Download Television and online

What is the relationship between television (both programming and advertising) and online social
media?
What impact do they have on each other?
What are the general perceptions on the use of social media as a communications vehicle and how
do these compare with television?
Consumers become more resistant to advertising messages and consequently need to be targeted in
more subtle and subliminal ways. Communicating with consumers have changed significantly with
the emergence of social media: Businesses need to take advantage of social media as a
communications and marketing tool in order to raise brand awareness and build customer
relationships at a low cost (New Zealand Management, 2010). Compared to television advertising,
social networking media display more possibilities to directly target specific consumer segments as
well as communicate directly with customers in order to gain knowledge about their wants and
needs (Berman, Battino et al., 2009; Harris & Rae, 2009; Johnson, 2010; Mangold & Faulds, 2009;
O’Connor, 2009). However, a multi-media approach is necessary in order to be able to reach all
possible consumers as the steady increase of audience fragmentation is visible. Although some
studies suggest that consumers are turning away from traditional sources of advertising (TV, radio,
print) and that television is increasingly becoming a background medium, television advertising in
particular has the ability to enhance new or social media and needs to be continually relied on in
order to overcome the limitations of online advertising and social media (Brennan, 2009; Pfeiffer &
Zinnbauer, 2010). Overall, television campaigns have the highest efficiency level compared to other
traditional media and TV as a whole remains the ultimate mass medium capable of reaching vast
numbers of viewers. Television still has a very high reach and declining ratings are “only” due to
fragmentation (= more channels) and not due to reduced TV viewing levels, as people of all ages
watch television (Romaniuk, 2009; sharp, Beal et al., 2009). Although new technologies will
undoubtedly cause changes, television as a whole will remain the ultimate mass medium capable of
reaching vast numbers of viewers as well as the preeminent advertising medium, if however, a more
complex and expensive one (Lafayette, 2011; Neff, 2009; Winslow, 2011).
•
Online advertising budgets are expected to experience a major increases in the coming years
(Pfeiffer & Zinnbauer, 2010)
•
Time that is being spent on social networks and blogs is growing at over three times the rate
of overall Internet growth (Johnson, 2010)
•
30 % of online activity takes place while simultaneously watching TV (Dodd & Doe, 2009)
•
Personal PC time now rivals TV time, with 71% of respondents using the Internet more than
two hours per day for personal use versus just 48% spending equivalent time watching TV (Berman,
Battino et al., 2009)
•
TV viewing levels are resilient to social and technological changes and to the emergence of
“new” media (Sharp, Beal et al., 2009)
Related abstracts
Old Media Gets New Boost – Technology trends point toward more HD, TV Everywhere and new
Nielsen numbers
Winslow, G. (2011). Old Media Gets New Boost – Technology trends point toward more HD,
TV Everywhere and new Nielsen numbers. Retrieved from
http://www.broadcastingcable.com/article/461666-Old_Media_Gets_New_Boost.php.
Usage of online video hit record levels in 2010, but “total online video consumption
represents less than 1% of total traditional TV consumption when you are talking about
professional content,” says Brian Weiser, executive VP, director of global forecasting at
Magna Global, who is projecting that online video advertising will grow by 25% to $1.7
billion in 2011.
Meanwhile, overall TV viewing continues to grow, thanks largely to a somewhat older
technology—the high-definition 1080i images that were first tested by Japanese public
broadcaster NHK in 1969.
Hi-def wasn’t developed in response to digital media—the first HD tests were analog—but
it’s now having the unintended consequence of futureproofing traditional TV against other
video platforms. “It’s gotten people back into the living room, watching those big-screen
TVs,” says O’Grady.
An amazing amount of HD work still needs to be done, however. Only 25% to 35% of local
broadcast stations have launched local HD newscasts, and only a third of broadcasters were
even equipped to take HD ads as of the third quarter of 2010.
Advertising Bounces Back – Wall Street frets about cord-cutting set
Lafayette, J. (2011). Advertising Bounces Back – Wall Street frets about cord-cutting set.
