Download - MediaCom Fact Book 2016

TV Mobile

Radio Events

Print Content

Affiliates

Out Of Home Sport

Regional Press AV Partnerships

Paid Social

Cinema CultureCom

Direct Response

Search & SEO

Kids

Direct Mail

VOD/Online Display

Real World Insight

Programmatic

8 - 13 106 - 111

38 - 41 122 - 127

14 - 25 112 - 117

96 - 99

42 - 49 128 - 133

26 - 37 118 - 121

100 - 105

50 - 59 134 - 141

60 - 67

82 - 89

142 - 153

68 - 71

90 - 95

72 - 77

78 - 81

2015/2016

MediaCom 124 Theobalds Road London WC1X 8RX UK

Tel: +44 (0)20 7158 5500 Web: mediacom.com

Josh Krichefski, MediaCom UK CEO EA: Dixie Maloney Tel: +44 (0)20 7158 4539 Email: [email protected]

7

Fact Book2016 Edition Key Media Facts & Figures

Hello and welcome to the 2016 edition of the MediaCom Fact Book,

As always, the aim of this book is to combine a useful reference for key media facts and figures, with key insights into current trends from our experts in each sector, giving you the information you need for the coming year.

I’m enormously proud to be taking up my new role as UK CEO at what I’m sure you’ll agree is an exciting time for the industry. Fittingly, in each of the sections of this year’s Fact Book, you’ll see evidence of the media buying landscape shifting and moving at a remarkable pace. But you’ll also see how we, as the UK’s leading media agency, are adapting to these changes across our wide array of disciplines.

This year you may notice some subtle changes in the structure and layout of the book, which we believe will make it easier for you to get to the facts and figures that matter most.

As ever, if you have any questions on the content of this book, or if you’d like further details about the facts, figures and issues mentioned here — don’t hesitate to get in touch with us. I hope you enjoy reading it and I look forward to hearing your feedback.

Best,

Josh Krichefski MediaCom CEO, UK

8

Affiliates

8

TVJonathan MastersonHead of TV [email protected]

A look back at 2015

No sign of slowing

In last year’s Fact Book we predicted the four main points we’d be discussing in this year’s edition would be Station Ownership, Premier League rights, the Rugby World Cup and viewing trends. It’s safe to say that those four issues dominated another strong year in TV, along with record TV revenues.

Advertiser demand for television showed no sign of slowing down in 2015; with the market experiencing a record high for the year. Demand has grown 9% compared to 2014 (source: GroupM), and we believe this is down to a number of factors. We’ve seen large growth categories in finance, motors and pharmaceutical (according to figures from Nielsen). The Government’s decision to push spend forward into Q1 due to purdah restrictions (which prohibit spending in the six weeks prior to an election) also proved beneficial.

Some feared the lack of a big summer sporting event could have adversely affected June and July, but those fears proved unfounded, in fact, compared with the World Cup in 2014, this period saw an increase in revenue. Momentum continued into Q4, and despite England’s poor performance in the Rugby World Cup, the tournament injected further money into TV. This, combined with advertisers embracing a late TV market, fuelled inflation, which in turn improved weekly TVRs.

9

Fact Book 2016

Adult audiences drop, but TV still delivers

In previous years we’ve seen impact growth counterbalance revenue-driven inflation, but for the second year running we are seeing further declines in adult TV audiences (especially 16-34s) which has led to an overall increase of 10% (16-34s broadcast growth is over 18%).

But TV still delivers. From all the econometric models and results we’ve seen, TV still comes out top, and in 2015 it was no different. MediaCom clients alone bought 5.9m TV spots and demand continues to grow. Why? Because TV is still good value for money. Despite growing demand, ITV’s adult CPT in 2015 has only increased 12% since 2000. In contrast, house prices have increased over 48% and travel fares 66% in the same period (source: ONS).

Three major sales points

We have seen TV sales points consolidate further as Viacom, after their £450m purchase in 2014, moved the Channel 5 sales operations over to Sky Media. As you can see from the chart below, we now have three major sales points responsible for over 99% of TV spend.

ITV

Port

folio

C4 P

ortfo

lio

Sky

Port

folio

Oth

er

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

TV is still good value for money. ITV’s Adult CPT in 2015 has only inflated 12% since 2000. In contrast, house prices have increased over 48% and travel fares 66% in the same period.

10

TV

Sporting dominance

The battle for sporting rights dominance continued in 2015, with Sky and BT retaining the Premier League TV rights for a record £5.14bn, and Eurosport securing the Olympic TV rights for a cool £922m.

The Rugby World Cup came and went, and while England’s performance doesn’t warrant more than a passing mention, the tournament performed strongly for ITV. Impacts increased year-on-year throughout the competition period across all main audiences and over 11m viewers tuned in to watch England vs Wales. As of writing, the only other programme to exceed this on commercial TV was the Britain’s Got Talent final, which pulled in an audience of over 12.3m.

BT’s first season as the home of the Champions League has been solid in terms of viewing, with over 800,000 people tuning in to watch Manchester United vs Wolfsburg, yet this has been outperformed by Premier League coverage.

Evolving engagement

For the second year in a row, we have seen audience decline on linear TV and we foresee this trend continuing as the years go by. TV is going through another golden age in regards to the content we are seeing on our screens – C4’s Humans, Sky’s You, Me & The Apocalypse and a rebooted version of The Muppets all stand out. Alongside this, we are seeing viewing habits change, with media owners evolving their business to suit new consumer behaviours. Multi-screen behaviour in particular has become of great interest to media owners: ITV announced the launch of ITV AdVentures, AdSync+, and the ITV Hub; Channel 4 launched PVX; and Sky followed their own AdSmart with the unveiling of AdVance.

At MediaCom, our market leading approach is based on an AV neutral planning ethos, from Cinema to in-mobile video. We believe this approach ensures that our clients maximise coverage with their target audience at the right entry cost, even as traditional engagement methods evolve.

11

Fact Book 2016

A look forward to 2016

Programmatic TV

With TV technology evolving and ‘programmatic’ such a buzz word, the big question for 2016 is whether programmatic TV will be scalable. While opinion is divided on the matter, our view is that we will not see programmatic linear TV at scale for a good while yet. We are starting to see the basics, such as AdSmart, being adopted and Channel 4 aren’t shy about showing their enthusiasm for programmatic, but there are a lot of issues to work out first before this becomes a reality.

Key areas will need to be addressed in terms of compliance with Ofcom restrictions such as the post 9pm watershed, HFSS (products high in fat, salt or sugar) and ‘ex-kids’ (meaning an ad will not be broadcast before, during or after children’s programmes), as well as regulations on ownership and sharing of first party data. But as we discussed in our 2015 summary, TV is clearly evolving in terms of trading models and audience viewing. There are now strong programmatic routes to buy TV content outside of linear programming, and across multiple devices as audience fragmentation continues.

Strong AV planning across all devices is more vital than ever before. This needs to take into account campaign KPIs, using the correct programmatic solution to deliver the cover lost by audience decline on traditional TV. This isn’t about preparing for the future, this is the reality of good TV buying in today’s market.

TV still on top

This is, however, a market in a state of change and many of the old fashioned principles remain valid. TV has always, and continues to drive the highest ROI in econometric studies due to its incredibly broad appeal

and impact as well as pricing, which has been depressed by the peculiarities of TV trading.

The market mechanics mean that while a client might target a 16-34 audience with a spot during the X Factor, on TV they will only pay for the 2.2m

16-34s that watch the spot. The other 5.9m people watching TV at the moment the ad is aired are effectively free. In the rush to optimise every part of the communications system, it’s often tempting to call these extra viewers ‘wastage’, however, let’s not forget the power of these audiences. Fundamentally brands have built their media plans around this benefit, which programmatic would work to reduce, so not all advertisers would be keen to see it disappear.

TV continues to drive the highest ROI due to its broad appeal, impact and pricing

12

TV

The content battle

Content continues to be key, particularly as we move into the digital and data arena where there is a lot of serious and cash-rich competition for the traditional content creators. Commercial impacts are in decline but media consumption is up 48% since 2010. 24 year-olds are watching 36%

less traditional TV than their parents were at the same age (source: BARB). The consumer wants top quality content and now has even more choice of where to get it. This demand from both traditional and increasingly non-traditional broadcasters (the likes of Amazon and Netflix) only leads to driving up the price of buying rights.

Media owners face new pressures and are on the lookout for new solutions to deal with the issue. One answer to this problem is sharing the cost with each other. In 2016, ITV will join

forces with the BBC to secure a free-to-air rights deal that will see both broadcasters screen Six Nations Rugby until 2021. The new deal brings the Six Nations to ITV for the first time in its history, and looks to be a prudent business decision. ITV and the BBC can no longer take on Sky and BT for sporting rights on their own. We expect to see an increase in joint ventures in 2016, with more broadcasters coming together to create programming like Channel 4 and AMC’s Humans.

While the battle for content will continue to be hard fought, there are two government-related issues to think about for next year.

Responsible advertising

Commons debates continue to be waged around responsible advertising, particularly in regards to food. Just ahead of finance, food is the biggest sector in terms of advertising expenditure on TV in the UK, so this could have huge implications for the industry this year. The Government have frequently been questioned on food advertising restrictions of late, and in 2016 we may well see these restrictions tightened. There are rumblings from the Government that there will be a review of the Ofcom guidelines on advertising for HFSS products, with a possible post 9pm watershed a distinct possibility.

Commercial impacts are in decline but media consumption is up 48% since 2010. 24 year-olds are watching 36% less traditional TV than their parents were at the same age (source: BARB).

13

Fact Book 2016

Channel 4’s privatisation

The other area where there has been much talk is that of Channel 4’s potential privatisation.

The impact of such a move could take away C4’s uniqueness in a highly consolidated market. It would certainly change their remit to one focused on driving profit for stakeholders. Currently, C4 invest all their profit back into content. They use a lot of independent production companies to create their content, and if privatisation means profit goes to the shareholders, then creativity could be compromised. Similarly, commercial pressures could mean a change in their ethos of sticking with a show they believe in. Gogglebox was a slow burner with regard to ratings, but is now not only a jewel in the crown, it is also an outlet for award winning media ideas. If C4 was privately owned, Gogglebox would have been axed after its first series, or shifted to a digital channel. Similarly, C4 will be showing the 2016 Paralympics from Rio, the cost of production would have made this impossible if it were a privately owned company.

A great year for sport

Speaking of sport, 2016 looks set to be a great year for commercial TV and sporting events. This summer we have the Euro 2016 Final tournament in France, as well as, the Olympics and Paralympics in Rio, with all events looking to bring in large audiences to broadcast television.

Events which feature British teams/sportspersons will always attract the largest TV viewing and, thanks to the expanded Euros, there have never been more home nations in a major football tournament with England, Wales and both Northern and the Republic of Ireland featuring. Media owners like ITV and C4, along with many of our clients, will be hoping we see strong Home Nations and Team GB performances to deliver high audience figures over summer… not to mention bragging rights.

14

Affiliates

14

PrintChris Reed / Richard CrossAssociate Directors – MarketPlace [email protected] / [email protected]

A look back at 2015

Publishers adapt and diversify

It was a fascinating year for the National Press sector as it continued to evolve, with the market finally exhibiting signs of how best to utilise their digital platforms from both a commercial and content POV.

In late November the market was taken by surprise by the news that The Sun was set to drop its paywall and once again become free for all to access. This move clearly demonstrates that one model doesn’t fit all and that publishers must be willing to adapt if they are going to thrive in this increasingly digital focused sector.

Audiences have not deserted their trusted source for news and opinion, they have simply diversified and changed their consumption habits. The Times is a fine example of this; at the end of 2014 the title announced that they had made operating profits for the first time in 13 years, and to the tune of £1.7m. Many senior figures within the industry see this as vindication for News UK’s decision to charge for their online content, in spite of the fact that such content is consumed by an affluent and scarce audience.

15

Fact Book 2016

First impression targeting

The Telegraph continued to make huge strides in 2015 with their ‘First Impression’ targeting. Volkswagen Group was one of the first advertisers to buy into the opportunity and it continues to be a focal point of their business model. The package offers advertisers the chance to reach their audience with maximum impact through the delivery of

an HPTO or ‘first online execution’ plus the first format in the print edition.

Last call for the Lads Mags

This year finally saw the long awaited demise of the ‘Lads Mag’; FHM, Loaded, Nuts

and Zoo are no more. They paid the price for not adapting and moving with the times. A stellar success in the 1990s, FHM boasted a paid for circulation of over 700,000 copies per month, however, their lowest common denominator approach to life focusing on ‘birds, booze and banter’ ceased to be relevant to modern consumers. While undoubtedly a blow to the market, the death of the Lads Mag gives market forces an opportunity to step back and separate the wheat from the chaff.

Rise of freesheets

On a more positive note, the free market continued to evolve and grow. Dennis Publishing launched ‘Coach’ magazine as a weekly freemium title with a health and lifestyle angle to the content. This came about weeks after Time Inc relaunched NME as a freesheet in an attempt to rescue a classic British media brand. No doubt Time Inc are hoping for a revitalisation of Evening Standard/Time Out proportions but the question is, will turning a formerly credible musical journal into a mass market publication work?

Source: Newsworks

Arrivals and departures dominated the magazine sector in 2015 and gave a tantalising insight into the potential future of the magazine marketplace

39 millionpeople across PCs, smartphones

and tablets

Newsbrands reach

24 millionpeople read newsbrands on their

phone – more than the entire population of Australia

16

Print


Measurability

The biggest challenge newsbrands face over the coming months centres around measurability and how print and digital should be considered as a single entity for targeting audiences. Publishers Audience Measurement Company (PAMCo) will certainly address these issues, however, many industry figures have commented on the prolonged time this has taken to get out to the market. The report will be the first ‘brand’ measurement approach and a single source of data. The testing period ended in December 2015, and the survey is due to start in April 2016, with the full report set to be released in H1 2017.

Quality content will always be at the very heart of the magazine brand ecosystem. The ability to get content in front of as many readers as possible, irrespective of the devices or platforms, is becoming ever more crucial. The likes of Facebook, Google, Twitter, Buzzfeed and Flipboard have played a pivotal role in helping magazine brands extend their content and conversations, but the advertising revenue for the content originators has been somewhat elusive – until now.

Apple News

The release of iOS9 in early September 2015 saw the death of Newsstand (once heralded as the saviour of traditional publishing), and the birth of Apple News. So what is Apple News? From a user’s perspective it will be a news feed aggregation app very similar to the Flipboard offering. The user can choose areas of interest to follow from dynamic lists and then let the app do the work to suggest additions, which will also track user interests over time.

At first inspection it seems like standard stuff, but interestingly it will give advertisers and publishers more control than ever before with the ability to place ads alongside key content with various formats via Apple’s own iAds platform. Apple have also taken the unprecedented step to reward the originators with up to 100% of the ad revenue generated from advertising on their hosted content.

Transparency

In the past Apple have been very protective over data sharing and tracking, but all this looks set to change. Tracking and collaborative smart targeting is rumoured be part of the offering, giving advertisers the insight they’ve been craving from Apple, as well as a richer creative environment for publishers. We welcome this transparency with open arms, but only time will tell if this will be the silver bullet for publishers.

17

Fact Book 2016

A bright outlook

The medium to long-term outlook is relatively bright. There is a renewed confidence returning to this vibrant sector, with publishers putting the recession far behind them via a plethora of launches in the ad-funded freemium market, and newsbrands leading the way as providers of quality web and mobile-ready content. The market will continue to evolve and innovate much as it always has done.

35000

30000

25000

20000

15000

10000

5000

0

Adults 15+ (000’s)

Source: NRS PADD (July 14 - June 15)

Newsbrands - Total monthly reach (vs print 2011)

The

Tele

grap

h

The

Gua

rdia

n

Inde

pend

ent

The

Tim

es

Dai

ly E

xpre

ss

Dai

ly M

ail

Dai

ly M

irror

The

Sun

Dai

ly S

tar

Lond

on E

veni

ng S

tand

ard

Met

ro

Total combined print, PC & mobile

2011 print monthly reach

Source: Newsworks

82%

70 mins

94%

95%

of the total smartphone audience

reading newspapers

ABC1s each month

of 18-34 year-olds each month

Newspaper sites reach

On the days they read them, people spend on average

Newsbrands reach

Newsbrands reach

18

Print

Sunday papers October 2015

Sun on SundayThe Mail on SundaySunday MirrorThe Sunday TimesThe PeopleSunday ExpressThe Sunday TelegraphThe ObserverDaily Star SundaySunday MailThe Sunday PostThe Independent on SundayScotland on SundaySunday Herald

Sunday papers October 2015

Sun on SundayThe Mail on SundaySunday MirrorThe Sunday TimesSunday ExpressThe Sunday TelegraphThe ObserverDaily Star SundaySunday MailThe Independent on Sunday

Circulation (ABC actively purchased) Oct 2015

1,463,2731,262,542720,118701,620280,220352,770351,738266,591197,939188,987170,62444,68024,14229,009

PageMono£

n/a39,30060,69030,30028,42034,00023,76513,89013,93310,472

All Adults 51,598 %

9.38.24.44.81.32.02.51.51.61.51.20.80.20.2

PageClr£

55,50255,80090,09038,60040,67042,000n/a18,05722,00016,660

Men 25,188 %

10.48.24.75.01.32.12.71.91.61.71.10.90.20.2

MonoScc£

n/a129144117116809759.6n/a44

Women 26,410 %

8.28.24.14.71.32.02.41.21.61.31.30.60.20.1

ColScc£

n/a18122015016615311677.38n/a64

15-44s 24,744 %

9.64.53.53.60.50.91.31.71.11.20.40.80.10.1

Twitter Followers(UK)

N/AN/A388,0009,8982,7391,390,0002,4376,135N/A7,841

ABC1 27,630 %

6.09.56.83.40.92.34.00.71.12.40.81.00.30.2

FacebookLikes(UK)

N/AN/A433,688N/AN/AN/AN/AN/AN/AN/A

Av Time Spent Reading

35.965.193.841.848.262.284.835.744.679.562.954.567.363.3

TabletReadership

10,00026,4749,46392,000133,03573,00050,00062,406N/AN/A

19

Fact Book 2016

Dailies October 2015

The SunDaily MailMetroEvening Standard Daily MirrorThe Daily TelegraphDaily StarDaily ExpressThe TimesiDaily RecordThe GuardianFinancial TimesThe Independent

Dailies October 2015

The SunDaily MailDaily MirrorThe Daily TelegraphDaily StarThe TimesDaily ExpressThe GuardianiThe Independent Financial TimesMetroEvening Standard


1,755,3901,448,5101,349,476900,498747,285460,184426,798401,142352,365205,565177,441166,96543,45040,552

PageMono£

n/a37,80029,00046,00023,76516,645n/a11,40010,47210,47242,400n/an/a

All Adults 51,598 %

10.57.16.13.04.22.32.12.12.11.21.31.3 -0.5

PageClr£

55,50253,97936,80059,000n/a27,19531,36018,00016,66016,66058,60020,04070,210

Men 25,188 %

12.86.87.43.84.72.52.92.32.51.41.41.5 -0.7

MonoScc£

n/an/a112106n/a75n/an/a4444n/an/an/a

Women 26,410 %

8.37.44.92.23.72.11.21.91.71.01.21.2 -0.3

ColScc£

233n/a14221497123128n/a6464n/an/a295

15-44s 24,744 %

10.33.38.94.12.90.92.00.91.50.81.01.2 -0.5


933,0001,131,000562,0001,390,000134,000652,000385,0004,660,000107,0001,060,0004,480,000217,000274,000

ABC1 27,630 %

6.28.46.53.82.93.71.02.13.41.60.72.2 -0.7

FacebookLikes(UK)

1,951,7763,156,406308,2972,723,266878,662433,688571,0755,032,224N/A3,468,1252,653,5651,116,579496,151

Av Time Spent Reading

30.143.7520.4621.533.956.227.343.6745.436.732.5344.935.834.1

AverageUnique VisitorsAdults

2,036,00011,246,0002,450,0001,864,0004,768,0008,556,000874,0002,477,000445,000547,000708,0009,394,000711,0004,665,000

TabletReadership

10,0002591775,08773,00049,75871,000100,46450,000N/A4,18311,43728,0006,519

20

Print

Newspaper supplements October 2015

ES MagazineSun TV BuzzSun on Sunday FabulousDaily Mail WeekendGuardian WeekendGuardian GuideFT MoneyIndependent MagazineTelegraph MagazineTimes MagazineDEX SaturdayDMR We Love TellyDSTAR Hot TVMOS YouMOS EventSunday Times MagSTI CultureSTI StylePPL Love SundaySTL StellaSTL SevenIOS New ReviewObserver MagObs. Food MonthlySEX ‘S’ MagazineDSTS OK! Extra


