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Media Market Overview
Cormac OShea
Media Market Overview
Digital will drive the recovery
 780m   749m   709m          678m              684m      704m      733m
  -7%     -4%     -5%            -4%                +1%        +3%        +4%
   97
          108
                  130                                                      210
                                 150                 168        188




  683     641
                  579
                                 528                 516        516        523




  2009   2010    2011          2012 (f)            2013 (f)   2014 (f)   2015 (f)

                 Traditional Media         Digital Media


                         Source Clear Blue Water
+2 to 5%

Value
Media Market Overview
鏤 Look for opportunities to lead your competitors
 1.



鏤 Understand your Competitor 5stomer and how best to reach
 2.
them


3. Know what works



4. Know whats being said about you



5. New media channels are good news for advertisers
Media Market Overview
Look for opportunities to lead
      your competitors
Case study - background

 Cluttered with brands adopting similar media
  strategies, and utilising same media mix

 Leads to a wallpaper effect among consumers

 Breaking this cycle will lead to a clear advantage for
  our client, and will take significant time for any other
  brand in the category to catch up
Battleground was in print
                       TV     Radio       Print     OOH     Cinema

      Client         22%          9%                  53%                     16%

Competitor 1          25%          7%                46%                     21%    1%

Competitor 2            31%                   19%                42%               8%

Competitor 3            31%              12%                    55%                 1%
                                                                                     1%

Competitor 4         22%                23%                     48%                7%

Competitor 5           29%               15%                    51%                2%
                                                                                    3%


               0%           20%               40%         60%          80%          100%

In an undifferentiated market, print was the most cluttered advertising environment

                We had the lowest investment in TV of all competitors
TV is the most influential paid for
medium
and has strongest return on investment




                                  Source: Thinkbox, IPA, Neilsen
Media Market Overview
Key recommendations

 Lead the most influential media in this category - TV
    Divert money from other media to television
    Invest in consistent presence across the year
    Invest in quality (PIB, Centre Breaks, Peak)

 Look for opportunities to lead in other media
Press - use larger formats to deliver brand
stature and differentiation
                     Sector press size summary

               DPS   Full Page   Half Page   Qtr. Page   Strip   Sponsorship   Other


Competitor 2


Competitor 4


Client


Competitor 1


Competitor 5
and the same in outdoor
               96 Sheets   Golden    48 Sheets    6 Sheets     Transport         Other
                           Squares

                 5%            3%     4% 4%                                89%       89%
our client       5%             3%

                               1%  35%           34%         11%       18%
Competitor 1                    1%    35%              34%           11%             18%
                                   17%           2%                    80%
Competitor 2                          17%              2%                            80%

Competitor 4               16%     10%

                                   45%
                                      10%
                                                 67%

                                                 23%
                                                       67%   84%
                                                             19%       4%
                                                                     19%
                                                                       32%
                                                                                     4%

Competitor 5                  Large 45%                23%      Small                32%
                                    1%           42%         55%      2%
Competitor 6                 Format 1%                 42%
                                                               Format
                                                                   55%                   2%
                                   46%                                     54%
Competitor 3
                                      46%                                            54%
                                    4%           20%         76%
Competitor 7
                                       4%              20%           76%
What happened?




  Consideration increased by 12% over the year
 Share of market increased by 1.4% over the year
Media Market Overview
Understand your customer and
   how best to reach them
Media Market Overview
TGI media and marketing survey
   Annual


   c.5,000 per annum


   TV, radio, newspapers, magazines, outdoor, internet, direct mail


   18 sectors, 500 categories, 4,000 brands


   270+ lifestyle statements, socio-demographic classifications, geo-demographics
Example of how we use this research



                            The brief:

   We want to reach heavy shoppers who would use their mobile
       phones to accumulate loyalty points while shopping
Main Shopper (68%)
     2,427,000




  Cant live without
  internet on phone
    (20%) 723,000




  Main Shopper & cant
live without Internet on
phone (13.2%) 474,000




    Source TGI 2011
Main shopper and cant live without internet on
                    phone
 65+          8

55-64             10

45-54                   15

35-44                          22                                 64%             36%

25-34                                 27               C2DE                  50

15-24                        20                        ABC1                45

        0          10           20           30               0                 50           100

