1. How Media Works: Advertising and the Purchase Funnel
A Yankelovich Study for the Television Bureau of Advertising

2. The Impact of Television Advertising
Prepared for: The Television Bureau of Advertising
April 15, 2009 2

3. Study Objectives
Yankelovich, part of The Futures Company, conducted a survey among US adults on behalf of the Television Bureau of Advertising to determine the role that TV plays as part of a multi-platform environment for advertising. More specifically, the goals of the research were to understand:
The role of television advertising in driving consumer actions throughout the purchase decision process
How television interacts with other media platforms, including new media such as the Internet
How purchase decisions are made as a result of this interaction, including the role of different media platforms in the purchase cycle

4. Methodology
This study was designed to measure responses to ads seen across 15 different consumer categories:
Vehicles or auto dealers
Financial services
Restaurant
Department or discount store
Automobile or life insurance
Schools, colleges, or trade/vocational schools
Furniture, mattress, or carpeting / flooring stores
Healthcare products or services
Entertainment activities
Services
Telecommunications or electronic products
Travel or travel website
Food, convenience, or grocery stores / supermarkets
Home improvement stores or services
Commercial website

5. Methodology
Respondents were first asked in which categories they have seen a television ad in the past two months that made an impression on them
Each respondent then completed an ad survey for up to three of these categories.
The survey measured the overall impression of each ad, actions taken after seeing the ad, and whether ads for the same product or service were encountered in other media, etc.
The respondents were asked questions on which media most increased awareness and interest, or prompted action across the range of categories studied.
Survey results were obtained via online interviews among 3,002 consumers who had seen a television ad in the past 2 months that made an impression on them, and include a total of 8,109 ad category surveys.
Interviews took place January 29 to February 10, 2009

6. Methodology
In addition to what we will review today, additional information from this study will be available for the following:
Gender
Age
Urban
Suburban
Rural
Income
TV Viewing (hours)
Internet Use (hours)
Number of Media Ad Exposures
Actions Taken After TV Exposure
Relevance of Ads
Media Combinations

7. The Geometry of the Yankelovich Study
Product
Category
Media
Platform
Purchase
Funnel

8. The Purchase Funnel
Awareness
Consideration
Preference
Purchase

9. Purchase Funnel: Awareness
Auto
Financial
Restaurants
Dept./Disc.
Auto-Life Ins.
Schools-Coll.
Furniture
Healthcare
Entertainment
Telecom-Elect.
Services
Com. Website
Travel
Food Store
Home Imp.
Category
Media Platform TV
Internet
Newspapers
Magazines
Radio
Billboards/Outdoor
Other
None
Norm 43 14 8 4 2 20
44 (102)
45 (105)
32 (74)
47 (109)
37 (86)
50 (116)
48 (112)
19 (136)
13 (93)
9 (64)
12 (86)
20 (143)
6 (43)
11 (79)
6 (75)
4 (50)
19 (238)
3 (38)
11 (138)
6 (150)
5 (125)
1 (25)
2 (50)
3 (75)
7 (175)
4 (100)
0 (0)
8 (200)
4 (200)
2 (100)
1 (50)
5 (250)
3 (150)
19 (95)
22 (110)
24 (120)
Percentages shown for the question: “What media most increased your awareness of
the advertised product, service or offer.” Index to norm in parentheses.

10. Advertising Impact on Various Stages of the Consumer Purchase Funnel

11. Travel & Travel Websites Advertising Impact at Various Stages of the Consumer Purchase Funnel
Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

12. Department/Discount Stores Advertising Impact at Various Stages of the Consumer Purchase Funnel
Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

13. Food/Convenience/Grocery Stores and Supermarkets Advertising Impact at Various Stages of the Consumer Purchase Funnel
Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

14. Furniture/Mattress/Flooring Stores Advertising Impact at Various Stages of the Consumer Purchase Funnel
Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

15. Entertainment & Activities Advertising Impact at Various Stages of the Consumer Purchase Funnel
Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

16. Restaurants Advertising Impact at Various Stages of the Consumer Purchase Funnel
Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

17. Automotive Advertising Impact at Various Stages of the Consumer Purchase Funnel
Awareness Interest Consider Want to Visit Make Purchase Purchase Store/Website Purchase

18. TV’s Overall Impact Through the Purchase Funnel “What Media Most Increased or Prompted…”

19. Television’s Contribution to Total Media Impacts

20. TV’s Share of Media Impact Remains Relatively Flat Through All Phases of Purchase Funnel

21. Travel & Travel Websites Media Impact at Various Stages of the Consumer Purchase Funnel
Media cited by less than 3% of respondents were incorporated into the total for “other.”