344,3631,755,3901,755,3901,448,510166,965166,965n/a40,552460,184352,365401,142747,285426,7981,262,5421,262,542720,118720,118720,118280,220351,738351,73844,680188,987188,987352,770426,798

All Adults 51,598 %

1.28.85.78.11.81.7 -0.42.51.91.93.6 -6.05.33.53.22.9 -1.51.60.41.21.31.50.9

Men 25,188 %

1.38.74.67.31.81.7 -0.52.31.91.93.3 -4.94.73.63.22.4 -1.21.50.51.21.21.40.9

Women 26,410 %

1.18.76.68.91.81.7 -0.42.71.91.93.8 -75.73.53.23.3 -1.91.70.41.31.51.70.9

15-44s 24,744 %

1.47.25.22.7131.2 -0.30.71.20.61.7 -2.62.12.52.22.1 -0.60.60.40.91.10.40.9

21

Fact Book 2016

ABC1 27,630 %

1.74.83.59.63.02.8 -0.74.03.12.02.2 -7.26.35.65.24.7 -2.52.70.62.02.21.70.4

Ratecard£

20,00031,00055,50241,0009,0009,00020,19010,00023,25216,54030,00031,25015,00034,20034,20019,950n/an/a45,75018,30018,30010,00010,00011,00027,50015000


206,000NA87,6001,88319,20249,50044,8003,30818,80015,300N/AN/AN/A37,40015,90036,400N/A147,608N/A82,700N/A16,00024,700N/AN/AN/A

FacebookLikes(UK)

4,68720,137235,108N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A45,53862,444N/AN/A183,60921536,780N/AN/AN/AN/AN/AN/A

22

Print

Women’s weeklies January-June 2015

BellaBestChatCloserGraziaHeatHello!Inside SoapLookNew!NowOK!Pick Me UpReal PeopleRevealStarTake a BreakThat’s Life!WomanWoman’s OwnWoman’s WeeklyYours

Circulation(ABC actively purchased)Jan-Jun 15

185,850164,539265,760276,333126,762170,790207,344133,228118,017245,829135,444179,387138,984152,612130,781146,149602,674239,691243,927204,446275,339 251978

All Adults 51,598 %

0.90.61.62.00.71.92.10.90.70.91.23.11.20.60.80.54.21.20.91.51.40.8

Men 25,188 %

0.10.10.40.30.10.50.50.30.10.10.20.70.30.10.10.21.20.30.10.20.20.1

Women 26,410 %

1.61.22.83.61.33.33.71.51.31.62.15.42.01.11.50.87.12.11.72.72.61.4

15-44s 24,744 %

0.50.41.53.21.23.42.41.31.21.62.14.51.70.81.40.83.91.40.40.90.70.1

23

Fact Book 2016

Ratecard£

18,15018,84510,77418,61812,42020,54017,2784,50014,00013,47518,00016,1708,9008,90014,27512,10022,92010,90019,05023,65012,4009,661

UniqueVisitorsAdults

-30,00020,000205,00087,000256,000324,000 -146,00012,000126,000250,76816,000 -138,0006,000117,00036,00035,00021,00012,00052,000

AverageMinutesper Visit

-2.06.12.42.32.34.32.32.21.21.73.16.4 -2.12.37.73.72.42.14.32.7


9,90418,1004,92385,101341,218380,711156,26936,566161,649120,822107,941518,8123,6366,418100,66140,7253,2063,44210,60013,5003,1116,177

FacebookLikes(UK)

6,41562,565100,726357,528138,411442,4421,322,244244,5551,195,852-32,9721,199,48786,91535,86591,5147,32855,24653,00016,299299,36316,12012,574

TabletJan-Jun 15

-2801,0281,9363,7321,7022,3409041,673 -1,9194,567448309824786 - -7756732,822 -

24

Print

Men’s lifestyleJanuary-June 2015

EsquireFHMGQMen’s FitnessMen’s HealthQZoo

Home interestJanuary-June 2015

25 Beautiful HomesCountry Homes & Int.Country LivingElle DecorationGood HomesHomes & GardensHouse & GardenHouse BeautifulIdeal HomeLiving etc

TV weekliesJanuary-June 2015

Radio TimesTotal TV GuideTV & Satellite WeekTV ChoiceTV EasyTV TimesWhat’s on TV


27,06440,21775,11333,801142,48641,10324,001


71,53870,121139,21442,915 -68,49863,542105,262161,76266,455


706,655108,829136,8881,276,045122,091211,9841,010,798

All Adults 51,598 %

0.21.10.81.22.10.60.6

All Adults 51,598 %

0.70.71.30.40.91.41.20.92.00.4

All Adults 51,598 %

3.81.01.03.80.62.25.4

Men 25,188 %

0.42.11.42.23.71.01.0

Men 25,188 %

0.20.40.80.20.30.80.70.31.10.1

Men 25,188 %

3.70.51.02.60.41.83.7

Women 26,410 %

0.10.20.30.10.50.30.2

Women 26,410 %

1.21.11.80.71.42.01.81.52.80.6

Women 26,410 %

4.01.2150.72.67

15-44s 24,744 %

0.42.01.323.61.01.0

15-44s 24,744 %

0.50.60.80.61.01.10.80.81.90.5

15-44s 24,744 %

2.01.012.90.51.74.9

ABC1 27,630 %

0.31.01.11.32.50.90.4

ABC1 27,630 %

1.01.01.80.71.11.71.51.32.40.5

ABC1 27,630 %

5.30.70.82.70.41.83.6

25

Fact Book 2016

Ratecard£

12,60718,00014,9943,50010,8899,1568,800

Ratecard£

6,2256,4008,8519,1004,50012,17018,37213,35512,4407,050

Ratecard£

20,3507,0005,71517,00011,90016,45020,160


1.92.71.41.726.21.21.6


2.62.81.72.1 -2.62.52.22.72.3


1.8 - -12.9 - -3.7


339,400155,900772,300539,7003,100,000118,000321,500


13,60031,386118,00068,200189,426140,00068,100265,00080,40096,200


59,5372,07410,38973,734N/A15,977147,665

FacebookLikes(UK)

682,7733,214,7421,806,1262,761,9944,434,366106,7882,785,527

FacebookLikes(UK)

N/A1,800,0002,300,0001,300,0003,22781,4844,400,0004,800,0002,200,000491,342

FacebookLikes(UK)

53,860N/A6,043459N/A22,0377,631

TabletJan-Jun 15

2,9412,9946,494 - 6,287 - 1,641

TabletJan-Jun 15

7037017661,108 -9594894901,3911,653

TabletJan-Jun 15

31,649 - -257 - -3,093

26

Affiliates

26

Regional PressAnnette Stephens / Les MiddletonAssociate Director – Connect / Associate Director, MediaCom Accent, MarketPlace [email protected] / [email protected]

A look back at 2015

Managing decline

With around 22m copies distributed every week, local newspapers continue to form an important part of the local media landscape. However, as predicted, 2015 witnessed another decline (around 8%) in the print circulations of regional press products – albeit at a reduced rate. This comes on the back of a continued reduction over the last 5 years, of around 40% from 2010 to date.

Titles covering smaller geographic areas (generally frees) have outperformed the market and there’s been a reduction in the number of free titles closing, but the overall decline has been attributed to titles with larger circulations covering regions and cities.

Digital bright spots

In contrast, digital growth has been exceptional. We have witnessed another surge in digital traffic across the last year and it’s now relatively commonplace for digital platforms to dwarf their print counterparts.

Publishers are working to diversify their online products further and the online propositions are, in many cases, no longer just a replication of the printed product. Online audiences for these publications tend to be younger and more upmarket, and unsurprisingly there are many touchpoints for communicating with this audience.

Mobile usage has also increased exponentially, now significantly exceeding desktop reach. This is not a huge surprise given the meteoric rise in smartphone usage and general consumption habits across devices.

27

Fact Book 2016

An evolving MarketPlace

We have consistently talked in our year-end summary about the increased impetus on the selling of packages and this has proved especially important in 2015, creating a cost efficient way for advertisers to reach the larger cities where regional print brands are strong and ultimately bringing incremental revenue via agency spend.

As expected, Newsquest moved their sales operation into the Mediaforce fold in February of 2015, radically changing our day-to-day buying relationship, with just two sales points covering the vast majority of the regional marketplace. We haven’t witnessed any significant changes to either publishers’ proposition. This may come with time.

Finally, one of the biggest developments of 2015 was the Trinity Mirror purchase of Local World. This has been a long awaited move and is, in our view, a significant milestone. This acquisition has made inroads to rejuvenating the marketplace, and has heaped a little more pressure on the likes of Johnston Press, who are no longer the biggest players in the field.


Content and partnerships

We expect that 2016 will bring an increased focus on content, along with the creation of strong, cross-platform partnerships. The consolidation of the market has brought shared knowledge, ideas and expertise that we believe will benefit some of the smaller players.

Undoubtedly the main players will still be pushing their packages and we fully support this as a way of delivering quality reach in the main conurbations.

We also believe that there will be further diversification of products and solutions to ensure that regional publishers continue dialogue and connect with their consumers to get a slice of the local/regional pie across all vehicles and devices.

28

Regional Press

Publication

Basildon Evening EchoBirmingham MailBolton NewsBournemouth – The Daily EchoBradford TelegraphBurton MailCambridge NewsColchester – Evening GazetteCoventry TelegraphDerby TelegraphDorset EchoEast Anglian Daily TimesGloucestershire EchoGrimsby TelegraphHartlepool MailHuddersfield Daily ExaminerHull Daily MailIpswich & Felixstowe Star (Mon-Wed, Fri)Ipswich & Felixstowe Star (Thur)Lancashire & Wigan Evening PostLancashire TelegraphLeeds – Yorkshire Evening PostLeicester MercuryLiverpool EchoManchester Evening News (Mon-Wed, Sat)Manchester Evening News (Thur-Fri)Newcastle JournalNewcastle upon Tyne Sunday SunNews & Star – CarlisleNorfolk Eastern Daily PressNorth West Evening MailNorwich Evening NewsNottingham PostNuneaton News (Paid)Oldham Evening ChronicleOxford MailPortsmouth NewsSheffield StarShropshire Star (Mon-Fri)Southampton – Southern Daily EchoStoke – The SentinelSunday Mercury – BirminghamSunderland EchoSwindon AdvertiserTeesside Evening GazetteThe Argus Brighton

Website

www.echo-news.co.ukwww.birminghammail.co.ukwww.theboltonnews.co.ukwww.bournemouthecho.co.ukwww.thetelegraphandargus.co.ukwww.burtonmail.co.ukwww.cambridge-news.co.ukwww.gazette-news.co.ukwww.coventrytelegraph.netwww.derbytelegraph.co.ukwww.dorsetecho.co.ukwww.eadt.co.ukwww.gloucestershireecho.co.ukwww.grimsbytelegraph.co.ukwww.hartlepoolmail.co.ukwww.examiner.co.ukwww.hulldailymail.co.ukwww.eveningstar.co.ukwww.eveningstar.co.ukwww.lep.co.uk/www.wigantoday.netwww.lancashiretelegraph.co.ukwww.yorkshireeveningpost.co.ukwww.leicestermercury.co.ukwww.liverpoolecho.co.ukwww.manchestereveningnews.co.ukwww.manchestereveningnews.co.ukwww.chroniclelive.co.ukwww.chroniclelive.co.ukwww.newsandstar.co.ukwww.EDP24.co.ukwww.nwemail.co.ukwww.eveningnews24.co.ukwww.nottinghampost.comwww.nuneaton-news.co.ukwww.oldham-chronicle.co.ukwww.oxfordmail.co.ukwww.portsmouth.co.ukwww.thestar.co.ukwww.shropshirestar.comwww.dailyecho.co.ukwww.stokesentinel.co.ukwww.birminghammail.co.ukwww.sunderlandecho.comwww.swindonadvertiser.co.ukwww.gazettelive.co.ukwww.theargus.co.uk

England

BasildonBirminghamBoltonBournemouthBradfordBurtonCambridgeColchesterCoventryDerbyDorchesterIpswichCheltenhamGrimsbyHartlepoolHuddersfieldHullIpswichIpswichPrestonBlackburnLeedsLeicesterLiverpoolManchesterManchesterNewcastleNewcastleCarlisleNorwichBarrow-in-FurnessNorwichNottinghamNuneatonOldhamOxfordPortsmouthSheffieldTelfordSouthamptonStokeBirminghamSunderlandSwindonStockton-on-TeesBrighton

29

Fact Book 2016

Monthly Unique Users (000)

416515701873831681852722032253372867312181151294190190726223401997471,1391,13947147132455915319925010122495245292124926165515149353221700

Twitter Followers

18,300115,62922,70047,20026,8006,46742,57511,00038,85341,58128,90025,70012,79111,7437,91035,32839,37613,60013,60013,80041,500101,00049,538242,868276,191276,19134,391n/a21,00052,0009,15530,20070,2704,45510,50035,20040,00071,80043,09744,90033,992n/a29,60019,40040,04549,900

Facebook Likes

17193153,36520,99568,70819,25512,17515,11232,00024,20230,39510,7564,43319,45522,57212,43854,67087,3178,4498,44916,86410,35443,21231,2121,019,572799,152799,15230,986n/a16,43240,33114,5907,94354,84313,8615,66910,30530,88021,20122,77156,67353,487n/a71,48810,96080,89613,794

Sales House

MediaforceTMSMediaforceMediaforceMediaforceTMSTMSMediaforceTMSTMSMediaforceMediaforceTMSTMSMediaforceTMSTMSMediaforceMediaforceMediaforceMediaforceMediaforceTMSTMSTMSTMSTMSTMSMediaforceMediaforceMediaforceMediaforceTMSTMSMediaforceMediaforceMediaforceMediaforceTMSNewsquestTMSTMSMediaforceMediaforceTMSMediaforce

ABC Circ

22,31327,66211,77716,91817,4239,86915,08811,34921,30621,88912,35919,72511,19019,8248,27914,05131,6018,51628,25418,31112,81421,94630,44859,75436,831105,53915,80729,19011,72640,71310,30010,60320,5772,1478,99412,10325,89422,28632,34021,18533,42622,75018,87611,18825,49313,309

Source: ABC Jan-June 15 (daily circ figures Mon-Sat where possible) ICREG data as of 01 Nov 15

30

Regional Press

Publication

Basildon Evening EchoBirmingham MailBolton NewsBournemouth – The Daily EchoBradford TelegraphBurton MailCambridge NewsColchester – Evening GazetteCoventry TelegraphDerby TelegraphDorset EchoEast Anglian Daily TimesGloucestershire EchoGrimsby TelegraphHartlepool MailHuddersfield Daily ExaminerHull Daily MailIpswich & Felixstowe Star (Mon-Wed, Fri)Ipswich & Felixstowe Star (Thur)Lancashire & Wigan Evening PostLancashire TelegraphLeeds – Yorkshire Evening PostLeicester MercuryLiverpool EchoManchester Evening News (Mon-Wed, Sat)Manchester Evening News (Thur-Fri)Newcastle JournalNewcastle upon Tyne Sunday SunNews & Star – CarlisleNorfolk Eastern Daily PressNorth West Evening MailNorwich Evening NewsNottingham PostNuneaton News (Paid)Oldham Evening ChronicleOxford MailPortsmouth NewsSheffield StarShropshire Star (Mon-Fri)Southampton – Southern Daily EchoStoke – The SentinelSunday Mercury – BirminghamSunderland EchoSwindon AdvertiserTeesside Evening GazetteThe Argus Brighton

England

BasildonBirminghamBoltonBournemouthBradfordBurtonCambridgeColchesterCoventryDerbyDorchesterIpswichCheltenhamGrimsbyHartlepoolHuddersfieldHullIpswichIpswichPrestonBlackburnLeedsLeicesterLiverpoolManchesterManchesterNewcastleNewcastleCarlisleNorwichBarrow-in-FurnessNorwichNottinghamNuneatonOldhamOxfordPortsmouthSheffieldTelfordSouthamptonStokeBirminghamSunderlandSwindonStockton-on-TeesBrighton

AIR Adults

58,91781,75246,45144,01446,82425,62044,02029,92857,75158,03431,49251,38628,87050,11420,43437,78581,00621,74151,05469,78449,20282,95385,221154,055106,754256,09167,37481,05933,985120,56633,65027,26654,3055,58123,71936,69371,94085,30385,63755,68585,98067,91948,55729,09766,29933,898

AIR Men

29,92442,19722,79522,48724,19413,25523,15515,25630,56430,12116,25026,74914,81125,62810,40319,43242,05511,22924,51635,79027,03934,02143,84778,78157,585123,24440,42741,46715,63556,66717,83814,02827,9722,92212,17419,45538,12841,80544,31828,67344,54834,71624,70315,30333,97517,537

Continued

31

Fact Book 2016

AIR Women

28,99439,55623,65521,52722,63012,36520,86514,67227,18627,91315,24224,63614,05924,48710,03118,35338,95110,51226,53833,99422,16348,93241,37475,27349,168132,84726,94739,59318,35063,89915,81313,23726,3332,65911,54517,23833,81243,49841,31927,01241,43233,20323,85513,79432,32416,361

AIR ABC1

30,97532,98216,80223,97420,14110,78824,27216,56229,63525,51016,59431,94014,98022,0496,76715,97434,87410,40227,75034,13118,18732,55238,36174,39843,353115,21838,76530,35315,30579,44312,30812,67025,0982,9809,85726,44534,81031,40840,86931,14334,06726,35317,87613,66328,69124,166

RatecardMono SCC

£7.80£15.00£5.10£8.50£11.04£6.49£9.55£4.40£18.15£11.95£6.85£10.30£7.70£9.07£7.26£7.98£17.15£8.86£8.86£16.29£4.90£23.70£18.40£29.00£28.85£34.10£16.30£18.85£7.58£13.52£10.67£10.41£17.20£5.35£6.62£11.15£16.16£29.01£9.65£8.90£11.80£12.85£14.44£6.90£16.95£10.30

Pg Mono

£2,246£3,570£1,469£2,448£3,179£1,765£2,625£1,267£4,320£3,250£1,973£2,719£2,094£2,467£2,222£1,899£4,665£2,339£2,339£4,985£1,411£7,252£5,005£6,902£6,866£8,116£3,879£4,486£1,804£3,569£2,539£2,748£4,678£1,455£1,350£3,211£4,945£8,877£2,934£2,563£3,210£3,058£4,419£1,987£4,034£2,966

Pg Col

£2,246£3,570£1,469£2,448£3,816£883£3,412£1,267£5,832£4,063£1,973£3,807£2,618£3,084£2,888£2,564£5,831£3,275£3,275£6,480£1,411£9,428£6,256£9,318£9,613£11,362£5,237£6,057£2,526£4,640£3,555£3,573£5,848£728£1,823£3,211£6,428£11,540£3,960£2,563£4,012£1,529£5,744£1,987£5,446£2,966


32

Regional Press

Publication

The Chronicle – NewcastleThe Citizen GloucesterThe Gazette – BlackpoolThe Herald – PlymouthThe Northern EchoThe Post – BristolThe Press – YorkWest Midlands Express & Star (Mon-Wed, Fri)West Midlands Express & Star (Thur)Western Daily PressWestern Morning NewsWestern Morning News SundayWorcester NewsYorkshire Post

Publication

Daily Record – ScotlandLiverpool Sunday EchoPaisley Daily ExpressSunday Mail (Scotland)**/***Aberdeen Evening ExpressPress & Journal – AberdeenCourier & Advertiser – DundeeDundee Evening TelegraphEdinburgh Evening NewsThe ScotsmanSunday Herald – ScotlandGlasgow Evening TimesThe Herald – ScotlandGreenock TelegraphScotland On SundaySunday Post**/***

Publication

Belfast Telegraph*Sunday Life (Belfast)*Ulster News Letter (Belfast)*Irish News*

Website

www.chroniclelive.co.ukwww.gloucestercitizen.co.ukwww.blackpoolgazette.co.ukwww.plymouthherald.co.ukwww.thenorthernecho.co.ukwww.bristolpost.co.ukwww.yorkpress.co.ukwww.expressandstar.comwww.expressandstar.comwww.westerndailypress.co.ukwww.westernmorningnews.co.ukwww.westernmorningnews.co.ukwww.worcesternews.co.ukwww.yorkshirepost.co.uk

Website

www.dailyrecord.co.ukwww.liverpoolecho.co.ukwww.dailyrecord.co.ukwww.dailyrecord.co.ukwww.eveningexpress.co.ukwww.pressandjournal.co.ukwww.thecourier.co.ukwww.eveningtelegraph.co.ukwww.edinburghnews.scotsman.comwww.scotsman.comwww.heraldscotland.comwww.eveningtimes.co.ukwww.heraldscotland.comwww.greenocktelegraph.co.ukwww.scotsman.comwww.sundaypost.com

