The Final Frontier

1
The Final Frontier

• Presented to the 2001 MRS NZ Conference
• Chris Day, TVNZ and Nick Jones, ACNielsen

2
The Journey to the Frontier

• The complexity of media and wider communications
  options are changing every day
• The New Zealand market is highly developed
• It is
• Deregulated
• No limits on cross-media ownership
• Highly competitive
• Has a tradition of syndicated data sources
• Seen as an innovator
• Keeping pace with the changes is a challenge for
  us and the media owners
• Increase the markets understanding of the
  effectiveness of communication to consumers

3
The Market We Live In
We watch nearly 2 3/4 Hours of TV per day
70 of us can access the Internet
52 use it in a four week period
Just over 30 of us have SKY
We read an average of 5.3 New Zealand based
magazines
29 of us read a Sunday paper
79 of us read a daily newspaper in a week
Over 50 of us go to the cinema in a 6 month
period
We have more radio stations than LA
4
Time is of the Essence

• TV and Readership services are governed by Key
  Performance Indicators
• Primary in these are delivery deadlines
• Transformation in delivery through the Internet
• PRRADS website
• Readership website
• Ratings resource
• Downloading databases
• Media help online
• Accountability flows through the chain
• None of this matters unless we are delivering to
  the clients needs

5
Reaching the Business Frontier

• Diversity of media choice is wonderful for
  consumers
• Diversity of media choices is challenging the
  media owners from the revenue perspective
• Diversity of media choice challenge the marketers
  too
• While mass media will remain we are seeing
  increased personalised media choice
• Success will be driven by content
• From the business viewpoint
• Media owners understanding of content choices is
  vital
• Strong positioning is vital for advertising
  revenue
• Marketers need the holistic overview - Panorama

6
The Journey Will Continue to Be Challenging

• Finding new solutions is very rewarding
• Nielsen//Netratings
• ACNielsen EDI
• Internet panel
• Real time box office sales
• Open TV measurement
• Media Pix and TV Pix
• New generation software
• Developing our existing services
• Integration to provide an even more powerful
  media and communications measurement service

7
TVNZs Journey to the Final Frontier

• The New Zealand market/media well served in terms
  of research
• The TVNZ mission was to pull the pieces of our
  research jigsaw puzzle into
• A single ongoing picture
• Demonstrate the quality of TVNZs
  audience/ratings
• Working smarter with existing research
• Just over a year into the journey (wont happen
  overnight, but it will happen!)

8
TVNZs Journey to the Final Frontier

• TVNZs segmentation of viewers (Focus Research),
  and their relationship with channels/programming
  was the foundation piece of the jigsaw

• Catalyst for mission
• