Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Ad spend sees substantial decline in 2008, to worsen in 2009
- Print and radio bear brunt of spending cuts
- Branded entertainment offers alternative to traditional TV spots
- Television forced by disruptive technology to reinvent itself
- New DVR features suggest a new way to advertise
- Addressable advertising aims to improve targeting and relevance
- Negative attitudes towards advertising unchanged
- Traditional push advertising reminds but doesn’t convert
- Time-shifted viewing and commercial skipping is a widespread reality
- Quantity of ads is major barrier to more positive perception
- Celebrity endorsements and charity sponsorships
- Newspaper inserts most popular but internet coupons closing ground
- Emerging delivery concepts would find significant consumer base
Insights and Opportunities
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- Push to entertain and to encourage pull
- Ramp up internet tie-ins
- Commercials on demand should target young adults
- Less is more
- Print (yes, print)
Inspire Insights
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- Trend: Permission Marketing
- What’s it all about?
- What we’ve seen
- Let the viewer reject ads
- Ad jukebox
- Trend: Attention Economy
- What’s it all about?
- What we’ve seen
- Attention as a saleable commodity: Incentivizing consumers to watch ads
Market Size and Forecast
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- Aggregate ad spend plummets with little sign of recovery
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- Figure 1: U.S. advertising expenditures, at current prices, 2004-14
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- Figure 2: U.S. advertising expenditures, at inflation-adjusted prices, 2004-14
Competitive Context
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- Disruptive technologies favor pull over push
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- Figure 3: U.S. household penetration of digital video recorders and broadband modems, 2006-09
- Internet not yet established as a tool for push advertising
- DVRs are both friend and foe to marketers
- Networks boost minutes of branded entertainment
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- Figure 4: Brand appearances in network TV programming, 2006-08
Segment Performance
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- TV and internet buys show relative strength
- Television buyers wait and see
- Internet valued for conversions not brand building
- Radio and print media bear brunt of cutbacks
- Newspaper struggles despite growth in online readership
- Radio needs innovation to survive
- Magazines prepare for more drastic move online
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- Figure 5: U.S. advertising expenditures, by media type, 2007-08
Market Drivers
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- Ad expenditures decline more dramatically than consumer spending
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- Figure 6: U.S. media expenditures and consumer spending, 2006-09
- Troubled auto industry accounts for more than a third of decline
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- Figure 7: U.S. advertising expenditures, by business sector, 2007-08
- Fewer consumers learning from advertising
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- Figure 8: Attitudes toward advertising, May 2004-05-December 2007-08
- Reinvention and innovation needed to reach growth demographics
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- Figure 9: U.S. population, by age, 2004-14
- Marketers get comfy with “below the line” campaigns
Innovation and Innovators
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- Network TV integrates marketing into programming
- Addressable advertising makes push more relevant
- Big screen reading devices may give periodicals a second life
- Incentive-based ad model would attract significant base of respondents, particularly under-35s
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- Figure 10: Attitudes towards emerging concepts in media and ads: screens outside the home, compensation for viewing ads, and interest in television viewing on cell phones, June 2009
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- Figure 11: Attitudes toward emerging concepts in media and ads: screens outside the home, compensation for viewing ads, and interest in television viewing on cell phones, by age, June 2009
Impact of Advertising Media
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- Introduction
- Reach and impact vs. cost: The television conundrum
- Television remains the most powerful media, but costs may favor other formats
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- Figure 12: Reach and impact of ads, by media segment, June 2009
- Newspaper and magazines more likely to reach higher earners
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- Figure 13: Reach of advertising media, by household income, June 2009
- Ad impact declines significantly after age 35
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- Figure 14: Impact of advertising media, by age, June 2009
- Ads educate and remind but less likely to persuade
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- Figure 15: Type of effect of each advertising media, June 2009
- Sponsorships more effective with men
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- Figure 16: Preference for sponsoring brands, by gender and age, June 2009
TV Viewing Habits
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- Overview
- DVR ownership determined mostly by household income
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- Figure 17: DVR ownership, by age and household income, October 2007-December 2008
- Consumers skip commercials and surf internet while watching
- One in five time-shifting all viewing
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- Figure 18: Television time-shifting habits, June 2009
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- Figure 19: Television multi-tasking and non-DVR based ad avoidance techniques, June 2009
- Youngest respondents 18-24 most likely targets for online campaign tie-ins
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- Figure 20: Television time-shifting habits, by age, June 2009
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- Figure 21: Television multi-tasking and non-dvr based ad avoidance techniques, by age, June 2009
- Higher earners more likely to record
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- Figure 22: Television time-shifting habits, by household income, June 2009
- DVRs reduce the power of push but let consumers pull
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- Figure 23: Ad avoidance, ad selection, and voluntary ad viewing via DVRs, June 2009
- Family-aged respondents harder to reach with traditional TV ads
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- Figure 24: Ad avoidance, ad selection, and voluntary ad viewing via DVRs, by age, June 2009
- Large household respondents more open to on-demand ads
