Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Consumer survey data
- Abbreviations
- Terms
Executive Summary
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- Traditional ad spend down
- New media advertising threatens traditional ad spend
- Innovators aim to update traditional media with new options
- Television ads seen by 81% per week
- Despite surge in DVR ownership, broadcast time viewing still the norm
- Avoidance of TV ads the norm, with or without DVRs
- Multiple opportunities for combating oversaturation
- Power of sponsorship and product placement in decline
- Billboards score big outdoors
- Direct mail benefits from economic insecurity
- Reliance on radio in decline…
- … as is reliance on print media
Insights and Opportunities
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- Integrated campaigns harness new media
- Sequential narrative can capture viewers
- TV ads share screen space with content
- Building buzz around unique ads
- Leveraging power between sellers and buyers
Inspire Insights
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- Trend: Advertainment
- Putting the ad into the show
- Putting the show into the ad
Market Size and Forecast
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- Ad spend shows slight rebound from disastrous 2009
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- Figure 1: U.S. advertising expenditures, at current prices, 2006-14
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- Figure 2: U.S. advertising expenditures, at inflation-adjusted prices, 2006-14
Competitive Context
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- Key points
- One in four replacing traditional media with internet content
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- Figure 3: Internet replacing other media, by age, April 2009-December 2009
- Increased disruption likely when home internet is used by more
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- Figure 4: Internet disruption of engagement with traditional media, trended, 2005-09
- Traditional advertising’s loss in 2009 was new media’s gain
- Online video expands
- Smartphones create opportunities in traditional campaigns
- Advertisers ramp up social networking spending
Market Segmentation
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- Key points
- Television makes up nearly half of ad spend
- Print bears the brunt of the market decline
- Recession drives discount industry
- Outdoor and radio pick up in 2010
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- Figure 5: U.S. advertising expenditures, by media type, 2008-10
Market Drivers
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- Key points
- Persistent unemployment drives interest in coupons, bargains
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- Figure 6: U.S. unemployment in numbers and percentage, 2005-09
- Limited disposable income means more hours with television
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- Figure 7: Weekly hours spent viewing of television programming types, Nov. 2008 vs. June 2010
- Multitasking through media
- Massive amounts of time spent in-vehicle
- Under-35s likely to spend 11 hours or more in cars each week
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- Figure 8: Weekly time spent in vehicle, by age, July 2009
- Drivers with higher household incomes spend more time in their cars
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- Figure 9: Weekly time spent in vehicle, by household income, July 2009
Innovation and Innovators
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- Targeted television
- Cablevision first digital provider to offer targeted ads
- TiVo
- GoogleTV
- Interactivity on digital cable
- Blending in with content
- Digital out-of-home
- Pringles Xtreme strategy for television
- TV and beyond
- Grabbing attention with “reality-hijacking”
Penetration and Impact
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- Key points
- Penetration of television ads highest
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- Figure 10: Type of advertisement seen in the last week, by age, July 2010
- Over-55s report more exposure to traditional media ads
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- Figure 11: Reach of traditional advertising, by age, July 2010
- Impact much lower than penetration, reach
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- Figure 12: Conscious impact of traditional advertising, by age, July 2010
Television Ad Avoidance
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- Key points
- DVR penetration more than doubles to 35%
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- Figure 13: Incidence of DVRs in household, 2005-09
- Household income more robust driver than age
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- Figure 14: Penetration of DVRs, by age, HH income, and marital status, April 2009-December 2009
- One in four still identify as TV addicts
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- Figure 15: Attitudes towards television, by age, April 2009-December 2009
- Roughly half of 25-44s who own DVRs rarely watch live programming
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- Figure 16: Watching video on TV at broadcast time vs. DVR, by age, July 2010
- Eight in 10 DVR owners typically skip commercials…
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- Figure 17: Fast forwarding through commercials on a DVR, by age, July 2010
- … but majority of TV watchers use low-tech methods to avoid ads
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- Figure 18: Oversaturation with television advertisements, by age, July 2010
- Reasons for TV ad avoidance: Oversaturation
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- Figure 19: Attitudes towards TV and TV ads, May 2005-December 2009
- Reasons for TV ad avoidance: Excessive repetition of identical ads
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- Figure 20: Oversaturation with television advertisement, by age, July 2010
- Reasons for TV ad avoidance: Relevancy of product advertised limited
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- Figure 21: Oversaturation with television advertisements, by age, July 2010
