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A Champion For Broadcasting - Broadcasting & Cable

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.
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2010:

• 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.

2009:

• 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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