social tv viewing, word of mouth, and ad effectiveness

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Co-viewing and out-of-home viewing Social TV Viewing, Word of Mouth, and Ad Effectiveness Gregg Liebman, SVP Turner Broadcasting Brad Fay, COO, Keller Fay Group

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Co-viewing and out-of-home viewing

Social TV Viewing, Word of Mouth, and Ad Effectiveness

Gregg Liebman, SVP Turner Broadcasting

Brad Fay, COO, Keller Fay Group

Two Rival Models for Watching TV Together (aka “Co-Viewing”)

“Distraction” model – The presence of other people

distracts people from on-screen content, reducing value to advertiser

– See “How Co-viewing Reduces the Effectiveness of TV Advertising” (2011) by Steven Bellman et al.

“Social Influence” model – The presence of other people leads to

more emotional engagement and the sharing of advertising content, leading to higher ad effectiveness

– See The Face to Face Book, by Ed Keller & Brad Fay, forthcoming from Free Press in May 2012

Which is (more) correct?

The Distraction Model

2011 Australian study by Bellman et al – Literature review includes studies back to 1965 on

detrimental effects of co-viewing – New study found one-third lower day-after ad

recall for commercials co-viewed vs. viewed alone – Explanation was “loss of [mental] processing”

when others present – Suggested advertisers “demand that they pay a

lower price for co-viewed spots”

Caveats – Only metric to show deterioration was “delayed”

ad recall after 24 to 36 hours; nothing about intent or actual purchase

– Study acknowledged enhanced ad recall when viewers talked about the commercials, suggesting opportunity to “fine tune and ad’s creative so that it deliberately generates talk among co-viewers”

The Social Model

Has a long “pedigree” as well – Personal Influence (Free Press: 1955) by

Katz & Lazarsfeld suggested that ads work by fostering conversation (“two step flow”)

– Word of Mouth Advertising a strategy offered by psychologist Ernest Dichter in 1966 HBR article

More recent indications at ARF conferences – NFL audiences have billions more conversations about advertisers than

non-audiences, during broadcast season – Much higher advertiser WOM levels for “out of home” 2010 World Cup

audiences – Sports & out of home audiences involve more “co-viewing” than usual—

could this be the reason why?

2011 Turner Study Tested Social Model Directly

Study related NBA Eastern Conference Finals – Six game series, Chicago vs. Miami, May 2011

Keller Fay’s TalkTrack® WOM survey expanded to measure WOM for ECF advertisers – With a booster sample, responses collected

from 2,240 males ages 18-54 during series – Comparisons made to WOM levels during off

season (4,232 interviews); NBA regular season (5,209) and early playoff rounds (1,071)

As with all TalkTrack® surveys – Representative sample of consumers kept track of category/brand

conversations for 24 hours – Brands recorded in a diary on open ended basis – Survey collected details on conversations, media exposures (including NBA

viewing), and demographics

Focus on Advertiser WOM during ECF Broadcast

Examined WOM levels for ‘$750K+ Advertisers’ and ‘Top 12’ according to ad spend – Top 12 Advertisers

T-Mobile, Adidas, Miller Lite, State Farm, McDonald’s, Hyundai, E-Trade, Disney Studios (Cars 2 & Pirates of the Caribbean: On Stranger Tides), Microsoft (Microsoft Windows & Windows Phone), Chrysler/Dodge, Sprint, and Progressive.

– $750K+ Advertisers:

In addition to the Top 12 Advertisers, those spending $750K+ include Apple (iPhone & iPad), Gatorade, Taco Bell, Unilever (Degree & AXE), Coca Cola, and Heineken.

