Going Digital Strategic plan November 20
Introduction 1. New Zealand s move from analogue to digital television is a significant milestone in the development of broadcast technology. Going Digital is a major contributor to the Government s objective to build a stronger economy because it will free up radio spectrum for faster and cheaper mobile communications services in the long-run. 2. Digital television offers New Zealanders better pictures, more channels, and new services such as onscreen programme guides and audio description. 3. Most developed nations, including Australia, the UK, Canada, the USA and most EU nations, have made, or are making, the move to digital television, and analogue technology is rapidly becoming obsolete. It is important that New Zealand keeps up with these changes to ensure we capitalise on the economic and social benefits that emerging digital technologies will provide. 4. Going Digital, part of the Ministry for Culture and Heritage, is responsible for making sure New Zealanders are aware of the move to digital television, and encouraging householders to go digital. 5. An estimated 79% of New Zealand households have already gone digital with at least one television. 1 The level of intention to go digital has increased significantly since the campaign was launched, with intention being significantly higher than the national average in the first regions to switch. This is consistent with the UK experience where the majority of the unconverted households did so in the last four months. Achievements as at November 20 6. The Going Digital programme office was established in late 2010. Since that time, the following has been achieved: September 2010 November 2010 November 2010 December 2010 December 2010 February 20 March 20 Ministerial announcements of going digital regions and timelines. Nationwide network of community advisers established. Information campaign launched. Newspaper advertising campaign launched. Retailers began using Going Digital brand to support the campaign. Consumer Reference Group established. Pilot regional integrated advertising campaign undertaken in 1 Going Digital has commissioned Colmar Brunton to deliver the Digital Tracker - a quarterly telephone survey of approximately 2,000 homes regarding conversion, awareness and intention to go digital. The Tracker is also used to research the effectiveness of Going Digital s community engagement and marketing communications activity.
Hawke s Bay and the West Coast. April/ May 20 New Zealand s Oldest Telly competition shows you don t need a new TV to go digital. June 20 Major TV advertising campaign, with support from other media. June/ July 20 Extension of Freeview HD digital terrestrial television network completed to Invercargill, Timaru, Nelson, Wairarapa, Whanganui, Gisborne, Taranaki, Taupo, Rotorua and Whangarei: over 86 per cent of New Zealanders can now receive free to air digital terrestrial television. July 20 Nationwide direct mail drop August 20 TV advertising campaign. August 20 Expressions of Interest sought for provision of targeted assistance package and shortlist complete. September 20 One Year To Go advertising campaigns in Hawke s Bay and the West Coast. October 20 Nationwide press advertising campaign targeted at over 65s. November 20 Awareness increased from 35 per cent (July 2010) to 87 per cent (November 20); and conversion increased from 70 per cent (July 2010) to 79 per cent (November 20). November 20 Process to evaluate tenders for the delivery of the targeted assistance package completed and contract negotiations begun. Targets 7. We have carefully examined trends in awareness and conversion from the UK and Australia. These jurisdictions are different to New Zealand the campaigns ran for much longer periods prior to DSO; but started from a lower conversion base overall. Overseas, the trend has been for conversion to follow awareness. This is the reverse of the situation in New Zealand until August 20, where more people were watching digital TV than were aware of going digital. An analysis of the trends at key quarterly milestones has led us to establish the following targets: NATIONAL AWARENESS Feb- May- Aug- Nov- Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Target 51% 57% 70% 76% 83% 89% 92% 93% 94% 95% 96% 99% Actual 51% 51% 83% 87%