            Strong Female bias, 25-44s across all social classes . This is the sweet spot


                                            Source TGI 2011
Media Market Overview
Main shoppers & cant live without
      internet on phone
            Heaviest media consumption               %        Efficiency
Vert. %                                                                                                      Index
30%                                                                                                            175


                                                                                                              150
25%

                                                                                                              125
20%

                                                                                                              100
15%
                                                                                                              75

10%
                                                                                                              50

5%
                                                                                                              25


0%                                                                                                            0
          Newspapers    Magazines      Television        Internet     Outdoor Media   Cinema      Radio

             High reach by Digital, TV & Outdoor. Highest affinity with Digital, TV also rates higher than
                                                      average
                                                    Source TGI 2011
TV station viewership

                             Top 10 stations watched yesterday
350


300


250


200


150


100


 50


  0
                                     Main Shopper& cant live without mobile


      RTE 1   TV 3   RTE 2     UTV   Channel 4       Sky News         TG 4    Sky 1   Sky Living   Sky Sports




                                         Source TGI 2011
Daytime is key to delivering this audience efficiently


                                                 Viewership of RTE 1 by Index
140


120


100


80


60


40


20


  0
                                                           Main Shopper& cant live without mobile
      9.30 - 11.59 am   8.00 - 10.59 pm   5.30 - 7.59 pm    12.00 - 3.59 pm    11.00 - 12.59 am     4.00 - 5.29 pm   6.00 - 9.29 am   1.00 - 5.59 am




                                                                  Source TGI 2011
Sunday Press Readership (000)
1000
900
800
700
600
500
400
300
200
100
   0
              Sun World            Sund Ind             Sun Mirror          Sun Times       Mail on Sunday       Sun Bus Post

                          Main Shoper & can't live without internet on phone                    Readership



                                                        Radio Listenership
            140                                                                                                          120

            120                                                                                                          100
            100
                                                                                                                         80
            80
   ('000)




                                                                                                                                Index
                                                                                                                         60
            60
                                                                                                                         40
            40

            20                                                                                                           20

              0                                                                                                          0
                     RTE Radio 1              RTE 2FM            Today FM         Newstalk FM 106.8     RTE Lyric FM



                                                               (000)         Index
                                                                                                       Source TGI 2011
Media Market Overview
Frequency of Shopping  Regular main shopping


                            Main Shoppers & cant live without internet on phone
                  350

                  300

                  250                                                       Once a Week
Weighted (000)




                                                                            2-3 Days a Week
                  200
                                                                            4-5 Days a Week
                  150                                                       Every Day
                                                                            2-3 Times a Month
                  100
                                                                            Once a Month

                   50                                                       Less than once a Month


                    0


                               61% do one main shop a week

                                                Source TGI 2011
Main Shopping Day

                  140

                  120

                                                                           Monday
                  100
                                                                           Tuesday
Weighted (000)




                                                                           Wednesday
                  80
                                                                           Thursday
                                                                           Friday
                  60
                                                                           Saturday
                                                                           Sunday
                  40
                                                                           No particular day

                  20

                    0


                  69% of main regular shopping done Thursday, Friday & Saturday

                                             Source TGI 2011
Media Market Overview
Know what works
Which elements of your marketing mix
work?
Econometric modelling - relates the size and
timings of different marketing mix activity to
movements in sales
Think of it as unbaking a
cake

understanding the
recipe for sales
What drivers does econometrics measure?

       All influencers on sales over time  not just media activity



                                                 Price increases /
      Sales promotions
                                                    decreases


      Competitor activity                        Economic factors


                                              Sporting / Competitor
           Weather
                                                 cultural events


        Media weights                              Media types
Real
                                                                                                                                Dependent Variable Units




                                                                                                                 0
                                                                                                                     20000
                                                                                                                             40000
                                                                                                                                     60000
                                                                                                                                             80000
                                                                                                                                                     100000
                                                                                                                                                              120000
                                                                                                                                                                       140000
                                                                                                                                                                                160000
                                                                                                     25-Feb-06




                                                                                                                                                                                         Sum of Fitted Regions
                                                                                                     25-Apr-06


                                                                                                     25-Jun-06


                                                                                                     25-Aug-06


                                                                                                     25-Oct-06


                                                                                                     25-Dec-06




                                                                   Actual
                                                                                                     25-Feb-07




                                                     From sales
                                                                                                     25-Apr-07


