Television vs. Internet July 25, 2011 Television vs. Internet • Rather than taking away from time spent with Television, people are using both TV and the Internet at the same time. • 40-50% of people surveyed under the age of 55 use the Internet while simultaneously watching Television, and, they pay attention to both alternatively. • And while viewers have several options available to choose from, they overwhelmingly choose to watch television on a TV set in the comfort of their home as opposed to a computer or mobile device screen. Source: Television Viewing Preferences and Online Synergy, http://www.tvb.ca/pages/viewingprefences_htm Television vs. Internet • Television is considered the most engaging medium over other major media. • Television has built a reputation of prestige and credibility. Thus, enhancing the image of advertisers who use television. • Television dominates as the preferred screen because it offers the best overall viewing experience: picture and sound quality, and popular first-run programs. • Experiencing ads on TV is 38 times more engaging than online ads. This leads to 3 times more brand recognition after watching TV than surfing the web. Source: Broadcasting & Cable, May 9, 2011 “Biometric Study: Broadcast Ads Make Web Work Better” Television vs. Internet Cross-media Comparison • Cross study comparison – Weekly hours Adults 25-54 NADbank PMB RTS PPM comScore 25.7 22.0 22.8 22.4 21.5 19.0 18.5 18.3 16.0 10.3 10.7 9.0 4.7 4.4 1.7 na Television Source: Marketing Magazine May 17, 2010 na Radio na Online na na na Dailies 0.7 0.6 na na Magazines Television vs. Internet • There is a symbiotic relationship for advertisers1: – More than half of those surveyed under the age of 55 have gone online based on something they saw in a television commercial. – Of those people, most researched the product or service or requested information, but a significant proportion go on to make an online purchase. • The proportion of TV only viewers in Canada is 71%, online only viewers make up 5%, and 24% of us are cross-platform viewers.2 1Source: 2 Television Viewing Preferences and Online Synergy, http://www.tvb.ca/pages/viewingprefences_htm Source: Comscore Television vs. Internet • Traditionally, TV advertising has been viewed as having its greatest influence in the early stages of the model, making the consumer aware of the product, creating interest in the product and, to a lesser extent, creating a desire. • The role of the internet is more pronounced in the latter stages of the process. The interested consumer goes to the web to learn more about the product. When the consumer finds more information about it, his or her desire for it increases, and the information leads to an actual purchase. Source: Television Viewing Preferences and Online Synergy, http://www.tvb.ca/pages/viewingprefences_htm Television vs. Internet Biometric Research • Science has proven TV advertising effective – In 2009 Innerscope Research conducted a Biometric study of Canadian advertising to measure the subconscious effect that it has on consumers – Respiration, heart rate, skin conductance and movement were measured along with eye tracking to determine how engaged subjects were with the advertising to which they were exposed – Subjects were exposed to television advertising from 24 national brands; each brand had a corresponding ad in either Newspaper, Radio, Online Video or Online Display – Television advertising proved to be more engaging and generated higher recall than all other media included in the study Television vs. Internet Biometric Research • Internet receives only 71% of the recall and engagement from its audience compared to TV. Television vs. Internet Consumers Surveys • TVB participates in omnibus telephone surveys conducted by BBM Analytics to gauge consumers attitudes towards advertising in all major media and to gain insight into their behaviour with media • Surveys include: • • • • • Perception of Advertising Effectiveness Receptivity to Advertising Screen Preference Media Synergy PVR Impact Television vs. Internet Advertising Effectiveness Which ONE media source carries advertising that you believe to be the most Influential? A25-54 62.6 13.3 7.6 9.2 2.6 Television Source: BBM Analytics June 2011 Radio Newspaper Magazines 0.4 Internet Out of home Television vs. Internet Advertising Effectiveness Which ONE media source carries advertising that you believe to be the most Persuasive? A25-54 57.7 11.8 13.7 8.3 3.3 Television Source: BBM Analytics June 2011 Radio Newspaper Magazines 1.8 Internet Out of home Television vs. Internet Advertising Effectiveness Which ONE media source carries advertising that you believe to be the most Powerful? A25-54 61.8 14.8 9.1 4.5 Television Source: BBM Analytics June 2011 Radio 2.7 Newspaper Magazines 1.2 Internet Out of home Television vs. Internet Advertising Receptivity In which medium are you most likely to Notice advertising? 