Website

www.belfasttelegraph.co.ukwww.belfasttelegraph.co.ukwww.newsletter.co.ukwww.irishnews.com

England

NewcastleGloucesterBlackpoolPlymouthDarlingtonBristolYorkWolverhamptonWolverhamptonSomersetDevon and CornwallDevon and CornwallWorcesterLeeds

Scotland

ScotlandLiverpoolPaisleyScotlandAberdeenAberdeenDundeeDundeeEdinburghEdinburghGlasgowGlasgow Glasgow GreenockScotlandScotland

Northern Ireland

Northern IrelandNorthern IrelandNorthern IrelandNorthern Ireland

33

Fact Book 2016


471104166167991312578301301158142142313253


7367477367365071797593729551,4041,5706631,5706631,404131


2,8002,80089503

Twitter Followers

81,10712,59931,9008,54331,70061,94836,80071,99071,9908,71035,607n/a13,90091,200

Twitter Followers

80,333n/a3,765n/a18,00020,20016,9008,31271,40084,20043,50030,80043,5007,73284,20063,900

Twitter Followers

84,30084,30024,80043,837

Facebook Likes

139,05021,04047,56863,95013,80385,24517,36677,10877,10814,27218,636n/a19,9987,927

Facebook Likes

193,322n/a8,501n/a63,48019,94517,59620,376107,98981,7805,49412,3125,49418,69281,7823,467

Facebook Likes

154,898154,8985,33732,802

Sales House

TMSTMSMediaforceTMSMediaforceTMSMediaforceTMSTMSTMSTMSTMSMediaforceMediaforce

Sales House

TMSTMSTMSTMSMediaforceMediaforceMediaforceMediaforceMediaforceMediaforceMediaforceMediaforceMediaforceMediaforceMediaforceMediaforce

Sales House

MediaforceMediaforceMediaforceMediaforce

ABC Circ

32,84812,74413,56720,13928,81022,66718,14860,990107,68119,97024,97711,0008,48727,981

ABC Circ

197,58020,8975,387215,81332,82760,29246,99118,71423,76223,82132,02131,37836,98111,26427,450195,426

ABC Circ

45,90542,23917,85338,581


*Readership: NITGI15 **Oct 15 ABC

Regional press website delivery: publisher statement *** Readership: NRS Jan-Jun 15

34

Regional Press

Publication

The Chronicle – NewcastleThe Citizen GloucesterThe Gazette – BlackpoolThe Herald – PlymouthThe Northern EchoThe Post – BristolThe Press – YorkWest Midlands Express & Star (Mon-Wed, Fri)West Midlands Express & Star (Thur)Western Daily PressWestern Morning NewsWestern Morning News SundayWorcester NewsYorkshire Post

Publication

Daily Record – ScotlandLiverpool Sunday EchoPaisley Daily ExpressSunday Mail (Scotland)**/***Aberdeen Evening ExpressPress & Journal – AberdeenCourier & Advertiser – DundeeDundee Evening TelegraphEdinburgh Evening NewsThe ScotsmanSunday Herald – ScotlandGlasgow Evening TimesThe Herald – ScotlandGreenock TelegraphScotland On SundaySunday Post**/***

Publication

Belfast Telegraph*Sunday Life (Belfast)*Ulster News Letter (Belfast)*Irish News*

AIR Adults

113,57834,11041,70552,97970,22560,37348,204163,885271,66952,43264,94032,12022,09796,486

AIR Adults

572,82058,18212,180576,40965,497129,94190,93526,04084,12585,397105,88975,981107,79427,36879,717529,055

AIR Adults

155,000174,00065,000154,000

England

NewcastleGloucesterBlackpoolPlymouthDarlingtonBristolYorkWolverhamptonWolverhamptonSomersetDevon and CornwallDevon and CornwallWorcesterLeeds

Scotland

ScotlandLiverpoolPaisleyScotlandAberdeenAberdeenDundeeDundeeEdinburghEdinburghGlasgowGlasgow Glasgow GreenockScotlandScotland

Northern Ireland

Northern IrelandNorthern IrelandNorthern IrelandNorthern Ireland

AIR Men

56,80017,74320,09327,09436,72331,41225,09884,292138,58827,19833,307n/a11,34564,006

AIR Men

293,85429,8506,216290,47132,07461,00743,4669,11441,25347,16660,18638,12555,81713,61042,710267,499

AIR Men

77,40083,90035,20079,500

Continued

Continued

Continued

35

Fact Book 2016

AIR Women

56,77816,36621,61125,88533,50328,96123,10679,593133,08125,23431,633n/a10,75232,480

AIR Women

278,96628,3325,964285,93833,42268,93547,47016,92642,87238,23145,70337,85651,97713,75837,007261,566

AIR Women

78,00089,90029,80074,400

AIR ABC1

34,22716,51223,43125,01335,49929,70329,50763,726119,04632,33340,079n/a11,24268,431

AIR ABC1

175,28825,9536,625237,13323,59669,34646,6277,24441,88672,27792,40533,56592,98410,48969,096224,174

AIR ABC1

101,00076,20026,30079,700

RatecardMono SCC

£24.20£7.70£13.48£9.90£9.00£15.85£6.50£25.75£28.35£10.65£9.00£9.00£7.75£18.63

RatecardMono SCC

£42.80£7.14£11.32£59.60£19.50£26.75£18.10£7.20£17.85£30.74£10.00£15.00£19.00£8.15£30.74£48.50

RatecardMono SCC

£22.48£15.75£9.90£13.25

Pg Mono

£5,760£2,094£4,125£2,693£2,592£4,411£1,872£7,828£8,618£2,897£2,448£2,448£2,232£11,476

Pg Mono

£10,186£1,942£2,694£14,185£4,505£6,179£4,181£1,663£5,462£6,271£2,880£4,320£11,286£2,152£6,271£11,543

Pg Mono

£6,115£4,284£3,029£3,604

Pg Col

£7,775£2,618£5,362£3,366£2,592£5,389£1,872£10,568£11,635£3,621£3,060£3,060£2,232£14,919

Pg Col

£13,752£2,428£3,637£19,149£6,081£8,342£5,435£2,079£7,338£7,613£2,880£4,320£11,286£3,227£7,760£15,006

Pg Col

£8,866£6,212£4,241£4,434


*Readership: NITGI15 **Oct 15 ABC

Regional press website delivery: publisher statement *** Readership: NRS Jan-Jun 15

36

Regional Press

Publication

Daily Post – WalesSouth Wales EchoSouth Wales Evening PostWales on SundayWestern Mail – WalesSouth Wales Argus – Newport

Publication

Daily Post – WalesSouth Wales EchoSouth Wales Evening PostWales on SundayWestern Mail – WalesSouth Wales Argus - Newport

Name

Big CitySunday BestThe NationalOne Local

Name

Big CitySunday BestThe NationalOne Local

Website

www.dailypost.co.ukwww.walesonline.co.ukwww.southwales-eveningpost.co.ukwww.walesonline.co.ukwww.walesonline.co.ukwww.southwalesargus.co.uk

Website

n/a - see individual datan/a - see individual datan/a - see individual datan/a - see individual data

Wales

WalesCardiffSwanseaWalesWalesNewport

Wales

WalesCardiffSwanseaWalesWalesNewport

Packages

UKUKUKUK

Packages

UKUKUKUK

AIR Adults

3,396,0003,361,0003,291,0004,218,000

AIR Adults

63,99051,01967,91342,11549,35332,973

AIR Men

1,796,0001,714,0002,102,0002,218,000

AIR Men

33,27026,13635,15821,63925,64516,908

37

Fact Book 2016


222775146775775428


n/an/an/an/a

Twitter Followers

50,12589,59439,2258,83289,59441,600

Twitter Followers

n/an/an/an/a

Facebook Likes

72,559175,69353,059175,699175,69929,672

Facebook Likes

n/an/an/an/a

Sales House

TMSTMSTMSTMSTMSMediaforce

Sales House

TMSTMSTMSMediaforce

ABC Circ

24,71319,15826,14414,78918,64112,671

ABC Circ

1,437,6521,480,3471,500,9061,787,400

AIR Women

1,600,0001,647,0001,542,0002,000,000

AIR Women

30,72124,88332,75420,47623,70816,066

AIR ABC1

1,248,0001,281,0001,938,0001,974,000

AIR ABC1

37,81724,94230,44317,29628,55213,640

RatecardMono SCC

£200.00

RatecardMono SCC

£11.07£15.00£10.70£13.73£27.02£5.63

Pg Mono

unpublishedunpublishedunpublished£40,000

Pg Mono

£2,635£6.035.68£2,910£3,268£6,431£1,621

Pg Col

£40,000

Pg Col

£3,557£8,148£3,638£4,411£8,682£1,621


38

Affiliates

38

RadioLauren Croly / Kirsty Poole / Ella MitchellMarketPlace Manager / Connect Manager / Connect Planner [email protected] / [email protected] / [email protected]

Highlights

• Radio streaming has increased 16% vs 2013

• The Audio Digital Market has become much more simple

• XFM is rebranded as Radio X, with an exciting line-up of big talent

• Bauer media streamline their radio offering

A look back at 2015

The growth of digital audio

As RAJAR published its third quarter results for the radio market, they reported a 15% growth for adult listening via the internet over the last two years, equating to 4.7m listeners (14%) per week. Seven hours of radio are now consumed via the internet every week compared to six in Q3 2013, an increase of 16%.

With all the streaming and audio digital platforms on the market, Global Radio identified a gap to simplify this arena with the introduction of the Digital Audio Exchange (DAX) in 2014. DAX allows a single entry point, offering a one-stop shop for the management and delivery of audio adverts across 141 Digital Audio Brands.

39

Fact Book 2016

Improved insight, better targeting

In 2015, Xaxis Audio extended its audience targeting capabilities from general broad reach and regional targeting, to the ability to target one of any top 20 interest segments through Turbine, their Data Management Platform (DMP).

We also saw platforms such as Acast offering detailed audience data and improved insight into the podcast market as advertisers look to capitalise on the explosion of the digital audio industry.

Bauer’s implement network changes

Bauer Radio had a number of changes across their local and national brands in 2015 – this strengthened their proposition and increased their footprint across the country.

• Magic joined D2, becoming a fully national brand to closer compete with Heart

• Kisstory had an increased DAB presence in London and a selection of local multiplexes

• Kiss Fresh was also made available in London via DAB

• Bauer’s Place Portfolio took over Magic’s regional stations and The Hits, meaning for each regional FM station you now also have a second and third. These are aimed at different demographics; 15-24s, 25-44s and 45-64s

Global Radio launch Radio X

September 2015 saw the re-brand of XFM to Radio X, with the station focussing on drawing in a 25-44 male audience. The new line-up contains big name talent like former Radio 1 DJs Chris Moyles and Vernon Kay, as well as Johnny Vaughan, and Kaiser Chief, and Ricky Wilson. Since launch, Global Radio have seen great success; within the first month Radio X has exceeded XFM’s performance in 2014, they have seen 4.8m pageviews to radioX.co.uk (XFM 2014: 2.5m), 7m app streams and over 7m video views on the Chris Moyles Radio X Facebook page.

40

Radio


2016 projected revenue

In 2016, we expect revenue to be around +4% for radio. This is due to more categories/advertisers using the channel as well as the continued support from the motor, government and retail sector.

Key moves on the horizon

For a while there’s been speculation that talkSPORT would be the next station to be bought by another media owner. This rumour looks increasingly likely now that UTV Media has sold its television services to ITV for £100m. Many believe that they will continue to operate as a radio business under a new name. We suspect Bauer Media will be first in line to try to attain this business in 2016.

New stations

The second national commercial radio DAB multiplex has been awarded to Sound Digital, a combination of Arqiva, Bauer Media and UTV Media. UTV will launch two original speech stations, talkRADIO and talkSPORT 2, which will increase choice and variety for speech stations and challenge the BBC’s dominance in this sector. UTV’s proposed business radio station talkBUSINESS has given up its slot on Digital 2 in favour of a deal with Share Radio. Virgin Radio will return under a partnership between the Virgin Group and UTV.

Spotify explore programmatic

Spotify have announced that they are moving into the programmatic space, with more sophisticated targeting available within a private, invite only, marketplace for the leaderboard format. Playlist targeting is also a programmatic first, utilising Spotify’s targeting capabilities. Audio will be available programmatically in the coming months as negotiations with Xasis are currently taking place. This is expected to become a big part of the Spotify business.

41

Fact Book 2016

42

Affiliates

42

Out Of HomeGill ReidHead of OOH [email protected]

Highlights

• Out of Home sector continues to grow - forecast +4% for 2015

• Digital continues to be the key driver for growth, increasingly becoming more of a national offering as the footprint expands

• Technology evolution is playing an increasingly important role with dynamic delivery becoming more commonplace

A look back at 2015

Digital developments

2015 has been a buoyant year across the majority of formats both classic and digital. Longer lead-in times across the market are now common place.

JCDecaux won the tender for TfL London 6-sheets. This award consolidates London’s bus shelter contracts into a single proposition of 15,000 back lit 2sqM panels, paving the way for a significant digital transformation, as well as big changes to media owner share in this format.

Digital development and technology continued throughout the year across all formats and in all major cities. This was in line with infrastructure development, such as in Birmingham, with the opening of the New Street Station expansion.

43

Fact Book 2016

Digital OOH

Throughout the year there have been further developments in more audience-led solutions via Route, plus the use of other data sets such as Touchpoints, CACI and mobile data, leading to a more targeted approach.

We’ve also seen a more connected approach with other media channels, specifically with the way OOH and mobile, and OOH and radio, have interacted to create integrated campaigns.

We estimate that digital OOH revenue will hit £351m in 2015, representing approximately a third of all Out of Home media. Digital growth reflects the continued investment by media owners into new locations, increasing the digital footprint nationally. It’s also forecast that 33% of revenue will be driven by digital by the end of 2015.

Innovation: Jurassic World

Jurassic World’s takeover of Waterloo station was the biggest station takeover ever, with complete domination of every available screen, as well as live tweets and the trailer on Motion at Waterloo.

i-beacon technology allowed commuters to listen to the audio via their smartphone which accompanied featurettes on Transvision. Visitors also had the chance to learn about dinosaurs through audio guides of the museum gallery on digital 6-sheets, where sound content was connected through smartphones via a dedicated URL.

44

Out Of Home

Innovation: Tap To Beat Cancer

The Cancer Research contactless payment window is a world first. It leverages existing and emerging technology to reflect changing consumer behaviour and deliver an innovative new way for Cancer Research to raise funding.

The solution comprises a purpose-built digital screen totem with an embedded contactless payment device which is pushed flush against the store window. The screen is visible outside and the payment device works through the glass. The window is wrapped with vinyl to hide all but the screen.

On the window is a large call-to-action, stopping passing shoppers and asking them to tap their contactless card on the window to donate to CRUK. On screen, a scientist sits idle in her lab until someone donates, then she gets up and conducts a lab task and the screen plays a thank you message.

The campaign ran in Cancer Research stores in Marylebone, High Street Kensington, Guildford and Brighton and was planned to be installed into 6s but was trialled on store fronts.

45

Fact Book 2016

Innovation: Coca-Cola Snow Globes

Coca-Cola brought a snowy Christmas to the high streets with their snow globe 6-sheets. The snow globes were in fully branded bus shelter 6-sheets and activated through a ‘touch’ button on the panel that played the Coca-Cola Christmas jingle and released ‘snow’ in the unit.

Ten snow globes were installed on the high streets of London, Manchester and Birmingham, alongside the Bluewater, intu Metrocentre and Bullring shopping centres.

46

Out Of Home

Innovation: Google’s AI Poster

Google launched the first artificially intelligent poster campaign which displayed different ads depending on how people reacted to them.

The technology used a genetic algorithm to test executions based on features such as copy, layout, font and image.

Each poster was installed with a camera that allowed M&C Saatchi to measure people’s engagement with the ads based on whether they looked happy, sad or neutral.

Ads that failed to trigger an engagement were eliminated, and those that prompted a reaction will be reproduced in future executions.

During the initial launch period, the project automatically generated and displayed 1,540 adverts and tracked more than 42,000 interactions.

47

Fact Book 2016

Innovation: Women’s Aid ‘Look At Me’

Women’s Aid partnered with Ocean to create interactive billboards to recognise when people were actively paying attention to an image of a bruised woman on screen.

This was the first digital OOH campaign ever to use people’s attention to trigger an immediate change in the creative. Those who looked at the billboard received feedback via a live video feed that ran along the bottom of the ad as a visual ticker-tape, registering an increasing number of viewers.

As more people took notice of the image of the woman, her bruises slowly healed, demonstrating to passers-by that by not turning a blind eye, they can help confront the signs of domestic violence.

48

Out Of Home


Digitisation

Increased digitisation across the country will continue from all media owners – expectation that a 35% of OOH revenue will be driven by digital come the end of the year. This digital development programme will fast-track dynamic trading models based on impacts and automated delivery.

We’ll also see a move towards live availability which will allow greater audience optimisation.

Underground, overground

The full effect of the JCDecaux win of the TfL contract in London will be felt. A transformation programme will be put in place across the year with a move to develop 1,000 digital 6-sheet units.

The London Underground contract will also be announced in 2016; this is the biggest of all the OOH contracts so any move of media owner will have a significant effect on share.

If JCDecaux also win the London Underground tender this could have huge implications, significantly shifting the overall share within the UK market.

The continued expansion of digital is leading to discussions on greater trading efficiencies. This will start with automated delivery possibly leading to the potential programmatic trading within some sectors/environments.

49

Fact Book 2016

Med

ia

Com

pute

rs

Gov

t, so

cial

and

pol

itica

l

Food

Drin

k

Reta

il

Mot

ors

Trav

el &

Tra

nspo

rt

Fina

nce

Tele

com

s

Ente

rtai

nmen

t & L

eisu

re

0102030405060

Source: Category Expenditure NMR. H1 2015 Expenditure Outdoor Media Centre

Top spending OOH categories H1 2015

2008

2009

782

2010

880

2011

886

2012

970

2013

99020

141010

2015

(f/c

ast)

1052

2016

(f/c

ast)

1084

£m

OOH revenue 2008-2016

Forecast +3.5% for 2015

938

2008

2009

2010

2011

2012

2013

2014

2015

(f/c

ast)

2016

(f/c

ast)

OOH industry inflation

-4

-8.7

4.4 4

6

2.5 33

+3% for 2016

50

Affiliates

50

CinemaAmy Anderson / Gary Cook / Mesha Williams Associate Director – Connect / MarketPlace Manager / Senior Buyer- Investment [email protected] / [email protected] / [email protected]

Highlights

• 2015 was all about agile planning and brands building closer strategic relationships with film through partnerships and naming rights opportunities

• The availability of the adult ‘gold spot’ offers an unprecedented opportunity for brands

• 2016 is all about using tech to enhance impact through a multisensory experience of cinema

• We’ll also see advertisers connect foyer messaging with on-screen messaging to drive relevance and recall

51

Fact Book 2016

A look back at 2015

A record year for film

As anticipated, 2015 was one of the biggest years for film ever with estimated revenue predicted to be up 20% year-on-year, admissions up 9% and brand count up 30%.

This success has been driven by the top 30 films of the year, many of which far exceeded expectations. Fifty Shades of Grey now holds the record for the biggest box office haul for an 18 certificate film, Fast and Furious 7 was the fastest film to reach $1bn globally, and in April we saw Avengers: Age of Ultron deliver the biggest ever UK box office opening. Add to this the release of Jurassic World (as of writing, the third biggest film released worldwide), Spectre, The Hunger Games and Star Wars, and it seems 2015 was destined to be a stellar year for cinema.

Family films have also performed incredibly well in 2015. Pixar released two films in the same calendar year; Inside Out and The Good Dinosaur. On top of this, family features Inside Out, Minions and Home all reached the top 10 for the year, over-delivering +30% compared to expectations.

The gold spot

The most significant change in 2015 for Cinema has been the availability of the adult ‘gold spot’ in the absence of an annual deal taken up by a single brand. With 100% of audience attendance at this point in the reel, this offers an opportunity for brands to create increased standout, maximum impact, and a further premium offering to the ‘silver spot’.

52

Cinema

Improved agility

In 2015, we continued to see brands capitalise on cinema’s increased planning agility. This has included bespoke day-of-week and time-of-day planning, in line with in-store promotions or TV launches. We’ve also seen an increase in proximity planning using postcode mapping tools, which have allowed advertisers to run bespoke creative based on the audience’s proximity to the nearest retailer, driving both relevance and recall.

