TV Advertising

Merits of TV

• Excellent quality production

• Familiar, friendly voices
• Retailers also watch TV
• It is a comprehensive Technique: A unique blend of sight, color,
sound, timing, movement that produces quick results.
• Animation
• Emotional Content
• Demonstration
DEMERITS

• It takes time to produce commercials and sponsored

programes
• It is a transient Medium: stays for a short time
• Time gap to purchasing
• An Immobile medium
• Restrict Enquiries
• High production cost
• Statutory Controls
• Commercial Clutter
 The Power of TV

• Overall, TV advertising continues to produce an immediate

sales boost.
• On average, it gives a 4.4% uplift in purchases in the first
4 weeks after advertising was seen.
• However, the incremental purchases continue beyond this
first month.

Source: tvWORKS, Jan01-Dec03, seen at least 1 spot in prior 28 days

SATELLITE TELEVISION

• India- A Pioneer Country in Satellite TV

• Vikram Sarabhai – A Father of Satellite
• 500 satellite channels available globally
• Few important Satellite channels in India:
• STAR TV
• STAR TV is beamed from Hong Kong to 38
countries
• Witnessed unprecedented growth
• It includes; STAR sports, Channel V, STAR Plus,
BBC World, STAR Gold, STAR Movies.
MTV
• MTV and STAR TV association began in 1991
• MTV-Asia, The American music channel associated with
STAR came on May 2, 1994
• It gets a huge advertising support
• It telecasts music video in Latin America, Europe, Japan
and rest of the Asia.
• CHANNEL V
• STAR TV Commenced broadcasting its own music
channel – the V channel
• V stands for Viva, the German company with which
The STAR has tied up
• This channel is put on two beams- Northern(China,
Taiwan and Hong Kong) and Southern (India, M.E.)
ATN

• Non stop film based songs and dance programs was

launched on Aug 15, 1992
• It is now rechristened as ETN and ETC
• ZEE TV
– Integral part of Essel Group
– The Zee bouquet comprises of Zee Music, Zee
Cinema, Alpha, Nicklodeon, Zee English, Zee
Turner, Zee MGM
– It has a new tie up with MURDOCH’s Eurpean
Programes
SUN TV

• It is a Chennai based Company which means

entertainment program in Tamil on the rural masses in the
state.
• The UTV-backed Vijay TV is trying to be No.2 in the State.
– ASIANET
– IT provides a Malayalam channel to its
subscribers
– The network comprises two companies----
Asianet Communications (P) ltd. And Asianet
Satellite Communication Ltd. They are` headed
by Mr. Sashi Kumar of PTI TV
JAIN TV

• It is founded by Dr. J.K.Jain, the former BJP

parliamentarian and President of Jain Group of
Enterprises.
• Jain TV has specific programs like; Entertainment channel,
Sports Channel, News and Current Affairs, Children’s
Entertainment channel, Relegious and Spiritual Programs,
Politics, Medicine , Health, Science and Technology.
NEWS Channel

• CNN, NBS Super, Euronews are the news channel in

Europe. In 1995, BBC World, and European Business
News joined these channels.
• BBC World is financially supported by Pearson and Cox
Communication.
• DD produces 13 news bulletins
• NDTV has NDTV India and NDTV 24x7
• STAR has STAR NEWS
• AAJ TAK has launched 24 hr news channel in 2001.
Relegious Channels

• Aastha, Saadhna, Sanskar and ZEE TV jaagran.

• Star Plus shows a programe called Yatra

• DTH Broadcast
• Satellite channels used to be received by cable
connections from a cable operator
• Now it is going to DTH bypassing cable Operator.
Children and TV

• TV affects child development

• Children relate stories to their life experiences

• Good Quality programs should be shown

• There should be controlled hours
• There should be parental censor for viewing programs.
Characteristics of TV

• Evocative
• Image Creation
• ‘Emotions
• Demonstrative
• Mental make up for audience.
 TV Advertising is effective at all stages of
a brand’s lifecycle
Increase in purchasing within 4 weeks

80 TV advertising works very well

to drive sales of launch brands New brands
70
Established brands
60

50
Brands in high interest categories
40
e.g. Toiletries, Ready meals
30 For large established brands
tend to show higher than average %
& staples, % sales growth
20 sales growth
is much smaller but in
10 £s is significant
0

Source: TNS Mediaspan, database of case studies, 1995-2002

TV Advertising continues to drive sales after
the first month
• The effect of TV advertising actually works beyond the first
month after the advertising was seen.
• For every brand bought, as a result of advertising, a consumer
is likely to make 4 more purchases than expected of that brand
within the year.
• So looking at the effect of advertising in the first month alone
under-values the power of TV advertising by excluding these
extra purchases.
• At the same time, over the long-term advertising builds
brand equity

Source: tvWORKS, Jan01-Dec03

Benchmarks by Product type
% increase in purchasing in first 4 weeks

all brands 4.4

leading brands 3.1

new brands / variants 4.2

premium brands 5.0

staple brands 3.9

Source: tvWORKS, Jan01-Dec03, seen at least 1 spot in prior 28 days

 ITV1 is the most effective channel at driving sales
ITV1’s % of incremental purchases vs % of FMCG impacts