- Reasons for TV ad avoidance: Lack of trust
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- Figure 22: Oversaturation with television advertisements, by age, July 2010
Product Placement and Sponsorship
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- Key points
- Case studies: Subtlety in product placement takes a back seat
- Lady Gaga makes excessive product placement a self-conscious statement
- Pepsi taps UGC
- Skechers home-grows branded entertainment
- Product placement and sponsorship show moderate decline in impact
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- Figure 23: Attitudes towards product placement, May 2005-December 2009
- Engagement in sponsored programming
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- Figure 24: Participation in traditional advertising, by age, July 2010
Out of Home
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- Key points
- Outdoor increasingly digital
- Outdoor ads reach two in five
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- Figure 25: Outdoor advertisements seen in last week, by age, July 2009-March 2010
- Public transportation efforts reach more non-whites
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- Figure 26: Outdoor ads seen in last week, by race/Hispanic origin, July 2009-March 2010
Direct Mail
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- Key points
- Preferences for digital direct mail over traditional direct mail
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- Figure 27: Attitudes towards direct mail and email promotions, May 2005-December 2009
- Email a successor to direct mail
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- Figure 28: Attitudes towards email promotion, by age, July 2009-March 2010
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- Figure 29: Physical mail direct marketing vs. email direct marketing, by age, July 2010
Radio
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- Reliance on radio in gradual decline
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- Figure 30: Attitudes towards radio, May 2005-December 2009
- Majority of 25-64-year-olds daily radio listeners
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- Figure 31: Attitudes towards radio, by age, April 2009-December 2009
Ads at the Movie Theater
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- Key points
- An expanding array of in-lobby options
- The rising cost of going to the movies
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- Figure 32: Mean movies attended in the last 90 days, by household income, April 2009-December 2009
- Movies are for the young
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- Figure 33: Mean movies attended in the last 90 days, by age, April 2009-December 2009
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- Key points
- Print’s reach waning
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- Figure 34: Attitudes towards print media and advertising, May 2005-December 2009
- Newspapers remain effective way to reach over-55s
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- Figure 35: Attitudes towards print, by age, April 2009-December 2009
- Magazines’ loyal core
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- Figure 36: Magazine impulse buying, by age, April 2009-December 2009
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- Figure 37: Magazine impulse buying, by race/Hispanic origin, April 2009-December 2009
- Adding value for magazine advertising
Cluster Analysis
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- Ad-verses
- Demographics
- Characteristics
- Opportunity
- Ad-ditives
- Demographics
- Characteristics
- Opportunity
- Ad-dicts
- Demographics
- Characteristics
- Opportunity
- Cluster characteristics
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- Figure 38: Traditional marketing clusters, July 2010
- Figure 39: Types of advertisement seen in the last week, by traditional marketing clusters, July 2010
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- Figure 40: Conscious impact of traditional advertising, by traditional marketing clusters, July 2010
- Figure 41: Oversaturation and disengagement with television advertisements, by traditional marketing clusters, July 2010
- Cluster demographics
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- Figure 42: Traditional marketing clusters, by gender, July 2010
- Figure 43: Traditional marketing clusters, by age group, July 2010
- Figure 44: Traditional marketing attitudes clusters, by household income, July 2010
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- Figure 45: Traditional marketing clusters, by race, July 2010
- Figure 46: Traditional marketing clusters, by Hispanic origin, July 2010
- Cluster methodology
Custom Consumer Groups
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- Key findings
- Reaching young blacks and Hispanics through magazines
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- Figure 47: Attitudes towards print media and ads, by race/Hispanic origin among 18-34s, April-December 2009
- Television effective way to reach young blacks, Hispanics
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- Figure 48: Attitudes towards TV usage, by race/Hispanic origin among 18-34s, April-December 2009
- Young Asians not listening to radio
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- Figure 49: Attitudes towards radio, by race/Hispanic origin among 18-34s, April-December 2009
- Targeting young minorities in urban movie theaters
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- Figure 50: Attitudes towards product placement, by race/Hispanic origin among 18-34s, April-December 2009
Appendix: Other Useful Tables
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- Cable television and FSIs bright spots in gloomy market
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- Figure 51: U.S. advertising expenditures, by media type, 2008-10
- Ads in movie theaters hit home for families with children
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- Figure 52: Attitudes towards movie advertising, by presence of children in household, April 2009-December 2009
Appendix: Trade Associations
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