As content creation continues to be the centre of brands’ connected media planning strategies, we have seen increased interest in the content spot positioned after the main ad reel and before the silver spot. An opportunity for brands to showcase their longer, most engaging creatives on the big screen in a premium position in reel.

We have seen the quality of the cinema experience continue to improve with 4K capable projectors being installed across the network to ensure the strongest, sharpest picture available, as well as Dolby Atmos sound technology ensuring theconsumerexperience is as premium and impactful as ever.

Non reel/in foyer activity has extended to owning naming rights of specific chains/sites, including the IMAX. Naming rights opportunities exist across screens, signage on building exteriors as well as the seat head rests and bars – an incredibly effective way for a brand to align with both the film itself and the leading film technology at the heart of British cinema.

It is unsurprising that in a year where we have seen the release of film’s most anticipated blockbusters, we have seen a rise in pre-booked ticket sales. On average, a third of sales are pre-booked, with 26% online via laptop, tablet or PC and 4% on mobile.

53

Fact Book 2016

UK top films 2015 Box office performance

Star Wars: The Force Awakens007 SpectreJurassic WorldThe Avengers: Age of UltronMinionsInside OutFast & Furious 7Fifty Shades of GreyThe Hunger Games: Mockingjay Part 2The Martian

£113.96m£94.74m£64.48m £48.34m£47.71m£39.24m£38.64m£35.05m£29.96m£23.51m


Enhancing the user experience

Investment into improving the user experience is set to continue into 2016, with the roll-out of more 4DX cinemas. 4DX gives a glimpse into what the future of cinema might be. The state of the art technology delivers a fully immersive cinematic experience, meaning movies are no longer bound by their visual and acoustic limits. The experience is meant to stimulate all your senses, not just sight and hearing. Vibrating motion seats move in synchronisation with the action on the screen, while jets of air recreate the temperatures and conditions depicted on screen. These extra sensations heighten the excitement and keep the audience involved.

Cinema gets personal

As a result of the continued modernisation of the industry through developments in digital technology, brands now have the ability to personalise their adverts on and off screen. Innovations in the cinema space will continue into 2016, with brands having the opportunity to influence the big screen and the foyer in a more personalised way. Content generated in the cinema foyer via interactive digital 6-sheets can be connected with on-screen adverts, repeating messages, making ads personal and unique. Cinemagoers are fully engaged and very receptive, meaning that a brand’s message is more likely to be at the forefront of their mind. According to research conducted by Millward Brown, cinema has the strongest combined brand impact of any medium, and with the introduction of 37 Degrees, it is now possible for brands to capture audience’s undivided attention in a new and refreshing way. 37 Degrees technology allows two different images to be projected onto a cinema screen simultaneously with the viewer only seeing one due to the specially adapted 3D glasses. This means that a cinemagoer may not have the same experience as the person sat next to them. We believe that the technology is an exciting way to spark powerful awareness in a creative way.

2016’s most anticipated releases

Cinema in 2016 is expected to be stronger than ever, with an estimated 168m industry admissions due to a spectacular slate of films. In 2016, there will be a selection of main releases and blockbusters such as Captain America: Civil War, Star Trek Beyond, X-Men: Apocalypse, The Hateful Eight, and Batman v Superman: Dawn of Justice. Next year will also see the release of the new Star Wars: Rogue One, which has a conservative box office prediction of £60m. Further to this superb line-up, family films are expected to continue to perform well at the box office, solidifying the strength of this genre. Four of the top ten predicted box office films are family focused, with Finding Dory, and Fantastic Beasts and Where to Find Them, having box office expectations of £45m each. To put this into context, blockbuster Avengers: Age of Ultron took £48m at the box office last year.

Cinema

54

UK top films 2016 Predicted box office performance

Star Wars: Rogue OneFantastic Beasts and Where to Find ThemFinding DoryBatman v Superman: Dawn of Justice Captain America: Civil WarThe BFGX-Men: ApocalypseStar Trek BeyondThe Secret Life of PetsBourne 5

£60m£45m£45m£35m£35m£35m£28m£25m£25m£20m

Fact Book 2016

55

56

Cinema

Cinema is alive and well

Cinema buying routes

Admissions (m)

Calendar Year

2012

2013

2014

2015

2016

172m

166m

158m

172m

168m

150

155

160

165

170

175

Source: CEA Admissions 2012-2015

Geo Targeting

Film Package

Premium/Youth/ Male/Female/Family AGP

Audience Guarantee Pack (AGP)

57

Fact Book 2016

Cinema pushes buttons the other media can’t

Source: CAA FAME 2014. Base 11+ Q.

Source: DCM

Focused

Relaxed

Stimulated

Distracted

Engaged

Excited

Attentive

Uninterested

Bored

Involved

Passive

Happy

Tired

Cinema

TV

Internet

Magazines/newspapers

Radio

95%of copy used on cinema Is TV copy

(people just think its better)

58

Cinema

5 key takeaways

The cinema ad reel

Standard Pricing

+15%

+30%

+60%

Ident

Ident

Main Ad Reel

Cinime

Trailers

Film

Content Spot

Silver Spot

Gold Spot

OneTwoThreeFourFive

Cinema makes brands memorable

Cinema creates a brand love story

Cinema makes brands feel different

Cinema turns audiences into customers

Cinema wins influential fans for brands

59

Fact Book 2016

Our core audience are light TV viewers

Source: CAA/IMS Coverage & Frequency 2014

Source: Hall and Partners

67%

8x 3x 2x

65%

49%

25%

ABC1

More Stand Out More Brand Attribution More Memorable

15-44s

Men

London & South East TV Region

172 millionAdmissions per year

60

Affiliates

60

Direct ResponseJames Hyams / Jody AirdBusiness Directors [email protected] / [email protected]

Highlights

• 2015 was a year in which we saw the mass market consumer responding through multi-channel journeys, with brands addressing this behaviour through their communication infrastructure

• Advertisers are now having to make larger optimisation decisions to drive performance, and these optimisations are being made in real time to drive efficiency through the entire communications system

• In 2016 we’ll see previously untapped conversion opportunities opening up thanks to new technologies that facilitate purchase, with brands determining the incremental gains

• The decision-making across the complete communication plan, and the understanding of the interdependencies within the communication system, will be a major focus to ensure all potential demand is extracted from the market

• The advances in mobile, coupled with an increase in ‘showrooming’ among consumers, will need to be turned into opportunities to drive incremental response

61

Fact Book 2016

A look back at 2015

Leaving linear behind

Response continued to evolve in 2015. As dynamics moved away from linear response via the phone or last/first click, we saw a move towards multi-channel response with consumers choosing the most convenient route depending on the task at hand. For example, people will respond to a press advert or TV advert via the device or method they feel most comfortable with. Instead of using a phone or test response, consumers are much more likely to pick up a mobile or tablet and search for something related to the advert rather than call the number included.

This has led to both the method and the time of consumer responses changing dramatically. Mobile is now the go-to platform for consumers responding to marketing stimuli, though for some, desktop remains important for actual transactions. A focus on activity across the entire communications system is now vital.

The evolution of mobile has meant that daytime TV response is now upwards of 70% on the web, with TV driving on average 13% of total online response. This was illustrated by our recent work with Thinkbox on the new rules and new roles of TV response.

13%

13%

13%

14%

15% 17%

18%

E-Commerce

40%

26%

34%

Bricks &Mortar

Source: TV response: new rules, new roles 2015. Based on 8 brands

62

Direct Response

Shifts in optimisation

Text response continues to perform well, offering incremental responses to TV – in particular for charity and telecommunications advertisers who have seen text response become a mainstay of their DRTV planning.

Micro-optimisation has since become less important and the testing of new routes to market outside of traditional DRTV buys, such as sponsorships and early peak, are showing positive results as we take into account total response impact.

Within TV these routes have included areas such as buying specific audiences akin to brand buys and post peak proving cost-effective alongside increased use of TV sync and DRTV Extend (VOD). Audience-specific buys in particular are showing significant traction despite the increased cost.

This is not limited to TV however, as traditionally high-performing channels (such as DR Print) have fast become difficult to optimise on short-term response metrics, so audience planning combined with econometric learning is now key for justification.

We are starting to see other channels, which have been historically less effective on a linear basis (like radio), begin to play an important role in response driving plans. This is particularly the case since the advent of digital radio buys combined with programmatic through Xaxis.

0

50

100

150

200

250

PPC

55

DRT

V

60

DR

Dis

play

67

DR

Radi

o

95

Inse

rts

160

DRT

V Pe

ak

207

Nat

Pre

ss

212

CPA

Performance Index

Radio CPA

Source: Business Science Economiser

63

Fact Book 2016

Optimising the system

This has meant there is now an increasing need for broader performance frameworks that take into account all forms of response to ensure justification for broadcast channels within a media plan.

This in turn has lead to the need for greater understanding of the consumer purchase journey and the context behind consumers’ decision-making to ensure that response comms are relevant and persuasive. It’s not enough to focus on the areas that traditionally performed well, we need to understand and measure the whole system of communications.

Investment in response channels has moved proportionally towards digital to better match the way consumers are spending their time and being influenced by media. 58% of all spend across response driven media is now devoted to digital. Testing has also been consistent on newer routes to market such as Xaxis TV sync, Sky advance and Group M LIVE Audience.

Mobile investment is starting to grow for MediaCom Response clients as smartphone use becomes an integral part of the retail experience. Shopping with a mobile device, checking prices and searching for deals is now commonplace and will only become more prevalent in years to come. Because of this, there will naturally be value in testing new routes-to-purchase early in a bid to outsmart competitors and discover untapped methods of reaching consumers on their purchase journey.

64

Direct Response


Systems, not silos

In 2016, brands with a complete understanding of their communication system will see the biggest gains. This understanding will enable brands across all sectors to respond to their performance needs in a timely fashion, maximising business return. The alignment of communication teams will ensure the response strategy is driving optimum returns by developing and understanding the full impact of the system. Brands which are at the forefront of system-based planning already have four core components in place for the coming year:

1. Total ROI impact – in the short- and long-term of channel investment decisions

2. Time to response – increases in investment and an understanding of when the return should be delivered

3. Scalability – content distribution plans that can be deployed at scale delivering tailored/personalised consumer journeys through AV, programmatic and CRM

4. Test and learn plan – with the purpose of activating strategy and approach in the most impactful and effective method

The short-term response drivers – PPC, daytime TV (DRTV) and affiliates – are all expected to inflate in the coming year. These factors already account for 40-45% of a brand’s marketing investment. Brands are looking for response solutions that offset inflation primarily through onsite optimisation, investment limits, and content. Onsite optimisation and sales attribution will include greater path-to-purchase understanding on all variables incorporating onsite attribution to the relevant media, dynamic web chat-based on orientation, increased localised understanding, dynamic landing pages and effective use of digital retargeting across VOD, display and Facebook. We’ll also see investment into further understanding the dark side of media optimisation, the aspects which make a difference but are challenging when determining the ROI i.e. operations and external factors.

65

Fact Book 2016

Competitor Online

Seas

onali

ty

Econ

omy

Offl ineSocial

Website/

DistributionPromo

Price

Operations

MediaEx

tern

al

Sales

The components of a direct response framework

66

Direct Response

In-market moments

In-market content plans that trigger on identifiable purchase signals to drive relevancy and ‘reasons to buy’, will create a natural uplift on SEM traffic. The in-market content will have to cut through with the right consumers as

the volume of content grows exponentially. Every minute 4.2m Facebook posts and 300 hours of new YouTube content are uploaded. In 2015, a home improvement company made major media saving of £3.7m by investing in an in-market content plan with scalable distribution.

The adoption of key media developments within programmatic, AV, SEM and mobile conversion will provide brands with incremental response gains. Programmatic will offer greater data segmentation, utilising Live Audience to identity the responsive audience’s through the use of data management platforms.

In TV, there have been three key developments:

• DRTV Extend – supplying scalable and cost efficient video on demand that is optimised in real time

• TV and digital sync through Xaxis Sync and Sky AdVance – maximising presence to potential impact consumers

• Spotlift – maximising optimisation through responsive allocation across mobile, web, tablets, text and telephony

We’ll see the Identification of Micro In-Market Buying Moments that trigger personalised messaging and propositions across display, VOD, search and email. Through mobile, contactless and OOH response, every offline touchpoint could become a conversion/ecommerce opportunity. Take Cancer Research’s ‘Tap to Beat Cancer’ campaign in which window displays in select Cancer Research stores were turned into a contactless donation channel. This sought to combat the potential fall in donations as we move towards a cashless society. On making their contribution, donors would see a short video of a scientist at work in a lab, providing immediate feedback to their actions.

In-market mobile response continues to grow, with consumer showrooming (viewing merchandise in a traditional retail environments, and then buying online) becoming mass and habitual. Brands that are able to capitalise on this will see incremental conversion gains particularly if linked through Apple Pay, which will allow brands to take advantage of moments of impulse.

Every minute 4.2m Facebook posts and 300 hours of new YouTube content are uploaded.

67

Fact Book 2016

Summary

2015 represented a transition period for the discipline of response based marketing activity. 2016 promises to be the year in which both clients and agencies will fully embrace system-based planning. The means by which consumers consume and respond to media has changed to such a degree that this shift is inevitable.

While this evolution will involve an initial ‘leap of faith’ the rewards are already proving to be vast. Brands who have moved from linear based planning into a system approach are seeing improvements in marketing return on investment from anywhere between 10-20%. Simply by understanding the consumer’s motivations at particular stages of the purchase cycle and ensuring we feed them a relevant message we can both improve performance levels and sow the seeds for a longer-term conversation.

Technology will be at the forefront of this development. New and bespoke tracking and reporting systems now provide advertisers with clear insight into their optimum mix of media channels alongside the ability to optimise their campaigns on a real-time basis, aided by the growth of mobile.

For those brands willing to embrace the new environment, 2016 promises to be a year of opportunity.

6868

Direct MailMatthew OramAssociate Director, Response One [email protected]

Highlights

• Direct mail is the UK’s third largest media channel with an ad spend of £965m in H1 2015, the highest since 2010, and on a par with Online

• Changes to EU Data Regulation and developments within the charity sector have brought consumer privacy into sharper focus

• Integration, personalisation and programmatic buying are key areas for direct mail in 2016

A look back at 2015

‘The private life of mail’

In many ways, 2015 felt like the year that direct mail stepped out of the shadows and back into the minds of both media professionals and the wider UK public. A huge catalyst for this was MarketReach’s comprehensive and compelling study ‘The Private Life of Mail’, supported by MediaCom’s own Chairwoman, Karen Blackett OBE, as part of Royal Mail’s Mailmen campaign.

69

Fact Book 2016

The impact of mail

Focusing on the impact of mail on the home, heart, head and wallet, the research delivered actionable insight and revealed the following:

• 39% of mail recipients say they have a dedicated display area in their home where they put mail

• Mail is kept in a household on average for 17 days for advertising mail, 38 days for door drops, and 45 days for bills and statements

• 57% of consumers claim that receiving mail makes them feel more valued

• The total communications ROI for campaigns which included mail was 12% higher than those that didn’t

Taken as a whole, the key message to marketeers was that mail as a medium has a unique power to cement the presence of brands in the minds of consumers, but only if used correctly and properly integrated with other channels.

Tighter regulations

In the public arena, mail was cast in a less favourable light in what were perceived aggressive marketing campaigns by the charity sector, a topic which attracted significant coverage in the latter half of 2015. Though much of the ire was directed at telemarketing techniques, the resulting changes to the Institute of Fundraising Code of Practice have impacted mail too, limiting charities’ fundraising abilities through tighter enforcement of donor data broking and sharing. On a broader scale, new EU Data Regulations are reaching the final stages of drafting and will be ratified this year. As such, the onus for 2016 onward is to deliver mail solutions which still maximise the strengths of the channel (tangibility, emotional impact, personalisation) without compromising the protection of consumers and their privacy.

70

Direct Mail


This time it’s personal

One of mail’s greatest strengths is its ability to put a relevant message in the hands of every person it reaches. Advertisers have known this for years, but to date, the uptake and implementation of advanced personalisation has been slow. Developments in digital printing, web-to-print software and CRM segmentation mean that the barrier to entry is now lower than ever (both in terms of resource and cost). Advertisers must realise the tangible benefit to long-term response and ROI which better personalisation brings, and embrace it across all of their campaign activity. Royal Mail MarketReach’s ‘This Time It’s Personal’ research includes many practical recommendations on how to make the most of what you know about your customers and prospects. A great case study is Homebase’s use of customer lifecycle data to develop personalised communication strategies, resulting in a 350% uplift in ROI.

Another key factor in the success of the Homebase campaign was its integration with email and in-store campaigns. As noted in last year’s Fact Book, multi- and omni-channel marketing is fast becoming the norm in response to changing consumer behaviour and mail must be embraced as part of the modern marketeer’s armoury. At a brand level, mail can reinforce mainstream messaging by putting it directly into consumers’ hands and homes. It demands attention and can deliver the knockout blow which can be difficult to achieve through broadcast media alone. Thinking implementationally, the ability to track communications and response at an individual level through the use of personal data means that it is entirely possible to develop and deliver a tightly structured communications plan across social, email, mobile and mail for each and every one of your prospects and customers. The next stage, already underway at leading advertisers and agencies (including MediaCom), is the marrying of offline data to online behaviour (referred to as ‘onboarding’). Doing so both increases the depth of known attributes, increasing relevance, and broadens the cross-channel media mix to include display and video.

Programmatic mail

These last two channels have provided inspiration for the final key area of development; programmatic mail. The mail industry is challenging itself to evolve the long established processes of campaign delivery and to start aligning the channel with the buying mechanisms and metrics more closely associated with online media. Doing so could bring numerous benefits, namely; the ability to use online behaviours to create and deliver personalised mail media in real time; automation of the buying process, reducing media and production costs; more effective implementation of complex customer segmentations and communication strategies. Although still very much in its infancy, a programmatic future for mail is one which all forward thinking agencies and advertisers should be keen to embrace.

Source: mailmen.co.uk/campaigns/inside-stories/the-importance-of-personal-relevance mailmen.co.uk/case-studies/homebase

71Source: AA/Warc UK Expenditure Report

£2,364m

£1,091m £965m £495m

£478m £272m £239m

£84m£137m£237m

TV Spot

Internet pure play Direct Mail National Newsbrands

Out of Home Regional Newsbrands Radio

CinemaBusiness MagazinesConsumer Magazines

Share of UK display advertising expenditure by medium H1 2015

71

6.4 billionTotal

Fact Book 2016

72

Affiliates

72

Real World InsightPauline RobsonHead of Real World Insight [email protected]

A look back at 2015

A year of political change and economic recovery

2015 saw political change as the first Conservative government took power since 1997 after a surprise general election win, leaving The Labour Party (and the British polling industry) in disarray.

Economic recovery continued apace in 2015, with Q3 growth up 2.3% from the previous year. This represents 11 successive quarters of economic growth. The employment rate was at its highest since comparable records began in 1971 and rising wages and low inflation resulted in consumer spending reaching its highest level since records began.

It’s not all economic plain sailing though. Growth is expected to slow in Q4 2015 as a result of a drop in manufacturing and construction output. However, we’ve seen a two-speed recovery, largely driven by London and the South East. Unemployment rates in the North East, for example, are more than double those in the South East. This means that it is crucial that we understand the UK consumer landscape, not just at a national level, but also at a regional one.

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Fact Book 2016

The way we pay is changing

On the high street we’ve been seeing an important change in payment mechanisms. According to the Payment Council, 2014 saw the balance of payments shift away from cash for the first time, with 52% of payments

being made by debit card or electronic transfer, and 48% by cash. Much of this is driven by contactless payment, which is removing the necessity of paying cash for smaller transactions. There was a 331% increase in contactless payments in 2014.

July 2015 saw the introduction of Apple Pay in the UK. In a bid to drive uptake,

Mastercard launched ‘Fare-Free Mondays’ four months later, offering free travel in London on Mondays for those using Apple Pay to touch in. The hope is that the initiative will share some of the success seen when TfL introduced contactless payment onto the system in 2014 – 11% of all contactless transactions in December 2014 were made on London Transport (UK Card Association).

According to the Payment Council, 2014 saw the balance of payments shift away from cash for the first time

74

Real World Insight


Consumers will be more demanding than ever

We’ve long seen trends in technology shifting power and control away from brands and business into the hands of consumers.

The digital age has allowed us to access information and content whenever and wherever we want, at the click of a mouse, or the swipe of a touchscreen, and more often than not for free. The exception, of course, is when it comes to acquiring physical goods, where we can often wait for days to get our prized item delivered. As people become ever more demanding we will see this delivery time reduce drastically. This will start to become a key battleground for retailers.