NATIONAL CONVERSION OF PRIMARY TELEVISION SET Feb- May- Aug- Nov- Feb-12 May-12 Aug-12 Nov-12 Feb-13 May-13 Aug-13 Nov-13 Target 72% 73% 75% 77% 79% 81% 82% 84% 86% 89% 92% 98% Actual 72% 77% 79% 79% 8. Regional targets have also been set, although the outcome data is subject to a high margin of error and therefore difficult to measure with accuracy. Regional targets are attached as Appendix 1. 9. It is envisaged that, as New Zealand moves closer to the dates for going digital, targets for detailed understanding of what is required to go digital will be set. It is also important to note that these conversion figures are for at least one television being made digital. There needs to be a focus on ensuring households are aware that all sets need to be digital. Strategic Objectives 10. Going Digital s strategic objectives are to ensure that: New Zealanders are aware of the need to have gone digital by the regional switchover deadline and are aware of how to stay digital; New Zealanders have the information they need to successfully switchover and have access to easy to understand information (0800 number, supply chain, providers, online resources); and New Zealanders have gone digital within the required timeframes. Strategic approach. Going Digital has adopted a community engagement programme, working in partnership with consumer groups, the supply chain and the broadcasting industry to achieve its communications objectives, as set out below:
Partner stakeholders 12. The Broadcast Sector Group (BSG) represents the interests of the broadcasters and transmission providers in going digital. The BSG considers issues relating to going digital from an industry point of view and provides its views to the Minister of Broadcasting and to Going Digital. The Going Digital National Manager attends its meetings for discussions and exchanges of views about the project. 13. A Consumer Reference Group, comprising representatives of Consumer, Deaf Aotearoa, GreyPower, The Royal New Zealand Foundation for the Blind, the Association of Blind Citizens, the Federation of Family Budget Advisory Services, SeniorNet and disabiities group PeopleFirst. The Consumer Reference Group meets periodically and provides Going Digital with advice on communications and community engagement activity. 14. From a supply chain perspective, appliance retailers have their own interests in going digital as they seek to sell the equipment that consumers need. Going Digital is in regular contact with the head offices of major retail chains and community advisers engage with stores at a local level. There is no national
15. Going Digital has also engaged the real estate industry, and has developed a digital TV mark, a visual tool which will allow agents to show whether a property has access to digital television, and if so, of what type. This is expected to particularly useful in the rental market where tenants are often reluctant to invest in their own reception equipment. 16. The concept is intended to sit alongside existing imagery commonly used in the industry to show the number of bedrooms, garages, etc. The DTV mark has been well-received by real estate companies, and it is expected to be rolled out early in 2012. Strategic choices 17. Going Digital can influence the strategic outcomes in each region by the level of investment it makes in communications, marketing, advocacy and community outreach. The greater the investment in each region, the more likely it is that almost the whole population will be digital by the deadline. Conversely, if less investment is applied, it is likely that a greater number of people will remain unconverted and therefore lose access to television, at least for a time. Should the latter situation occur, the situation can be reversed: viewers are still able to go digital after their region has, but they are likely to be inconvenienced by the loss of television in the interim. This choice is depicted in the chart below:
18. At this stage, at least for Hawke s Bay and the West Coast, Going Digital has adopted a heavy resource approach. This will deliver maximum awareness and maximum conversion in the first two regions to go digital, thus minimising the cases of people who either didn t know about going digital or don t get around to going digital before the deadline. Strategic risks and mitigants 19. The most significant risk is that people do not go digital and are left without television when their region goes digital. 20. The groups at highest risks of not being aware and not going digital within the required timeframes are: those who feel negatively about television in general; those over 75; the disabled; Pasifika people; those whose primary language is not English; and those who live in multi-dwelling units and who share an antenna with other units. 21. At the moment, there is no perceived urgency as the first switchovers do not occur until late 2012 and for the majority of the population, it is not until late 2013.