% of HWs FMCG impacts % of incremental purchases

66 68
66
62
59

51 51 51 53 51

All Brands Leading Brands New Brands/Variants Premium Brands Staple Brands

Source: tvWORKS, Jan01-Dec03, ITV1’s % of incremental purchases attributable to TV where at least 2/3rds of spots seen in
prior 28 days were on a single channel / NMR, FMCG category, based on housewives ratecard weighted impacts
TV Effectiveness by Home Type and Demograph
% increase in purchasing in first 4 weeks

All 3 groups are more responsive

Home type makes little difference
5.9
than the average

4.6 4.7
4.4 4.6
4.2

all homes MC homes terrestrial - 16-35 HWs ABC1 HWs HW w CH

only homes

Source: tvWORKS, Jan01-Dec03, seen at 1 spot in prior 28 days

How Advertising & Promotions Work Together

• The majority (69%) of purchases made after exposure to TV

advertising are not on price promotion
• TV advertising generates a 4.0% increase in sales for this majority in
the following 4 weeks
• The remaining 31% of purchases made after seeing TV advertising
are on price promotion. For these, advertising increases sales by
6.6% over and above the gain from the price cut
• If you cut your price and tell people about the brand by advertising
on TV you get a double boost in sales

Source: tvWORKS, 84 weeks to March 02, seen at least 1 spot in prior 28 days
ITV1 works better than other channels for Full
Price Purchases
% increase in purchasing in first 4 weeks
4.4
4.0

ITV1 is most effective for brand building. 2.6

But for price promoted purchases there is little difference

in effectiveness regardless of channel choice

all TV ITV1 other channels

Source: tvWORKS, 84 weeks to March 02, seen at least 1 spot in prior 28 days
Low Loyal Consumers respond most to TV
Advertising
% increase in purchasing in first 4 weeks
14.7

Contribution to Sales Uplift 57% 27% 15%

4.4
3.2
1.5

all buyers low loyal medium loyal high loyal

Source: tvWORKS, Jan01-Dec03, saw at least 1 spot in prior 28 days, loyalty reflects spend on brand as
% of spend on category, low loyal = 0-10%, medium loyal = 10-39%, high loyal = 40-100%
The Importance of Low Loyal Consumers

• Low Loyal Brand Buyers respond most to TV advertising

because:
– they know least about the brand
– TV advertising has the most to say to them
• These buyers are important since they may become the core
buyers of your brand in the future.
• Nevertheless even the most loyal buyers are influenced to a
small degree by TV advertising seen recently.
 Promotions attract Deal Buyers while TV
encourages Trial Purchasing
% Share of Purchasing by Consumer Group
Low Loyal Medium Loyal High Loyal Deal Buyers

15
26 Value 16
for
money10

39 15 purchasing
35

35
31
39 Trial
16 21 purchasing
All Purchasing Purchases on Promotion Purchases seen Advertised

Source: tvWORKS, 84 weeks to Mar02, loyalty reflects spend on brand as % of spend on category, low loyal = 0-10%,
medium loyal =10-39%, high loyal = 40-100%, deal buyers buy at least 50% more brand purchases on promotion
TV Advertising reaches more Valuable Customers
Annual value of brand buyers

Total £27.12 £28.65

£8.87
purchases at promoted price
£16.54 (avge £1.07)
purchases at normal price
(avge £1.32)

£18.25

£12.11

TV advertising reaches
see TV advertising
those prepared to buy at full price
buy on promotion

Source: tvWORKS, 84 weeks to March 02, seen at 1 spot in prior 28 days

Reach of brand purchases from TV advertising
vs promotions
47%
saw TV in prior 28 days bought on promotion

31%
30%

25%
23%
20% 20%
17%

Low Loyal Medium Loyal High Loyal Deal Buyers

Source: tvWORKS, 84 weeks to Mar02, saw at least 1 spot in prior 28 days, loyalty reflects spend on brand as % of spend on
category, low loyal = 0-10%, medium loyal = 10-39%, high loyal = 40-100%, deal buyers buy at least 50% more than the
average person of their brand purchases on promotion
Increase in likelihood to purchase
Inter purchase interval
1-7 days 8-28 days 29-182 days 5.4%

3.8% 3.9%
3.5%
3.2% 3.3%
3.1% 3.0%
2.7% 2.7%

2.1% 2.0%

overall (1+) 1 2 3+

number of advertising exposures

Source: tvWORKS, Jan01- Dec03, exposure seen in inter-purchase interval

Increase in purchasing within 4 weeks

50
%
28 days 3 days 1 day

40

30

20

10

0
0 1 2 3+

number of exposures seen within time interval

Source: tvWORKS, Mar96-Mar98, Meridian

Increase in purchasing within 4 weeks

50%

3+ exposures
40%
2+ exposures
30%
1+ exposures

20%

10%

0
0 3 7 14 21 28

Days prior to purchase

Source: tvWORKS, Mar96-Mar98, Meridian

Increase in purchasing within 4 weeks

50%
3+ seen within 1 day

40% 3+ seen within 2 days

3+ seen at any time

30%

20%

10%

0
0 7 14 21 28

Days prior to purchase

Source: tvWORKS, Mar96-Mar98, Meridian

3 alternative schedule deployments

Continuous

Burst

Pulsing
Month 1 Month 12
Pulsing is the Most Effective Strategy
Incremental sales index
100 = 2600 tvrs in continuous strategy
160
pulsing continuous burst
140