22. Department & Discount Stores Media Impact at Various Stages of the Consumer Purchase Funnel
Media cited by less than 3% of respondents were incorporated into the total for “other.”

23. Food/Grocery Stores and Supermarkets Media Impact at Various Stages of the Consumer Purchase Funnel
Media cited by less than 3% of respondents were incorporated into the total for “other.”

24. Furniture/Mattress/Flooring Stores Media Impact at Various Stages of the Consumer Purchase Funnel
Media cited by less than 3% of respondents were incorporated into the total for “other.”

25. Entertainment Media Impact at Various Stages of the Consumer Purchase Funnel
Media cited by less than 3% of respondents were incorporated into the total for “other.”

26. Restaurants Media Impact at Various Stages of the Consumer Purchase Funnel
Media cited by less than 3% of respondents were incorporated into the total for “other.”

27. Automotive Media Impact at Various Stages of the Consumer Purchase Funnel
Media cited by less than 3% of respondents were incorporated into the total for “other.”

28. Key Take-Aways
Media impacts 80% of the Awareness phase of the funnel and declines to 53% at the Transaction phase.
There is no single pattern to the Purchase Funnel.
Different consumer categories behave differently in terms of overall ad impact.
Consumers perceive that different media provide different impacts, both by category and by Purchase Funnel phase.
Two consistently strong contributors in most categories and Purchase Funnel phases are television and the internet.
Other media experience a wider range of impact based on category and Purchase Funnel phase.
Television is impactful at all stages of the consumer Purchase Funnel.

29. Why is this Important?

30. The playing field has gotten longer and wider
The New Media Matrix
Mass
Awareness
Activation
Niche
The playing field has gotten longer and wider

31. The playing field has gotten longer and wider
The New Media Matrix
Mass
You Are Here
Awareness
Activation
Niche
The playing field has gotten longer and wider

32. The New Media Matrix
Mass
Niche

33. 2008 Top 15 Media Categories Newspaper $38,441 19.5
$ in Millions %
Newspaper $38,
Local TV stations 25,
Terrestrial radio 19,
Broadcast networks 18,
Cable networks 18,
Consumer magazines 12,
Yellow pages 12,
Search advertising 10,
Branded ent./product placement 8,
Out of home 7,
Local/regional cable 6,
Online display ads 4,
Broadcast syndication 3,
Online classified 3,
Online video/rich media 2,
Total $192,000
Source: Jack Myers Business report 12/08: eMarketer 12/08

34. 2008 Remaining Media Categories (less than 1% share)
$ in Millions %
Online lead generation $1,
Video games
Cinema
Mobile
Online sponsorship
Satellite radio
Source: Jack Myers Business report 12/08: eMarketer 12/08

35. The New Media Matrix
Awareness
Activation

36. The New Media Matrix • Direct Response • Call-to-Action • Awareness
(Activation)
• Call-to-Action
• Awareness
• Mood
• Image
• Branding
• Features
• Price-Item

37. The Purchase Funnel Drives the Media Matrix
Awareness
Consideration
Preference
Purchase
Source: Wordpress.com

38. Popular Assumptions
Traditional media – especially broadcast – is a top-of-the-funnel-choice
Interactive media is a bottom-of-the-funnel choice … “The Last Click”
Middle-of-the-funnel is open season for all media … interest, consideration and preference are variables

39. Yankelovich Report on 15 Consumer Categories
Awareness
Consideration
Preference
Purchase
TV 43%
Newspaper 8%
Magazine 4%
Internet 14%
TV 40%
Newspaper 8%
Magazine 3%
Internet 13%
TV 35%
Newspaper 8%
Magazine 2%
Internet 13%
TV 26%
Newspaper 7%
Magazine 2%
Internet 12%

40. Take Aways TV Still Rules
The research has been consistent and reinforcing:
Council for Research Excellence Video Consumer Mapping Study
Nielsen Annual Report on Time Spent with Television
Nielsen Quarterly Three-Screen Report
TVB Media Comparison Study
In today’s media environment, match marketing goals to the right media drivers.

41. Thank You