Turner NBA 2011 ECF Social Viewing Study

Findings

Talk About Advertisers Increased During Playoffs

295.1

163.0

295.3

163.6

303.8

165.5

335.0

193.1

$750K+ Advertisers Top 12 Advertisers

Off Season NBA Regular Season Early Playoffs Eastern Conference Finals

Projected Weekly Mentions of NBA Playoff Advertisers Among Men 18-54, in Millions

+39.9 Million Overall

+30.1 Million Overall

Base: Brand Mentions Among Males 18-54 (Off Season, n=40,097; NBA Regular Season, n=52,162; Early Playoffs, n=10,812; Eastern Conference Finals, n=19,529) NOTE: $750K+ & Top 12 Advertisers according to ad spend. Includes advertisers that were tracked during the entire time period examined. Source: Keller Fay Group TalkTrack®, Off Season Reflects June 14th – Oct. 24th, 2010; NBA Regular Season Reflects Oct. 25th, 2010 – Apr. 10th, 2011; Early Playoffs Reflects April 11th – May 15th, 2011; Eastern Conference Finals Reflects May 16th – 29th, 2011.

Very Closely, 20%

Somewhat Closely, 18%

Only Slightly, 19%

Not At All, 43%

38% Followed NBA Playoffs Closely

% of Men 18-54 Following NBA Playoffs During Eastern Conference Finals

Base: Respondents (Males 18-54, n=2,240) Source: Keller Fay Group TalkTrack®, May 16th – May 29th, 2011

Viewers – 38%

Over Two-in-Five Viewers Watched The Playoffs Outside of Their Own Homes, In Social Settings

93%

57%

28%

24%

7%

3%

3%

2%

At Home

At Home Only (NET)

At A Bar/Restaurant

At Someone Else’s Home

At Work

While Traveling Between Places

Someplace Else

At An Airport

Specific Location of Eastern Conference Finals Viewership Among Male Viewers 18-54

Base: Respondents, Males 18-54 (Viewers, n=882) NOTE: “Viewers” are defined as respondents who said they “very frequently” or “somewhat closely” followed the 2011 NBA Playoffs. Percentages do not add to 100%, as respondents may have watched the NBA playoffs in multiple locations. Source: Keller Fay Group TalkTrack®, May 16th – May 29th, 2011

Out of Home (NET) – 43%

Viewers Watched the Playoffs By Themselves and Socially

48%

29%

14%

By Yourself

With Family/Friends

With Acquaintances/Strangers

% of Male Viewers 18-54 Watching NBA Playoffs “Very Frequently” With/Without People During Eastern Conference Finals

Base: Respondents, Males 18-54 (Viewers, n=882) NOTE: “Viewers” are defined as respondents who said they “very frequently” or “somewhat closely” followed the 2011 NBA Playoffs. Figures in the chart represent those who reported "very frequently" watching playoffs with or without people, therefore, percentages will not add to 100. Source: Keller Fay Group TalkTrack®, May 16th – May 29th, 2011

Viewers Watched the Eastern Conference Finals in a Variety of Scenarios

29%

21%

20%

17%

38%

At Home & Social*

At Home & Not Social*

Out of Home & Not Social*

Out of Home & Social*

Varied Viewer**

Dynamics of Eastern Conference Finals Viewership Among Male Viewers 18-54

Base: Respondents, Males 18-54 (Viewers, n=882) Note: “Viewers” are defined as respondents who said they “very frequently” or “somewhat closely” followed the 2011 NBA Playoffs. Percentages do not add to 100%, as respondents were able to indicate multiple viewing scenarios. *Defined as respondents who watched at specified location (or net of locations) and indicated they were “very frequently” by themselves, with friends/family, or acquaintances/strangers. **Those who were not frequently watching by themselves, with friends/family, or acquaintances/strangers Source: Keller Fay Group TalkTrack®: May 16th – May 29th, 2011

Men Who Followed the Playoffs Were More Likely Than Non-Viewers to Talk About Advertisers

89 85

111 114 109 107 113 121

$750K+ Advertisers Top 12 Advertisers

Non-Viewer Viewers (NET) Follow Somewhat Closely Follow Very Closely

Base: Respondents, Males 18-54 (Non-Viewer, n=922; Viewers (NET), n=882; Follow Somewhat Closely, n=425; Follow Very Closely, n=457) NOTE: Viewers (NET) includes those who “very” or “somewhat” closely followed the NBA playoffs, but not those who “only slightly” followed the games. Non-viewers includes men who reported “not at all” following the playoffs. Source: Keller Fay Group TalkTrack®, May 16th – May 29th, 2011

