Table of Contents
Executive Summary
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- Overview
- The issues
- Half of audience tuning out
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- Figure 1: Ad avoidance, October 2017
- Purchases in response to commercials are rare
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- Figure 2: Categories purchased in response to a commercial, October 2017
- Positive responses less common for infrequently-purchased categories
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- Figure 3: Positive response* to commercials by product category, October 2017
- The opportunities
- Sponsoring content
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- Figure 4: Positive sentiment toward brands sponsoring television shows, October 2017
- Focusing on sales and reviews
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- Figure 5: Attitudes toward sales, reviews, and the use of real customers, October 2017
- Hispanic audience responds favorably
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- Figure 6: Positive response* to commercials, by category, Hispanic vs. non-Hispanic, October 2017
- What it means
The Market – What You Need to Know
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- Growth in digital competes with linear sales
- Pay TV subscriptions in decline
Market Perspective
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- Expansion in digital creates cap on television
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- Figure 7: US sales of banner and video ads, at current prices, 2015-17
Market Factors
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- Declines in pay TV subscription limited but ongoing
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- Figure 8: Video subscriptions to leading pay TV service providers, Q2 2016-Q2 2017
- Cord-cutting on the table
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- Figure 9: Intent to change or cancel pay TV service, by parental status, August 2017
- Transition to 4K
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- Figure 10: Sales of 4K TV sets, 2014-17
Key Viewing Platforms – What You Need to Know
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- Commercials most commonly seen on linear programming
- On-demand a means of escaping from commercials
- 18-34s more exposed online
What’s Working?
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- Linear television still dominant
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- Figure 11: Viewership of linear television, October 2017
- Men more likely to see commercials linearly
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- Figure 12: Viewership of ads on linear television, by gender, October 2017
- Viewership more common among older age groups
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- Figure 13: Viewership of ads on linear television, by age, October 2017
- Single men and dads available
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- Figure 14: Viewership of ads on linear television, by gender and age, October 2017
- Access to middle and high-income groups intact
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- Figure 15: Viewership of ads on linear television, by household income, October 2017
- Boost seen in ad viewership in time-shifted content among Hispanic Millennials
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- Figure 16: Viewership of ads in on-demand content, Hispanics by generation, October 2017
What’s Struggling?
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- TVE, VOD provide limited assistance to commercial viewership
- Qualitative responses related to DVR usage
- In their own words:
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- Figure 17: Viewership of ads in on-demand content, October 2017
- Women lost to advertisers in time-shifted programming
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- Figure 18: Viewership of ads in on-demand content, by gender and age, October 2017
- Low-income groups least likely to see commercials on-demand
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- Figure 19: Viewership of ads in on-demand content, by household income, October 2017
What’s Next?
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- Six-second ads
- Branded content
The Consumer – What You Need to Know
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- Audience split on commercial viewership
- Sponsorship attracts
- Half of commercial viewers find info on sales useful
- Food and leisure fare best
- Hispanics, younger audiences more likely to respond
Ad Avoidance
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- Majority continue to view ads
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- Figure 20: Ad avoidance, October 2017
- Younger audiences more likely to avoid ads
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- Figure 21: Ad avoidance, by age, October 2017
- Black viewers stay tuned
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- Figure 22: Ad avoidance, by race and Hispanic origin, October 2017
- Panelists consistent in ad avoidance
- In their own words:
- Sponsorship: the softer sell
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- Figure 23: Positive sentiment toward brands sponsoring content, by gender and age, October 2017
- Minority groups value sponsors
- Assessing the appropriateness of sponsorship within multicultural markets
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- Figure 24: Positive sentiment toward brands sponsoring content, by race and Hispanic origin, October 2017
- Higher-income groups less keen on sponsorship
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- Figure 25: Positive sentiment toward brands sponsoring content, by household income, October 2017
Commercial Viewership Online
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- More than half of adults saw commercials online
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- Figure 26: Viewership of commercials in online content, October 2017
- Shifting allocations to access younger viewers online
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- Figure 27: Viewership of commercials in online content, by age, October 2017
- Shift seen toward lower-income brackets
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- Figure 28: Viewership of commercials in online content, by age, October 2017
Selling the Commercial
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- Importance of creative may be overrated…
- …but humor is memorable
- In their own words:
- The information matters most
- Sales and reviews well-received
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- Figure 29: Interest in sales, reviews, and real customers, October 2017
- Most consumers interested in ads focused on sales
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- Figure 30: Interest in hearing about sales and discounts via television commercials, by household income, October 2017
- Older Hispanics seeking news on sales/discounts
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- Figure 31: Interest in hearing about sales and discounts via television commercials, by Hispanic origin and generation, October 2017
- Younger men influenced by reviews, real customers
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- Figure 32: Interest in product reviews and use of real customers, by gender and age, October 2017
- Dads more likely to buy customer testimonials
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- Figure 33: Interest in product reviews and use of real customers, by household income, October 2017
Response to Commercials by Category
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- Viewers respond to commercials for movies, food, and restaurants
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- Figure 34: Positive response* to commercials, by category, October 2017
- Commercials inspire purchases in common, everyday categories
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- Figure 35: Purchases in response to commercials, by category, October 2017
- Awareness increased for programming, travel, electronics, food
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- Figure 36: Incidence of learning about new products or learning more about familiar products, by category, October 2017
- Boosts in interest most common achievement
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- Figure 37: Incidence of becoming more interested in a product, by category, October 2017
- Viral buzz uncommon outside food and entertainment
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- Figure 38: Generating discussion via commercials, by category, October 2017
- Tech and travel researched further online
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- Figure 39: Pursuit of information online subsequent to viewing commercial, October 2017
- Food, restaurants followed up in-person
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- Figure 40: Incidence of checking product out in-person subsequent to viewing commercial, October 2017
Response to Categories by Demographics
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- Convention holds in categories of interest to men and women
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- Figure 41: Positive response* to commercials, by category, by gender, October 2017
- Under-45s more likely to respond
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- Figure 42: Positive response* to commercials by category, by age,, October 2017
- Older viewers retain interest in autos, movies, television
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- Figure 43: Positive response* to commercials, by category, by age II, October 2017
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- Figure 44: Positive response* to commercials, by category, by age II, October 2017
- Black viewers respond to electronics, fashion, personal care
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- Figure 45: Positive response* to commercials, by category, by race, October 2017
- Hispanics top audience for nearly every category
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- Figure 46: Positive response* to commercials, by category, Hispanics vs non-Hispanics, October 2017
- Young men, parents most likely to make a purchase
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- Figure 47: Purchases in response to commercials, CHAID* analysis, October 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- CHAID analysis methodology
- Abbreviations and terms
- Abbreviations
- Terms
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