22. The key mitigants to the risks outlined above are: general and targerted advertising, marketing and community outreach activity; high visibility in each region as the deadline nears; a message that becomes more urgent and definitive as the deadline approaches in each region; and the introduction of a targeted assistance package for the most at-risk groups. 23. Each of these mitigants is discussed below. Advertising, marketing and community outreach activity 24. Going Digital is working to increase awareness and encourage conversion through a programme of marketing, public relations activity and community engagement. The target audience is very broad; essentially all people who are unaware that New Zealand is going digital. The audience has been segmented in order to better understand media consumption habits and ensure investment is in the right areas. 25. In 20, as we sought to build awareness of Going Digital, our target audience was all New Zealanders. With the national awareness figure at 87% as at November 20, this task has largely been achieved. During 2012 (and into 2013), the audience will be primarily the unconverted, and those who have unconverted secondary sets. Our secondary audience is those who will act as advocates for Going Digital and assist those unconverted households to convert. 26. As well as drawing on in-house capability, Going Digital is working in partnership with professional and experienced private sector companies to plan and deliver advertising, viz.: OMD (advertising strategy and buying); Draft FCB (delivery of creative advertising); Ideas Shop (public relations); and Moxie Communications (design and print services). 27. Additionally, Going Digital has researched overseas jurisdictions and is in taking ongoing advice from its counterparts in Australia and the UK. 28. Consumers have constantly indicated that their preferred means of receiving information about going digital are television and the post. Going Digital is using these media, and others (radio, press, online and outdoor billboards) to disseminate its message. Responses to marketing undertaken during 2010 show that television advertising has proven to be highly effective at raising awareness, while direct mail has driven significant numbers of calls to the Going Digital contact centre. 29. A series of five television advertisements have been pre-recorded. These depict Seymour the digital dog and his sidekick Ben travelling New Zealand delivering
See More, Enjoy More introduced the going digital concept and the characters; Garage Sale explains that you don t need a new TV to go digital; and The Amazing Seymour shows the benefits of going digital (more channels, better pictures). 30. Two additional commercials depicting a rural and urban setting allow the ability to insert specific information as required as the deadlines approach in each region. 31. During 20, Going Digital has made particular use of direct mail, radio, press and internet advertising to deliver its messages. These advertisements have been intended to raise awareness and prompt viewers to find out more. Some examples of press advertising and direct mail are set out below.
Messaging 32. The nature and tone of Going Digital s message is evolving over time. Early ads focused on the benefits of going digital, and promotional activity, such as the highlysuccessful competition to find New Zealand s Oldest Television which showed that any TV can go digital with a set top box. In the last 12 months of each regional campaign, the focus will shift to be more direct about the implications of inaction by viewers. For example: 33. Broadcasters are unable to provide onscreen messages or television advertising targeted specifically at viewers in the Hawke s Bay and West Coast regions. Going Digital expects to be on-air with television commercials for most of the 2012 calendar year, but advertising at a regional level will therefore be focused on direct mail, press and radio advertising. 34. A high level summary of the overall messaging plan is shown overleaf.
Messaging framework Nov 10 Dec 10 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 12 Feb 12 Mar 12 Apr 12 May 12 Jun 12 Jul 12 Aug 12 Sep 12 Oct 12 Nov 12 Dec 12 Jan 13 Feb 13 Mar 13 Apr 13 May 13 Jun 13 Jul 13 Aug 13 Sep 13 Oct 13 Nov 13 Dec 13 HB/WC Sth Is L Nth Is U Nth Is Role of Communications Raise Awareness of the process Raise Awareness and Understanding of what they need to do Advocacy / Holiday Homes Advocacy / Holiday Homes National messaging Going Digital means more channels and better pictures You don't need a new TV to go digital but you do need the right equipment Hawkes' Bay & West Coast You need to get Freeview, Sky or Telstra Clear to go digital Role of Communications Raise Awareness of the process Understand what you need to do and by when. Drive Action Drive Action amongst stragglers Drive Advocacy Regional messaging South Island HB/WC is going digital soon You can go digital now You need to get Freeview or Sky to keep watching TV Help your friends and family go digital before 30 September Role of Communications Understand what you need to do and by when. Drive Action Drive Action amongst stragglers Drive Advocacy Regional messaging You can go digital now You need to get Freeview or Sky to keep watching TV If you don't have Freeview or Sky you won't be able to watch TV Help your friends and family go digital 12