Research from nVision has found that one in two people have already used, or would be interested in using, a two-hour delivery service for items bought online. Amazon Prime is leading the way with its same day and two-hour delivery options. In 2015, it launched Amazon Prime Now – one-hour delivery for certain products (only in London at present),

and it doesn’t require much effort to order the products in the first place. Amazon Dash (currently in the US only), is a collection of branded buttons that you can stick up around your home and press when you run low on an item. The button connects to your Amazon account via WiFi and automatically orders the product for you. This represents an interesting opportunity for FMCG brands to prompt repeat purchase and increase loyalty.

Away from Amazon, smaller outfits are springing up to cater to consumers’ every whim. Uber Eats brings the convenience and immediacy of Uber to your lunchtime, promising to pick up and deliver your lunch to you in minutes, so you don’t even have to leave your desk. While in the US, Magic is a start-up that promises to bring you anything you want, as long as it is legal, and you are prepared to pay the price. Brands need to ask themselves how they can blend online and offline worlds to bring convenience and instant gratification to consumers.

Brands need to blend online and offline worlds to bring convenience and instant gratification to consumers

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Fact Book 2016

Data will be the new commodity for consumers

People have long been aware of the monetary value of their physical possessions, and more recently the value of their space (Airbnb) and their time (TaskRabbit). But as more of our lives are lived out online, consumers are starting to realise and understand the value of their data too. This reflects the broader political context. The European Commission is debating tighter regulations around data which will include explicit rather than assumed consent, the right to be forgotten, easier access for citizens to their own data, the right to transfer personal data from one organisation to another, increased responsibility and accountability of those processing personal data, and prompt notification of data breaches.

A new service enables consumers to put themselves back in control of their data; Citizenme.com is an app developed in association with Cambridge University which allows people to see, control and trade the data they share with companies. As CitizenMe points out on their website, data is the commodity of the digital world and consumers will want to join the marketplace to take control of their most valuable asset in this space. This means that it is no longer enough for brands to be transparent about how they use people’s data. Brands will need to recognise the value of consumers’ personal information, allow the consumer to be in control of it, and increasingly, should people decide to share that data, they will expect to be rewarded.

Buyer beware

Could the balance of power be starting to shift away from consumers?

The rise of the peer-to-peer economy is changing the relationship between supplier and consumer. In the world of Amazon reviews and TripAdvisor ratings, the consumer does the rating and holds the balance of power. In the sharing economy however, the ratings work both ways. Both Airbnb and Uber providers can rate the buyers (as has been the case on eBay for years). This could usher in an age where the customer isn’t always right, but is now judged and rated by the same standards as their suppliers, or where customers are incentivised for exemplary custom. We could start to see a two-tier system emerge where five star customers can access special benefits or deals.

76

Real World Insight

Robotics and AI

A further shift could be on the horizon. We have long been used to the idea of machines taking over manual jobs, and in recent years we have seen increasing automation in the manufacturing sector as robotics have advanced. Now robotics and AI are starting to have an impact outside of the manufacturing sector. For example, greater dexterity and sensitivity in robots means that many roles in transportation and logistics are now fully automatable, and with the advent of driverless cars and delivery drones, the role of the bus, taxi or delivery driver could completely disappear.

Rise of the machines

White collar jobs are now also in the robots’ sights. Repetitive and transactional tasks have already been computerised across many industries, however, the advent of big data has meant that even non-routine cognitive tasks can now be carried out by computers. A study by Deloitte has claimed that 35% of jobs are at risk of being lost to automation over the next two decades, with the sectors most at risk being accounting, auditing and administration.

We’ve already seen the impact of this on our industry with the advent of programmatic buying and the ability to serve dynamic creative based on a consumer’s demographics, characteristics and behaviour. AI will continue to transform the way we target and engage consumers and the way we trade media.

The good news is that, according to Deloitte, this shift is creating new jobs, and they are better paid than the jobs that are being replaced. The not so good

news is that this is creating a skills gap as the new roles are more highly skilled than the ones that have been lost. This shift in the longer term will change the balance of employment versus leisure. This may also pose real challenges for people’s incomes as their working hours reduce and perhaps disappear altogether.

These developments also represent an interesting area for brands from a Corporate, Social, Responsibility (CSR) perspective. They should already be thinking about how to help fill the digital skills gap. Barclays, for example, are looking to tackle this with their Digital Eagles and Code Playground initiatives.

A study by Deloitte has claimed that 35% of jobs are at risk of being lost to automation over the next two decades, with the sectors most at risk being accounting, auditing and administration

77

Fact Book 2016

78

Affiliates

78

ProgrammaticSarah Treliving / Graham Field Joint Head of Digital / Head of Programmatic & Joint Head of i-Lab [email protected] / [email protected]

A look back at 2015

A stellar year

2015 was a strong year for programmatic, one that saw a significant rise in publisher and client uptake that lead to increased branding budgets diverted towards programmatic buying. The IAB reports that over half of all brands are buying mobile inventory using programmatic with almost two-thirds (64%) of mobile display ads being traded using programmatic media buying technologies.

Premium publishers evolved their offerings to embrace viewability and tackle the rise in open market fraud. We evolved our offering too, with GroupM seeking to guarantee that our clients’ investment in the ad verification space achieved the desired results across the board. GroupM now have a dedicated team of eight individuals vetting domains from campaigns manually, a unique and essential product within the market.

2015 was also the year that Data Management Platforms (DMPs) started to deliver on their promise, with clients reaping significant benefits in both insight and business performance. As we predicted in last year’s Fact Book, 2015 saw an uptake in DMP technology as brands sought to reduce wastage.

79

Fact Book 2016

Mobile and video

Mobile continued to grow in importance with volumes of viable inventory, rivalling desktop display. You can read much more about the changing face of mobile in the Mobile section of Fact Book on page 104.

Programmatic video also had a great year with a rise in premium content being made available to market and great steps made in the field of video verification that helped ensure that clients budgets were being put to good use.

80

Programmatic


Adapt and learn

Programmatic is one of the fastest moving sectors in the media industry, so it’s especially difficult to make predictions as to where we’ll be in three months, never mind the rest of the year. But this is also what makes the programmatic space so exciting and competitive, forcing us to adapt and learn at remarkable speeds.

But despite the rapid uptake in programmatic buying from brands in 2016, the IAB’s report warns that many brands do not yet have a comprehensive understanding of the technologies and methods involved in this burgeoning form of media buying.

Mike Reynolds, Mobile Marketing Manager at the IAB, states that despite programmatic establishing itself as an effective way to buy mobile media “there is a clear disconnect between this buying technique and knowledge levels… strengthening this knowledge base across the industry remains a top priority of ours for 2016”. This is why MediaCom, and Group M as a whole,

Following on from last years strong uptake of DMPs, we expect to see a wider adoption of such platforms in the coming year, and we foresee an increase of viable in-market data that will fuel further growth in the programmatic space.

The ability to track users across multiple devices remains the Holy Grail for advertisers as they seek to engage with multi-screening consumers whose attention spans have become notoriously short. With large players looking to launch scaled individual/device-led deterministic cross-device solutions, 2016 will see a need for a flexible sequential messaging approach being needed to capitalize on the potential of display. With the advent of connected TVs, wearables and the Internet of Things, the concept of cross-device is expanding to include anything that gives off a signal.

Increased uptake of attribution tools and device mapping will offer marketers a clearer view than ever on the effectiveness of their digital marketing strategy. This could see mobile becoming a much more accountable part of the digital mix.

81

Fact Book 2016

Ad-blocking

2016 will also see the ad-blocking battle intensify with its increased uptake becoming a genuine challenge for brands looking to reach the tech savvy users of such tools.

Publishers look to be the ones most affected by the uptake in ad-blocking, with Techcrunch reporting that ‘sites who tried using messages to ask ad blocking users to whitelist their sites have seen almost no effect’, actually seeing an increase in the ad-blocking rate by alerting users who weren’t already using ad-blocking.

82

Affiliates

82

Search & SEOPeter Young / Edward Cowell / Claudia ZiegenbeinHead of Digital, MediaCom i-Lab Manchester / Head of SEO / Head of Paid Search [email protected] / [email protected] / [email protected]

Paid Search and SEO Highlights

• Search spend is still growing and exceeded £2bn in the UK in H1 2015

• 2015 saw the launch of Google’s Customer Match, allowing advertisers to target based on CRM email addresses

• In 2016 we expect audience targeting and subsequent ad personalisation to mature, and attribution to become crucial

• The value of being well positioned in organic search increased significantly, in line with CPC inflation

A look back at 2015

Alphabetical order

2015 was another eventful year in search. Google introduced Alphabet as their new parent company and made a number of changes, including the unveiling of a new slick logo in line with their evolving identity. Their mobile experience was also overhauled; doodles now appear, followed by three (previously two) ads, with the top ad often relating to shopping. Google streamlined their Google My Business local search offering and increased the visibility of their local results, whilst advertisers looking to influence organic positions took an increasingly brand lead approach, moving away from traditional stand alone ‘link building’ tactics. Microsoft took ownership of customer relationships for Bing Ads (leaving Yahoo! only selling their own products such as Gemini ads) and put a spotlight on search in everything they do, from Cortana to Windows 10.

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Fact Book 2016

Mobile optimisation

Mobile is still going strong, surpassing the search volume of desktop and tablet combined according to Google. The challenges for advertisers remained unchanged from previous years; from ensuring that websites are mobile device optimised, to understanding how a mobile visitor’s needs, expectations and overall user journey may be different to those arriving from, say, a laptop. Apps continued to be a discussion point, with some wondering whether they may in fact replace websites, or at least certain functionalities which is often already the case in retail, travel and gaming.

Research online, purchase offline

2015 was also the year of a highly anticipated Google Research Online, Purchase Offline (ROPO) beta test, to evaluate the paid search ad click to store footfall relationship. Google determines a store visit based on proximity to the brand’s location on Google Maps from users that have location history enabled on their phones. Similar to cross-device conversions, store visits are an estimate, with Google using anonymised user data and extrapolating it.

Customer match

With Remarketing Lists for Search Ads (RLSA) now widely adopted, Google announced another audience-focused targeting option, Customer Match, towards the end of Q3 2015. Available for Search, Gmail Ads and YouTube, customer match allows a brand to upload their CRM and then target as part of a re-engagement tactic or negatively target to maximise clients investment. This opens up possibilities like customised set-ups based on audience segments, re-engaging existing customers, or reaching new ones who resemble the existing customers through automatically generated similar audience lists (on YouTube and Gmail).

Google introduced their new logo and visual identity in September 2015

84

Search & SEO

Search strategies

With paid search spend in the UK exceeding £2bn for the first time in H1 2015, 2016 will be another significant year for digital, paid and organic search in particular. As audience targeting and personalisation become increasingly sophisticated, aligning search and wider marketing strategies has never been more important.

Source: IAB/PwC Digital Adspend H1 2015

ABCDEFGHIJ

KLMNOPQRS

Billion

5316347628579589841,0671,0301,1141,031

1,2931,4151,4961,5921,7191,7321,9161,8732,073

2006

H1

A

CD

E F H

I J

KL

M N O PQ R

S

G

B

H1 H1 H1 H1 H1 H1 H1 H1 H1H2 H2 H2 H2 H2 H2 H2 H2 H2

2007 2008 2009 20132011 20152010 20142012

The steep rise in search ad spend over the last ten years

85

Fact Book 2016


If 2015 was a whirlwind year, 2016 promises more of the same across the organic and paid landscapes. The new features available to us as search experts will push the opportunity beyond a focus on in-channel customer journeys, and will allow combining data sets to enrich our understanding of a potential consumer. This will enable us to personalise the search journey from initial interaction via multiple touchpoints through to conversion.

Customisation

Last year we confirmed that search is no longer just about keywords, we also need to understand and target audiences in order to unlock search’s full potential. This remains true for 2016. Reacting to audience signals, and then tailoring the search experience, requires complex account set-ups but continually proves to be worth the effort, usually triggering higher CTR and conversion rates. Recent features, such as Google’s ad customisers, help to facilitate a tailored-to-the-audience experience.

With the increasing demand for custom scripts, some may be reminded of the humble beginnings of search when it was seen as a technical discipline which very few truly understood and mastered. Scripts are code snippets which enable anything from automated account changes, to the delivery of customised performance extracts. Whilst common template scripts may be in use already, we will look to programmers and developers to write custom scripts as we set out to tackle individual client challenges.

Google operates an online portal with a number of sample scripts

86

Search & SEO

Mobile

As mobile usage continues to grow at a pace, apps and cross-device tracking will be discussion points. Many brands still need to manifest their app strategy and offering (e.g. is the app for new/existing customers or both), before apps may become a destination via search ads. Increased use of voice search will furthermore challenge established search query patterns. For all clients, but perhaps retail in particular, we believe that the key trend for the coming year is going to be the continued rise of mobile as a traffic channel. This is likely to involve some decisions around responsive and adaptive mobile sites for some of the brands, but there are also specific mobile initiatives such as Accelerated Mobile Pages that we are convinced will have an impact on mobile Search Engine Result Pages (SERPs). Alongside, there will undoubtedly be an increase in the importance of local signals and visibility of local search results, particularly for brick-and-mortar retailers.

Audience

2015 saw a significant shift towards audience segmentation and optimisation. Dynamic ad elements may see wider adoption, for example, when communicating to previous website visitors via Google RLSA, and Google’s Customer Match.

Cross-device use, second screening and attribution

Data will remain at the heart of many paid and organic search products. With more complex customer journeys across different touchpoints, and the use of multiple devices, brands are increasingly looking at holistic attribution conclusions to inform their (digital) media investment and strategy above and beyond traditional last-click performance insights. But it does not end there, technology providers like TVTY are able to paid search campaigns with the exact time of broadcasted TV spots while GroupM’s SpotLift technology measures the minute-by-minute website impact.

Ad extensions

After Google changed its AdWords ranking system to incorporate ad extensions as a third influencer in 2013 (next to maximum bid and quality score), the search engine market leader will continue to offer a range of brand new ad extensions in 2016. This will include the widely anticipated relaunch of image extensions. Elsewhere, Bing Ads will be rolling out some of the same new and established extensions as Google, including image and video. This clearly marks a visual transformation of ads and blends them with the organic listings.

87

Fact Book 2016

New website technologies new challenges

We also expect to see significant growth in the number of new websites using single page application (SPA) frameworks such as Angular.js and React.js. These frameworks allow the content within the web page to be updated without loading new URLs. Websites designed using SPAs offer a number of benefits for users and developers, for example, the speed (page content can be quicker to load on a website using AJAX), flow and accessibility of content can be more easily controlled. However, there can be drawbacks and challenges for both paid and organic search, so the choice of using an SPA needs to be well researched and carefully implemented in order to remain fully accessible to search engines and to avoid creating disadvantages.

Influencing Search

2015 saw a huge increase in the amount of creative activity with influential bloggers and vloggers, and a move away from traditional link buildings tactics to influence organic search, in 2016 this trend will continue as brands look to maximise value by integrating their digital brand and performance budgets.

This growth has lead MediaCom to develop and new approach to influencer and outreach scoring, the ‘Digital Influence Score’ (DIS). DIS rates an influencer on a scale of 1-100 on three pillars – Search, Social and Content, which allows us to take a balanced approach to comparing blogs, news, vloggers and other websites on a better like-for-like basis in order to assess their value to your digital and search objectives.

88

Search & SEO

MediaCom’s multi-layered approach to search optimisation

Source: Travel client

89

Fact Book 2016

MediaCom Wins ‘Best Large Integrated Search Agency’ UK Search Awards 2015

90

Affiliates

90

VOD/Online VideoTim LawrenceDigital Director [email protected]

Highlights

• In H1 2015 the online video market grew 45% to £292m, and is forecast to surpass £600m by the end of 2015 and £800m in 2016

• Mobile video spend is up 107%, representing nearly half of all video spend

• The market will evolve further in 2016 with advertisers increasingly turning to programmatic video, bringing with them a greater focus on viewable impressions

A look back at 2015

Market shift

In 2015, the market continued to grow and fragment, as more platforms were used to view video online. Ad spend has risen 45% year-on-year, a slightly slower growth than the previous year (+58%). Mobile video spend has doubled year-on-year, making it representative of 43% of all video spend.

The majority (86%) of the market is pre/mid/post roll as agencies plan in an AV neutral manner. This involves re-distributing TV budget into digital and following viewing behaviour, taking advantage of the benefits that digital delivery brings. Pre/mid/post roll format is most akin to TV and is generally the format in areas of premium content.

91

Fact Book 2016

Viewing trends

Broadcasters Audience Research Board (BARB) research shows the proportion of time-shifted TV viewing has increased to 12.3%, up from 11.3% in 2013 – a figure that creeps higher each year.

This figure differs dramatically by age group: viewing from the 75+ group is up 9% year-on-year, whereas 14-17s are down 13%, and 35-44s down 8%. TV viewers are increasingly from the same, older audience, and advertisers will need to turn online if they want to reach new, younger audiences.

The number of videos viewed online has increased by 13% year-on-year (source: comScore), up 11% amongst 25-34s. Mobile viewing shows the fastest growth with 40% claiming to be watching more video on their smartphone than in 2014 (source: On Device/IAB).

£22m £54m £83m £128m £187m £292m

Viral video & other £10m, 4%

Outstream/in-read £32m, 11%

Pre-post roll £250m, 86%

Source: IAB/PwC Digital Adspend H1 2015/Warc

H1 2010 H1 2011 H1 2012 H1 2013 H1 2014 H1 2015

Advertisers will need to turn online if they want to reach new, younger audiences

92

VOD/Online Video

Market reach

Increased spend coming into the market continues to put pressure on high quality pre-roll inventory. This, in turn, forces the market to evolve and develop new ways of reaching consumers. We have seen growth in the in-read format, placing video ad content within premium non-video environments. Facebook and Twitter also continue to develop their video offering, adding video to the social nature of their platforms.

Constrained by supply, broadcaster share of the market is now at 34%, a 50% reduction since 2011. Despite having best-in-market inventory, share is being eroded due to the consumer definition of ‘must view’ changing from programmes like The X Factor, to the latest videos from YouTube stars.

36%

27%

22%

10%

5%

Maximise view through rate

Maximise CTR

Audience index

Reach

Maximise viewability

Source: Newsworks

Inventory source

Campaign objectives

29%

9%

31%

31%

Programmatic Guaranteed

Private Exchange

Fixed Price Open Volume

Open Exchange

93

Fact Book 2016

Performance at-a-glance

The following graphic shows an index of Click Through Rates and Video Completion Rates over three categories: Age, Ad Length and Device. The index is compared to average VCR and CTR for entire combined impressions in each category.

By Age By Device By Ad Length

101

CTR (Click Through Rate)

VCR (Video Completion Rate)

18 - 2487

Agnostic

10195

10”

11370

25 - 34

97129

Connected TV

1294

15”

10686

35 - 44

101206

Mobile

101222

20”

10793

45 - 54

113149

PC

96121

30”

97103

55+124

107

Source: Videology EMEA Market Report 2015

94

VOD/Online Video


Growth of video

The market is expected to expand further and is predicted to reach over £800m in 2016, with this year touted as the year that mobile video spend will surpass desktop.

Although year-on-year growth will slow as the market matures, online video will continue to be one of the fastest growing sectors in media, driven by consumer viewing habits. According to Cisco, by 2017, video will account for 69% of all consumer internet traffic. As a result, video will increasingly become the norm for online brand campaigns, cannibalising the online display market as advertisers switch from standard display creative to video.

A recent Millward Brown study highlighted how effective video is in comparison to static display, with pre/post roll up to eight times more effective for message association and four times more effective for purchase intent.

Aided Brand Awareness

Online Ad Awareness

Message Association

Brand Favourability

Purchase Intent

0.3%

0.8%

1.3%

0.8%

0.9%

1.6%

7.5%

1.8%

4.2%

8.3%

1.5%

3.4%

5.3%

-0.3%

-0.1%

In-stream video (e.g. pre/post roll)

In-banner ads (video that sits in a standard display unit)

Static banner

Source: IAB Millward Brown 2015

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Fact Book 2016

Video market

22% of the display market is now video, and we expect this trend to continue with the market growing in both AV VOD and video distribution.

Changes in the year ahead will be driven by the demand in the market for premium quality video. Broadcasters will further open up and make inventory available in more ways, with Channel 4 leading the way and ITV following suit with ITV Adventures – ITV’s take on 4 Shorts – and a partnership with RadiumOne for ad syncing. Sky have also announced a programmatic partnership with Videology to boost inventory management and optimisation.

Following the display market, more ads will be sold both programmatically and via exchanges as demand for inventory grows. In a brand-focused channel this means the importance of ad verification and viewability will increase. The balance between reach, data and safety/premium content will be challenged and there will be an increased opportunity to buy viewable impressions.

