TV Advertising and Why it Works

Total Exact provides more than just radio solutions and this month we look at the current trends in advertising, and why it works. Television advertising has been on the rise and we wanted to see why.

Television advertising works because people love watching TV, with a huge 15 million people watching commercial TV every day.

A Deloitte survey of more than 2,000 Australians shows that watching television is one of Australia’s preferred sources of entertainment. It is what we do to take our mind off life’s stresses, entertain us while we eat dinner, or to wind down after work.

Even if we don’t solely focus on TV, we are still more influenced by its advertising than we think. Millward Brown’s Ad Reaction study detailed that multi-screen users pay more attention to the ads they see on a TV than on any other screen. Additionally, recent bio-metric research shows that TV commercials are 4 times more engaging than video ads on Facebook.

The added power of storytelling helps TV ads succeed. The combination of moving images and sound means consumers are not only more likely to engage with your brand, but there is also a higher chance of them remembering you. It helps create that all-important emotional connection that drives engagement and loyalty. A recent neuroscience study found that advertisements with the best emotional response increased sales by 23%.

Television is such an integrated part of daily life, why not use it as an additional advertising source?

WideOrbit at the Footy

April was another fantastic month at Total Exact Solutions, both within the office and on the football field! TESA Directors, Steven Littleford, Jeanne Selvage and Rod Selvage, who are all fervent Sydney Swans fans, were at the SCG on Sunday April 3 to cheer on the Swannies against the Giants. It was a great opportunity to show our valued guest Michael Ambrose from WideOrbit USA an authentic Aussie experience.  The Swans put on a fabulous performance, tussling with the Giants throughout the game, but ultimately stealing the game in the final quarter!
WideOrbit at the Footy
After Mr Ambrose’s week assisting with sales presentations and catching up with his existing clients, it was an invaluable chance to chat personally about everything WideOrbit before Jeanne and Steve hit the NAB trade show later in the month. Sharing an AFL game with a senior representative from one of our most valued trade partners was a fantastic experience, and a perfect way to relax after a busy week.

As WideOrbit continues to extend its influence in the Asia-Pacific region, we can expect more visits from Michael and the WideOrbit US team, and hopefully more games of footy!

Congratulations

We are excited to announce that one of our Senior Software Consultants, Jasmine, is expecting her first child.Baby Gif

From April 22, Jasmine will be on leave for approximately 6 months, taking care of her little girl (due May 24). She will be handing over her responsibilities to Luke, who has spent the last 4 weeks shadowing Jasmine, learning the ropes.

Luke is available through our office on (02) 9440 9811, or by email at support@totalexact.com.au

We wish Jasmine all the best for her journey into motherhood.

Shorter Radio Ads Could be the Go

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Remember the Canadian radio station with the QuickHitz format that halved the length of songs? It seemed a bit rudefor radio edits to be re-edited but it got me thinking.

Why should we cut what we feel is appealing content to make more space for advertising? It reminds me of former colleagues who lamented, “I wish we were like the ABC.” Back in the 80s commercial free programming was packaged as One of hour of ad free classic hits, though it was jammed with promos telling you so and sounded atrocious when AM radio tried to copy it.

Maxing out the number of ads you can squeeze into breaks has been defined as clutter by Erica Riebe and John Dawes. Their peer-reviewed paper Recall of radio advertising in low and high advertising clutter formats (2006)[1] revealed that low clutter formats are more effective. Low clutter listeners have a higher product recall and stations with such formats can charge more for such ads. The study also confirmed that ads placed at the start and end of breaks were more effective. While they acknowledged the effectiveness will vary, low clutter ads and those with a premium position could be valued at almost double.

Riebe and Dawes’ study may be a modern iteration of the Shannon-Weaver model (1948) in which an interruption, labeled  as noise, disturbs the delivery of a message.  Originally used to explain signal interruptions such as static and white noise, the Shannon-Weaver model gained traction in defining linear communication, particularly the feedback given by receivers of information.

Aligning their model with Riebe and Dawes would suggest that clutter is noise and that it has a negative effect on delivering a message and results in less action by the receiver.
It would therefore seem plausible to consider clutter is more than maxing out ad breaks and more about over doing content.

Literally applying both of these studies might see hundreds of stations suddenly changing to easy listening formats. Obviously that is not the solution as we know that different segments, as opposed to demographics[2], have varying interests but we could attempt to identify clutter with internal reviews or focus groups and so forth.