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- Figure 25: Ad avoidance, ad selection, and voluntary ad viewing via DVRs, by presence children in the household, June 2009
Receptivity to TV Advertising
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- Reducing quantity and block/filter can increase receptiveness
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- Figure 26: Enjoyment of TV ads and interest in new TV ad viewing models, June 2009
- Active 25-34-year-olds most value ability to choose
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- Figure 27: Enjoyment of TV ads and interest in new TV ad viewing models, by age, June 2009
Celebrity Endorsements
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- Cost remains primary barrier to membership
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- Figure 28: Impact of celebrity endorsements, June 2009
- Celebrity impact strongest among under-35s
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- Figure 29: Impact of celebrity endorsements, by age, June 2009
Charitable Causes
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- Charity sponsorship justifies premium pricing for a small minority
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- Figure 30: Impact of charity sponsorships, June 2009
- Under-35s more likely to pay more for charity sponsors’ products
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- Figure 31: Impact of charity sponsorships, by age, June 2009
- Higher earners more likely to pay premium for good causes
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- Figure 32: Impact of charity sponsorships, by household income, June 2009
Coupons
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- New media coupons still second to newspaper inserts
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- Figure 33: Coupon usage, by type of media, June 2009
- Internet/e-mail promotions close the gap with newspaper among under-35s
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- Figure 34: Coupon usage, by type of media and age, June 2009
- Higher earners find coupons in more places
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- Figure 35: Coupon usage, by type of media and household income, June 2009
- Family demographic more likely to find coupons in new media
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- Figure 36: Coupon usage, by type of media and presence of children in the household, June 2009
The Impact of Race and Hispanic Origin
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- Blacks aged over 45 least likely to tune out
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- Figure 37: Television time-shifting habits, by race/Hispanic origin and age, June 2009
- Black DVR owners least likely to skip commercials
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- Figure 38: Ad avoidance, selection, and voluntary viewership via DVR, by race/Hispanic origin and age, June 2009
- Blacks most likely to enjoy television commercials
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- Figure 39: Enjoyment of TV ads and interest in new viewership models, by race/Hispanic origin and age, June 2009
- Blacks most likely to view celebrity spokesmen favorably
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- Figure 40: Impact of celebrity endorsements, by race/Hispanic origin and age, June 2009
- Asian demographic ideal for online video ads
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- Figure 41: Television time-shifting habits, by race/Hispanic origin, June 2009
Cluster Analysis
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- Unreachables
- Who they are
- Opportunities
- Practicals
- Who they are
- Opportunities
- Ad-Friendlies
- Who they are
- Opportunities
- Cluster characteristics
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- Figure 42: Media and advertising clusters, June 2009
- Figure 43: Coupon usage, by media form and clusters, June 2009
- Figure 44: Television time-shifting habits, by clusters, June 2009
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- Figure 45: Attitudes towards television ads, by clusters, June 2009
- Figure 46: Attitudes towards cause marketing and corporate charitable giving, by clusters, June 2009
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- Figure 47: Attitudes towards celebrity spokesmen, by clusters, June 2009
- Figure 48: Attitudes towards sponsorship, by clusters, June 2009
- Cluster demographics
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- Figure 49: Media and advertising attitudeinalclusters, by gender, June 2009
- Figure 50: Media and advertising attitudinal clusters, by age, June 2009
- Figure 51: Media and advertising attitudinal clusters, by household income, June 2009
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- Figure 52: Media and advertising attitudinal clusters, by race/Hispanic origin, June 2009
- Methodology
Custom Consumer Groups
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- Women too busy for television ads
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- Figure 53: Television time-shifting habits, by gender and age, June 2009
- Women under-55 hitting the fast forward button more often than men
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- Figure 54: Ad avoidance, selection, and voluntary viewership via DVR, by gender and age, June 2009
- Men under 35 more likely to enjoy commercials than women under-35
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- Figure 55: Enjoyment of tv ads and interest in new viewership models, by gender and age, June 2009
- Men under 35 more likely to be impacted by celebrity spokesmen than women under 35
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- Figure 56: Impact of celebrity endorsements, by gender and age, June 2009
- Charity and coupons speak to women
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- Figure 57: Impact of charity sponsorship, by gender and age, June 2009
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- Figure 58: Coupon usage by media, by gender and age, June 2009
- Gender, marital status, and children in the household
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- Figure 59: Ad avoidance, selection, and voluntary viewership via DVR, by gender and children in the household, June 2009
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- Figure 60: Coupon usage by media form, marital status, and presence of children in the household, June 2009
Appendix: Other Useful Consumer Tables
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- High-income households skipping away from ads
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- Figure 61: Ad avoidance, selection, and voluntary viewership via DVR, by household income, June 2009
- Households with kids like ads more
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- Figure 62: Enjoyment of tv ads and interest in new viewership models, by presence of children in the household, June 2009
Appendix: Trade Associations
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