120

100

80

60

40

20

0
0 650 1300 1950 2600 3250 3900 4550 5200

TVRs
Source: tvWORKS, Mar96-Mar98, Meridian
 No TV Advertising for a year produces a 13%
decline in Purchasing
110

100 100.0

92.9 93.0
Sales index

92.5 90.5
90
87.5

80

70
0 28 56 84 112 140 168 196 224 252 280 308 336 364

Minimum days elapsed since advertising was last seen

Source: tvWORKS, 2 years to Jan03, the sales index compares the amount of purchasing of the brand at each point in time to the
amount of purchasing at the control (when advertising had been seen in the last 28 days).
 Brands on Promotion decline more quickly
without TV Advertising
110
non promotional purchases promotional purchases

100.0
100
96.9 97.0
96.3 94.3

90 89.4
Sales index

80 77.0 77.5 80.2

77.7 75.8

70
0 28 56 84 112 140 168 196 224 252 280 308 336 364

Minimum days elapsed since advertising was last seen

Source: tvWORKS, 2 years to Jan03, the sales index compares the amount of purchasing of the brand at each point in time to the
amount of purchasing at the control (when advertising had been seen in the last 28 days).
 Lightly Advertised Brands decline faster in
the absence of TV Advertising
heavily advertised brands lightly advertised brands
110

102.1 102.9

100 100.0
98.0
92.2
89.7 90.0
Sales index

90 90.3 86.8
86.4

80
77.0

70
0 28 56 84 112 140 168 196 224 252 280 308 336 364

Minimum days elapsed since advertising was last seen

Source: tvWORKS, 2 years to Jan03, heavily advertised brands spent £10m+ on TV over prior 3 years (1999-2001), lightly advertised brands spent
£2.5m or less on TV over the same 3 years, the sales index compares the amount of purchasing of the brand at each point in time to the amount
of purchasing at the control
 The Low Loyals are most effected by the absence
of TV Advertising
high loyal low loyal

110
104.4
102.9 105.4
101.3
100 100.0
Sales index

93.3
90

80
76.5
75.0
73.4 70.4 72.0
70
0 28 56 84 112 140 168 196 224 252 280 308 336 364

Minimum days elapsed since advertising was last seen

Source: tvWORKS, 2 years to Jan03, loyalty reflects spend on brand as % of spend on category, low loyal = 0-10%, high loyal = 40-
100%, the sales index compares the amount of purchasing of the brand at each point in time to the amount of purchasing at the
control
 Conclusions
• Television advertising is effective at all stages of a brand’s lifestyle
• Calling a halt to television advertising leads to a fall in brand sales
• TV advertising delivers an average sales uplift of 4.4% with 4 weeks
of the advertising being seen, and then delivers on average 4 further
purchases during the year
• More lightly advertised brands suffer from a lack of TV presence in
comparison with those making a larger investment in television
• TV advertising encourages trial purchasing and helps recruit a new
generation of loyal customers to replace those that are lost
 Conclusions
• A pulsing deployment of advertising is highly effective
• Peak time advertising delivers the greatest amount of incremental
purchases
• Whether leading brands, premium brands, staple or new brands, ITV1 is
better at increasing purchasing than other TV channels
• Likelihood of consumer purchase increases with frequency and recency of
exposure to TV advertising
• ITV1 is the most effective channel at building sales
• Cutting adspend is detrimental to medium and long-term
brand growth
 Notes on Methodology
• Each panel household was given set top meters to record their TV viewing
and a bar code scanner to collect the details of all grocery products brought
into the home.
• All brands within the 28 FMCG categories which had been active on TV
were selected giving a database of 243 brands. Thus there was no bias in
the brands chosen and it was “the world as found”.
• The research looks at the effects of advertising in the first month after it was
seen. The effect of TV is calculated by comparing the number of purchase
occasions of brand X in homes that saw advertising for that brand in the last
28 days with the number of purchase occasions of brand X in matched
sample homes that did not see advertising.
 Notes on Methodology
• So, if the homes seeing Brand A's advertising are responsible for 210
purchase occasions of Brand A, and the homes which did not see Brand A's
advertising are responsible for only 200 purchase occasions, the difference
is +10 in favour of the group that saw TV advertising. This represents +5%
incremental uplift on the "expected" level of purchasing of 200 and is
attributed to the effects of TV advertising.
• The uplift can be attributed to TV advertising because the effects of price
promotion, previous brand loyalty & weight of viewing have been removed
by the matched sampling.