It’s not surprising that viewers prefer to see fewer ads.
But Jeff Grant, Senior Vice President of research for Turner’s
Emerging Consumers group has proven through research that fewer ads actually benefit
the network and advertisers as well.
Grant is a Turner Research veteran, with 21 years at the
company. In that time, he’s had opportunities to oversee research for a
collection of networks – starting at CNN and gradually adding oversight for
each of Turner’s emerging consumers brands, Cartoon Network, Adult Swim, truTV
and Boomerang, or, as he describes them “all the brands that we have that
specifically focus on the Millennial generation, as well as what we call the Plurals generation .” (Plurals are also
known as Gen-Z - the generation that follows the Millennials. Grant believes
that “’Gen Z’ means nothing,” and Plurals
is the term, he adds, “that is also used by such companies Insight Research
and Magid Research.”)
In late 2015, one of those “Plurals networks”, truTV,
announced a large scale effort to drastically cut advertising by half during
traditional prime time hours, starting in fourth quarter 2016. It was all part
of a larger company effort to, per their brand tagline, “re-imagine television”
and deliver an optimal experience for fans.
With a year of execution under their belt, Grant and the
larger research division now have the ability to share with advertisers what it
all means for them. Their research focused on the impact of a lower ad load on truTV
and how less clutter improved the viewing experience for fans of the
programming, delivering increased ad attention, retention and enjoyment. What
also stood out about the research was a deeper dive into purchase intent. “We
found that when we provided fans more of what they want - more content and
fewer ads - truTV delivered what was good for both the viewer and our
advertising partners,” he explained.
He shared more on the study and its impact in our recent
conversation:
Charlene Weisler:
Tell me about your recent study.
Jeff Grant: The basic reason behind the study is that we are
trying to serve our fans especially the younger generations - Plurals and
Millennials - the most optimal experience in media. Our brands are very much
about the user experience, keeping the fans happy – and that extends not only
to the content but also to the advertising formats. So, Chris Linn, who heads
up truTV, took a chance and cut the ad load in half, and gave ourselves enough
time and content to evaluate if it would make for better results. What we saw
in the variety of categories that we tested was that there was greater
attentiveness and greater ad recall especially the day after and higher
purchase intent compared to previous studies. And viewers rated the program more engaging
and better paced than the same episode with a full commercial load.
Weisler: Does that
mean the same number of minutes per hour and just shorter pods?
Grant: No. It is half the number of ads you would see in the
normal time in primetime. The ad load has essentially been cut in half. That
also meant our production teams would need to ramp up the amount of content per
hour as part of our original series. So, it also ends up a win for the viewer
who gets more story.
Weisler: What categories
did you test and what metrics did you use?
Grant: We measured incremental sales on advertising in the
soft drink category, the QSR category and the Snacks category. We found that
there is between 4 and 16 times higher incremental sales among viewers that
watched limited commercial formats on TruTV than among those who watched
competitive networks. It was very efficient for the advertiser. For the QSR
category we used Nielsen NBI which matches household credit card usage purchase
data with TV viewing. For the consumer package goods category we used Nielsen
Catalina Systems which matches grocery loyalty card purchase data with TV
viewing. There were a variety of advertisers. We did several studies within the
categories. We examined well-known
brands and the results came back with a strong story for all of them.
Weisler: Do you think
these results will translate into your other networks?
Grant: Yes, it’s worth noting that TNT is also evaluating
the effects of limited ad loads within its new original series, and
experiencing similar results. The general principle behind this – that viewers
respond better to fewer ad messages in a lower clutter environment – is fairly
universal. It lends itself to serving the fan base and what it is that the
viewer is expecting as they consume content across the variety of platforms
that are out there.
Weisler: Did you look
at other Nielsen measurements such as C3 and C7?
Grant: Yes. We are adding ratings growth not only among new
viewers to the network’s content, time spent viewing per premiere telecast went
up about +18%. truTV C3 delivery grew +17% across all premieres for 18-49 year
olds and during that same period, our Live +3 grew +12% suggesting that
commercial minutes grew faster than the programming itself. That is a
difference in commercial index growth of +3%. With other metrics, truTV had
+10% deeper engagement from length of tuning for P18-49 and +30% higher brand unaided
ad recall among 18-49 year olds versus traditional pods.
Weisler: How has this
been received at the agencies?
Grant: To my knowledge, very well. Any time that you can
tell a client that people are sticking around and remembering your messaging,
especially the following day, is a strong argument to come back. To be able to
share purchase intent with our partners is critical as our sales division is
eager to evolve to outcome-based conversations. So what we’re able to tell them
based on the research we have done so far is that we have seen +30% higher
18-49 unaided ad recall and +7% 18-49 intent to purchase. For 18-34 it was even
higher +15%. That is the average uplift across all advertisers lower ad load vs
higher ad load. Ads in truTV limited commercial interruptions deliver anywhere
from 4x to 16x more sales of the advertising product compared to the
competition. So even the worst category sees a 4x lift. The bottom line is that
this research delivers what matters most-evidence that limited ad formats
delivers higher ad recall, purchase intent and actual purchases, better than
the competition.
This article first appeared in www.MediaVillage.com
This article first appeared in www.MediaVillage.com
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