CHANGING CHANNELS How audience measurement is evolving

with TV and television advertising

Project Gretzky III

At Kantar Media we continually appraise

developments in the evolution of TV and television

advertising, and constantly innovate as a result.

Our thinking is shaped by an ongoing project that started

in 2011. We called it Project Gretzky after the ice hockey

player who famously said:

A good hockey player plays where the puck is. A great

hockey player plays where the puck is going to be.

– Wayne Gretzky “ ”

TV is a decade away from its first century. For much of that time television was:

A single device A single behaviour

Designed to receive

broadcast signals

Watching scheduled linear

programming

2%

11%

14%

14%

17%

25%

62%

Magazines

Social media

Family & friends

Radio

Websites

Newspapers

Television2015 UK General

Election: which medium

was the most influential?

Source: Panelbase, 2015

TV still wields great power over our opinions

36%

37%

41%

44%

46%

65%

Outdoor

Radio

Newspapers

Magazines

Cinema

TelevisionMost influential forms of

advertising in the US:

Source: Deloitte, 2015

TV still wields great power over our buying decisions

Global ad spend media share:

Source: GroupM, 2014

Print

20% 27.6% 41.8%

Online Television

TV still dominates global ad spending

Source: Strategy Analytics, 2015

There are now

more than half

a billion connected TV

devices (smart TVs;

connected set-top boxes,

games consoles and Blu-ray

players; and streaming

media devices) in homes

around the world 2010 2014

579 million

173 million

Streaming media devices such as Amazon Fire TV and Google Chromecast are the

fastest-growing means of achieving an internet-enabled TV.

But TV has changed, as a result of: Rising take-up of connected screens and devices

Nearly half a

billion mobile

devices and

connections were

added to

networks in 2014

2013 2014

6.9 billion

7.4 billion

of that growth

came from

smartphones

88%

Source: Cisco, 2015

But TV has changed, as a result of: Rising take-up of internet-connected mobile devices

Broadcasters

have embraced

online

distribution and

online video

providers have

embraced TV 2014 2019

64% 80%

IP video traffic as a proportion of total consumer traffic:

Internet video to

connected TVs will

rise 4X by 2019

But TV has changed, as a result of: TV programming being extended online

Source: Cisco, 2015

1970 1980 1990 2020 2000 2010

Videocassette

recorder (VCR)

Personal (or digital) video

recorder (PVR, DVR) Cloud DVR

Time-shifting Time and place-

shifting

Time-shifting

36% of consumers are already place-shifting weekly

Source: Ericsson, 2014

But TV has changed, as a result of: Technology giving consumers more control

Cloud DVRs could

replace need for

hardware and storage in

the home

Lower set-top box

costs for operators

Opportunity for

targeted advertising

Increased

convenience and

unlimited storage Shared copy

cloud DVR

Private copy

cloud DVR

But TV has changed, as a result of: Technology giving consumers more control

Every time a new study comes out showing

some erosion of share of broadcast or cable

TV we get hysterical headlines about the

death of TV. In fact, what is changing is

not consumer behaviour. What’s

changing is what we call it.

Bob Hoffman, The Ad Contrarian

“

”

TV’s evolution prompts a redefinition.

It is a fundamental misunderstanding to

believe we are witnessing a drop off in TV

viewing. Rather we are witnessing an

evolution, for running alongside this

linear ratings drop off is a totally different

tale as video consumption has never

been so high.

Frances Ralson-Good, Chief Strategy &

Innovation Officer, PHD UK

“

”

TV’s evolution prompts a redefinition.

It is becoming a semantic argument as to

whether television is a URL on the internet or

the internet is a channel on the television set.

So when I am talking about television I am

talking about every delivery system that

enables people to watch moving pictures

and sound on a screen.

Dr Jeffrey Cole, Center for the Digital Future

“

”

TV’s evolution prompts a redefinition.

It’s now a flexible fusion of audio visual

experiences, delivered to multiple devices, offering

scheduled viewing as well as time-shifting, place-

shifting and on-demand programming.

TV’s evolution prompts a redefinition TV has outgrown the TV set:

• Core TV : viewing on the main screen

• TV viewing in the long tail

• TV viewed out of home

• TV’s relationship with social media

• TV extended to connected devices

• Total video

Audience measurement has evolved with TV It now needs to measure:

Source: CSM Media Research/Kantar Media

16 mins

Non-TV set

viewing per day

247

mins

Viewing on a

TV per day

This

dominates

viewing, and

will do for

many years

to come

In China, with 1.28 billion TV viewers,

649 million internet users average video consumption =

Audience measurement has evolved with TV Core TV - viewing on the main screen:

In the UK, average TV viewing (2014) =

Source: Thinkbox, 2015

1.6% 98.4%

on a TV set

on other screens

This

dominates

viewing, and

will do for

many years

to come

Audience measurement has evolved with TV Core TV - viewing on the main screen:

+ PeopleMeter Return Path Data

Return path data (RPD) services collect

viewing behaviour from set-top boxes. It’s an

accurate measurement technique, and even

more stable when integrated with

PeopleMeter panel data.

