Video & TV Insight - TV Advertising faced with the new media challenge

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Dec 05, 2013, 07:46 ET

NEW YORK, Dec. 5, 2013 /PRNewswire/ -- Reportlinker.com announces that a new market research report is available in its catalogue:

Video & TV Insight - TV Advertising faced with the new media challenge
http://www.reportlinker.com/p01497774/Video--TV-Insight---TV-Advertising-faced-with-the-new-media-challenge.html#utm_source=prnewswire&utm_medium=pr&utm_campaign=Online_Advertising

Changes in the TV landscape and in viewing habits are starting to chip away at strongholds in the TV advertising market, and we are starting to see the first signs of exhaustion. But live television still has a number of major assets, especially in terms of coverage and exposure, while also investing heavily in the web which is attracting more and more viewers and advertisers, but where the advertising rules are not the same.
Drawing on a comparison of how live TV and OTT services perform in the realm of advertising, this insight examines classic TV's strengths and weaknesses when competing with online fare.

Region:
Asia Pacific, Central & Eastern Europe, Latin America, Middle East & North Africa, North America, Western Europe, World

"Television & New Video Services Watch" includes:
- A biannual database
- A biannual status report
- Quarterly insights

Contents

1. Key findings 6

2. The key characteristics of TV advertising 8

2.1. Characteristics of above-the-line (ATL) and below-the-line (BTL) advertising 9
2.2. Objectives of advertising communication 11
2.3. Advertising market trends in value 12
2.3.1. Growth in the ATL advertising market 12
2.3.2. The BTL market: the submerged part of the advertising iceberg 14
2.4. Market share of TV advertising 16
2.4.1. TV: the main ATL platform for advertising investment 16
2.4.2. A major contribution to the financing of the audiovisual sector 18
2.4.3. Ad investment still undersised in Europe compared to the United States 19

3. Linear television vs. online video: what are the trade-offs? 21

3.1. Changing trends in video consumption 22
3.1.1. Linear TV consumption 22
3.1.2. Non-linear TV consumption 25
3.1.3. TV consumption on "second screens" 26
3.1.4. Disparities according to targets 27
3.2. Redefinition of the linear TV advertising market 29
3.2.1. Linear TV audience fragmentation 29
3.2.2. The "premium to the leader" phenomenon 30
3.2.3. In terms of reach 32
3.2.4. In terms of exposure 33
3.2.5. In terms of costs 33

4. What role will TV advertising play with the rise of new media platforms? 35

4.1. The strengths of TV 36
4.1.1. The influence of TV 36
4.1.2. New screens: new advertising channels and increasing TV consumption at the
same time 41
4.2. What threats does the TV platform face? 42
4.2.1. Time spent on new video services 42
4.2.2. Benchmarks that allow advertising effectiveness between media platforms to be
compared 43
4.3. Can TV brands be a part of the Internet? 46

Tables

Table 1: Advantages and disadvantages of ATL advertising for an advertiser 9
Table 2: Advantages and disadvantages of BTL advertising for an advertiser 10
Table 3: Effectiveness criteria and associated metrics 12
Table 4: Main characteristics of above-the-line (ATL) and below-the-line (BTL) online advertising15
Table 5: Viewing time and ad space prices on national channels, United States, 2009-2012 34
Table 6: Memorization rate for different media 39
Table 7: Comparison of average, minimum and maximum beta scores for several ad formats 40
Table 8: Comparison of audience definitions on various media platforms 43

Figures

Figure 1 Cost of a 30 second spot on national channels according to time slot, USA, 2009-2012 . 6
Figure 2: Media market share worldwide, 2012-2015 8
Figure 3: Theoretical modeling of the objectives of advertising communication 11
Figure 4: Advertising market share between 2009 and 2015, by geographical area 13
Figure 5: Advertising market share between 2009 and 2015, by platform 13
Figure 6: Comparison of ATL and BTL share in France and the United States, 2006-2012 14
Figure 7: Net investment in communication in France since 1997 15
Figure 8: Comparison of advertising investment distribution by media worldwide, 2012-2015 16
Figure 9: Market shares of ATL platforms in North America and Western Europe, 2012-2015 17
Figure 10: Growth in number of TV households by geographical area, 2009-2017 17
Figure 11: Comparison of GDP and TV advertising revenues by geographical area, 2009-2017 18
Figure 12: Relative share of the main sources of TV funding worldwide, 2012-2017 19
Figure 13: Comparison of ad revenues per TV household in the United States and in the five major
European countries in 2012 19
Figure 14: Comparison of TV advertising revenue per TV household in selected countries between
2005 and 2017 20
Figure 15: Advertising revenues of the three leading French channels and combined annual
audience share, 2009-2012 21
Figure 16: Allocation of video consumption time according to consumption platform for all
households in the United States, Q4 2012 22

Figure 17: Linear TV viewing time according to region, 2011-2012 22
Figure 18: Linear TV viewing time in the leading European markets, 2009-2012 23
Figure 19: Daily viewing time by individual in the United States, Q4 2008 - Q4 2012 24
Figure 20: Growth in the share of live TV in online TV consumption in France, 2011-2012 24
Figure 21: Growth in online TV consumption on fixed and mobile, in the United Kingdom, Q1 2008 -
Q1 2012 25
Figure 22: Catch-up TV offerings over the Internet in France 25
Figure 23: Catch-up TV penetration in France 26
Figure 24: Penetration of "second screens" in France, October-December 2012 vs. October-
December 2011 26
Figure 25: Volume of TV content consumed online by device, France, 2011-2012 27
Figure 26: Daily linear TV viewing time by age group, 2010-2012 27
Figure 27: Linear TV weekly viewing times by age group in the United States, Q1 2011 - Q4 2012 28
Figure 28: Distribution of monthly video consumption time by means of consumption and age group
in the United States, Q1 2011 - Q4 2012 28
Figure 29: Cumulative audience share of the 5 leading channels in the main European TV markets,
2008-2011 29
Figure 30: Ad revenues of the 3 most-watched channels and share of total TV ad revenue, France,
2009-2012 30
Figure 31: Ad revenues of the 3 most-watched channels and share of total TV ad revenue, Japan,
2009-2012 30
Figure 32: Cost of a 30 second spot on national channels by time slot, United States, 2009-2012 . 31
Figure 33: Comparison of TV ad spending and ad viewing time on national channels in the United
States 32

Figure 34: Monthly reach for Hulu and YouTube in 2012, United States 32
Figure 35: Weekly reach for the major US networks, Q4 2011 33
Figure 36: Ads viewed on Hulu, United States, 2012 33
Figure 37: Preferred information sources for French users in 2013 36
Figure 38: Average number of touchpoints with media per day in France in 2012 37
Figure 39: TV aired vs. consumption in France, in 2012 37
Figure 40: Attitudes toward advertising among French consumers, April 2009 38
Figure 41: The influence of TV advertising on purchasing decisions, France, 4th quarter 2010 38
Figure 42: Ad recall by platform, France 39
Figure 43: Example of pairing TV and mobile for an AXA ad campaign, Belgium 41
Figure 44: Comparison of average ROI by platform 44
Figure 45: Comparison of the influence of touchpoints 45
Figure 46: How a touchpoint's influence is calculated 45