Retrieved from http://www.broadcastingcable.com/article/461661Advertising_Bounces_Back.php.
Though the overall economy remains uncertain, TV advertising revenue is surging, and
outlets that looked like road kill a year ago—particularly local stations—are posting doubledigit gains even after the frenzy of political spending has subsided. Madison Avenue media
buyers recently raised their forecasts for 2011 spending. GroupM, for example, bumped up
its U.S. spending outlook to 3.7% growth, following a 1.2% increase in 2010 and a 7.1% drop
in 2009. “Television and online media have been the primary beneficiaries of the rebound in
spending,” said Rino Scanzoni, chief investment officer of GroupM. “Moderately accelerated
growth is anticipated in 2011, as corporations with significant cash reserves deploy
investment in marketing and advertising to drive top-line growth.” During the strong 2010
upfront market, the networks quickly sold a higher-than-normal share of their commercial
inventory for the broadcast year as they looked to lock in prices that were up by nearly 10%.
Those prices proved to be a bargain. In the scatter market, where commercials are sold
closer to air time, prices were up as much as 30%.
Upfront Shows TV Still Pays - After big haul, will there still be dollars for scatter?
Lafayette, J. (2010). Upfront Shows TV Still Pays - After big haul, will there still be dollars for
scatter?. Retrieved from http://www.broadcastingcable.com/article/453673Upfront_Shows_TV_Still_Pays.php.
For at least one more year, television and the upfront appear alive and well. While far from a
perfect measure of the health of the industry, this year’s fast-moving market shows that
large marketers are still willing to shell out billions of dollars to reach consumers en masse,
and that despite the popularity of digital media, TV is not yet extinct.
Across the board, broadcast networks saw 15%- 20% more dollars in this year’s market than
a year ago, when the Great Recession put a clamp on ad spending. Commitments for the
2010-11 TV season are just under the $9 billion mark reached in 2008 for broadcast despite
the dwindling supply of gross ratings points (GRPs).
A lot of this year’s spending increase is believed to be the result of ad dollars returning to
the upfront, where marketers commit early to buy spots in return for ratings guarantees.
This came after economic uncertainly and the networks’ determination to limit price cuts
pushed money into the scatter market, where commercials are sold closer to air. Scatter
prices turned out to be 20%-30% higher than in the upfront, teaching advertisers a costly
lesson in supply and demand. With prices higher, networks resumed selling 75%-80% of
their commercial inventory in the upfront.
Can Old Media Enhance New Media? How Traditional Advertising Pays off for and Online Social
Network
Pfeiffer, M. and M. Zinnbauer (2010). "Can Old Media Enhance New Media? How Traditional
Advertising Pays off for an Online Social Network." Journal of Advertising Research 50: 4249.
Advertising spend is experiencing its biggest decline in history, however, online advertising
budgets are expected to experience a major increases in the coming years. In the United
Kingdom and Denmark, Internet has overtaken television as the biggest advertising sector by
market share (as of beginning 2010). Still, many marketers believe that TV advertising needs
to be relied on in order to overcome the limitations of online advertising, i.e. limited access
to target groups. Examining the impact of traditional advertising channels on a particular
social network’s registrations, it was investigated whether TV, radio, print or outdoor
showed a positive return on investment (ROI). It became obvious that TV campaigns have
the highest efficiency levels compared to the other traditional media. Overall, this study
found that traditional advertising with a clear focus on TV pays off and outperforms pure
search-engine marketing with regards to generating new social network registrations.
Therefore, to build brand strength or to actively convey a brand’s positioning toward a broad
audience, traditional advertising remains a necessity. Concluding, TV advertising has the
ability to enhance new or social media.
The Lasting Effects of Social Media Trends on Advertising
Wright, E., N. Khanfar, et al. (2010). "The Lasting Effects Of Social Media Trends On
Advertising." Journal of Business & Economics Research 8(11): 73.