                                                                                                     25-Jun-07


                                                                                                     25-Aug-07


                                                                                                     25-Oct-07


                                                                                                     25-Dec-07


                                                                                                     25-Feb-08

                                                                                                     25-Apr-08




                                                                            Enter Date Name / Type
                                                                                                     25-Jun-08


                                                                                                     25-Aug-08


                                                                                                     25-Oct-08


                                                                                                     25-Dec-08


                                                                                                     25-Feb-09

                                                                                                     25-Apr-09

                                                                   Model                             25-Jun-09


                                                                                                     25-Aug-09


                                                                                                     25-Oct-09


                                                                                                     25-Dec-09




                             to drivers of sales
                                                                                                                                                                                                                        Econometrics moves the definition of success




to improved profitability
The business benefits of econometrics

  Marketing       Trading           Pricing          Competitive


                                                       Effect of
   Return on    Sales Driving       Effect of
                                                    competitors on
  Investment     promotions         pricing
                                                        sales




                                                    Allows reaction
                  Maximise       Price elasticity
  Media Mix                                         to promotional
                 Profitability      analysis
                                                        activity




                                   Input into
  Seasonality
                                 pricing policy
Return on investment

                   Media efficiencies




         Min 15% improvement in marketing return
Media Market Overview
Know whats being said about you
Media Market Overview
Pre digital age


            Family and friends
          Potential reach - 10-20
Digital age


           Family and friends
          Potential reach - 100s
Digital age




         Forums, blogs etc.
Potential reach  1,000s ++
Media Market Overview
Media Market Overview
Media Market Overview
Query solving process and outcome
Media Market Overview
New media channels are good for
         advertisers
Cost   Targeting
RTE (x 2)


                                                                                   100%

                                                  RTE (x 2) + Tv3 (x 3)
                                                                                  92%
                                                                                                                 audiences




                                             RTE (x2) + TV3 (x3) + Sky
                                                                            75%




                                                       (x10)




                                             RTE (x2) + TV3 (x3) + Sky
                                                                           72%




                                                   (x10) + TG4
                                                                                    Coverage objective: 50% 2+
                                                                                                                 Spread your budget in line with




                                             RTE (x2) + TV3 (x3) + Sky
                                                                          67%




                                                 (x10) + TG4 + E4




                                             RTE (x2) + TV3 (x3) + Sky
                                                                          66%




                                            (x10) + TG4 + E4 + Setanta
this can save up to 1/3rd of your budget
VOD to take 15% of viewing by 2015
100%    3%            4%              6%     7%     9%    11%
90%
                                                                 13%    15%    VOD

80%    34%           35%
                                      37%
                                                                               "Others"
                                            38%
70%                                                40%
                                                          41%
                                                                 42%
                                                                        43%    "Opt-Outs"
60%
       13%           12%
                                      11%
50%     2%            2%
                                             9%
                                                    8%                         TG4
                                      2%     2%            7%
40%    11%           12%                            2%            6%
                                      12%                  2%     2%    5%
                                            12%
                                                   12%
                                                          11%
                                                                        2%     TV3
30%    10%            9%                                         10%    10%
                                      9%     9%     8%     8%     8%     7%    RTE2
20%
       26%           25%              23%   22%
10%                                                21%    20%    19%    18%
                                                                               RTE1
 0%

       2008        2009           2010      2011   2012   2013   2014   2015


        Source: MediaVest estimates
鏤 Look for opportunities to lead your competitors
 1.



鏤 Understand your customer and how best to reach them
 2.



