Advertising and Marketing

A Champion For Broadcasting

As these excerpts from his last two upfront presentations show, Jon Nesvig was never measured with his support for the power of the broadcasting industry. 12/13/2010 12:01:00 AM Eastern


• With all the self-serving opinion polls and public posturing that television’s
audience is deserting the networks for other viewing opportunities, I’m
reminded of Yogi’s Berra’s observation that “Nobody goes there anymore;
it’s too crowded.”

• There’s no denying that our industry is in a period of change, but things
aren’t moving as rapidly as some would have
you believe. Television continues to be the
overwhelmingly dominant platform for video
viewing for every demographic group.

• Among our key target audience of adults 18-
49, over 98% of video consumption still comes
via the TV set…with all other sources—including
YouTube and other mainly amateur content
outlets—accounting for just 1.7% of viewing.

• Consumer spending certainly indicates that
they expect to continue viewing on TV sets, as
purchases of HD television and service have more
than doubled in the past year. There is now more
than one TV set per person in the average American
household. And they’re using those TVs more than
ever—more than 8 hours of primetime per week—
with 80% of network viewing done live.

• TV’s singular role in each stage of the purchase
process, combined with its unparalleled reach,
makes it the greatest influencer for motivating
consumers to buy.

• Great TV commercials are best at establishing
the emotional connection that’s so important to
brand-building and driving sales. At Fox, it’s our goal not only to deliver a large
audience, but to deliver involved viewers who will respond to your messaging.

• Size matters when we’re talking reach and immediacy, but environment is
important as well. Quality and engaging content are advantages of the broadcast
network programming environment, but the network advertising environment
also aids in delivering superior commercial message effectiveness.

• Cable has four times as many advertisers in primetime as broadcast, but it’s
the 25% of advertisers who use both cable and broadcast that demonstrate
a higher level of sophistication and offer better creative executions.

• We asked IAG to look at programs that are common to broadcast and
the top 20 cable networks. This analysis takes program environment out of
the equation and focuses purely on commercial effectiveness. The results
revealed a substantial difference in ad performance, with broadcast showing
38% better brand recall and 28% better message retention.

• We all know that the proper combination of message and platform is the
key to effectiveness. And while additional touch points enhance campaign
effectiveness, it’s important to keep TV as the primary base with broadcast
playing the most significant role.


• The focus on ROI and measurable results is more important than ever. At
Fox, we feel strongly that broadcast television can meet these tests with
flying colors, and we are continuing to invest in our product to insure that
we can help you sell yours.

• Last year we presented the study done for Fox by Marketing Evolution.
It analyzed more than 40 actual campaigns and
proved that throughout the purchase decision-making
process, TV advertising has more impact than all
other media combined. This year, studies done by
the Council for Research Excellence, the Advertising
Research Foundation and Yankelovich have confirmed
that impact at each stage of the process—from
awareness…to intent…to actual sales.

• TV’s singular role in each stage of the purchase funnel,
combined with unparalleled reach, gives it the greatest
scope of influence for motivating consumers to buy.

• Conventional wisdom seems to say that viewers are
rapidly deserting television to view programming on their
computers or phones. But let’s look at the facts: The new
Video Consumer Mapping study for the CRE showed a
strikingly different reality. It confi rmed Nielsen’s numbers
that 99% of three-screen viewing is going to television.
Even for adults 18-24, TV accounts for 98% of threescreen
time. And, TV viewers are watching ads—on
average, 72 minutes of TV ads and promos per day.

• OK. That’s all well and good you’re saying, but that’s
all television. You’re broadcast; you’re having a tough
time. Viewers don’t care whether they’re watching
networks or cable channels. While viewers may not know which delivery
system they’re watching, the impact of their viewing is what’s important to
advertisers. And there are still differences.

• While cable has accounted for the stability of overall prime time ratings
this season, let’s take a look at what’s really going on—particularly for
those of you who are looking to reach consumers in an entertainment
environment. This year was an election year, and political and economic
news have driven viewing. Cable news networks are up 58%—Fox News is
leading that pack—but cable entertainment networks are off 3%.

• Cable likes to talk about the upscale nature of their homes and talk about
non-wired homes as containing the poor and uneducated. But, again,
let’s take a look at actual viewing, not potential: Four-network broadcast
averages for upscale viewers are at or above a 100 index on all the income
and education breakouts, with cable averages hovering significantly below.

• Reaching those prime consumer targets quickly has never been more
important than in these challenging times. Whether it’s opening a movie,
announcing special offers, or with timely, brand-building information, speed
is important and size does matter.

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