People are exposed to an astounding number of advertising messages every day (in the US:
people are exposed to approx. 5,000 ads a day (2006)). In order to be able to still reach
consumers, marketers need to focus more on tailored messages and relationship building
instead of mass marketing. Consumers become more resistant to advertising messages and
consequently need to be targeted more subtle and subliminal. Therefore, the
communication channel for which advertising trends are expected to grow increasingly is
online. Television advertising (as well as other traditional media) has the ability to reach
large numbers of people in a short amount of time but is too general and broad in its current
form. However, social networking media (Facebook, Twitter, YouTube, etc.) display more
possibilities to directly target specific consumer segments:
•
Ability to segment markets automatically;
•
Consumers can customize their profiles - subsequently helping marketers to identify
possible consumers;
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Ability to establish more intimate relationships between marketers and consumers –
fluidity of social media.
Using social media, marketers talk with their consumers instead of at them. Marketers
surveyed by Forrester Research (US) are finding that interactive and targeted marketing
activities are the keys to success and traditional advertising is “essentially a waste of
money”.
Harnessing the Power of Social Media
(2010). "HARNESSING THE POWER OF SOCIAL MEDIA." New Zealand Management
57(5): 35-39.
153 million blogs have been published since 2002, an estimated seven million
messages flew on Twitter last year and Tourism New Zealand has 100,000 fans on
Facebook (as of June 2010). Therefore, businesses need to see social media as a
communications and marketing tool. A study conducted by global PR company
Burson-Marsteller in the US found that 79 percent of the 100 largest companies in
the Fortune Global 500 index are using social media tools. However, New Zealand is
one year behind American trends. Still, a Nielsen survey with 166 marketing
professionals (run by the CAANZ) showed that those professionals share the belief
that social media has great benefits, such as its ability to communicate directly with
consumers in order to gain knowledge about what customers want. Subsequently,
social media should be part of every company’s marketing and communication
strategy.
Customer Engagement is The New Marketing
Johnson, L. D. (2010). "Customer Engagement Is The New Marketing." Journal of Advertising
Research 50(2): 118-119.
This review of Brian Solis’s book Engage! (2010) – with a foreword by Ashton Kutcher (actor,
entertainer and self-proclaimed reigning king of Twitter) – summarizes the key topics and
indicates the main contribution it makes. Some of those facts are the following:
The new marketing is basically integrated marketing which understands what people want
and how they think. The time that is being spent on social networks and blogs is growing at
over three times the rate of overall Internet growth. According to Forrester Research, socialmedia spending will increase to $3.1 billion in 2014 from $716 million in 2009, representing
an annual growth rate of 34 percent indicating the highest percentage gain in the marketing
mix.
Guess which medium is as effective as ever: TV
Neff, J. (2009). Guess which medium is as effective as ever: TV. Advertising Age, February 23,
2009, p. 1.
Even though the drumbeat of doom for TV advertising has sounded for more than a decade,
a growing body of evidence suggests not only that TV advertising still works, but that it may
be working better than ever. A seven-figure ethnographic study by Nielsen Co.-funded
Council for Research Excellence from research firm Sequent and the Centre for Media
Design at Ball State University found that TV remains the dominant medium for even
reaching youth, despite the inroads of digital and social media.
The senior VP of Media Marketing Assessement (MMA) stated that there hasn’t been a
significant trend in the erosion of effectiveness for TV. Instead, aggregate TV effectiveness
has seen a slight uptick in effectiveness in recent years. Additionally, about a third of search
queries in digital media for brands are driven by offline advertising – a higher proportion
than that driven by online-display advertising.
Marketing Professor Leonard Lodish found that TV advertising actually became more
effective. The average volume lift from incremental TV spending has increased since 2007.
Social media: The new hybrid element of the promotion mix
Mangold, W. G. and D. J. Faulds (2009). "Social media: The new hybrid element of the
promotion mix." Business Horizons 52(4): 357-365.
