of television and they are not created equal Simple Marketing Philosophy 2 Spend your money where consumers spend the most time and are the most influenced Broadcast Television Dominates Cable ID: 669644
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Slide1
Broadcast vs. Cable
Local TV Advantages
vs. CableSlide2
Simple
Marketing
Philosophy
Spend your money where
consumers spend the most time,
and are the most influencedSlide3
Broadcast Television Dominates Cable
Top Program Ratings
– Broadcast TV has:
Higher program ratings
Higher reach
Digital subchannels out-delivering cable ratings Highest Reach - More Viewer Minutes per Broadcast Network Broadcast Total Penetration vs. Local Cable Ads – Limitations of cable interconnects and ADS diminish cable’s market reachMajor Product Categories - Broadcast TV has stronger purchase influence in the key categories
3Slide4
Time SpentSlide5
People Spend the Most Time with Television
of All Ad Supported Platforms
5
Source: GfK TVB Media Comparisons Study 2020. M-S 5A-1A. Persons 18+. Online/internet platforms such as email, social media, internet radio and websites, are totaled for any online device-PC, Smartphone and Tablets. Broadcast TV News Websites/Apps includes local TV station & network websites/apps for news/weather/sports.Slide6
InfluenceSlide7
What Influenced Consumers Most
7
Source: GfK TVB Purchase Funnel 2019 A18+; Most important for media that registered 2% or higher.
% Influenced by mediaSlide8
Of Those that Cited TV as the Most Important in Awareness Phase, 7 out of 10 Picked Broadcast TV
8
Source: GfK TVB Purchase Funnel 2019 A18+
QA4 How to read: Of the 56% that said TV was most important for awareness, 69% of them cited Broadcast TV as the most important.Slide9
ReachSlide10
TV Has Highest Reach of Ad Supported Platforms Broadcast Leads the Way
10
Source: GfK TVB Media Comparisons Study 2020. M-S 5A-1A. Persons 18+. Online/internet platforms such as email, social media, internet radio and websites, are totaled for any online device-PC, Smartphone and Tablets. Broadcast TV News Websites/Apps includes local TV station & network websites/apps for news/weather/sports.Slide11
Broadcast TV is TV’s Primary Reach Engine
11
Source: GfK TVB Media Comparisons Study 2020. M-S 5A-1A. Persons 18+. Slide12
The Primary Source for News: Local Broadcast Television
12
Source: GfK TVB Purchase Funnel 2019 A18+
B1 “Which one of the following sources, if any, would you say is your primary source for news?”
Which of the following sources, if any, would you say is your primary source for news?Slide13
There Are Many Cable Networks
13
Source: ComScore
comScore measures
238
Cable NetworksSlide14
Average Channels Receivable & Tuned Per Week, Per Household
14
Source: Nielsen Average Channels Tuned Custom report, Households, Composite, based on Aug of every year, channels tuned for all sources/originators contributing to HUTSlide15
If you could choose
only
five
networks,
which five would you choose?Slide16
Out of 5 choices, the top 4 were Broadcast Networks
16
Source: GfK TVB Media Comparisons Study 2020. Respondents were given 50 choices of Broadcast and Cable Networks with an option to write in a network.
If you could choose only
five
networks, which five would you choose?
Network “A”
Network “B”
Network “C”
Network “D”
Network “E”
BROADCAST NETWORK
CABLE NETWORKSlide17
17
Source: Nielsen
NPower
. November 13
th
2019 Adults 25-54 Live+1 Ratings.
Broadcast TV’s Reach: Significantly Higher Than CableSlide18
Broadcast Websites Added More Reach to Broadcast TV, than Cable
18
Source: GfK TVB Media Comparisons Study 2020. M-S 5A-1A. Persons 18+.
1.4%
Reach
Added
3.4%
Reach
AddedSlide19
Broadcast TV and Broadcast Websites:
Overall Reach Increased Over 3% on Top of an Already High Base
19
Source: GfK TVB Media Comparisons Study 2020. M-S 5A-1A. Persons 18+.
Broadcast
Websites
22.6%
Broadcast
TV Only
78.2%
Added Reach
3.4%
DuplicationSlide20
Local Broadcast Television Station Websites:
Top Choice For Information On News And Events
20
Source: GfK TVB Media Comparisons Study 2020. Persons 18+. Includes only those who answered.
Q13 - Which one of the following websites are you most likely to turn to when you need information about local news or events? As a percentage of those that use websites and apps.
Websites Most Likely To Turn To When You Need Information
About Local News Or EventsSlide21
Market PenetrationSlide22
Cable Coverage in Topeka, KS
PrecisionTrak
CableOne
Advertising - Emporia, KS
Cox Media - Topeka, KS Interconnect
AT&T U-verse - Topeka, KS
Cox Cable - Manhattan/Junction City, KS
Cox Cable - Topeka, KS
Prime Media - Topeka, KS Interconnect
Blue Valley Tele - Marysville, KS
Giant Comms - Holton, KS
Rainbow Comms - Hiawatha, KS
Tri County Tele - Council Grove, KS
Twin Valley Tele - Clay Center, KS
ValuNet Fiber - Emporia, KS
Wamego Tele - Wamego, KS
Vyve
- Ft. Riley, KS
April 2019
Source:
Comscore
– April 2019. (OTA=Over-the-Air or Broadcast Only homes).