Game changer

Over half of all videos on YouTube, and nearly a third of long-form content 4oD, is now watched on a mobile device, having a profound effect on viewing expectations. Completion rate from ads longer than 15" is only 56% on mobile, compared to 81% for the same second length on desktop. Despite this, the market hasn’t reacted and still 83% of VOD ads in 2015 were over 15" in length.

Vertical video poses a new challenge on mobile as well – a likely issue for production. There needs to be a step change in creative or consumers will turn off.

Completion rate for UK pre-roll video ads, by ad length and device, Q1 2015

Desktop

Mobile*

Note: Represents activity on TubeMogul’s platform. Broader industry metrics may vary. *includes mobile phone and tablet.

Source: TubeMogul as cited in company blog. April 15, 2015

7-10" 86%

84%11-14"

81%15"

77%7-10"

68%7-10"

56%7-10"

96

Affiliates

96

AffiliatesDaniel LancioniHead of Affiliates [email protected]

A look back at 2015

A year of record growth

2015 was another fantastic year for the affiliate industry. According to the IAB/PwC Online Performance Marketing Study (OPM) 2015, the industry has posted record growth figures. Spend was up to £1.1bn (+8%), revenue generated for advertisers has increased to £16.5bn (+14%) and Return on Advertising Spend (ROAS) sits at a record 15:1 – so for every £1 spent, £15 is generated in return. One slightly concerning figure is the amount of affiliates in the industry which currently rests at 12,000 – unchanged from the previous IAB/PwC OPM study. In order for the industry to continue to grow, the number of affiliates needs to grow along with it.

Cross Device Tracking

One of the biggest developments to come to market is Cross Device Tracking (CDT), which was launched by leading affiliate network, Affiliate Window, in March 2015. The technology was built on the basis that affiliates were losing out on sales, and subsequently, commission, as their users were researching on one device and then shifting over to another to complete a purchase. Affiliate Window’s CDT operates using deterministic information, by using customer login data to track them across multiple platforms. Since launch, the technology has posted some very interesting numbers – in particular, the average affiliate programme has grown by 6% from using CDT alone.

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Fact Book 2016

Online to Offline

Another big development in the industry is around Online to Offline (O2O) tracking. Similar to CDT, there have been concerns from advertisers when it comes to understanding the full customer journey; from researching online, to purchasing offline. Without the ability to make this connection, footfall to stores will continue to drop and our high streets will continue to struggle. As part of the O2O Green Paper which was produced by the IAB, 100% of advertisers want to track O2O, but only 32% have an actual strategy around it.

This demand for O20 tracking has driven the industry forward, with the emergence of card-linking providers (Eagle Eye, Reward Insights, Cardlytics) and the increase in spend through in-store voucher platforms (Vouchercloud, Vouchercodes.co.uk and O2 Prority Moments). Whilst there still isn’t an industry standard for O2O, we expect it to continue to play a big role in affiliate programmes across the UK in 2016.

Is tracking 020 traffic important?

Do you have a 2015 strategy to track 020?

Who will pay for 020?

Yes

No

Don’t know

Online

In-store

Other

100% 32%

8%48%

8%

24%20%

60%

Source: IAB – Online to Offline Green Paper

6.9m

£4.2m

57,000

6%

customer profiles built for Cross Device Tracking and targeting purposes

of revenue tracked via Cross Device Tracking

since 2015

cross device transactions tracked since March 2015

average growth of total sales for an affiliate programme tracked

through cross devices

Affiliates

98


The role of attribution

For 2016, attribution will continue to play a big role in affiliates. Attribution has been a topic in the affiliate industry for over 5 years, but mainly when discussing the channel in silo. 2016 will, however, bring about a much higher level of data analysis, as advertisers begin

to study spend and return across all their channels. This will allow brands to acquire more customers at a much cheaper rate, and eliminate channels which aren’t necessary to convert a particular user. Content sites continue to struggle in the affiliate industry due to their lack of call to actions, and we are seeing more of them venture into other areas of media to make up for those losses. In November 2015, Skimlinks – who work with over

1.5m editorial sites internationally – invested in programmatic technology to allow them to sell their inventory on different metrics. We will see other big affiliate brands turning to other paid channels unless the affiliate market can reward them for upper funnel traffic. Currently attribution is one of the best ways to do this.

New payment models in 2016

With arguments around the death of Last Click Cost Per Acquisition (CPA), we are expecting more advertisers, networks, agencies and publishers to look at different ways of working. Companies like Rakuten Marketing have brought Cost Per Engagement (CPE) tracking into their platform, which will allow advertisers to pay affiliates based on different KPIs such as ‘amount of time on site’, ‘number of pages visited’, or even ‘number of products viewed’. This will allow advertisers to understand the value of every single affiliate outside of simply driving a sale, so a different strategy can be brought forward to allow for fairer remuneration.

The evolution of networks

Over the last 5 years, the affiliate industry has remained fairly stagnant when it comes to technology, with most decisions on which network to use coming down to price, level of service and expertise. In 2016, however, we expect the role of affiliate networks to change. Finally, we are seeing the full evolution of networks which will allow advertisers to choose between full-service networks, self-service networks, DMPs, full attribution technologies and automated ad servers. As affiliate networks continue to diversify and offer different technologies (some of which are market leading), advertisers will be able to mould their affiliate strategy around a particular network and have a more bespoke approach to their activity.

2016 will bring about a much higher level of data analysis, as advertisers begin to study spend and return across all their channels

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Fact Book 2016

Email

SEM Generic

Channel-Unmapped

Display

Affiliate

All Advertising

SEM Brand

Source: Abakus – hypothethical data

100

Affiliates

100

Paid SocialJenny CarrickHead of Paid Social [email protected]

A look back at 2015

The growing influence of social

As we predicted in last year’s Fact Book, 2015 was the year where social became a much more integral part of the overall media mix. As a result of data fuelled audience profiling, providing real actionable insights, we’re now able to target audiences to a level of granularity never before achieved in this channel. Layer on customer intent and sentiment tracking and the picture becomes richer still, allowing us to reach real consumers in a way which feels natural to their social platform of choice.

Twitter embraces native

In the world of Twitter, we’ve seen huge strides taken within their native ads dashboard and the way in which advertisers can serve rich content over and above the traditional 140 characters. It will be fascinating to see how Twitter position themselves going into 2016. Historically, it was set up as an engagement-led platform where dialogue and personal interaction with brands was the name of the game. They’ve now set up a native DR focused ads editor and bolstered their DR offering with an ever increasing number of ad unit formats entirely geared to driving trade, granular behavioural targeting opportunities (forged through their partnerships with Acxiom and Datalogix), and an increased number of campaign objectives and models from which we can further focus our media buying.

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Facebook and Instagram move fast

Twitter are by no means the only social platform who have seen huge innovation over the last 12 months. At one time, Facebook would proudly proclaim that ‘move fast and break things’ was an integral value for the network. They’ve since revised this to simply ‘move fast’, testament to the amount of test and learn, hacks, innovation sessions and company acquisitions that have been integral to their business as they’ve grown. Facebook have undoubtedly learnt from past challenges they’ve encountered, learning and adapting on the go as they scaled their advertising offering. As such, the way they have approached monetising the Instagram platform has been a much more streamlined process. Instagram’s ads proposition was initially tested through IO buying, targeting only on an age and gender basis for branding campaigns. However, over the last year they have shifted to an integrated buying platform, incorporating both brand and DR objectives accessible through Facebook’s API, with virtually all targeting options we’ve been accustomed to now available on Instagram too.

£80m2012£10m

2011

£1m2010

£150m2013

Instagram’s growth

Source: Kleiner Perkins Internet Trends, 2015

£300m£200m

2015

2014

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The evolution of mobile video

In the UK, mobile video consumption has more than doubled in the last year, and that leap is reflected within the social sphere as well. On Facebook alone, we have seen an 88% growth in UK video posts. The medium within which this content is consumed is also critical here. Of the four billion global video views Facebook count daily, 75% of this traffic comes via mobile devices. Therefore, there has never been a more critical time to consider a mobile-first strategy when planning and buying across social.

Video specifically has been the big game changer in the last two years or so, with platforms evolving their native video product and also rolling out auto-play functionality. The power of utilising social for video content seeding has yet to be fully harnessed, but we can all agree the huge potential to capitalise on already incredibly strong learnings and tests in the space next year. Whether that’s through short-form video, gifs/moving images or 360° swipeable formats, social offers the perfect creative canvass to test, learn and tailor content to the audience you’re talking to.

The evolution of Twitter’s video product can be seen in the corresponding timeline. Since auto-play launched in June 2015, we’ve seen the same staggering improvement in performance as was reported on Facebook in last year’s Fact Book. This is hardly surprising, but what is crucial here is that rather than counting three second views as a measure of success, we’ve seen significant improvements in view-through rates as well, with a 7x increase in completed videos, suggesting a real appetite for this form of content within mobile timelines. A large part of this success has been through second-screening; syncing Twitter activity directly with the activity being bought by our TV teams.

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New year, new discoveries

Looking ahead, next year promises to be a really exciting time in the world of paid social. Data harvesting is becoming more sophisticated all the time, new social platforms are emerging and the major players are constantly bringing out innovative new products to test and learn with.

New products such as Twitter Moments, a new content curation discovery portal, are reflective of the changing nature of the social ecosystem. Users want to discover relevant and meaningful content, tailored to their interests whilst they’re on the go. In 2016, we’ll see a much higher emphasis placed on the quality of content over quantity. With a mobile-first approach to the channel and the various and numerous ad units on offer across the different social platforms, the creative opportunity is huge. Take Instagram for example, users are notoriously fickle, regularly unfollowing and refollowing accounts depending entirely on what is most aesthetically pleasing on their timelines. A user can now create a glossy looking filtered image with the flick of a thumb, and as such, the creative bar for advertisers is set that much higher. It’s crucial that any advertising content not jar with the painstakingly hand-selected set of stunning creative our audiences are used to seeing on their timelines.

One of the most interesting opportunities offered by the ever increasing power of Instagram in the paid social world is the relationship between its users and those of Facebook. The majority of users signing into Instagram do so through their Facebook login and consequently the re-targeting prospects now offered by matching audiences across both platforms have the potential to be incredibly powerful, something we’ll see much more of in 2016.

Evolution of video and storytelling on twitter

Vine Jan 2013

Video cards Apr 2014

Video Aug 2014

Periscope Mar 2015

Niche 2015

Amplify May 2013

SnappyTV Jun 2014

User video Jan 2015

Auto-play Jun 2015

Moments 2015

Source: Microsoft Research May 2015

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Shifting brand metrics

Paid social has changed and will continue to evolve in a similar fashion throughout 2016. No longer is it worth boosting posts here and there, putting small budgets behind funny one-liners, or promoting something just because it’s got a lot of likes. The change has been happening quietly in the background for the last 18 months or so, but 2015 was the year paid social got interesting. If budgets are limited, consolidate and make a big bang with the kind of cut-through that will tangibly shift brand metrics or drive trade. Otherwise we’re just shouting into an empty room.

Consideration is the key

As the scale of the opportunity and the granularity of the targeting continues to improve, advertisers need to be prepared to consider social generally, and paid social specifically from the initial stages of creative development, with the same thought and consideration going into this channel as has historically gone into other media content strategies. Within our system thinking approach, social signals are well established, but it’s the manner in which we capitalise on these conversations and reach our audience optimising through various buying models, which has seen huge improvements in 2015. Whilst a large part of what makes paid social special is the opportunity to capitalise on real-time chatter and live conversation, this shouldn’t be the only focus. The sheer momentum paid social has behind it going into next year means we need to be constantly planning ahead and future proofing our strategies and our ways of thinking. There can be no confusion between being reactive with simply being last minute. It’s crucial that we are ‘planning to be real-time’ with all our media budgets and content strategies, laddering up to an overall campaign objective and a pre-defined set of measurable KPIs, serving the right message, to the right people, at the right time.

References; Kleiner Perkins Internet Trends, 2015 Microsoft research, May 2015

Facebook & Twitter, Internal Data, 2015

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MobileRhoanna GlennAssociate Director – Mobile [email protected]

Highlights

• 2015 was an exciting year for mobile, with spends continuing to grow exponentially

• We saw the release of the highly anticipated Apple Watch and Apple Pay

• Android and Apple will go head-to-head to take on the auto space with CarPlay: the era of ‘conspicuous hardware’ has arrived, with mobile devices at its fulcrum

• Brands will have to employ even more customer-focused strategies as Amazon and Apple passively collect individuals’ data, shaping markets and driving them to focus closely on their mobile CRM and external data partners

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A look back at 2015

Mobile growth

Mobile continues to disrupt business models and has transformed the way we lead our lives.

There have been some bold predictions this year, particularly that mobile spends would overtake TV in 2016. Spends in H1 2015 for mobile showed 51% growth, accounting for nearly 80% of digital ad revenues. It’s clear that mobile is now the catalyst for growth in the digital market. This spend increase saw display as the growth driver, but with content and native growing at 47% this year, we predict they will take the largest share in 2016, and as a result content will play a key role in the growth of digital.

Wearable tech

Wearables have been a massive consumer conversation in 2015. Following the Apple Watch launch in April, Apple have been discreet on sales figures. Smartwatch penetration is currently at 1.3%, so still pretty modest, however predictions estimate that this figure will be in the 20s by the end of 2017. But the space that has really started to excel in wearables is the B2B market, particularly in the health industry where Fitbit launched their corporate division in a bid to place Fitbit at the heart of company wellness programmes.

Explosion of contactless

Contactless card payments have been around for a number of years now, but 2015 was the year that contactless truly exploded. Britain is

now the contactless capital of Europe. Three things are most likely to have caused this rise; TfL accepting contactless payments, the launch of services like Apple Pay and Google Wallet, and the maximum contactless spend increasing

to £30. This revolution in commerce will help to drive new opportunities in personalised communications and introduce new touch points in communication systems that brands will need to be fully cognizant, of both for their own communications and their competitors.

Data strategies

This year we have seen mobile strategies mature and evolve. Data continues to be a hot topic, particularly with regard to tracking, attribution and LTV (Life Time Value). But data is an area that the industry has successfully adapted to over the course of 2015, driven hugely by the success of native mobile players. Models that can define LTV from a number of initial interactions with an app (such as those created by the likes of app developers King) will drive the future of mobile success. There are some great pieces of tech out there which have enabled us to look beyond the click and download.

Britain is now the contactless capital of Europe

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PPC spend

As PPC becomes more expensive to invest in, we will see brands capitalise on in app indexing, deep linking and App Store Optimisation (ASO). Apps and mobile sites will start to dominate online visibility. If executed in the right way, brands will be able to decrease their PPC spend but still have the same share of voice. This will undoubtedly have a positive effect on the app ecosystem as more apps will be released. But in order to capture the modern consumer’s attention, these new apps must be first rate.

Mobile traffic

With the digital sphere changing rapidly, the term ‘digital’ will soon refer solely to mobile. Mobile traffic has already overtaken desktop, with more than 50% of searches on Google coming from mobile devices, a figure that will only rise in coming years. Google’s move to penalise sites that aren’t mobile ready was dubbed ‘Mobilegeddon’ by the media, and it aptly demonstrated the extent to which mobile is overtaking desktop. However, simply having a mobile site won’t ensure a site is indexed; sites will need to work in unison with an app.

Mobile data leads the way

In 2016, ‘data’ will replace ‘native’ and ‘programmatic’ as the industry’s big buzzword. But what makes data so exciting? That depends on what you do with it. Refining data to make something tangible is the difficult part, not collecting it. Brands and advertisers are utilising this influx of information and will rely on mobile as the leading measurement.

Does this mark the beginning of the end for last click attribution modelling? Data and passive data collection is something that brands need to start considering. Google, Amazon and Apple collect data 24/7 which is great for personalisation but could pose dangers. The holy grail of advertising is to deliver an audience across multiple screens. Tech and media stakeholders, such as Google, Facebook and Amazon, are in a strong position to deliver this as, through deterministic data, they are able to recognise the user via their login irrespective of device.

However, these are walled gardens and the walls are getting higher and higher. Advertisers cannot export campaign learnings and data outside of such ‘gardens‘ and apply them across the rest of the digital landscape. Agencies and advertisers require open partners with cross-device technology, which will allow them to deliver an audience on any device across the whole of the digital ecosystem. The expertise of audience-buying platforms such as Xaxis will help advertisers realise this vision.

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A new age of mobile video

Historically, the uptake of mobile-first creative strategies has been slow. In recent years this was partially due to limited access to the right tools and experts. In 2015, we saw the death of Flash, which forced brands to reassess their creative delivery and formats. 2016 will see a

transformation in video. It will become HD, 360°, rich and immersive, shot in portrait for mobile only. Though we have seen the explosion and dominance of native in 2015, creative and content go hand in hand. For brands to truly master native, they need to create great ‘thumbstopping’ moments.

Data, privacy and fraud

Ad-blocking, viewability and fraud will be addressed in 2016. In H1 2016, the IAB will be setting their viewability standards for mobile, and their L.E.A.N principles also will be rolled out alongside this. As more brands invest in viewability tech, we may see media owners trading on viewed ads only. The solution to ad-blocking is not just creating better content, it’s creating the right experience, at the right time and on the right device.

As our homes and lives become more connected, we will become increasingly reliant upon our devices, the internet and instant connection. So what impact will this have on our everyday lives? Recent news of hacking show the importance of security software, highlighting this as an area of concern in this ever evolving digital world. Hackers will continue to figure out how to make apps appear trusted, meaning the likes of Apple will become much stricter in controlling the use of their private API.

In 2016, ‘data’ will replace ‘native’ and ‘programmatic’ as the industry’s big buzzword

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Disruptive audio

With 76% of the UK population using a smartphone and 53% checking their phone within five minutes of waking up, it’s clear we’re a mobile addicted society. 4G’s penetration is forecast to reach 24.9m people in the UK in 2016. This will make content even more accessible, resulting in

us becoming more addicted and, therefore, more distracted. With nearly a quarter of all adults stating that they ‘almost always’ and ‘very often’ use their phone to consume content while watching TV or a film.

With distracted individuals the impact of traditional ATL and product placement will be

significant. Understanding the communication system, and how mobile can disrupt or augment a communication, will become crucial for all brands. Channel planning will be influenced by mobile’s ability to distract; as a result we believe audio will play a key role in disrupting the distraction. Unique audio experiences will define creative messaging, making audio connection a key component to all media executions. And what better way to connect to these audio experiences than with your 4G smartphone?

Apple’s next steps

Each year we wait in anticipation for the latest release of the iPhone, but what makes 2016 different? Apple may be late to market with some of their products, jumping on the tablet and smartwatch bandwagons after other manufacturers had already tested the water, but their reticence often means that Apple learn from the mistakes of others, allowing them to deliver the best. This year the uptake of the Apple watch was slower than anticipated, but many fans have been waiting for the second iteration. In true Apple style not much is known about the next set of features, however, rumours include native app support, tetherless WiFi and the ability to watch videos and possibly facetime calls.

Rumours surrounding the iPhone7 are inevitable, waterproofing and wireless charging being two of them, which we have seen already from LG, Samsung and Sony. As each manufacturer strives for the largest screen possible Apple may do away with the home button all together and possibly develop a wraparound screen. However, Apple fans will have to be patient as it’s not due to be released until September 2016.

4G’s penetration is forecast to reach 24.9m people in the UK in 2016

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Display increased share of mobile spend

Content & Native (inc. in-feed) is half of mobile display

£1.079bnH1 2015 total

£512.4m

£239.5m

£137.9m

£126.1m

£8.9m

H1 2015 display total

Content & Native, inc. in-feed, 47%

Standard display* 27%

Mobile video 25%

Remaining display formats** 2%

48%Display

52%Paid for search

Category H1 2014 Share

SearchDisplayOther*

55%44%1%

Source: IAB/PwC Digital Adspend H1 2015

*Other: classified, SMS and remaining formats

*Standard display includes standard banners, rich media banners, intersitials and MPUs **Remaining display formats include music and tenancies

Introduced in 2014: Content marketing = paid for sponsorship, advertisement features, in-feed and native distribution tools Source: IAB / PwC Digital Adspend H1 2015

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ContentTom Curtis / Ben BleetHead of MBA / Content Strategy Associate Director [email protected] / [email protected]

Highlights

• There has been an uplift in spend in content marketing

• Video is set to become a dominant medium in 2016 with vertical video, 360° video, AR and VR all gaining traction

• The spotlight is set to turn towards measurement and evaluation

A look back at 2015

Context of content

Despite its ubiquitous use within the industry, throughout 2015 the word ‘content’ continued to stimulate debate. MediaCom have remained, and continue to remain, clear on this point: for us content includes both brand content that people choose to engage with, as well as more traditional interruptive advertising formats across all media. It has to. We cannot define a 30" TV spot as content only once it’s uploaded to YouTube for people to seek out.