The ways of communicating with consumers have changed significantly with the emergence
of social media – also referred to as consumer-generated media – which describes a variety
of new sources of online information that are created, initiated, circulated and used by
consumers. Social media enables customers to talk to their customers and it also enables
customers to talk to one another or companies. This ability of enabling communication with
one another limits the amount of control companies have over the content and
dissemination of information. The Internet as such has become a mass media vehicle for
consumer-sponsored communications and represents the number one source of media for
consumer at work and number two source of media at home. Thereby, consumers are
turning away from the traditional sources of advertising (TV, radio, print). Additionally,
consumers are becoming more independent and turn away from traditional elements of the
promotion mix due to the reduction of their reliance on advertising as source of information
– information search for purchase decision-making is increasingly taking place online.
Social networks: the future of marketing for small businesses
Harris, L. and Rae, A. (2009). “Social networks: the future of marketing for small businesses.”
Journal of Business Strategy 30(5): 24-31.
The Internet impacts business innovation by expanding reach and minimizing the time-lag to
market. Marketers are recognizing the potential of these communities for the development
of their brands and to build relationships with key customers. Users are engaging online by
increasingly uploading and sharing content among themselves, leading to a proliferation of
social networks and other user-generated content sites. In addition to social media
networking sites such as Facebook, the use of “microblogging” through sites such as Twitter
is steadily gaining popularity. Businesses need to take advantage of those social media in
order to raise brand awareness and build customer relationships at a low cost. Modern
marketing therefore requires a focus on innovation and the building of brand relationships
virally offline but moreover, online. Consumers increasingly do and will expect companies to
communicate to them through social media tools.
Tots join Tweens in Digital Realm
Snyder Bulik, B. (2009). Tots join Tweens in Digital Realm. Advertising Age, January 19, 2009,
p. 12.
A study finds that the use of electronic devices is up among children and games lead children
to use technology at a younger age. According to the NPD Group’s latest annual study of kids
and digital, 82% of children ages 2 to 5 play videogames on some type of digital device.
Gaming serves as an introductory activity to the digital world. Overall, the survey showed
that there was an increase in kids’ turning to digital sources more and more for their
entertainment needs.
Even though it was found that kids still love to watch TV, they are not as tied to it as
previous generations. Instead, watching TV digitally increased from 17% to 22% in 2008.
Also, 80% of kids downloaded TV shows in order to watch them on a digital device.
Television and online: a marriage in heaven
Brennan, D. (2009). Television and online: a marriage in heaven. Admap, 44(2) 502, 21-23.
* David Brennan is research and strategy director at Thinkbox
TV and internet are not pitted against each other in a fight to death – they are a marriage in
heaven, each complementing the other and helping them to grow and develop. There are
two main aspects to this relationship:
1. The internet is largely a technology, rather than a single medium, while TV is largely about
content, not one exclusive form of distribution. Put together, marketers can create an
exciting new world for TV to colonize.
2. Broadcast TV has the potential to be integrated with the variety of online media, from
search and email marketing to online banners and online TV.
Undertaking two research projects, Thinkbox found that using TV and online advertising
combined delivers up to a 50% increase in positive brand perception and more than a 50%
increase in the likelihood of purchase. TV and online advertising both have a clear influence
on purchase and response in their own right but are much more influential when combined.
Concluding, TV is booming and on the crest of a still-building wave. The internet is one of the
technologies that will guarantee TV’s relevance and effectiveness in the coming decades.
Taking the Conversation Online
Valente, V. P. (2009). Taking the Conversation Online. Advertising Age, January 26, 2009, p.
27.
As consumer information consumption continues its inexorable march online, savvy
marketers are following. Marketers today use web sites, e-newsletters, online communities
and online magazines to engage consumers in an enhanced dialogue that delivers dynamic
value.
A December 2008 survey of marketing executives by Junta24 indicated that digital initiatives
are leading the way, incl. social media, blogs, online videos and microsites. What is
particularly appealing about custom digital approaches is that, when combined with
Technology no longer just kid stuff
Snyder Bulik, B. (2009). Technology no longer just kid stuff. Advertising Age, February 2,
2009, p. 12.