3. Know what works



4. Know whats being said about you



5. New media channels are good news for advertisers
Media Market Overview

More Related Content

Media Market Overview

  • 7. Digital will drive the recovery 780m 749m 709m 678m 684m 704m 733m -7% -4% -5% -4% +1% +3% +4% 97 108 130 210 150 168 188 683 641 579 528 516 516 523 2009 2010 2011 2012 (f) 2013 (f) 2014 (f) 2015 (f) Traditional Media Digital Media Source Clear Blue Water
  • 10. 鏤 Look for opportunities to lead your competitors 1. 鏤 Understand your Competitor 5stomer and how best to reach 2. them 3. Know what works 4. Know whats being said about you 5. New media channels are good news for advertisers
  • 12. Look for opportunities to lead your competitors
  • 13. Case study - background Cluttered with brands adopting similar media strategies, and utilising same media mix Leads to a wallpaper effect among consumers Breaking this cycle will lead to a clear advantage for our client, and will take significant time for any other brand in the category to catch up
  • 14. Battleground was in print TV Radio Print OOH Cinema Client 22% 9% 53% 16% Competitor 1 25% 7% 46% 21% 1% Competitor 2 31% 19% 42% 8% Competitor 3 31% 12% 55% 1% 1% Competitor 4 22% 23% 48% 7% Competitor 5 29% 15% 51% 2% 3% 0% 20% 40% 60% 80% 100% In an undifferentiated market, print was the most cluttered advertising environment We had the lowest investment in TV of all competitors
  • 15. TV is the most influential paid for medium
  • 16. and has strongest return on investment Source: Thinkbox, IPA, Neilsen
  • 18. Key recommendations Lead the most influential media in this category - TV Divert money from other media to television Invest in consistent presence across the year Invest in quality (PIB, Centre Breaks, Peak) Look for opportunities to lead in other media
  • 19. Press - use larger formats to deliver brand stature and differentiation Sector press size summary DPS Full Page Half Page Qtr. Page Strip Sponsorship Other Competitor 2 Competitor 4 Client Competitor 1 Competitor 5
  • 20. and the same in outdoor 96 Sheets Golden 48 Sheets 6 Sheets Transport Other Squares 5% 3% 4% 4% 89% 89% our client 5% 3% 1% 35% 34% 11% 18% Competitor 1 1% 35% 34% 11% 18% 17% 2% 80% Competitor 2 17% 2% 80% Competitor 4 16% 10% 45% 10% 67% 23% 67% 84% 19% 4% 19% 32% 4% Competitor 5 Large 45% 23% Small 32% 1% 42% 55% 2% Competitor 6 Format 1% 42% Format 55% 2% 46% 54% Competitor 3 46% 54% 4% 20% 76% Competitor 7 4% 20% 76%
  • 21. What happened? Consideration increased by 12% over the year Share of market increased by 1.4% over the year
  • 23. Understand your customer and how best to reach them
  • 25. TGI media and marketing survey Annual c.5,000 per annum TV, radio, newspapers, magazines, outdoor, internet, direct mail 18 sectors, 500 categories, 4,000 brands 270+ lifestyle statements, socio-demographic classifications, geo-demographics
  • 26. Example of how we use this research The brief: We want to reach heavy shoppers who would use their mobile phones to accumulate loyalty points while shopping
  • 27. Main Shopper (68%) 2,427,000 Cant live without internet on phone (20%) 723,000 Main Shopper & cant live without Internet on phone (13.2%) 474,000 Source TGI 2011
  • 28. Main shopper and cant live without internet on phone 65+ 8 55-64 10 45-54 15 35-44 22 64% 36% 25-34 27 C2DE 50 15-24 20 ABC1 45 0 10 20 30 0 50 100 Strong Female bias, 25-44s across all social classes . This is the sweet spot Source TGI 2011
  • 30. Main shoppers & cant live without internet on phone Heaviest media consumption % Efficiency Vert. % Index 30% 175 150 25% 125 20% 100 15% 75 10% 50 5% 25 0% 0 Newspapers Magazines Television Internet Outdoor Media Cinema Radio High reach by Digital, TV & Outdoor. Highest affinity with Digital, TV also rates higher than average Source TGI 2011
  • 31. TV station viewership Top 10 stations watched yesterday 350 300 250 200 150 100 50 0 Main Shopper& cant live without mobile RTE 1 TV 3 RTE 2 UTV Channel 4 Sky News TG 4 Sky 1 Sky Living Sky Sports Source TGI 2011