Lower North Island Role of Communications Understand what you need to do and by when. Drive Action Drive Action amongst stragglers Drive Advocacy You can go digital now Regional messaging You need to get Freeview or Sky to keep watching TV If you don't have Freeview or Sky you won't be able to watch TV Help your friends and family go digital Upper North Island Understand what you need to do and by when. Drive Action Drive Action amongst stragglers Drive Advocacy Regional messaging You can go digital now You need to get Freeview or Sky to keep watching TV If you don't have Freeview or Sky you won't be able to watch TV Help your friends and family go digital before April 13
Key messages 35. While Going Digital s messaging will evolve over the course of the campaign. The general messaging underpinning all campaign activity is set out below. New Zealand is going digital between September 2012 and November 2013: - September 2012: West Coast and Hawke s Bay September 2012; - April 2013: rest of the South Island; - September 2013: lower North Island (including Taranaki) and East Cape; - November 2013: Upper North Island. You will need either a digital TV or a set-top box, plus either a UHF aerial or a satellite dish (depending on where you live). You don t need a new TV to go digital: any set can be converted to digital with a set-top box. Digital TV offers more channels, better pictures and new services such as an Electronic Programme Guide. If you re already watching Freeview, Sky or TelstraClear, you are already watching digital TV and don t need to do anything (unless you have other TVs that aren t digital yet). Overseas experience has shown that a small group of people will require support in order to go digital. The Government is considering what support could be provided here but, if there is an assistance programme, it will be narrowly targeted at those who genuinely don t have the ability to go digital without support. Digital broadcasting makes more efficient use of the radio spectrum, meaning that more channels can be broadcast, as well as freeing up space in the airwaves for new telecommuications services that will be cheaper and faster in the long-run. This is estimated to deliver economic benefits to New Zealand of between $1.1 and $2.4 billion over 20 years. Further information is available from www.goingdigital.co.nz or freephone 0800 838 800. Restacking 36. An important part of going digital is the restacking of existing digital terrestrial television frequencies, moving services into the 600MHz band, and realising the digital dividend 700 MHz band. This means that Freeview HD viewers in 8 centres (excluding Auckland and the extended DTT network) will have to retune their televisions on a particular date (or not be able to watch TV). A pilot restack was undertaken in the Kapiti Coast in August 20, and the remaining sites will take place during 2012. 37. To avoid confusion about going digital, communications about restacking are being branded as MED Radio Spectrum Management. However, Going Digital is heavily involved in planning and delivering communications to support the process, working with MED and the industry to make restacking as simple as possible for viewers.
Community outreach 38. Experience from the UK showed saturation community engagement in the nine months leading up to each switchover was considered vital in converting late adopters. Advice from Australia has also supported a strong approach to community engagement. Based on international best practice, Going Digital has adopted a community engagement model for its work, supported by a programme of paid advertising. To date, the community engagement programme has proved worthwhile: awareness is significantly higher amongst older people, whom have been targeted by the community advisers. As at November 20, nine per cent of New Zealanders surveyed by the Digital Tracker had heard about Going Digital from a community adviser. 39. Following on from the success of the Search for New Zealand s Oldest Telly competition, where nostalgia and Kiwiana played a key role in attracting interest, a programme promotional programme to support community engagement will be followed in each region in the months before it goes digital. This will be centred around a Going Digital promotional caravan, with clinics being set up to disseminate information to consumers at community events and at places such as shopping centres, main street precincts and retirement villages. On-screen crawlers 40. Overseas experience has shown the use of on-screen crawlers to be a highly effective means of communicating with those still watching analogue services. Such crawlers would carry messages indicating that the service will end on a particular date, and directing viewers to the Going Digital website and freephone number for more information. On-screen crawlers are the only means of directly targeting those watching analogue services. 41. Up until now, Going Digital s planning (informed by the BSG) has assumed that it will be possible to have on-screen crawlers directly targeting analogue viewers in the months before each region goes digital. However, the BSG has now indicated a reluctance on the part of broadcasters to consider crawlers because it is technically challenging and could create adverse viewer reaction. The BSG advises that it is unable to commit to running crawlers and is unable to do so at all for Hawke s Bay and the West Coast. As an alternative, it proposes a post-going digital message advising viewers that the service has ended. While this would provide information to viewers, it would obviously not assist in helping viewers go digital prior to switchover date and therefore does not mitigate the risk that viewers have not gone digital in advance. 42. Going Digital therefore plans to target analogue viewers through other means including direct mail, door to door activity, and possibly radio advertising. These channels are likely to cost more than crawlers and would therefore lead to a possibly significant reduction in paid advertising elsewhere.