An increasing number of parents are “going online”, to monitor their children and/or to text
each other and stay in touch through social networks. They learn about new products from
TV, friends and magazines, followed by email, websites, podcasts, search engines and
mobile-web browsing.
The Efficacy of Brand-Execution Tactics in TV Advertising, Brand Placements, and Internet
Advertising
Romaniuk, J. (2009). "The Efficacy of Brand-Execution Tactics in TV Advertising, Brand
Placements, and Internet Advertising." Journal of Advertising Research 49(2): 143-150.
Audience fragmentation has lead marketers to now needing to focus on not only one
medium, but many. Marketers need to spend more money to reach different segments of
potential consumers in order to reach a wide audience. Overall, the fragmentation is driven
by the emergence of new media (Internet, social networking, word-of-mouth/mouse) as well
as the increasing use of alternative mechanisms in old media (e.g. product placements). To
overcome this fragmentation, a multi-media approach is necessary in order to be able to
reach all possible consumers (old and new media combinations).
Three-screen viewing behavior complements traditional TV
Dodd, M. & Doe, P. (2009). Three-screen viewing behavior complements traditional TV.
Admap, 44(2) 502, 18-20.
Americans are still avid traditional TV viewers despite the proliferation of new technology.
The Nielsen Company is using a number of different data sources and methods to
understand consumers’ use of TV, internet and mobile (‘three-screen’ use).
It was found that online video is complementing and not replacing traditional TV viewing. A
study included the following findings:
- nearly everyone in internet homes watches TV, but not all use the net
- the majority of people in internet homes watch TV and use the net, but very few use the
net exclusively
- in internet homes, TV viewers who use the internet watch more TV than those who don’t
- heavy internet users are heavy TV viewers, and heavy TV viewers are heavy internet users
- 30% of online activity takes place while simultaneously watching TV
The End of Advertising As We Know It
Berman, S. J., B. Battino, et al. (2009). The End of Advertising As We Know It. Television Goes
Digital. D. Gerbarg, Springer New York. 01: 29-55.
The next five years will hold many changes for the advertising industry, more than
experienced over the past fifty years. Consumers are increasingly empowered, more selfreliant advertisers emerge and ever-evolving technologies are redefining how advertising is
sold, created, consumed and tracked. Based on an IBM global survey of more than 2,400
consumers and feedback from 80 advertising executives worldwide (collected in conjunction
with Bonn University (Germany)), four change drivers shift control within the advertising
industry: Attention, creativity, measurement and advertising inventories. Consumers
increasingly exercise control of how they view, interact with and filter advertising in a
multichannel world. They continue to shift their attention away from linear TV and rather
adopt ad-skipping, ad-sharing, and ad-rating tools. The conducted survey suggests that
personal PC time now rivals TV time, with 71% of respondents using the Internet more than
two hours per day for personal use versus just 48% spending equivalent time watching TV.
Overall, the general ad spend is to continue to grow in line with the general health of the
economy, but the composition of that spending will change. Mature channels such as print,
traditional direct marketing and TV are forecast to be lower than the combined growth
forecast for interactive advertising formats such as Internet, interactive television
promotions, mobile and in-game advertising. Thus, a critical juncture will be reached where
new platforms/media may soon have more impact than TV. TV is increasingly becoming a
secondary background medium, therefore forecasting TV advertising to decrease and
Internet advertising to increase.
Users are increasingly willing to participate in social networking sites. The power of
communities is predicted to grow steadily – eventually the “voice” delivering the message
will become as powerful as the message or offer. User-generated content as social media
was rated not as a “hype” but as “here to stay” by the participants of the study.
Overall, the paper suggests that advertising is going to change quicker than ever before,
urging marketers to integrate new forms of media into the promotion mix in order to “keep
up” with current advertising trends as well as with its customers.
Marketers adapt as social networks attract older users
Learmonth, M. (2009). Marketers adapt as social networks attract older users. Advertising
Age, February 23, 2009, p. 14.