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Content marketing

The Content Marketing Association (CMA), of which MediaCom is a member, describes content marketing as “the discipline of creating quality branded content across all media channels and platforms to deliver engaging relationships, consumer value and measurable success for brands”.

With that in mind, 2015 was another big year of growth with the CMA, in their 2015 Content Marketing and Data Intelligence Report, estimating that content marketing represents around £1 in every £4 spent on marketing.

Ad-blocking

Sure enough, consumers also indicated their growing fatigue for disruptive forms of advertising, with IAB research showing one in seven (15%) of British adults online currently using ad-blocking software. Much chin-stroking and debate ensued at conferences throughout the year. Publishers reacted in different ways. Bild.de, in Germany, asked users to pay for their editorial if they kept their ad blocker on. News Corp, meanwhile, announced the relaxation of its paywall. Many content marketers cited the growing integration of native advertising into campaigns as the answer to the threat of ad blockers. Although, like ‘content’, the interpretation of ‘native’ has remained controversial. The IAB’s own ‘Content and Native Definitions Framework’ (version 2.1 was published in September) categorised it as distribution advertising formats only.

The power of mobile apps

Mobile overtook desktop as the primary access point and 2015 was the year messaging apps showed they were here to stay; more than 40% of 16-19 year-olds in the UK are using Snapchat. As consumers’ behaviour has evolved, so have established publishers in their mission to engage audiences. Snapchat’s Discover platform – with deals from established media brands such as Sky Sport, MailOnline, Vice and Mashable – is a great example of these type of developments.

40%of 16-19 year-olds in the UK are using Snapchat

More than

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Engage and inform

The Advertising Standards Association (ASA) continues to be vigilant when it comes to branded content on social media. They introduced a set of guidelines for brands and YouTube creators wishing to work together. This highlighted the importance of transparency to ensure consumers understand that the content is paid for. Meanwhile, YouTube introduced 360° video, demonstrated by our partnership between Shell and the Telegraph, in September: ‘The Virtual Reality Drive: A 360° lap with former Stig, Ben Collins’.

MediaCom’s Cannes Lions winning Bose Listen For Yourself campaign showed how a consistent approach to content, and a clever use of data, can deliver impressive results. This was a campaign that truly embraced the principles of our content framework and its three I’s: Inspire, Inform, Involve. Grab your audience’s attention with content designed for widescale appeal and awareness, and then make it relevant to them with content that is both informative and useful. Then grow brand advocacy through ongoing engagement.

Alongside the growth in interest and investment in content, measurement has become critical. We believe success should be defined by proper marketing objectives. The number of views (or even shares), while important, is a means to an end. Driving awareness and ultimately sales, is becoming the main goal for most marketers. It’s fair to say, however, that 2015 did not see the unified approach to measurement that many marketers are craving. We expect this to be very much a focus for 2016.

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A continued shift towards longer-term partnerships

We expect to see continued growth in spend on content marketing in 2016, driven by partnerships with a broader mix of publishers, production companies and brands. Content, media, editorial and brand partnerships will become less campaign-led, and more ambitious with longer-term goals. ‘Episodic content’ will likely be an overused phrase by the end of the year. Acquisitions in 2015 such as Dentsu Aegis Network’s purchase of John Brown, prove the industry is pushing this agenda. As platforms develop, so will the importance of editorial verticals to enable platforms and brands to engage audiences around their passions. Interesting examples include Vice’s Broadly, a video-led channel for women (in partnership with Unilever), and YouTube Gaming.

Developments in video

Video will see continued growth as numerous tech companies push their products. We’ve already seen several examples of this; from Google featuring video in search results, to Facebook’s forthcoming video feed, and Snapchat’s geo-fenced ‘Our Story’ feature.

As part of this growth we will continue to see a move towards the use of more visual language among audiences, with the consumption and creation of video alongside GIFs, photos and emojis. More brands will invest in vertical video (why ask a viewer to turn their phone round just to watch your ad?) and in the longer term it will be interesting to see if creative agencies embrace vertical before other video technologies begin to take over.

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New realities

Augmented reality and virtual reality will continue to provide opportunities for brands to supply visceral entertainment and product demo experiences through technologies such as Facebook’s Oculus Rift and Google Cardboard.

We expect to see the market split: on one hand, casual usage through portable devices that smartphones are able to slot inside, versus more advanced equipment favoured by the gaming community. Artificial intelligence, through personal assistants such as OK Google, Google Now and Siri, should become ‘Beneficial Intelligence’, presenting more opportunities to brands to increase content relevance.

Personalisation

Personalised content will continue to permeate marketing strategies. Broadly speaking, as humans we elicit a strong emotional response towards a person who proves that they understand us, make us feel good, or inform us (these three actions are of course not mutually exclusive). As brands, the key purpose is more or less the same, just with the aim of selling a product or service as the end goal. Therefore, using personal and local data to create meaningful moments will be further embraced in the coming year. Campaigns like 2015’s Share a Coke and EE’s BufferFace are great examples of the effectiveness of personalised content.

Unification

As technologies develop and devices become more unified, we will see a continued focus from publishers and brands on content created with specific platforms and audiences in mind, ensuring content is delivered to the audience in the correct context.

Ad-blocking vs subscription

In 2016, the debate will continue. With the proliferation of ad-blocking software and premium services like Netflix and Amazon Prime squeezing out the opportunities for ads to get seen, brands will need to integrate content into other marketing disciplines. This will allow them to ensure consistent content strategies that reinforce brand equity and guarantee access to their consumers.

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Buy buttons

Brands will start planning content for the arrival of buy buttons on social platforms, including Facebook, YouTube and Pinterest to name a few.

Content discovery

In 2016, we’ll be hearing a lot more from content discovery platforms like Taboola and Outbrain. One thing we hope will happen is that the quality of some of the content many of these products link to will improve. Google is also expected to join the fray with its own native distribution product. Watch out for the rise of WPP’s own plista as well.

Content measurement and effectiveness

We expect 2016 to see a spotlight turning towards establishing industry standards for measurement and evaluation of content marketing.

This will likely focus on two areas. Firstly, a more universally agreed set of metrics for trading purposes (clicks, engagements etc). Secondly, and for most brands far more importantly, more business oriented outcomes e.g. an increase in propensity to purchase (or far more preferably; actual purchases) alongside elements such as footfall, sign-ups and brochure requests.

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AV PartnershipsChris FullerAssociate Director of AV Solutions [email protected]

Highlights

• The broadcast sponsorship market has shown positive growth in 2015

• 2016 will build on a strong 2015 to deliver further market growth

• Diversification has increased the breadth of AV partnerships offered in the market

A look back at 2015

Growing demand

The appetite for broadcast sponsorship has grown in 2015, building on a strong 2014. A lower than usual supply in the market, as well as an opportunity for deeper partnerships, contributed to market conditions which have enabled broadcasters to command better prices for their properties.

The broadcast sponsorship market has grown by around 5% year-on-year, with a market worth of around £194m. Channel 4 have been the real star of 2015, driving the market with a 10% growth.

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Channel 4’s growth has been down to a combination of factors

• The ability to leverage successful formats like Gogglebox and First Dates for higher value via renewals

• Being able to ensure all new opportunities have a significant short form element, via 4 Shorts, attached to the package, as well as increased licensing and product placement opportunities

• Selling standalone 4 Shorts branded content as seen in Scope’s ‘What Not To Do’ series (pictured above)

• Selling all their inventory across the network

ITV’s powerhouse entertainment formats

ITV have also had a very good year selling their properties, once again proving that TV is a powerhouse of reach. The broadcaster maintained appetite for their sponsorships while their entertainment formats still offered appointment to view; the final of Britain’s Got Talent delivered an audience of 13.4m viewers, and the latest series of I’m a Celebrity Get Me Out of Here drew 10m viewers for the launch episode.

Big changes at Sky

Sky Media will also be buoyed by a strong 2015, however, the impact of Viacom’s acquisition of C5, and the resulting effect on performance may not be felt until 2016, as Sky take control of the channel’s £250m TV ad sales. Sky also seem to have changed tact with regards to the packaging of their sponsorships, offering much larger strands that are more attractive to advertisers.

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Market developments

The appetite for broadcast sponsorships in the market looks set to remain high in 2016. Because of this high demand, inflated pricing and packages with multiple elements – either from licensing, talent involvement, additional short-form content, or product placement – will become the standard market offering moving forward. Whilst the broadcast sponsorship market is the single biggest part of the AV market landscape, it’s the offerings in the rest of this market that will become really interesting in the coming year.

Dynamic partnership opportunities

The breadth and quality of AV partnership opportunities is going to be greater than ever before in 2016. Whilst All4’s short-form video series ‘Shorts’ may not have delivered the scale to date on Channel 4’s digital VOD platform, we believe this is something that will only improve in time. Their biggest contribution is ensuring a benchmark of quality that digital short-form has to deliver and live up to. ITV are following in C4’s footsteps in their approach to digital AV with the launch of ITV AdVentures in partnership with Believe Entertainment – a company with a heritage of distributing short-form digital with high production values stateside.

Production companies back digital

It’s not only the broadcasters who have evolved their offerings, powerhouse production companies have also put great support behind the new digital broadcaster market. Endemol Shine’s numerous YouTube formats and acquisitions, Fremantle’s Shot Glass productions and All3Media’s Little Dot are all pushing high quality branded content and sponsorship opportunities, largely via YouTube.

Digital publishers offer new opportunities

Large digital publishers such as AOL and Yahoo have an exciting slate of new programmes and formats for sponsorship, offering broadcast level delivery and quality with the added accountability that digital brings. There are also some really interesting companies diversifying to meet the demand in the marketplace. Red Bull Media are a prime example of a dynamic company that are investing heavily in their own production capabilities to deliver highly produced films, most recently illustrated by the Sony Xperia Z5 partnership (see images).

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An increase in quality, a more diverse range of content and genres, and an entry price far lower than your typical broadcast partnership, means 2016 will be a very exciting year for digital AV partnerships. It’s an area we expect will drive the market to new heights in the future.

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EventsKatie HollandSenior Events & Sponsorship Manager [email protected]

A look back at 2015

Captivating consumers

It’s been an extremely interesting year for experiential marketing and events, with brands embracing digital, social and new technology.

2015 has seen brands reaching out to their active audience, providing experiences that will captivate consumers and make them want to share what they see or experience. By encouraging social activity with our audiences, word of mouth remains one of the strongest endorsement.

Brands have become far more open to experimentation with technology, disruption and sustainability. Dell’s recent launch for their new XPS 13 and 15 laptops saw them positioning the XPS as a modern day canvas for art and life, with an oversized laptop housing a selection of custom-made animations activated by stepping on the laptop keyboard. As the animations play out, they escape the screen to fill the wall with dynamic colour movement. The experience also houses a digital art gallery and an art inspired photobooth.

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Changing the landscape

New venues continue to change the events landscape, offering new and exciting possibilities that can help shape the experiences we create. 2015 saw the opening of venues such as The Steelyard beneath Cannon Street Bridge. The space houses a listed steel crane and track (where trains would be hauled into the space to be maintained) which gives it an industrial feel along with the beautiful exposed brick. The event space is uniquely multi-purpose and works hand-in-hand with technology advancements, offering a juxtaposition between old engineering and future tech.

Sustainability

As brands became more environmentally aware in 2015, we saw more brand experience campaigns that sought to fundamentally change the way we think about the world around us. Shell worked with Pavegen on the ‘Power of Sport’ campaign, which used game-changing technology to encourage the next generation to think about energy in a different way. Pavegen worked with Shell to install 200 kinetic tiles into a local football pitch in Morro da Mineira, a favela, in Rio de Janeiro. These tiles used the movements of the players to power the floodlights surrounding the playing area and provide a tangible off-grid power source that will benefit the whole community for the foreseeable future.

The industry is focussing on sustainability in less spectacular ways too. Many experiential agencies are repurposing roadshow kits for use with multiple clients, resulting in far less waste and letting agencies pass on fantastic cost efficiencies to clients.

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Showstopping moments

Technology, disruption and sustainability will continue to define 2016 as brands focus on delivering experiences rather than events. It’s this change in terminology that has encouraged event producers to think about projects in a more integrated fashion, focussing on shareability, data and brand experience’s place within the larger communications system.

It’s highly likely that we’ll see more integrated campaigns, as brands strive to create show stopping moments with real, measurable value as part of their marketing plans. The Jurassic World Waterloo Station takeover generated astonishing results mixing live experience with digital and OOH to drive ticket sales.

Universal Pictures teamed up with with JCDecaux, MediaCom and Kinetic to transform the station into a Jurassic World adventure. The site featured 3D models of the film’s dinosaurs, accompanied by audio tours, a retail unit, banners, vinyl wraps and floor media. An immersion zone was created in the tunnel connecting the main station with the underground, featuring ambient sounds and visuals such as raptors in a jungle, a creek with a canoe and a prehistoric underwater show.

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Emotion and immersion

Technology is set to improve a consumer experience by deepening immersion and making productions more shareable. But we have to think about what our audience want to see, do, hear and feel, to make their experience even more immersive, as users generate their own content from the environments and experiences we create.

By engaging consumers through experiences, brands are breaking down the traditional transactional relationship. Consumers are beginning to actively embrace brands and participate in experiences in return for more than just a product, a powerful emotional relationship is beginning to emerge through this as consumers start to consider what a brand can do for them.

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SportJohn ScurfieldHead of Sport UK [email protected]

Highlights

• Revenues in sport sponsorship are tracking in line with forecasted growth of 4.1% year-on-year from US$55.3bn in 2014, to a forecasted US$57.5bn in 2015 (source: IEG)

• The fight between official and non-official sponsors intensified during the Rugby World Cup 2015

• Sport’s digital system continues to thrive, the demand for mobile-friendly sports content continues to grow, and sporting events are some of the most talked about on social

• Next year’s huge sporting calendar of events presents brands with an exceptional platform to drive sales, increase market share and deliver a significant return to their bottom line

• Digital and social media will continue to open more avenues for brands seeking to entertain, educate and interact with consumers through sport. However, it is critical that sponsorship programmes stir emotion and passion in fans, while linking a brand or product to the sport

• The Rugby World Cup 2015 topped their commercial revenue targets reaching £240m, representing a 50% increase on the 2011 tournament in New Zealand

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A look back at 2015

Sporting engagement

In 2015 sport’s digital system continued to thrive, the demand for mobile-friendly sports content grew at pace, and sporting events were some of the most talked about on social. Forward-thinking brands recognised the need to go beyond traditional branding and communication and put audience engagement at the heart of their strategies.

Brands that did this successfully were able to generate unique and emotive content which drove loyalty and affinity, resulting in significant shifts in key brand performance metrics. However, it wasn’t only official sponsors who capitalised on this trend. Non-official sponsors also managed to take advantage of the fact that, in this digital age, everyone can create content and distribute it to consumers directly.

Winners and losers

In addition to battles between competing brands, 2015 presented significant challenges to the reputations of sporting organisations. Disappointing performances from the northern hemisphere during the Rugby World Cup 2015, and controversy surrounding key organisations in the sporting landscape, placed pressure on both rights-holders and sponsors.

The big winners of 2015 were brands who connected with consumers at scale, on a deep emotional level, in the right environment, at the right time. Brands such as Bose and Shell utilised data and insights to develop innovative content solutions. Bose’s Mercedes F1 partnership, and Shell’s ‘Power of Sport’ campaign, harnessed the true power of sport sponsorship to achieve specific business goals.

Fact Book 2016

130

Sport


A busy calendar

2016 is set to be an exciting year for sport: Team GB have set ambitious medal targets heading into the Olympic Games in Rio; the home nations will be well represented at Euro 2016 (England, Wales, Northern Ireland and the Republic of Ireland will all be heading to France in the summer); and the excitement surrounding the 2016 Ryder Cup is already growing amongst core golf fans despite the competition being nearly a year away. The sheer scale of these events and the opportunities for sponsorship hold incredible potential for brands looking to engage with sports fans.

As millions of global consumers continue to connect with sport on an emotional level, 2016’s sporting calendar presents brands with an exceptional platform to influence sales, increase market share and deliver huge returns. But sport is a people business, so the authenticity and timeliness of a brand’s marketing programme will be key to engaging with passionate sport fans in order to drive results commercially.

While digital and social media offer new avenues for brands to entertain, educate and interact with consumers, sponsorship campaigns will need to explicitly link a brand or product to the sport while stirring passion and emotion in the fan.

System thinking for real-time conversations

To ensure sponsorships are remembered long after the final whistle sounds, brands need to own the key sporting moments through real-time conversations. These moments are not random, but can be planned through an integrated, full-service sponsorship model. Carefully crafted community management strategies and the production of engaging bespoke content will allow brands into the hearts and minds of consumers.

Successful brands will experience the benefit of a strategic shift towards an integrated full-service sponsorship model encompassing strategy, activation and measurement rather than the traditional silo approach to partnership activations. System thinking will allow brands to be increasingly strategic in order to capitalise on their partnership rights and assets, allowing non-official partners to edge into territory previously owned by sponsors.

Carefully crafted community management strategies and the production of engaging bespoke content will allow brands into the hearts and minds of consumers

131

Fact Book 2016

Capturing attention

It is critical that brands negotiate the right assets through the development of an integrated sponsorship model; tailoring a unique package to suit business needs, as opposed to the existing approach to sponsorships, where packaged rights are the norm. This approach will allow brands to activate a suite of benefits through overarching marketing initiatives across paid, earned and owned channels.

A holistic, multi-platform activation strategy will ensure a brand’s content works harder to capture audience attention, particularly as attention spans continue to decrease – from 12 seconds in 2000, to 8 seconds in 2015 (source: Microsoft). Reinventing the fan experience through real-time, emotionally engaging content – like adidas and FIFA’s ‘all in or nothing’ campaign during the 2014 FIFA World Cup – will extend sponsorships beyond a purely commercial relationship with the consumer.

Embracing new platforms

Emerging platforms and trends present another opportunity for brands to extend their partnership reach and engagement as stadiums and teams become increasingly digital-savvy when it comes to commercialising their relationship with fans. NHL’s partnership with GoPro was a great example of this, bringing hockey fans closer to the action on ice by using GoPro cameras to deliver previously never-before-seen perspectives of the game and generating over 153 million impressions on Twitter in a single month.

While next year guarantees some great battles in sport, it will be the brands that use creative strategies to stir emotion in fans that will ultimately come out as the big winners.

132

Sport

Game changers

According to research by WPP partners IEG, sponsorship spending has increased by an average of 4.3% per annum over the past five years. Based on this trend and market intelligence, MediaCom Sport predict the total global spend on partnerships in 2016 will be over US$59.2bn.

While this offers plenty of reasons to be optimistic, it also means brands will need to work harder to win consumers’ hearts and minds. Only by doing this will they be able to maintain market share and grow revenue in what will be a huge year for sport around the globe.

Sport is a competitive business, and in the current marketing landscape, it is critical to develop an integrated marketing strategy that will cut through and differentiate the brand. MediaCom Sport’s unique position within a media agency, enables us to help brands achieve this lasting brand impact through sponsorship.

Over the past two years, MediaCom Sport have developed and implemented a market-leading system of tools to ensure brands make well-informed decisions when investing in, and activating sponsorships. This includes tailoring a rights package that goes beyond the standard formula, to maximise cost efficiencies, engage key target markets and deliver desired sponsorship outcomes.

Working closely with MediaCom Beyond Advertising, our specialist content division and digital experts, MediaCom Sport are able to develop a full-service marketing programme that will cut through the clutter and guarantee a deeper connection with customers.

133

Fact Book 2016

Connected Sponsorship

Developed by MediaCom Sport, combining MediaCom’s knowledge of the marketplace with the industry’s leading expertise in sponsorship evaluation and analysis, Connected Sponsorship enables sponsorship value to be assessed to the levels of accuracy and credibility that brands expect from the assessment of their advertising performance.

The 4 component elements of the tool deliver:

• Customisation to an individual client’s requirements

• A 360° assessment of sponsorship value and effectiveness

• Objective and consistent interpretation of different sponsorship properties

• Accurate use of key sponsorship data points to inform decision-making

Delivering accountability to sponsorships Connected Sponsorship Selector – Assessment of a client’s business alignment to selected sponsorship properties – based on strategic factors such as brand positioning, marketplace clutter, audience profiting, sector popularity etc.

Connected Sponsorship Evaluator – The evaluator tool analyses and calculates the value delivered from branded exposure and tangible sponsorship assets. Coupling accurate audience data with media pricing, and a final bespoke calculative factor, ensures precise reporting across brand sponsorship activities.

