1. TV advertising’s killer charts What every marketer should know 51 nickable charts With notes Full Deck Published: April 2016

2. Thinkbox is supported by 99% of UK broadcasting Main shareholders Associates & supporters

3. TV Killer Facts 03 01 TV is the best profit generator 02 TV is the lead effectiveness medium TV has unbeatable scale and reach 05 TV is the most talked about media 06 Multi-screening brings viewers closer to content and brands We spend more time with TV than any other media 04 07 TV drives response 08 TV is everywhere 09 TV is the emotional medium and builds brand fame 10 TV is the catalyst for other media 11 TV is great value

4. 1. TV is the best profit generator

5. TV is the best profit generator Source: Payback 4, 2008-2011 & 2011-2014, Ebiquity Payback 4 (2011-2014)

6. TV is vital for long term profit Source: ‘Advertising Effectiveness: the long and short of it’, 2013, IPA

7. TV sponsorship payback is strong …a word from our sponsor Source: Payback 4, 2008-2014, Ebiquity. Retail & FMCG categories only Average Profit ROI Based on limited retail and FMCG only

8. 2. TV is the lead effectiveness medium

9. TV is the lead sales-driving medium Twice as effective ‘per impact’ as any other medium Source: Payback 4, 2008-2011 & 2011-2014, Ebiquity Effectiveness Index TV Index = 100

10. Nearly half of TV’s sales effects are delivered after the first year of investment Revenue effect as % of year 1 effect Print TV The effects of TV are long lasting Source: Payback 1, 2008, PriceWaterhouseCoopers

11. TV gives the best business results Source: ‘Advertising Effectiveness: the long and short of it’, 2013, IPA

12. TV is by far the most trusted form of advertising TV Set NewspapersRadioMagazines WebsitesSearchSocial mediaOutdoor Source: TV Nation, 2014, Ipsos Media CT/Thinkbox. Base: all adults 15+. Question: ‘in which, if any, of the following places are you most likely to find advertising that you trust?’ Media where you’re most likely to find advertising that you trust

13. 3. TV drives response

14. Brand TV is the most cost efficient longer-term channel Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 7 brands Efficiency index at driving brand metrics (higher = better) Longer-term response

15. TV accounts for a third of media-driven sales Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 15 brands Short to medium- term response

16. DRTV is the strongest ‘demand generating’ channel Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 15 brands Efficiency index (cost per response, lower = better) Most efficient Least efficient Demand harvesters Demand generators Short to medium- term response BR online display BR offline BRTV DR offline DR online display Affiliates Generic PPC search DRTV

17. TV drives at least twice the volume of cost-efficient response Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 7 brands Indexed media spend at saturation Short to medium- term response

18. TV is a catalyst for direct response Source: POETIC, 2013, Data2Decisions/Keller Fay/Thinkbox. % of variables which can be influenced to drive website visits 69% of website visits are generated by paid media 47% Of these 69% website visits were generated by paid TV media

19. 4. TV has unbeatable scale and reach

20. TV has extremely high daily, weekly and monthly reach Source: BARB, 2015, individuals, reach 1min+. TV set viewing within 7 days of broadcast Commercial TV reaches 70.8% of the population in a day 92.5% of the population in a week 98.0% of the population in a month

21. Commercial reach has remained stable over 5 years Source: BARB, 2011- 2015, reach 1min+. TV set viewing within 7 days of broadcast Weekly reach % 201120122013 2015 Individuals Adults ABC1 adults 16-34 Men Kids 2014 Women 92.8 93.3 92.3 88.6 92.4 94.2 89.9 92.5 92.9 91.8 87.7 91.9 93.9 90.1 93.4 93.8 92.6 89.5 92.7 94.8 91.4 93.5 93.8 92.8 89.6 92.9 94.7 91.6 93.7 94.0 93.1 90.1 93.0 95.0 91.6

22. TV not only has reach, but also has volume Adults reached per week Average hours per week Millions Source: Touchpoints 6, 2015, IPA. Base: adults 15+. Newspaper/magazine/TV figures include online/app consumption Commercial TV Social MediaCommercial Radio Newspaper / Magazine YouTube

23. An average broadcast TV campaign of 400 TVRs in the UK gets 234 million views

24. TV continues to connect advertisers with mass audiences Source: BARB / Advantedge K2 / 2015 Campaign running across 7 weeks (38 to 44) 1+ reach achieved by a naturally delivered campaign of 500 ratings