Social networking is no longer a youth phenomenon. As of January 2009, more than 50% of
Facebook users and 44% of MySpace users in the US were over 35 years old. The single
biggest age demographic in the US both on Facebook and MySpace was then between 35
and 44. Facebook additionally states that its fastest growing demographic is 55plus.
Television: Back to the Future
Sharp, B., V. Beal, et al. (2009). "Television: Back to the Future." Journal of Advertising
Research 49(2): 211.
Although TV keeps changing and viewers have more alternatives than ever, televisionviewing behavior continues to follow some law-like patterns that have remained in place
over the past forty years. This paper states the following empirical generalizations which
suggest that TV will remain the preeminent fast and vast advertising medium, if however, a
more complex and expensive one:
•
Television still has very high reach
•
Declining rating are due to fragmentation (more channels) not to reduced TV
viewing levels
•
TV viewing levels are resilient to social and technological changes and to the
emergence of “new” media
•
Average ratings halve if the number of channels double
•
Bigger channels have more viewers, and these viewers watch for more hours
•
People of all ages watch TV
TV as a whole remains the ultimate mass medium capable of reaching vast numbers of
viewers. New technologies will undoubtedly cause changes, but TV will remain the
preeminent advertising medium. A number of things are expected to stay essentially the
same during the “Digital Revolution”, promising a good and consistent outlook for TV
advertising.
Use social media to build brand buzz
O’Connor, D. (2009). Use social media to build brand buzz. Admap, 44(1) 501, 14-15.
Social media activities, done well, can vastly improve a brand’s marketing, research,
customer service and communications. In a broad sense, ‘social media’ refers to all those
activities, platforms and practices that allow users to create, modify and share knowledge,
opinions and content. Those users are marketers as well as customers. As marketing has
always been about a process of exchange, the power of social media is that it enables
customers to be an active and involved part of that exchange – it lets them dictate the terms
of the conversation. Therefore, a great strength of social media is that it encourages wordof-mouth marketing of a brand.
To ensure social media activities are successful, it is helpful to bear in mind the KUDOS
acronym. All social media activities should revolve around a piece of Knowledge which is
Useful, Desirable, Open and Shareable.
Social media ads ‘irrelevant’ to 18-25s
Social media ads ‘irrelevant’ to 18-25s. Admap, 44(4) 504, 7.
The vast majority of web users under 25 think ads on social networks such as Facebook and
MySpace are ‘irrelevant’ and over a third would never click on one. The Participatory
Marketing Network (PMN), which carried out the study of 220 18-24 year olds, found that,
although 84% noticed ads on social networks, 74% said they rarely clicked on one and 36%
said they would never do so. Over 80% said that the ads were irrelevant to them.
Internet ‘will overtake TV next year’
Internet ‘will overtake TV next year’. Admap, 44(5) 505, 7.
Microsoft has predicted that broadcast TV will be overtaken by the internet as the most
used media channel in Europe by the middle of 2010. A study by the tech giant concludes
that internet consumption in 2010 will average just over 14 hours a week, with TV
accounting for only 11.5 hours. But, while Microsoft predicts people will spend at least two
hours a day in front of a computer, it said this would not be ‘the end’ for TV. Changing media
consumption patterns mean that people are watching video via mobile devices and
computers, as well as TV, meaning content that would previously have been destined for TV
is now reaching viewers in different ways.
Evaluation of Internet Advertising Research – A Bibliometric Analysis of Citations from Key Sources
Kim, J. and S. McMillan (2008). "EVALUATION OF INTERNET ADVERTISING RESEARCH: A
Bibliometric Analysis of Citations from Key Sources." Journal of Advertising 37(1): 99.
Analysis and evaluation of 113 papers from the Journal of Advertising, Journal of Advertising
Research, Journal of Current Issues and Research in Advertising and the Journal of
Interactive Advertising. The evaluated articles stemmed from a time period of eight years,
from 1996-2003. The key themes among the most-cited works included effectiveness,
interactivity, electronic commerce as well as how advertising works on with a focus on the
persuasion process, the key concept of involvement and lastly, Internet advertising in
comparison to traditional media.