22Slide23
Feb 2019
REMEMBER:
Local cable commercials
aren’t
seen in every satellite home
As of Feb ‘20, Cable (HW) reaches
56.0%
of TV homes in the market, but reach diminishes depending on the cable interconnect.
Cable Coverage in
San Diego, CA
Sources: Nielsen Feb ‘19 & Feb ‘20 San Diego, CA DMA, NLTV (OTA=Over-the-Air)
Feb 2020
23Slide24
How Do Advertisers Reach Viewers in (Your Market)?
24
Broadcast
100%
Broadcast Reaches 100% of TV HomesSlide25
The Importance of Cable and
Alternate Delivery Systems (ADS) Trends in DMAsSlide26
Satellites and Local Cable Advertising
Key questions to ask your cable rep
Are Local Satellite ads available in your market?
Can the ads be seen on both DirecTV and Dish, or just one of the two?
Can the ads be seen on all the boxes in the home, or just the primary box?
Can the ads be placed on all the cable networks or just some of them?
26Slide27
The Limitations of Cable Because of ADS Trends
National ADS (Alternate Delivery System) penetration is high – 23.2% of TV HHs, while Wired Cable continues to decrease.
Local cable commercials
may not be seen
in ADS homes.
Broadcast television has the potential to reach 100% of TV homes.Many markets exceed the national penetrations average and advertisers in those markets must consider the ADS factor.27
Source: Nielsen, February 2020
DMA Rank
DMA Name
% ADS
46
Albuquerque-Santa Fe
44.6%
44
Birmingham
42.6%
38
Greenville-Spartanburg
41.9%
20
Sacramento-Stockton
40.7%
11
Phoenix (Prescott)
39.6%
Top 5 ADS Levels of TV HHs in Markets 1-50Slide28
Wired Cable Penetration Declining vs.
Satellite and Over the Air Growing
28
Source: Nielsen, Feb 2000-2020Slide29
OTA Households Continue to Grow!
National OTA (Over-the-Air) penetration has climbed 63% from Feb’12 (9.6%) to Feb’20 (15.3%), and is even higher in many markets:
29
Source: Nielsen, Feb 2020
Top 10 OTA Levels of TV HHs in Markets 1-50
DMA Rank
DMA Name
% OTA
36
Milwaukee
31.8%
11
Phoenix (Prescott)
30.8%
46
Albuquerque-Santa Fe
29.8%
5
Dallas-Ft. Worth
29.2%
8
Houston
28.2%
31
San Antonio
27.9%
15
Minneapolis-St.
Paul
27.8%
43
Oklahoma City
27.0%
37
Cincinnati
25.1%Slide30
Broadcast vs. Cable Ratings
2018-2019 Season Ratings Vastly
Out-deliver CableSlide31
The Local Programming of Choice is on Local TV Stations… 92 of the Top 100 Shows in the 2018-’19 Season Were Broadcast
31
Source: Nielsen, NPOWER, 9/24/18-5/22/19; Ranked by A25-54 L+1 US AA % (ties broken by 000’s)
S/O-S/O Programs Ranked by Adults 25-54 Live+1 Ratings
Program Rank
Broadcast Stations
Ad-Supported
Cable
Total
1-25
24
1
25
26-50
24
1
25
51-75
20
5
25
76-100
24
1
25
Total
92
8
100
%
92%
8%
100%Slide32
Only 8 Cable Programs in the Top 100 in the 2018-’19 season
32
Source: Nielsen, NPOWER, 9/24/18-5/22/19; Ranked by A25-54 L+1 US AA % (ties broken by 000’s)
Rank
Program
Network
22
CFP CHAMPIONSHIP
ESPN
45
CFP CHAMPIONSHIP SUST
ESPN
51
ORANGE BOWL
ESPN
55
CFP SEMI-FINAL
ESPN
64
ROSE BOWL
ESPN
69
COTTON BOWL
ESPN
75
NFL REGULAR SEASON
ESPN
76
SUGAR BOWL
ESPNSlide33
In the 2018-19 Season, the Programming of Choice Is on Broadcast TV – 24 of the Top 25 Shows
33
Source: Nielsen, NPOWER, 9/24/18-5/22/19; Ranked by A25-54 L+1 US AA % (ties broken by 000’s) Slide34
How is Cable Sold?
Advertisers most commonly buy broad rotators
Can buy specific programs but at a much higher premium Shows that deliver actual ratings have limited local avails
Where do cable providers make their money, advertisers or cable customers?