25. 5. We spend more time with TV than any other media

26. Despite a decade of disruption, standard viewing is resilient Source: BARB 2005-2015, individuals. TV set viewing within 7 days of broadcast; Ofcom Technology Tracker Downloadable 60% Internet access Commercial partnership 85% Internet access 3h 39m 3h 36m 3h 38m 3h 44m 3h 45m 4h 02m 4h 01m 3h 52m 3h 41m 3h 36m

27. An additional 6.5% of viewing sits outside of the ‘Industry standard’ Source: BARB and UK broadcaster data, 2015, individuals

28. TV accounts for 42% of adult’s chosen media day Source: IPA Touchpoints 6 2015, adults 15+. Includes only media which people choose to consume. TV, radio, newspaper & magazine figures include online/app consumption Adults 15+

29. TV accounts for almost a third of 15-24’s chosen media day Source: IPA Touchpoints 6 2015, adults 15-24. Includes only media which people choose to consume. TV, radio, newspaper & magazine figures include online/app consumption Adults 15-24

30. We love TV because it satisfies all our viewing needs COMFORT CONNECT ESCAPE EXPERIENCE INDULGE UNWIND CONTEXT CONTENT SOCIAL PERSONAL All viewers are always in a ‘state’ Each state is shaped by content, context and device When your need is satisfied you are “relaxed” Source: Screen Life: TV in Demand, 2013, Flamingo/Tapestry/Thinkbox

31. TV dominates the world of video Source: 2015, BARB / comScore / Broadcaster stream data / OFCOM Digital Day / IPA Touchpoints 6 / Rentrak All Individuals: 4hrs, 35 mins 16-24s: 3hrs, 25 mins All Individuals 16-24s Average video time per day 0.9% 0.4%

32. TV accounts for 94% of all video advertising time Source: 2015, BARB / comScore Video Metrix / Broadcaster stream data / OFCOM Digital Day / IPA Touchpoints 6 / Rentrak All Individuals: 18.5 mins 16-24s: 12.8 mins All Individuals 16-24s Average video advertising time per day

33. Millennials’ TV viewing increases as they get older and have kids Source: IPA Touchpoints 6 2015. Base: 16-24, 25-34, 25-34 with children

34. TV dominates media consumption all evening Source: Touchpoints 6, 2015, IPA. Base: adults 15+. TV, radio, newspaper & magazine figures include online/app consumption % Reach

35. We watch 2h23m commercial TV content on a TV set each day 2 hrs 25 m 2 hrs 33 m 2 hrs 34 m 2 hrs 36 m 2 hrs 33 m 1 hr 16 m 1 hr 19 m 1 hr 27 m 1 hr 26 m 1 hr 29 m Source: BARB, 2004-2015. Base: individuals 4 hrs 2 m 4 hrs 2 m 4 hrs 1 m 3 hrs 52 m 3 hrs 41 m 3 hrs 45 m 3 hrs 44 m 3 hrs 38 m 3 hrs 36 m 3 hrs 39m 3 hrs 42 m 2 hrs 16 m 1 hr 26 m 2 hrs 16 m 1 hr 23 m 2 hrs 15 m 1 hr 21 m 2 hrs 16 m 1 hr 22 m 2 hrs 22 m 1 hr 22 m 2 hrs 24 m 1 hr 21 m 2 hrs 23 m 1 hr 13 m 3 hrs 36 m

36. On average each person sees 45 TV ads a day Source: BARB, 2005 - 2015, individuals *digital switchover complete Only includes ads viewed at normal speed Daily UK totals are now 2.62 billion TV ads seen every day

37. The majority of TV viewing is live Source: BARB, Jan-Dec 2015, individuals; individuals in DTR homes. TV set viewing within 7 days of broadcast Individuals Individuals with DTRs IndividualsIndividuals with DTRs LiveViewed on the same day as live (VOSDAL)Time-shifted viewing within 7 days

38. Time-shifted viewing is stable in DTR homes Source: Sky – 10 Years of Sky Plus (Q2 2006-Q3 2010) and BARB Establishment Survey (Q4 2010 onwards) *Q4 2015 DTR penetration Thinkbox estimate. TV set viewing within 7 days of broadcast

39. Time-shifting is driven by programme genre not ad avoidance Source: BARB, 2015, individuals in DTR homes, commercial TV vs BBC. TV set viewing within 7 days of broadcast

40. 6. TV is the most talked about medium both on and offline

41. TV ads are the most talked about Source: TV Nation, 2014, Ipsos Media CT/Thinkbox. Base: all adults 15+. Question: ‘On which medium are you likely to find advertising that you talk about either face to face or over the phone / online?’ On which medium are you likely to find advertising that you talk about…