% of Men 18-54 Talking about NBA Playoff Advertisers, Indexed to Total

Out-of-Home Viewers of NBA Playoffs Far More Likely to Talk About Advertisers, Especially the Top 12 Spenders

89 85

113 115 132 139

151 157 145

186

145 151

$750K+ Advertisers Top 12 Advertisers

Non-Viewer At Home Out of Home (NET)* At Someone Else’s Home At Work At A Bar/Restaurant

Base: Respondents, Males 18-54 (Non-Viewer, n=922. Viewers: At Home, n=823; Out of Home (NET)*, n=378; At Someone Else’s Home, n=204; At Work, n=60; At A Bar/Restaurant, n=240) *Out of Home (NET) includes At Someone Else’s Home, At Work, At a Bar/Restaurant, At an Airport (insufficient base size to show alone), While Traveling Between Places (insufficient base size to show alone), and Someplace Else (insufficient base size to show alone). Source: Keller Fay Group TalkTrack®, May 16th – May 29th, 2011

% of Men 18-54 Talking about NBA Playoff Advertisers, Indexed to Total

Social Viewing Led to Much Higher WOM Engagement for Advertisers

89 85

108 115

141 157

138

161

$750K+ Advertisers Top 12 Advertisers

Non-Viewer Frequently Watch By Yourself

Frequently Watch With Friends/Family Frequently Watch with Acquaintances/Strangers

Base: Respondents, Males 18-54 (Non-Viewer, n=922. Viewers: Frequently Watch By Yourself, n=421; Frequently Watch With Friends/Family, n=239; Frequently Watch With Acquaintances/Strangers, n=103) Source: Keller Fay Group TalkTrack®, May 16th – May 29th, 2011

% of Men 18-54 Talking about NBA Playoff Advertisers, Indexed to Total

• Social viewing at home produced WOM engagement only somewhat higher than those viewing alone out of home.

Combination of Social & Out-of-Home Drove Greatest WOM Engagement for Advertisers

89 85

111 114

87 88

105 99

132 146 142

159 170

192

$750K+ Advertisers Top 12 Advertisers

Non-Viewer Viewers (NET) At Home & Alone Only Varied Viewer Out of Home & Not Social At Home & Social Out of Home & Social

Base: Respondents, Males 18-54 (Non-Viewer, n=922. Viewers: Viewers (NET), n=882; At Home & Alone Only, n=196; Varied Viewer, n=345; At Home & Social, n=237; Out of Home & Not Social, n=168; Out of Home & Social, n=134) Source: Keller Fay Group TalkTrack®, May 16th – May 29th, 2011

% of Men 18-54 Talking about NBA Playoff Advertisers, Indexed to Total

Implications

Co-Viewing delivers a clear “word of mouth” benefit – Increases engagement with ad content – Social context probably raises “emotional” response, even if there is some

cognitive sacrifice

Implications – Media buying: Value of co-viewed formats may be higher than solo viewed formats

– Creative strategy: Creative for co-viewed program formats should be designed to drive conversation

– Programmers: A new reason not to give up on programing that appeal to the whole family

– Social Media: Opportunity to deliver “co-viewing” even when people are not physically together

– Research: Need to study other program genres (in addition to sports)

Gregg Liebman ([email protected])

Brad Fay, COO ([email protected])

Thank You!

18

TalkTrack® Methodology

Keller Fay Group’s TalkTrack®, a national syndicated

program measuring word of mouth in all forms –

face-to-face, over the phone, and through the

Internet.

– Over three-quarters of all conversations occur

face-to-face, as depicted in the pie chart.

The study involves 36,000 online consumers

annually, yielding approximately 360,000

conversational mentions of brands.

Respondents are representative of the US population

aged 13 to 69, use a diary to keep track of their

brand conversations, then complete an online survey

to gather detailed information about these

conversations.

Face-to-Face 77%

Phone 15%

Online 6%

Other 2%

Mode of Conversations Across All Categories