Audience measurement has evolved with TV It now needs to measure: TV viewing in the long tail

Panels can be

limited when

measuring niche

channels

Click here for

more information

In Malaysia, Astro is

using Kantar Media’s

RPD capability to

analyse viewing

across linear

channels, time-shift,

VOD, and interactive

TV, as well as

gathering data on

advertising spots

4,000 recruited households

including homes from Kantar

Worldpanel’s FMCG panel –

thus combining real-time

viewing with data on what

people purchase.

80,000 set-top boxes,

measuring the viewing

habits of urban, affluent

consumers.

Audience measurement has evolved with TV It now needs to measure: TV viewing in the long tail

Click here for

more information

[In Norway] anybody that

watches anything, whether

you watch it in a bar, you

watch it at your vacation

house, whether you watch it

on your iPad, it counts.

David Zaslav, CEO,

Discovery Communications

“ ”

Audience measurement has evolved with TV It now needs to measure: TV viewed out of home

Norway included

out-of-home viewing

in its TV ratings

currency in July

2014. The inclusion

contributed to a

rise in average

daily TV viewing:

2013:

168 minutes

2014:

174 minutes

Source: TNS Gallup, 2015

Audience measurement has evolved with TV It now needs to measure: TV viewed out of home

Click here for

further insights

A few years ago, the only

thing that mattered was

ratings. Now what matters

more is the level of social

engagement around the

content.

Keith Hindle, CEO, Digital

and Branded Entertainment,

FremantleMedia

“ ”

Audience measurement has evolved with TV It now needs to measure: TV’s relationship with social media

The

relationship

between TV

and social

media is

symbiotic

TV drives drives TV

40% of UK Twitter

traffic is

TV-related

Kantar Media analysed a year of TV-

related Tweets in the UK

of broadcasts had some form of

positive causation – an increase in

Tweets was followed by an

increase in viewing.

11%

Audience measurement has evolved with TV It now needs to measure: TV’s relationship with social media

Click here to

download this study

Ratings are what we transact

and evaluate the business

on. If you can’t measure it,

you can’t sell it.

Alan Wurtzel, President of

Research & Media

Development, NBC Universal

“ ”

Audience measurement has evolved with TV It now needs to measure: TV extended to connected devices

The total audience for shows

can nearly double when

you add in all the other

viewing.

David Poltrack, Chief

Research Officer, CBS

Corporation

“ ”

Audience measurement has evolved with TV It now needs to measure: TV extended to connected devices

Total View All online content whether

video or text based

Audience measurement has evolved with TV It now needs to measure: Total Video

Total View brings together gold-standard TV

measurement and multi-platform online

measurement for a complete view of viewers’

media usage on TV and online

Total Video All video content from

online platforms, whether

broadcast or not.

Extended TV Broadcast and on-demand

programmes on

connected devices

Core TV Broadcast TV on the

main screen

Defined scopes of reporting for an integrated measurement approach to include:

Click here for

more information

Greater

specificity of

targetable

audiences,

and for ads to

be served (or

‘addressed’)

to them

Return path data services

Kantar Media’s

RPD services are

an innovative

approach to

measuring

subscribers’

viewing activities

Targeting second

screens

Ads can be targeted

to reach the right

demographic at the

right time –

devices are

synchronised with

content on TV

TV advertising is become more

targeted and addressable

Integrated advertising is part of a

wider trend towards integrated

marketing communications.

It’s the coordinated use of

different channels to reach and

engage targeted audiences

across platforms and devices.

TV advertising is become more: Integrated

Automation

replaces

human

interaction

with

machines

and computer

programs

Programmatic advertising: Programmatic TV:

Data-driven automation

of the

ad trading

process.

Accounts for 20% of

online advertising in the

US – set to grow as

programmatic moves to

outdoor, radio and TV

Nascent form of TV trading.

Instead of relying on TV

audience data to determine

where ads should be placed,

programmatic TV

uses data about

audiences to

place targeted

ads in front of them

Source: IAB

TV advertising is become more: Automated Click here for

further insights

As automated processes become more

sophisticated, high-value data like Kantar

Media’s TV audience data (return path data

and increasingly currency services) and

attitudinal sources such as TGI will have a

bigger role to play.

Susan Tillou, VP, Strategic Data Partnerships,

Kantar Media

“ ”

TV advertising is become more: Automated

To find out more about how we are

innovating and implementing new

audience measurement

techniques around the world, visit

kantarmedia.com

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@Kantar_Media

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