Spots N Dots
The Daily News Of TV Sales
June 6, 2017
OPTIMIZING VIDEO AD EXPOSURES FOR BRANDS
ROI GROWS WITH REPETITION
How much is enough when it comes to digital video ad exposures? New research by YouMe, based on data from Kantar Millward Brown, finds that the optimum level of exposures for a viewer is higher than many people thought. However, they also warn that too many exposures can annoy the viewer and damage the brand.
The study found that one video exposure is sufficient to trigger increases across all awareness metrics; however, multiple exposures garner even higher brand awareness scores. On average, for purchase intent and brand favorability, specifically, ads are most effective at a minimum of nine exposures.
“As advertisers look to reach a maximum return on investment for their digital online video spend, this study helps to identify the ad frequency and ad length ‘sweet spots’ to drive purchase intent and brand favorability based on normative insights,” says YouMe SVP Mike O’Donnell.
Which work better, :15s or :30s? For campaigns that delivered a minimum of eight exposures to the viewer, the study found that 30-second video ads generate higher purchase intent scores than 15-second ads.
Is the goal delivering a message or driving an immediate decision to purchase? The study found that five to seven exposures is the optimal frequency for message association: While overall awareness increases steadily with additional exposures, message association peaks at five to seven exposures.
But to drive purchase intent and a favorable disposition toward a brand, the minimum number of exposures needed was found to be nine. Purchase intent and brand favorability are highest at nine exposures.
The findings were consistent regardless of the type of product being advertised. Entertainment ads were higher than other categories for awareness, message association, brand favorability and purchase intent, but the graphs for other categories produced a similar incline as exposures increased. The other ad categories detailed in the report are Automotive, Consumer Package Goods and Finance.
The YouMe analysts say marketers should be focusing on minimums, not just maximums, when it comes to reaching an individual viewer with a video ad. For most brand metrics, the study says incremental exposure to video ads can lead to higher results. Also, knowing that oversaturation can annoy audiences, consideration of both frequency maximums and minimums is important for driving effectiveness without jeopardizing audience receptivity. The study doesn’t spell out the level of exposures that makes an ad become really annoying, but the brand favorability and purchase intent metrics both flat-line above nine exposures, so there’s no ROI to be gained.
ADVERTISER NEWS
After three straight months in which the Silverado was in third place for pickup sales behind both Ford’s F-series and Fiat Chrysler’s Ram, Chevrolet has dropped its “bonus tag” promotion and will instead offer a flat 17% discount on all light-duty Silverados. Year-to-date, the Silverado leads the Ram by just a total of 5,055 units sold. Automotive News notes pickups were one of the best segments of the market in May with sales up 9.3% against an overall market that was down slightly……The Nissan Rogue has been one of the hottest-selling models this year and a variation, the Rogue Sport, is now reaching local dealers. The Sport is a bit smaller than the original Rogue and is targeted to singles and families without kids, while the Rogue target has mostly been young families. The Sport starts at $22,380, about $3000 lower than the original Rogue……Teen retailer Five Below continues to expands rapidly and grow sales. It added 31 stores in the last quarter to reach 553 in 32 states and expects 27 more in the current quarter. Comp stores sales rose by 2.6% and total sales were up almost 21%...... Boot Barn same-store sales slipped by 0.9%, but that was partly due to e-commerce problems that brought down revenue at a website. Projection for the rest of the year is slightly positive comps as the chain adds 12 new stores this year……Express had a tough quarter with comp sales including e-commerce down 10% on top of what had been a 3% decline in the quarter a year ago. It plans to “further optimiz(e) our store footprint,” likely meaning closings are on the way……Luxury home furnishings company RH (the former Restoration Hardware) moved to a membership model it believes will enhance the brand, and has opened new sub-brands such as RH Modern and RH Teen. It reports “comparable brand revenues” up 9% for its 85 stores, with the physical stores accounting for 56% of revenue, same as in the prior year……Focus Brands released growth plans for its three major fast casual brands. Moe’s Southwest Grill opened 66 new restaurants last year to get to about 700 franchised locations and is focusing on development this year in the Eastern half of the country. McAlister’s Deli opened 33 units last year to get to 400 and will enter some new markets this year including Miami/Ft. Lauderdale and Fort Myers, as well as some Western markets. And Schlotzsky’s opened 25 last year and now wants to saturate some key markets in Texas, Oklahoma, Kansas and Louisiana as well as enter some new states.
NETWORK NEWS
Variety says Erinn Hayes will be leaving the CBS sitcom Kevin Can Wait. Hayes played star Kevin James’ wife on the successful show. In addition, it was announced that Leah Remini, James’ former co-star on King of Queens will be added to the cast as a series regular. Remini played undercover cop Vanessa Cellucci, the former partner of James’ character, in the two-part season finale. Sources told Variety that the change was not about Hayes’ performance, but that the show was going in a different direction. The CBS comedy finished its first season as the number one new comedy with an average of 9.19 million total viewers and a 2.1 rating in adults 18-49……ER alum Anthony Edwards is returning to NBC, joining the cast of Law and Order True Crime: The Menendez Murders as Judge Stanley Weisberg, who presided over the brothers’ murder trial and had a contentious relationship with their defense attorney, Leslie Abramson, played in the series by Edie Falco. The cast also includes Gus Halper and Miles Gaston Villanueva as Eric and Lyle Menendez. The eight-episode first installment of the series is described as a “gripping in-depth dramatization” of the murder case that took America by storm in the early 1990s when the Menendez brothers were tried on national TV for brutally killing their parents in Beverly Hills. NBC originally had Law and Order True Crimes: The Menendez Murders scheduled for the old ER time slot of Thursday, at 10 PM (ET), but has recently announced it will air on Tuesdays at 10 PM (ET)……ABC is reporting that the NBA Finals game 2 Sunday night was up seven percent compared to the NBA Finals game 2 from 2016. The Golden State Warriors defeat of the Cleveland Cavaliers posted a metered market 12.7 household rating against an 11.9 rating for game 2 last year. So far, through two games, the NBA Finals have averaged a 12.6 metered market household rating, up from a 12.5 average in 2016……Sunday Night with Megyn Kelly debuted on NBC with a 1.2 adult 25-54 rating and 6.1 million total viewers. The broadcast, featuring a hard-hitting interview with Russian President Vladimir Putin, delivered a bigger audience than Dateline Sunday, which had been averaging 4.9 million total viewers. It was NBC’s best total viewing delivery, excluding sports, since March 20th, 2016 in the Sunday 7 PM (ET) time slot. Sunday Night with Megyn Kelly topped a rebroadcast of 60 Minutes in both younger demos of 25-54 and 18-49 but trailed the long-running newsmagazine in total viewers (6.6 million).