Nova experimented with five two-spot ad breaks per hour and later made adjustments in response to advertiser requirements which saw some breaks with seven ads[3]. That might have worked out cheaper for advertisers, but if we took Riebe and Dawes’ advice it would seem the messages sandwiched between the first and last would be lost.

The conclusion of an Edison research report supporting shorter ads and fewer breaks managed to get a group of broadcasters to divide eight minutes of advertising over three breaks[4]. The Edison report argued long ad breaks were turn-offs and the impact of messages could be harmed if the first one lacked punch. It also warned that broadcasters need to take more control over advertising content.

Moving forward we also need to consider the competition. Internet advertising can be turned off and  blocked but some ads are useful because they can respond to your individual interests. Putting aside the elephant in the room, app-radio, how can audio broadcasting include advertising without devaluing the product its leveraged on? Radio is still working with a broad cast while the Internet is narrow cast. Is it possible to mirror the seemingly tiny ads that appear in the corner of our screens and still make money?

Perhaps we could reduce the length of radio commercials to 10 seconds and the number of advertising events to eight per hour including news and weather bumpers. Yes, 80 seconds per hour of air time for sale. Advertisers would have fewer competitors and being a sole tenant of rare space would make a greater impact. While the initial cost of space may increase, selling and producing it could be streamlined.

In order for such an upheaval to work, stations would need to limit their own promos and be prepared to reject spots that challenge the spirit of the change such as those attempting to cram 30 seconds into 10. The “10” could be considered as complementing other media and providing timely and creative support. For example, media buyers knowing an audience would listen to a particular station for longer periods could produce a series of “10s” to ensure variety. They could also produce “10s” for specific times and spaces to support calendar events and react to environmental conditions.

Perhaps 30″ and 60″ commercials are a hangover of previous industry limitations. Using “10s” would have meant scheduling up to 100 commercials per hour to maximise the space in peak times. It might have also been more difficult to produce shorter carts and have so many in service. Splicing short pieces of tape together in a plastic box is not an issue in digital programming.

Eventually radio stations will need to make the transition from a fixed frequency and the “10s” would bring the industry in line with seemingly free online audio services that raise revenue from subtle ads and the on selling of traffic stats. Such synthesis might also work with sectors that are used to the online format such as the well-informed youth market. Teenagers can quickly search for an item on their devices if it piques their interest. So “10s” could work well as signposts that respect the audience’s knowledge and don’t kill a brand by thrashing it.

Cutting ads and attempting to put a premium on them without research showing a valuable audience would be a business for those used to selling snake oil. It is a move for a successful channel wanting to build a more intimate relationship with its audience. Less advertising would mean more space for programming and so the pressure would be on content teams to showcase their talent and not clutter. Content may be king for programmers and space the new frontier for advertisers.

Read more at: https://www.radioinfo.com.au/news/shorter-radio-ads-could-be-go-writes-john-patkin

Advertising Trends in 2015 and Our Forecast for 2016

 

Digital advertising spend in Australia-New Zealand continued to enjoy double digit growth in 2015, rising 20.3% according to a new report by the Standard Media Index.  This growth rate is stronger than the previous year.

The largest gains were seen in the smallest market, cinema screen advertising, which lept 37% boosted by the release of major blockbusters Star Wars: The Force Awakens and the James Bond movie Spectre.

Outdoor advertising, also referred to as out-of-home or OOH advertising, experienced it’s fourth consecutive year of impressive growth rates, driven by the rise in outdoor digital ads.

TV and radio spend remained relatively stable in 2015, serving as a reminder that players in these industries will need to work even harder to maintain their share of advertising budgets.

Interestingly the demand for TV ads during major sporting events keeps growing.  Major sporting events are where big brands spend big – stepping their advertising campaigns up a gear.  Rugby World Cup in the UK September 2015 provides an example of how lucrative sports coverage can be, increasing ad revenue by as much as 8% across all channels last year.

TV ad sales for the Super Bowl coverage continue to grow every year. NBC confirmed that the average ad spend for 30 seconds of airtime for Super Bowl  50 on Februrary 8 (AEST) this year will be $5 million, up from $4.5 million last year.

In light of the above, we expect 2016 to be a great year in TV adspend with popular events such as the Olympics, Paralympics and Euro Championships presenting lucrative opportunities for those in media industries.  While digital ad platforms continue to grow, it’s clear that TV remains an important channel for brand communication.