57.9 A25-54 14.2 9.9 9.2 3.2 Television Source: BBM Analytics June 2011 Radio Newspaper Magazines 2.3 Internet Out of home Television vs. Internet Advertising Receptivity When are you most Receptive to advertising messages? A25-54 42.1 13.7 13.3 9.5 9.0 5.2 Watching Television Source: BBM Analytics June 2011 Listening to Reading a the Radio Newspaper Reading a Magazines On the Internet Out of home Television vs. Internet Advertising Receptivity When do you pay the most Attention to advertising messages? A25-54 41.4 14.9 14.2 6.1 Watching Television Source: BBM Analytics June 2011 Listening to Reading a the Radio Newspaper Reading a Magazines 7.4 On the Internet 7.4 Out of home Television vs. Internet Advertising Receptivity Thinking about your Favourite advertisement, where did you see it? A25-54 64.4 8.1 4.3 Television Source: BBM Analytics June 2011 Radio Newspaper 6.5 2.9 Magazines 0.7 Internet Out of home Television vs. Internet Have you ever seen an ad that has made you Laugh or Cry? Where? 84.3 A25-54 88.7 10.6 Yes 6.3 6.3 0.5 Television Source: BBM Analytics June 2011 Radio No Newspaper 0.3 Magazines 0.0 Internet Out of home Television vs. Internet • There is a unique role that Television and the Internet each have in the “purchase funnel”. Television at the top of the purchase funnel provides a very immersive environment which enables advertisers to create a need state among customers/viewers. • The Internet further down the purchase funnel enables advertisers to provide customers with the additional information they require before making a purchase, or in some cases facilitates the purchase. Source: Television Viewing Preferences and Online Synergy, http://www.tvb.ca/pages/viewingprefences_htm Television vs. Internet • Television commercials account for 10.3% of all word of mouth conversations in regards to brands. This compared to only 3.9% for ads on the internet. • Television is the leader in ad expenditure volume, as well as the leader in driving word of mouth volume. • TV has the ability to spark a conversation, and advertisers wanting to start lots of conversations quickly have to consider television. Source: ADMAP November 2010 Television vs. Internet • Consumers do not trust internet advertising. Advertisements on the internet have much lower credibility and a much lower impact on the perception of product quality. • Forrester Research has completed studies that show (among methods of internet advertising) that advertising and company sponsored blogs are the least-trusted source of information on products and services, while recommendations from friends and online reviews from customers are the highest. Source: Tech Crunch, March 22, 2010 “Why advertising is failing on the internet” Television vs. Internet • Results for a 3-month period ending March 2011 show that A25-54 averaged 26.6 hours/week with TV* as opposed to only 11 hours/week with the internet* during the same time period. • Despite widespread adoption, the Internet is missing roughly one-third of the Canadian population as only two-thirds actually use the internet. * Measures both at-home and out-of-home viewing Source: comScore Media Metrix, “Time Spent Online” http://www.tvb.ca/pages/comScoreMediaMetrixTrends_htm Source: mediacaster, June 6, 2011 “Internet Video Use in Canada, U.S. Drives OTT Revenue Projections” Television vs. Internet • Internet advertising is largely unregulated, and knows no national boundaries. In other words, almost anything goes! • Internet marketing is so blended into the content of a Website that the lines are blurred between advertising, entertainment and information. • TV advertising doesn’t “share” a page/screen with its content; it takes over completely. Source: http://www.media-awareness.ca/english/resources/special_initiatives/wa_resources/wa_shared/backgrounders/tv_vs_net.cfm Television vs. Internet • In Summary: – Television’s reputation of prestige gives credibility to the messages and advertisements being displayed. – As outlined in various studies, people identify TV as the medium they find to be most effective, engaging, and persuasive. – Television and internet work best when used synergistically to convey a message. – People are still overwhelmingly choosing to view programming on a TV set rather than on a computer. – “There is something to be said about the way images and sound come through a 55” HDTV that a computer and iPad simply can’t compete with.” – Neil Weisman, EVP and GM of Blue Chip Healthcare Marketing