42. TV advertising drives 51% of all marketing-generated conversations Source: POETIC, 2013, Data2Decisions/Keller Fay/Thinkbox

43. 7. Multi-screening brings viewers closer to content and brands

44. Multi-screening is a common activity Source: TouchPoints 6, 2015, IPA. Base: adults 15+ 38 mins Using internet while watching TV per day

45. Multi-screening usage patterns follow TV Source: Touchpoints 6, 2015, IPA. Base: adults 15+ who have broadband

46. Ad break multi-screeners are more likely to stay in front of ads % agreeing with each statement Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox. Mobile diary 7pm-11pm.

47. Multi-screening doesn’t reduce ad recall Average number of adverts recalled from last 15 minutes Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox. Mobile diary 7pm-11pm

48. 8. TV is the catalyst for other media

49. TV boosts other advertising channels ReactiveInteractiveActive TV is a multiplier of other awareness building channels TV to radio is strongest and can be >100% TV to press and OOH can be up to 50% Branded search is 33% more responsive to TV in 2011-2014 than the previous 3 year period TV to generic search on average +5% shift in conversion per 100 TVRs TV helps drive significantly greater promotional effectiveness Observed multiplier effects up to 100% Source: Payback 4, 2011-2014, Ebiquity

50. TV & online are great together…and becoming increasingly so Source: ‘Advertising Effectiveness: the long and short of it’, 2013, IPA

51. TV drives high levels of indirect online response Source: TV Response: new rules, new roles, 2015, GroupM/Thinkbox. Based on 8 brands. *Facebook metric is likes/comments TV’s contribution to media-driven sales % of media-driven response (i.e. exc base driven sales) Indirect Direct Short to medium- term response

52. 9. TV is everywhere

53. New devices enhance viewing and interaction Source: Ipsos Tech Tracker, Q4 2015, adults 15+. Penetration figures (Laptop, any tablet, any smartphone) 49% 70% UK device penetration

54. Viewers are using all these devices to watch TV TV set Laptop/desktop Tablet Smartphone 37.3% 20.4% 13.9% 11.4% Source: Touchpoints 6, 2015, IPA. Base: adults 15+ % of adults watching online TV/video via device (in a week)

55. TV viewing is expanding beyond the living room Bathroom 9% Bedroom 46% Kitchen 19% Living room 56% Study 24% Garden 12% Where people watch television via tablets, laptops and/or smartphones Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox

56. TV is viewed in many places outside of the home Usage of devices to watch TV out of home – location Source: Screen Life: TV advertising everywhere, 2014, Craft/Thinkbox Net: 12% Net: 17%Net: 13%Net: 12%Net: 10%Net: 13%Net: 16%

57. TV viewed on other devices is on the increase Source: UK broadcaster data, Thinkbox estimates. Individuals Average daily minutes of broadcaster VOD viewed on devices (i.e. PC/MAC / tablet / smart phone)

58. 10. TV is the emotional medium and builds brand fame

59. TV ads evoke emotion more than ads in other media Source: TV Nation, 2014, Ipsos MediaCT/Thinkbox. Base: all adults 15+. 77% claim TV ads are most likely to make them laugh, cry or feel emotional

60. TV advertising is most likely to make you laugh Source: TV Nation, 2014, Ipsos Media CT/Thinkbox. Base: adults 15+ Question: ‘In which, if any, of the following places are you most likely to find advertising that makes you laugh?’ Media where most likely to find advertising that makes you laugh TV Set Radio Newspapers Websites Outdoor Magazines Social media Search

61. Fame and emotion generate the most sales and profit Source: ‘Marketing in the Era of Accountability’, 2007, IPA Emotive campaigns or ads which achieved fame 50% more likely to gain large business effects

62. 11. TV is great value

63. Average TV view costs 0.6p Source: BARB, 2015, ad revenue data supplied by UK Broadcasters The average cost of buying the media space to get one person in the UK to see a TV advert costs just over half a pence

64. TV delivers bang for your buck… Source: BARB / Advantedge K2 / 2015 campaign running across 7 weeks (38 to 44) 1+ reach achieved by a naturally delivered campaign costing £1m

65. TV delivers bang for your buck at higher frequencies Source: BARB / Advantedge K2 / 2015 campaign running across 7 weeks (38 to 44) 3+ reach achieved by a naturally delivered campaign costing £1m

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