Jeanne Selvage, Director

This is why we are so excited about Digital

 

Advertising in the digital space continues to grow exponentially in the Australian market with no sign of slowing down. While non-digital channels remain important in the overall marketing mix, the share of these channels have remained relatively static in recent years usurped by the rampant growth of online based marketing strategies.  PricewaterhouseCoopers predicts, internet advertising will exceed half of the total Australian paid advertising market within five years.

digital advertising in australia

Source: PWC Entertainment and Media Outlook report

Within the digital segment, mobile advertising in particular is the strongest performer with experts arguing the Smartphone is one of the biggest game changers in history.  50-75% of consumer internet usage is mobile based in 2015 so the marketing message to businesses is clear: Get mobile or get left behind.  

Digital advertising is highly effective at increasing customer engagement, targeting segments of the market, generating new business opportunities and developing consumer demand – all of which are positively affecting the bottom line of Australian businesses.  All the while, on a cost per conversion basis, digital is among one of the most cost-efficient ways of reaching a targeted audience.  It is also highly measurable and easy to track, removing the need to invest in expensive market research to validate the success of campaigns.

With all of this in mind, digital advertising is showing no signs of slowing down and businesses need to act now if they want to engage with the next generation of internet users. At Total Exact Solutions, we’re passionate about keeping up to date with the latest technologies to drive your business and make your life easier. Give us a call or email us at sales@totalexact.com to learn more about digital and how it can help grow your brand

  • Erin Reuben, Manager of Engagement for Total Exact Solutions, Australia

 

 

Introducing, AdVenture. Savannah gets a new name!

 

It’s the end of an era, and the beginning of one. “Savannah” has come a long way since April 2010 when it was little more than a sketch on a few sheets of paper. It grew from a big idea into a true game changer. But since it was first conceptualised, its name has remained a mystery to those who are not on the inner circle. “Why Savannah?” one might ask.
The Team at Total Exact decided it was time we addressed this disconnect.  As a part of the rebranding initiative, we selected a new name which we felt more accurately embodied the unbridled potential this platform possesses for clients in the Media Sales industry – AdVenture.

AdVenture Time

In addition to the obvious connection between advertising and business ventures, which captures the synergy between broadcasters and agencies, the definition “adventure” as “an unusual and exciting experience” is parallel to the intent with which this software was built.  Innovation is at the heart of what we’re about at Total Exact and it’s always exciting to share with our clients new ways of making their business life better!

So, it is with great delight that we can announce that the software product cryptically known as Savannah shall henceforth be known as AdVenture.

If you haven’t seen AdVenture recently, you can contact us here or drop us an email at sales@totalexact.com.au  It’s well worth a look!

 

 

Visit: Jeremy from WideOrbit (UK)

We were delighted to have a visit from Jeremy Bradley from WideOrbit (UK) in June.
Jeremy shared with us his wealth of knowledge around the Programmatic/Digital advertising technology, that we are hearing more and more about! We were able to get a real sense of where Digital is heading, and where it could potentially take our clients. With a fully integrated platform into the WideOrbit Traffic software, the future is all about simple, streamlined processes.  Jeremy’s passion for Digital Advertising is infectious, and the entire team has been buzzing with thoughts and ideas around the future of Media. We’re very grateful for Jeremy’s time, and we look forward to seeing him again soon!

The Total Exact Make Over

Here at Total Exact we are not afraid to actively pursue new opportunities, in whatever form they present themselves! We want to ensure our image is always in line with our current business focus. That’s why we are thrilled to announce the new and improved Total Exact website!

Our site has been re-designed with a fresh, new, user-friendly interface and has been updated with the latest information about our products, services and industry news.  We are very proud of the final result and we hope you enjoy it too!

It is said that the best companies are those that are able to adapt to changing times.  As technology and media industries continue to evolve – so do we by continuing to offer our customers the latest technological solutions for their business.  Our products such as Savannah iPad represent the most advanced and efficient way to conduct your media enterprise in the 21st century.

Our new website is the key to staying connected with our valued customers and keeping them up to date with all we have to offer.  You are at the heart of our business and we like to ensure you always feel informed and supported.

Want to know more? Get in contact with us here or give us a call on 02 9440 9811.

Entering an Order in Savannah

Want to see how Savannah works? Watch this short training video on how to enter an order.

 

For more video’s you can visit the Total Exact YouTube channel here.