via the Internet, without requiring users to subscribe to a traditional cable or satellite pay-tv service like a Comcast or Time Warner Cable. OTT can largely be broken down into three different revenue models: SVOD (subscription-based services such as Netflix and Hulu); AVOD (free and ad-supported services such as Crackle and Hulu); and TVOD (transactional services such as itunes, Vimeo On Demand and Amazon Instant Video
7 Television Has the Highest Share of Daily Media Use Among Adults Source: Nielsen Total Audience Report Q 017
8 How Do Consumers Buy? Awareness Interest Consideration Reaching Consumers Early Influencing the Decision Want to Purchase Visit Store/Website Making a Purchase Make the Purchase 8
9 What Influences Consumers Most: Top Awareness [VALUE] Interest Consideration Want to Purchase Awareness Visit Store/Website Interest Consideration Want To Purchase Visit Store/Website Make Purchase Television Newspaper Network TV Website Local TV Station Website Make the Purchase Internet Search Engine Internet Video Ad Radio Social Media Outdoor Internet Display Ad Streaming TV or Movies Online Source: GFK TVB Purchase Funnel 017 A18+ Most important for media that registered % or higher. 9
10 What Influenced Consumers Most: Awareness Stage 1% % % % % 1% % % % % 5% 4% 4% 4% 4% 4% 7% 5% 1% % % % % % % % 4% 4% 7% 4% % % 4% % 5% 4% % 5% % 5% 7% 5% 1% % 4% % 4% % % % 7% 9% 4% 6% 64% 58% 58% 61% 64% 65% 6 Categories Auto Furniture Medical Banking QSR/Casual Dining Television Mail Newspaper (Print Only) Local/Net TV Website or App Radio Outdoor Social Media Magazine Legal Source: GfK TVB Purchase Funnel 017 A18+ (% Most important media type among those who saw/heard ads in at least 1 media source) 10
11 How Do Advertisers Reach TV Viewers in New Mexico? 4.6% Cable 50.5% Satellite.% OTA Reach Viewers Over the Air Who Don t Have Cable or Sat Source: The Nielsen Company, May 16 11
12 Cord Cutting in Bernalillo County Satellite % Comcast 9% Almost 40% of Viewers Watch Over The Air Other, 1% OTA 9% 1,980 Households in the metro are OTA Source: The Nielsen Company, May 17 1
13 Broadcast TV reaches 100% of Homes in Albuquerque Broadcast 100% Source: The Nielsen Company, May 16 1
14 Hours Viewed per Week in New Mexico TV Viewership in NM Television Viewership per Week: 011 vs Down 1.4% 60,000, ,000, ,000, ,000, Hours/Week 017 Hours/Week 0,000, ,000, Total Nielsen Age Groups Sources: Nielsen National Data applied to Nielsen New Mexico HUTs 14
15 15
16 How Much to Reach ONE Person? Direct Mail = 6 Yellow Pages = 5 Newspaper = 10 Cable = 7 Radio = Broadcast TV = 1 16
17 TV is Still The Big Dog!
18 Video Leads the Pack! KOB Video Platforms Live TV % Mobile 7% Desktop/Laptop** 17% Radio* 1% Other Digital 5% Print % Broadcast + OTT Other (Non-Digital) % Source: emarketer, October 017 Includes multi-tasking on multiple devices at once * Excludes Digital ** Includes all internet activities on desktop or laptop computers
19 Working Together TV Internet 19
20 Social Media s Most Effective Use Connecting with customers at a personal level Public Relations To be in front of shoppers who are already online Global reach Social Media s Limitations Not a branding medium Not a primary influencer Can t measure ROI Widespread buzz but participation is limited to heavy users: 1% of Facebook users make up 66% of total visits* 7% of Twitter users have tweeted less than 10 times* Source: *Barracuda Labs 0
21 Television Ads Motivate Further Research Online Has an advertisement Column1 on television motivated you to go the Internet to find out more information about that product or service? % 1% 65% Yes No Do not Search Source: GfK TVB Mentor Survey 017 Persons 18+. Respondents asked when doing online search how often, if at all, have TV Ads you have seen influence you in some way in your search 1
22 Is TRUST an Issue for your customers? How do you BUILD Trust? TRUST is Built, over Time, by Experience TRUST can be Borrowed, or Transferred Source: Tim Daniel The New Nobility
23 I trust the news I see/hear on this media source Agree with this statement Local Broadcast TV 81% Local Newspapers 79% Broadcast National News 76% Public Television 74% Radio 7% Cable News Channels 7% National Newspapers 7% Websites/Apps Local Broadcast News 68% Websites/Apps Newpapers (Local or Nat'l) 67% Websites/Apps Broadcast National News 66% Websites/Apps Cable News 65% Websites/Apps Radio 6% All other Internet Websites/Apps Social Media 40% 5% Traditional Media Digital Media Source: GfK TVB Purchase Funnel 017 A18+ (Agree Strongly + Agree Somewhat)
24 Use TV + Digital to Impact Consumers at the right time.. Awareness Interest Decision Action Broadcast TV OTT - Connected TV Digital Display Digital Video Website Device ID/Geo Fence SEM SEO Retargeting
25 To Harvest Low-Hanging Fruit, You have to have a Healthy Tree! TV fills the top of the funnel and motivates consumers to go online. Digital captures the low hanging fruit. 5
26 Take-Aways All media can work, but in different ways Television is the #1 influencer across all six steps of the consumer decision process When evaluating the cost of reaching one person, Broadcast TV is the most cost efficient medium you can buy Broadcast stations offer one-stop media solutions Broadcast TV stations are your partner to help you grow your business 6
27 Sources & Terminology Nielsen = TV Ratings, National & Local, Monthly & Overnights, Meters, People Meters, Diaries, ABQ DMA = ~ 75 Meters Scarborough = Qualitative/Consumer Behavior, Top 75 markets ABQ DMA: ~,000 Booklets/TV Diaries Comscore = TV Ratings, National & Local, -way TV, Big Samples: ABQ DMA = ~ 160,000 set top boxes Simmons = Qualitative/Consumer Behavior, National, ~ 50,000 Booklets/TV Diaries, modelled to Local IAB = Internet Advertising Bureau the Bible for digital audience measurement TVB-commissioned National / Custom Research Studies Terminology OTT = Over The Top = CTV = Connected TV = Subscription / Streaming TV TV Everywhere OTA = Over The Air = Broadcast TV FEP = Full Episode Player Digital Video = vs. Broadcast Video Digital Display = Banner Ads SEM = Search Engine Marketing SEO = Search Engine Optimization 7
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