Getting Hawke s Bay and the West Coast right 43. As the first regions to go digital, it is strategically important that Hawke s Bay and the West Coast go digital successfully, on-time and that communications risk is minimised. It is therefore important for the campaign to be highly visible, and that there is deep community engagement, particularly in areas where at-risk groups may not yet have gone digital. These tasks have been made more complex by the inability to deliver on-screen messages on analogue television services in these areas. 44. On the West Coast, it is necessary for all homes to have a satellite dish. The Digital Tracker results, combined with anecdotal reports from the Coast suggest that nearly every house with a dish has already gone digital. The West Coast has high levels of digital penetration, and Going Digital has completed some door to door activity in urban areas, identifying houses which do not have a visible satellite dish. From this list, Going Digital will generate a mailing list, and target direct mail to those houses without a visible dish. 2 45. The situation in Hawke s Bay is more complex. As a DTT area, it is not possible to make a reasonable assumption about a household s digital status by looking at antennae, because there are different ways of receiving digital TV in Hawke s Bay and because UHF antennae can also be used to receive analogue television. 46. It is therefore proposed to undertake targeted door to door activity in Hawke s Bay, targeting areas where demographics suggest people are least likely to be digital. The Great Going Digital Doorknock is scheduled to take place from late March 2012, with doorknockers (both Going Digital staff and casual employees) seeking to establish which houses have not yet gone digital, and making sure that potentially eligible people are aware of the Targeted Assistance Package. Going Digital will undertake follow-up direct mail to those houses which are identified as not being digital through this process. The Targeted Assistance Package 47. Cabinet has agreed in principle to help the most vulnerable groups go digital through a Targeted Assistance Package (TAP). Planning for the TAP is now well-advanced, although final decisions have yet to be made. 48. Should the TAP proceed, it will be based on the Australian model, with eligible people who opt-in receiving: - a complete home installation of the necessary box and aerial (or satellite dish) necessary to receive free to air digital television; 2 The construction of the list was based on observation from the street, and each house was left a letter to advise of the need to go digital. As a result of the methodology, some digital households will receive a letter, and there is also a small risk that some houses with a satellite dish will have been incorrectly assessed as being digital. It is expected that these householders will be touched by the Going Digital campaign in some other way, given the extensive promotional and advertising activity planned over the next year.
- training in its use; - leave-behind reference material tailored for the particular needs of the target groups; - access to a support and advice line for 12 months after the equipment is installed; and - a 12 month warranty on equipment and service. 49. Going Digital will write to customers at least six months before their region goes digital to inform customers of the services available. Those who are eligible, but who have not opted-in will also receive a follow-up letter reminding them of their entitlement and the timelines. Customers will be able to opt-in to up to three months after the going digital date in their region. 50. Delivering the TAP is a complex project in its own right, requiring a close working relationship between Going Digital, the Ministry of Social Development (which will provide data enabling Going Digital to verify eligibility for assistance); the Ministry of Economic Development (which operates the Going Digital contact centre and will be the first port of call for eligible customers); and the service provider, who will deliver the service and be responsible for aftercare services. 51. Contract negotiations are currently underway, with a proposed report-back to Cabinet taking place in December 20. Following this, the timeline is tight to begin implementation: December 20 December 20 January 2012 February 2012 March 2012 Final Cabinet decisions and confirmation of funding. Contract signed with successful service provider. Finalisation of agreed processes between all parties. First letters go out to eligible customers offering assistance. First TAP installations take place.