Cable makes their money from you, their subscriber. Advertising is not their main source of income
When cable has a program with ratings, they would rather run a commercial promoting their services34Slide35
ClutterSlide36
The Fewer Commercials in a Podthe Higher the Exposure
Source: TV Dimensions / Media Dynamics, Inc.
Above Average
Below Average
36Slide37
DVR vs. Live ViewingSlide38
Watching TV at Home Captures the Lion’s Share of Viewing
Q1 2020: Weekly Time Spent A18+ (
Hrs:Min
)
Live TV 26:00 65.7%
Internet Connected Device 5:38 14.2%
Time-Shifted TV 3:53 9.8%
Video Focused App/Web (Smartphone) 2:00 5.1%
Video on a Computer 1:12 3.0%
Video Focused App/Web (Tablet) 0:52 2.2%
Total A18+ Video Consumption 39:35 100.0%
Source: Nielsen The Total Audience Report August 2020 (Q1 2020), Hours:Minutes among U.S. population
Internet Connected Device is inclusive of Smart TV app usage.
38Slide39
Source:
Nielsen Total Audience Report August 2020 (Q1 2020), Based on Total U.S. Population
Note: Internet Connected Device is inclusive of Smart TV app usage. Some amount of simultaneous usage may occur across devices.
39
Nielsen: Weekly Time Spent Video Viewing 1Q20 (HH:MM)
Hours: Minutes/Week
A18+
A18-34
A35-49
A50-64
A65+
A18-49
A25-54
Live TV
26:00
10:02
20:17
34:37
44:32
14:41
18:57
Time-shifted TV
3:53
1:19
3:31
5:24
6:04
2:18
3:07
DVD/Blu Ray Device
0:27
0:20
0:32
0:31
0:27
0:25
0:29
Game Console
1:39
3:38
1:44
0:28
0:10
2:46
2:10
Internet
Connected Device
5:38
6:57
6:52
4:57
3:12
6:55
7:02
Video
on a Computer
1:12
1:44
1:17
1:04
0:30
1:32
1:26
Video
Focused App/Web
(
Smartphone)
2:00
3:02
2:17
1:23
0:58
2:41
2:20
Video Focused App/Web (Tablet)
0:52
0:59
1:04
0:51
0:29
1:01
1:03
Live TV continues to dominate all video viewing across all age segmentsSlide40
Zoned CableSlide41
Zoned Cable
For a business to grow, they have to have the ability to reach 100% of their customers, not a small % as with cable.
Even with cable zoning, an advertiser can still only reach a very small % of their customers.
Take the advertiser back to what consumers are watching. What good does it do to be on zoned cable if nobody watches those programs?
Think politics. Politicians have one month to influence the voter, and they buy broadcast because it’s win or go home.
41Slide42
I+
(
Local ad insertion on Satellite)Slide43
I+ = 23 Channels
43Slide44
Getting Your Ad on Satellite in Local Markets
44
At the local break, copy is inserted into the network feed in every DVR home in each DMA.
The ads are stored
on each DVR
for future use.
Local commercials are sent via satellite to individual DVR boxes in each DMA.
Each DVR box has unique code mapped to a specific DMA.
Commercials can ONLY play back on the MAIN DVR box in the homeSlide45
TrustSlide46
The Primary Source For News:
Local Broadcast Television
46
Source: GfK TVB Media Comparisons Study 2020. Persons 18+. Includes only those who chose a media. Q5 - Which one of the following sources, if any, would you say is your primary source for news?
Which one of the following sources, if any,
would you say is your primary source for news?Slide47
Local Broadcast Television News:
#1 For Trust
47
Source: GfK TVB Media Comparisons Study 2020. Persons 18+. Agree Strongly or Agree Somewhat. Q9 - For each source, please indicate the extent to which you agree or disagree with the following statement: I trust the News that I see/hear on this media source.
I trust the News that I see/hear on this media source:
Percent AgreeSlide48
Local Broadcast Television News:
Most Involved In Your Community
48
Source: GfK TVB Media Comparisons Study 2020. Persons 18+. Includes only those who chose a media. Q8 - And, which source of news do you feel is the most involved in your community?
Which source of news do you feel is the most involved in your community?Slide49
Broadcast Television – The Strategic Choice
Top Program Ratings
Higher Reach
More Time Spent per Network
Stronger Purchase Influence
100% TV Market ReachSelectivityLess Advertising ClutterMulti-Platform Opportunities49Slide50
Key Takeaways
There are two kinds of television and they are not created equal.
Consumers are watching broadcast TV at far greater numbers than cable and are influenced more by broadcast commercials.
Understand your DMA cable/satellite pie chart. This will help you as you explain to your client the fragmented cable market.
If you are in a I+ market, know the problems with I+ but keep in mind the main point: these are still cable shows.
Think politics when it comes to cable zoning. You can really win by driving this point home. It makes sense to most advertisers.For a company to grow their business, they must have the majority of their allocation on broadcast TV.
50