OTT A HIT WITH MILLENNIALS
A new study reported by DigitalNewsDaily.com on media consumption and content discovery habits of young Millennials -- 18- to-26-year-olds -- found the most common way for them to consume TV content (71%) is over-the-top TV (OTT) platforms. One in two watch entertainment exclusively on desktop or mobile devices. The study, by creative agency Anatomy, also shows 58% of young Millennials learn about new programming directly through friends and family or on social media. They are less likely to recall advertising in discovering new TV programs.
NFL: “LIQUOR, YES, ENERGY DRINKS, NO”
The National Football League has changed some of its policies about acceptable categories for advertising in its games, and will now allow TV partners to accept commercials for distilled spirits. Networks airing NFL games can take no more than four such spots per game, with another two in pregame or postgame shows. The Wall Street Journal notes there are still many other categories the NFL will not allow to advertise in its games, including energy drinks and vitamin sellers such as GNC (which had purchased a Super Bowl spot only to be rejected as its sells substances players are not permitted to use). Other forbidden categories include condoms or other forms of birth control (although erectile dysfunction drugs have been allowed on for several years), gambling (including hotels that feature gambling in their commercials), tourism for places that allow gambling (such as Las Vegas, although the league will move a team there), and excessively violent movies and videogames. Also no marijuana ads can be accepted, even though it’s legal in some states where the league has teams.
There was never any legal prohibition of television stations running liquor advertising, but industry practice was to voluntarily ban such ads for many decades. NBC accepted a campaign for liquor early in the last decade only to run into violent opposition in Congress, and the peacock network backed down. But in intervening years, cable networks and local stations started to accept liquor spots (many in late-night only) and like many other categories, resistance broke down.
BUSINESS BYTES
There’s always a lag getting numbers from the furniture industry, and Furniture Today is just now reporting March results, which were quite good. New orders placed during the month exceeded March, 2016 by 12%, a strong gain over February which had produced just a 4% increase. Shipments were up 6% over March, 2016 and backlogs were up 8% during the month. Ken Smith of the Smith Leonard consulting firm that produces the report noted 77% of companies responding reported increases and added that with all the positive consumer studies out currently, “All of this together should continue to produce more furniture sales along the rest of the year.”
A study from IHS Markit finds that despite the strong automotive sales of the past couple of years, the average age of vehicles on the road is now a record 11.6 years. Of course that’s a result of the better quality manufacturers have emphasized in the last decade which allows drivers to own vehicles longer, and for used vehicles to stay on the road after original owners trade them in. The IHS study also showed the average length of ownership of a vehicle is now a record 79.3 months. Despite the quality improvements, Kelley Blue Book exec Rebecca Lindford warned “people are basically driving around in a rotary phone,” in an interview on CNBC, noting older vehicles do not have the safety devices now in newer vehicles.
CLICK-AND-COLLECT GROWING ECOMMERCE
Being able to shop online whenever and wherever was the convenience that first attracted customers and drove ecommerce growth. Now a new and important growth driver includes brick and mortar buildings as a convenience factor—the growing popularity of click-and-collect shopping programs.
A new IRI study finds that 68% of click-and-collect shoppers said they would “definitely” use the service again, while 23% would “probably” use the service again for everyday items. The survey looked at consumer packaged goods (CPG), and while ecommerce currently represents only a small portion of total CPG purchasing, it is expected to make up approximately 11% of CPG sales by 2022, hitting nearly $88 billion in revenue—$6.6 billion of which IRI expects to be from click-and-collect programs. While only 8% of U.S. shoppers have purchased products using a click-and-collect program, the combined “definitely” and “probably” tally shows that 82% had a favorable experience.
69% say they use click-and-collect services to avoid charges for shipping, the most frequently cited reason for using the service. Furthermore, half of all users cite the time savings click-and-collect affords as a motivation to use the service.
For retailers, offering click-and-collect has a sales bonus. 69% of shoppers who went in-store to pick up their orders ended up buying additional items. “This was an important finding uncovered in the IRI research, because many retailers and manufacturers need to understand the impact and opportunities of impulse purchasing when shoppers leverage click-and-collect,” the IRI analysts noted.
AVAILS
KHOU Media Solutions in Houston is seeking an Project Manager to manage the day-to-day responsibilities of key accounts with team members. The Project Manager works in tandem with Account Executive, Customer Insights Manager, Research Director and Creative Services to develop sales presentations. This position provides an optimal customer experience by having a deep understanding of the company’s multimedia solutions. Minimum 2 years of account engagement in a professional, fast paced sales environment required. CLICK HERE to apply. No phone calls please. EOE.