  • 32. Daytime is key to delivering this audience efficiently Viewership of RTE 1 by Index 140 120 100 80 60 40 20 0 Main Shopper& cant live without mobile 9.30 - 11.59 am 8.00 - 10.59 pm 5.30 - 7.59 pm 12.00 - 3.59 pm 11.00 - 12.59 am 4.00 - 5.29 pm 6.00 - 9.29 am 1.00 - 5.59 am Source TGI 2011
  • 33. Sunday Press Readership (000) 1000 900 800 700 600 500 400 300 200 100 0 Sun World Sund Ind Sun Mirror Sun Times Mail on Sunday Sun Bus Post Main Shoper & can't live without internet on phone Readership Radio Listenership 140 120 120 100 100 80 80 ('000) Index 60 60 40 40 20 20 0 0 RTE Radio 1 RTE 2FM Today FM Newstalk FM 106.8 RTE Lyric FM (000) Index Source TGI 2011
  • 35. Frequency of Shopping Regular main shopping Main Shoppers & cant live without internet on phone 350 300 250 Once a Week Weighted (000) 2-3 Days a Week 200 4-5 Days a Week 150 Every Day 2-3 Times a Month 100 Once a Month 50 Less than once a Month 0 61% do one main shop a week Source TGI 2011
  • 36. Main Shopping Day 140 120 Monday 100 Tuesday Weighted (000) Wednesday 80 Thursday Friday 60 Saturday Sunday 40 No particular day 20 0 69% of main regular shopping done Thursday, Friday & Saturday Source TGI 2011
  • 39. Which elements of your marketing mix work?
  • 40. Econometric modelling - relates the size and timings of different marketing mix activity to movements in sales
  • 41. Think of it as unbaking a cake understanding the recipe for sales
  • 42. What drivers does econometrics measure? All influencers on sales over time not just media activity Price increases / Sales promotions decreases Competitor activity Economic factors Sporting / Competitor Weather cultural events Media weights Media types
  • 43. Real Dependent Variable Units 0 20000 40000 60000 80000 100000 120000 140000 160000 25-Feb-06 Sum of Fitted Regions 25-Apr-06 25-Jun-06 25-Aug-06 25-Oct-06 25-Dec-06 Actual 25-Feb-07 From sales 25-Apr-07 25-Jun-07 25-Aug-07 25-Oct-07 25-Dec-07 25-Feb-08 25-Apr-08 Enter Date Name / Type 25-Jun-08 25-Aug-08 25-Oct-08 25-Dec-08 25-Feb-09 25-Apr-09 Model 25-Jun-09 25-Aug-09 25-Oct-09 25-Dec-09 to drivers of sales Econometrics moves the definition of success to improved profitability
  • 44. The business benefits of econometrics Marketing Trading Pricing Competitive Effect of Return on Sales Driving Effect of competitors on Investment promotions pricing sales Allows reaction Maximise Price elasticity Media Mix to promotional Profitability analysis activity Input into Seasonality pricing policy
  • 45. Return on investment Media efficiencies Min 15% improvement in marketing return
  • 47. Know whats being said about you
  • 49. Pre digital age Family and friends Potential reach - 10-20
  • 50. Digital age Family and friends Potential reach - 100s
  • 51. Digital age Forums, blogs etc. Potential reach 1,000s ++
  • 55. Query solving process and outcome
  • 57. New media channels are good for advertisers
  • 58. Cost Targeting
  • 59. RTE (x 2) 100% RTE (x 2) + Tv3 (x 3) 92% audiences RTE (x2) + TV3 (x3) + Sky 75% (x10) RTE (x2) + TV3 (x3) + Sky 72% (x10) + TG4 Coverage objective: 50% 2+ Spread your budget in line with RTE (x2) + TV3 (x3) + Sky 67% (x10) + TG4 + E4 RTE (x2) + TV3 (x3) + Sky 66% (x10) + TG4 + E4 + Setanta this can save up to 1/3rd of your budget
  • 60. VOD to take 15% of viewing by 2015 100% 3% 4% 6% 7% 9% 11% 90% 13% 15% VOD 80% 34% 35% 37% "Others" 38% 70% 40% 41% 42% 43% "Opt-Outs" 60% 13% 12% 11% 50% 2% 2% 9% 8% TG4 2% 2% 7% 40% 11% 12% 2% 6% 12% 2% 2% 5% 12% 12% 11% 2% TV3 30% 10% 9% 10% 10% 9% 9% 8% 8% 8% 7% RTE2 20% 26% 25% 23% 22% 10% 21% 20% 19% 18% RTE1 0% 2008 2009 2010 2011 2012 2013 2014 2015 Source: MediaVest estimates
  • 61. 鏤 Look for opportunities to lead your competitors 1. 鏤 Understand your customer and how best to reach them 2. 3. Know what works 4. Know whats being said about you 5. New media channels are good news for advertisers