Connected Sponsorship Factor – A proprietary approach to combine the assessments of Selector and Evaluator, allowing us to compare effectiveness of different properties like-for-like.

Connected Sponsorship Impact – Network expertise to help a client determine the impact of a sponsorship against a target audience via qualitative and quantitative audience research.

134

Affiliates

134

CultureComSanjay Shabi Head of CultureCom [email protected]

Highlights

• Steady growth in ethnic populations leads to increased mainstream visibility

• Ethnic audiences still favour traditional media

• We’ll see greater accountability among ethnic media suppliers

135

Fact Book 2016

A look back at 2015

Growing influence

The UK continues to see a steady growth in ethnic populations, both in terms of volume and mainstream influence. Recent research estimates that one in four primary school children in the UK come from BAME families, an IPPR study found that up to 300 different languages are spoken by children in London schools (with 95 spoken in Hackney schools alone). The impact this will have on consumers, products and services is enormous and we need to future proof our businesses by learning to communicate with these audiences.

Though the rest of the media industry has been involved in a headlong rush to embrace all things digital, the ethnic sector lags behind in its adoption of these new technologies and platforms. There’s still a large reliance on traditional media (TV, radio and print) to reach the ethnic population, where there remains a reliable audience. According to BARB audience figures, Hindi language entertainment channel Star TV made it into the top 10 best performing daytime channels for housewives with children. Admittedly, we’re not talking Bake Off-sized audiences, but it is proof of the staying power of linear TV for ethnic audiences.

With a growing ethnic audience comes an increase in visibility for key cultural events. We continue to see the rising prominence of celebrations like Diwali and Eid as other cultures seep into the mainstream. Diwali celebrations on Belgrave Road in Leicester (pictured) saw approximately 35,000 people attending the turning on of the lights. These celebrations are among the biggest outside India.

CultureCom


Greater transparency, insight and accountability

Following the trend of the rest of the industry, we expect to see more adaptation to the digital world by media owners rooted in traditional media, albeit a little more slowly than their mainstream counterparts. We’ll see networks like Diversity Digital, One Central Point and Joinville come to prominence as networks bundle together channels and publications to offer more appealing buying options to advertisers.

As a result of this, we’ll see greater accountability amongst ethnic media suppliers as they begin to bring themselves in line with the digital standards of the rest of the media industry. We’ll start seeing ethnic suppliers offer more in the way of transparency, as well as more information on circulation figures and distribution points. Crucially, this will all serve to make ethnic media a more attractive proposition to advertisers who may previously have been wary of the lack of assurance and openness in the space.

The improved insight into ethnic audiences provided either by media owners, or independent desk top research providers, will help further unlock targeting opportunities that will help the market mature and grow. Tools like Experian’s Mosaic (pictured) are already offering vastly improved insight when it comes to ethnic audiences. We can use these insights to plan more effectively for, say, South Asians’ equivalents of Christmas (when consumption of certain products and services is likely to spike), or Eid for Muslims around early Summer.

Though the ethnic media space isn’t sophisticated or as dynamic as other market sectors like social media or programmatic, there’s still plenty to look forward to in 2016 as Britain’s cultural richness makes the media landscape more challenging and diverse.

136

137

Fact Book 2016

138

CultureCom

Publication Black African & Caribbean Titles

The VoiceThe GleanerNigerian WatchAfrican VoiceThe TrumpetThe Afro News

Publication Bangladeshi Titles

Weekly Desh SurmaBangla PostBangla MirrorJanomotNotun DinPotrika

Publication Asian Lifestyle Magazine

AsianaAsian WomenAsian Global ImpactBEE

Publication Punjabi Titles

Des PardesSamaj WeeklyPanjab TimesJagatwaniMann Jiff WeeklyPunjab Telegraph Weekly

Publication African Black Caribbean Women’s Magazines

PrideBlack Hair & BeautyAspireArise

Publication Asian Entertainment Titles

CineblitzMovieBollywood PostBollywood Glitz

Publication Asian English Titles

Asian AgeEastern EyeIndia TodayAsian ExpressAsian LeaderAsian LiteThe Asian TodayThe Indian PostAsian Voice

Publication Urban Music and Youth Titles

RWDKnowledge

Rating

1099864

Rating

9↑7↓77777

Rating

10977

Rating

744444

Rating

9877

Rating

8874

Rating

111111888887

Rating

1110

139

Fact Book 2016

Publication Muslim Titles

EmelMuslim PostSistersMuslim WeeklyMuslim News

Publication Middle Eastern Titles

Al ArabAl-AhramArabesque

Publication Turkish Titles

London Turkish GazetteAvrupaOlay

Key

↑↓

PinkGreen

Publication Jewish Titles

Jewish ChronicleJewish News

Publication East Asian Titles

China Daily European WeeklyEpoch Times Sing Tao DailyZoneastThe OrientThe Filipino Observer

Publication Pakistani Titles

Daily JangThe NationDaily AusafUK TimePakistan Post

Publication Gujarati Titles

Garaji GujaratGujarat Samachar

Rating

107754

Rating

444

Rating

755

Gone up in ratingGone down in rating

ClosedNew

Rating

118

Rating

1199643

Rating

129887

Rating

88

140

CultureCom

Publication Lithuanian Titles

Tiesa

Rating

4

Publication Russian Titles

KommersantRussian London CourierLondon InfoPulse UK

Rating

11444

Publication Greek-Cypriot Titles

Parikiaki

Publication Irish Titles

The Irish Post

Publication Sri Lankan Titles

UK Lanka Times

Publication Business Titles

Asian TraderCurry LifeAsian WealthMasalaThe Weekly TribuneBusiness India

Publication Polish Titles

CoolturaPolish TimesNowy CzasPolish ExpressVoice of PolandHalo TV

Rating

3

Rating

3

Rating

4

Rating

1176665

Rating

987764

141

Fact Book 2016

Publication Congolese Titles

Pendro

Rating

5

Publication Somalian Titles

SheekoKasmoSomali Eye

Publication Romania Titles

Zairul Romanescn WeeklyDiaspora Romaneasca

Rating

554

Rating

75

Publication Portuguese/Spanish/Latin America Titles

Brazilian NewsExpress NewsExtraNoticiasCuba SiLeros

Publication French Titles

London Macadamici LondresThe French Paper

Rating

665544

Rating

444

Key

↑↓

PinkGreen

Gone up in ratingGone down in rating

ClosedNew

142

Affiliates

142

KidsGraeme Canter / Lisa KinsellaJoint Head of i-Lab / MarketPlace Manager [email protected] / [email protected]

A look back at 2015

A changing market

2015 has been a very topsy-turvy year in the kids TV market.

Total viewing across commercial TV increased in 2015. This was, however, not the trend across all channels, which definitely raises some interesting points.

The overall picture for January-November saw the commercial market up 7%, however, the effect on some of the larger commercial stations has had an impact across the market. Looking at Q4 (the key time of year for toys and games advertisers), we forecast a decline in viewing of between 1-2%, which is not great news for advertisers.

In last year’s Fact Book we reported that impact delivery across all children’s channels had dropped 2% with the total year finishing up at -1%. The Turner portfolio was facing the biggest challenges with their viewing down 12% for the year.

The 7% increase we’ve seen this year has been driven by a handful of stations that are having a particularly strong period, but on the flip side, a selection of key stations are really struggling.

143

Fact Book 2016

Channel performance

There has been a significant difference between viewing on the younger kids’ channels, versus the older profiling ones. The channel taking the biggest hit to date is ITV’s offering, CITV, whose key target audience is kids aged 6-11. The channel struggled for viewing figures every month last year, with January-November 2015 down 19% (yoy 2). The reasons for this rest squarely with their programming schedule as this year they have only launched two new shows; Thunderbirds and Super 4. Apart from these, the offering is very similar to that of the past few years. Case in point: Horrid Henry, traditionally a strong performer for the channel, has dropped 25% in viewing within the space of a year.

Nickelodeon, the channel with the oldest kids profile in the Nick family (targeting girls aged 7-10) has also struggled in this last year and seen a decline in audiences every month with January-November standing at -19%. Combined viewing for Nickelodeon’s most successful shows of 2014 – iCarly, Victorious, The Thundermans and Sam & Cat – was down 23% in 2015, supporting the idea that ‘wear-out’ is a big factor in impact loss for Nickelodeon this year.

It’s a similar picture for the main Disney Channel, the oldest profiling channel in the Disney Group. They have seen decline across last year of around 19%.

Conversely, channels targeting younger children (0-5 year olds) seem to be doing much better. Nick Jr. and Tiny Pop both saw viewing up 26% and a staggering 98% respectively. Tiny Pop’s figures are high, mainly due to it moving onto the Freeview platform in October 2014. Nick Junior’s success this year has been driven by Peppa Pig, Ben and Holly’s Little Kingdom and, in particular, Paw Patrol, which launched at the end of 2014. Disney Junior is performing really well with impacts up 25%, driven by favourites such as Sofia the First, Tinker Bell and some Disney classic movies such as Cinderella and The Little Mermaid.

144

Kids

Handing over the remote

There is some good news for TV advertisers as research from Nielsen shows that linear TV still dominates kids’ media consumption (over 2 hours per day), though the amount of TV watched decreases with age as they turn to other devices to view content.

One theory for this drop in viewing across the older profiling channels, is that older kids are moving away from controlling the main TV set (measured by BARB) and instead watching TV on other devices or taking part in other activities on tablets and smartphones. A recent Childwise Monitor Report looked at how kids watched TV over a period of a week, with 83% watching it on the main set, 33% via a tablet, 22% on a laptop/desktop, and 22% via a mobile phone. 18% also watched via a games console.

Ofcom tells us that instant messaging and social media are the most popular second screen activity, which leaves the younger kids as the ‘the boss’ of the main TV remote control. Ofcom also suggest that the amount of time 8-11s and 12-15s spend online has more than doubled over a 10-year period, so it’s crucial for advertisers to get a handle on how kids are consuming their programmes across all devices. BARB are currently working on Project Dovetail, which will help by measuring audience viewing habits across all devices.

Older kids are relinquishing control of the main TV set in favour of tablets and smartphones, leaving younger kids in control of the remote.

145

Fact Book 2016

146

Kids


Online generation

In last year’s Fact Book, we discussed how important it was that we target the right kids, with the right message, at the right time. This year the amount of time kids spend online has doubled, with Ofcom reporting that 8-11s are online for over 11 hours per week, up from 4 hours in 2005, and 12-15s now going online for a hefty 19 hours every week. Not only do children have more access to tablets and smartphones, but more than ever they are becoming owners of these devices as well – 63% of kids aged 5-16 own their own phone, and 84% own their own PC/laptop/tablet.

147

Fact Book 2016

A cluttered marketplace

Let’s tackle the first issue: Who are the main players going to be in kids TV over the next twelve months?

We are expecting some new players in this area, such as Disney Life due in the UK imminently – Disney’s first venture into the ad-free subscription arena. Targeting under 8s for a monthly fee of £9.99, kids will be able to access music, books, learning tools and their favourite Disney and Pixar TV shows, through a unique interface and category selection. Disney say that parental control will be a key feature and settings will be pin locked. Viewing sessions can also be timed which gives another layer of control to the parent. We expect this channel to be a direct competitor to Netflix, Amazon Prime, NOW TV and Sky, all of which offer excellent kids content at a price.

In recent years, children’s content has become one of the most viewed categories on YouTube, accounting for 20 of the 50 most popular channels in October 2015. So it’s little surprise to see Google getting involved in the kids TV market, with their YouTube Kids app, which launched in November 2015 in the UK, Ireland, New Zealand and Australia, following its launch in the US in February of the same year. It has since been downloaded more than 10 million times in the States. The app is served on Android and iOS devices, Apple TV, Chromecast, games consoles and smart TVs.

iPlayer, however, still rules. According to Enders Analysis, the BBC’s catch up service is still the favourite with both parents (for its ad-free environment), and kids (for content). The BBC are also expected to launch a CBBC/CBeebies app in early 2016, however, there is likely to be some cross-over content available on this free application with the ad-funded YouTube kids app. But with iPlayer riding high in this particular demographic, it will be interesting to see whether the new entries to the kids TV content market are able to make a dent in its considerable popularity. So where does that leave the traditional kids TV players such as Turner, Nickelodeon and CITV? We fully expect that Nickelodeon will follow Disney’s lead with a fee-based SVOD offering, and rumours abound that their channel Noggin, which launched in the States recently, will be coming to the UK soon.

The common view is that parents don’t mind paying a little extra for educational and safe children’s content. With so many channels on offer next year, they may have a job deciding which ones to go for. This could leave the BBC in a stronger position, as some parents may just decide to go with the free option.

148

Kids

Multi-device measurement

Over the last few years, tablets are increasingly being used as a default entertainment screen, particularly among younger children (a 2015 OfCom report states that 75% of 5-15s watch TV on a tablet, up from 64% in 2014). This is alongside a small but important decrease in the numbers watching TV via a TV set.

Worrying for advertisers is the fact that the mobile phone has overtaken the TV set as the device 12-15s would miss the most (45% of 12-15s choose their mobile and 21% the TV set), and for the first time in 2015, 12-15s who watch TV and YouTube content are more likely to say they prefer to watch YouTube.

So if some viewing has already moved away from the main TV screen, and we’re about to see the introduction of even more platforms to the already cluttered kids market, where does this leave advertisers?

Project Dovetail will help answer this conundrum by seeking to measure viewers watching content on their laptops, tablets or smartphones, as well as the traditional linear TV set.

Project Dovetail

BARB’s panel of 5,100 homes currently provides representative viewing profiles and a measurement of viewers per screen. Every time a home joins the current panel, BARB install software TV meters on laptops, desktop,and tablet devices to capture the non-linear data. This new technology is currently installed in around 25% of their homes.

The next stage of Project Dovetail involves blending the data from the analytic tags with the viewing information we get from the BARB panel. By doing this they hope to deliver robust, cross-platform data, so that we know what’s being watched, by whom, and on which device.

The more we know about how the YouTube generation consume their TV, the more we can help advertisers make the right choices when targeting this notorious hard-to-reach demographic.

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Fact Book 2016

45% of 12-15s choose their mobile and 21% the TV set

A recent OfCom report states that 75% of 5-15s watch TV on a tablet, up from 64% in 2014

45%mobile

21%TV set

64%2014

75%2015

150

Kids

Sales House

ITV terrestrialSky KidsTurnerCITVDisney GrMilkshake!ITVB

Total market

Category

Breakfast cerealCinema / DVD / VODComputer games / internet Food /snacks / drinksToys and gamesMusicHoliday, entertainment & leisure activitiesShoes/clothesCompetitive channelsPublishersRetailersMisc

Total

Spend in 2015

- £ 31,490,000 £ 12,535,000 £ 12,500,000 £ 8,299,999 £ 3,900,000 £ 4,800,000

£73,524,999

Revenue 2015

£ 2,610,422 £ 6,554,554 £ 7,489,291 £ 6,759,740 £ 38,529,379 £ 311,199 £ 2,393,837 £ 1,823,876 £ 5,209,446 £ 250,783 £ 968,934 £ 623,538

£73,524,999

Split of spend traded against kids by TV station 2015

Source: Based on MediaCom estimates

151

Fact Book 2016

Rank

1234567891011121314151617181920

Rank

1234567891011121314151617

Channel

Milkshake!Milkshake!CITVCITVChannel 5CITVCITV BreakfastCITVMilkshakeCITVDisney JuniorCITVCartoon NetworkMilkshakeDisney JuniorBoomerangMilkshakeMilkshakeMilkshakeMilkshake

Channel

Cartoon NetworkTiny PopPopNickelodeonNick Jr.BoomerangDisney ChannelCITVNicktoonsDisney XDDisney JuniorNick Jr. TooCartoonitoMilkshake!KixCITVBITVB

Total Viewing

TVR (avg)

1.961.371.351.301.271.261.261.191.151.081.020.970.960.960.910.890.890.880.880.88

Programme Title

Peppa Pig Special: Golden BootsBen and Holly’s Little KingdomFilm: Horrid Henry - The Movie Film: Hotel Transylvania Noddy In ToylandPokemon: Mega Evolutions 2Pokemon: Mega Evolutions 2Film: Tom & Jerry Shiver Me WhiskersThomas & FriendsThe Tom & Jerry ShowLittle Mermaid II: Return To The SeaBen 10: Destroy All AliensWe Bare BearsPeppa PigFilm: Cinderella (1950)Scooby-Doo! Knight Time TerrorFilm: Disney’s Tinker Bell: The Lost Treasure (2009)Bob The BuilderThomas & Friends: Spills & ThrillsThe Adventures of Bottle Top Bill

Share of impacts

13.0810.959.788.808.577.796.376.075.875.385.073.312.122.111.901.650.51

% change yr on yr

2.3698.0854.35-19.0425.79-9.95-18.93-18.815.5810.3728.11-10.63-4.70-16.9269.35-27.80-18.53

6.56

Av Kids 4-15 tvrs

13.0810.959.788.808.577.796.376.075.875.385.073.312.122.111.901.650.51

Av Kids 4-15 tvrs

0.1540.1590.1410.12?0.1440.1020.1830.3330.1130.0650.2480.0730.0650.3030.0360.3230.075

Channel profile

Boys 6-12Girls 0-5Kids 7-10Girls 7-10Kids 0-5Kids 4-9Girls 7-9Kids 6-11Boys 6-12Boys 6-11Kids 0-6Kids 0-5Kids 0-4Kids 0-5Boys 6-10Kids 6-11Kids 6-11

Top 20 rating TV shows for kids ages 4-15: January-November 2015

UK Commercial Kids TV

Source: BARB Jan - Nov 2015

TV rarely appears to be watched in complete isolation to other activity.

Kids and teens are glued to their smartphones from the moment they wake up to just before they go to bed in the evening; they are also heavily exposed to social media.

Social apps are the most popular amongst kids and teens. Gaming, music and instant messaging apps are also widely used.

Kids and teens today are influenced by self made organic talent with YouTube being the main vehicle for this.

Teens are more likely to be using Twitter when they’re watching live TV. Becoming part of a wider conversation when they ‘are in the moment’ enables teens to feel like they are part of their favourite show and the events that are unfolding in real time.

Programmes that veer more towards live ‘event TV’ or those that follow a continuous storyline (which could be risked by online spoilers!), are those that are most likely to be tweeted about.

Connected kids research findings

Connected Kids is MediaCom’s youth insight offering from the RWI team. It is comprised of an annual trend report, Trend Watch, and the Connected Kids Bus, a quarterly omnibus survey which answers bespoke client questions. The following are findings from MediaCom’s latest Connected Kids research:

Kids

152

153

Services that provide opportunities to personalise what young people want to watch and how they want to watch it, as well as offering exclusive content, are appealing and enhance on-demand viewing.

The most popular YouTube channels are hosted by individuals who are largely teenagers themselves. Teens are selecting content which they feel is communicating to them in a relevant way.

Almost ½ of kids aged 8-12 have their own smartphone, which offers many more opportunities for exposure to content that is not age appropriate.

TV that is rich in content and emotion continues to be the most favoured amoung kids and teens.

8-12 year-olds are receiving an average of £5 pocket money per week rising to £8 among 13-16 year-olds.

Many teens are using their smartphones to make online purchases; they now have an ability to purchase at any time and in any location.

Fact Book 2016

153

Hanna LubinResearch Manager, Real World Insight [email protected]

For more information on Connected Kids, contact:

154

Fact book team: Garreth Owen UK Marketing Manager Rachel O’Hara Marketing Executive Sam Thomas Marketing Designer

Thank you

About MediaCom

MediaCom is the “The Content + Connections Agency”, working on behalf of its clients to leverage their brands’ entire system of communications across paid, owned and earned channels to step change their business outcomes. MediaCom delivers not just individual channel silo efficiencies but also connected communications system effectiveness, by developing and optimising all content – defined as any form of consumer messaging – as the fuel that drives high-performing systems. MediaCom measures and quantifies communications systems across paid, owned and earned through their unique Connected System Audit.

MediaCom is one of the world’s leading media communications specialists, with billings exceeding US$33 billion (Source: RECMA 2015). It employs 6,000 people in 125 offices across 100 countries around the globe. Its client roster includes P&G, VW Group, Dell and Universal. In 2015, MediaCom have been awarded Media Agency of the Year in the US by AdAge and Adweek, in the UK by Campaign, and Network of the Year in APAC by Festival of Media. The agency captured six Media Lions at the 2015 Cannes Lions International Festival of Creativity, making it the top performer among all global media agency networks.

MediaCom is a member of WPP, the world’s largest marketing communications services group, and part of GroupM, WPP’s consolidated media investment management arm.

www.mediacom.com @mediacomuk

Download - MediaCom Fact Book 2016

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