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Mechanics of TV

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Ranjit Dhillon Shares Marketing Tips On TV Marketing, TV Advertising, TV Commercials, TV Ads, Ads For TVs, Television Commercials And Television Ads

 

Head of Design, Head of Online, Digital Director, Online Director, Group Online Marketing Manager, Digital & Social Media Strategist, Senior Online Consultant - Ranjit DhillonRanjit Dhillon is an award winning and highly experienced Marketing Director, with a proven track record of driving an online business through effective and cost-efficient traffic generation, and multi-channel acquisition strategies.

 

Like many other markets, the TV market is purely governed by the forces of supply and demand

SUPPLY = Viewers
DEMAND = Investment

(These two factors set the station price)

 

Share of commercial audience

Very little movement in share between larger sales points – market consolidation no longer driving the movement in share

MEMs has more than doubled its market share, Five and C4 have grown 0.26% and 0.95% respectively – likely to be a result of C4 putting Really onto Freeview

TV market mechanics

Terrestrial TV costs can change by month (supply & demand)

Month

Indices vs. Annual Average (100)

January

77

February

82

March

100

April

130

May

121

June

102

July

96

August

87

September

108

October

110

November

109

December

82

Average

100

Different TV trading mechanics exist

  • Discount vs. average station price
  • Revenue / Impacts = Station Average Price
  • Negotiated discount dependent on a variety of factors including
  • Share & Volume of revenue relative to rival broadcasters

 

Cost per spot

  • Applicable to channels that naturally deliver smaller audiences
  • A mechanic rarely utilised by major broadcasters
  • Too much variation between predicted and actual performance

 

Fixed CPT (Cost of reaching 1,000 sets of eyes)

  • Favoured by DRTV advertisers
  • Removes a degree of fluctuation
  • Allows for more accurate forecasts

 

Regional macro factors

TV is also traded against different audiences….but you may want to start with Adults

There are 15 separate buying audiences

  • Adults is the cheapest route to market as it’s the broadest
  • Great for ROI focussed advertisers
  • Limits ability to access key programming
  • Broadcasters tend not to favour it as they make less money

16 – 34 Men is often the most expensive audience

  • Young men are the hardest demographic to reach as they watch the least TV

Buying 16 – 34 men in London is often the most expensive

  • Hardest demo to reach combined with most expensive region

 

Terrestrial TVs Regional Profile

ITV1 = 12 individual regions

  • A National Broadcaster of programmes…But national airtime can only be achieved buying an ad in every region; even then it won’t appear at the same time in every region.

Channel 4

  • C4 can be bought nationally; it can also be bought on a macro basis.

 

NET

LON

SOU

MID

NOR

SCO

ULT

GB

ENG

SLM

SL

All

Adults

100

191

103

101

68

62

91

100

105

125

133

The cost of advertising in London is almost double the national average the cost of advertising. In Scotland is generally 38% cheaper than the national average, advertising in London is less viable to any Customer Acquisition business looking to generate an effective ROI due to the prohibitive entry costs.

Time length factors vs. 30” (second)

Second Length Factors

10 seconds

Simple attention message

Reminder response message

20 seconds

Simple attention message

Reminder response message

30 seconds

Most often recommended for brand and response ad

40 seconds

More complex response message – sectors that are heavily regulated

Multiple propositions

60 seconds

Longer story telling either for emotional engagement or complicated selling techniques

90 seconds

Used, in the main, for highly demonstrable products that require a detailed level of explanation

120 seconds

See above

TV Stations charge a premium for ads less than 30 seconds (“additional administration required to slot a break”)

  • A 10 second costs 50% of a 30 second, although it only represents 33% of the length
  • A 20 second costs 83% of a 30 second although it only represents 67% of the length

Longer time lengths tend to be preferred by DRTV advertisers as they allow for more detailed demonstrations and longer engagement with the message (e.g. 40-60 sec).

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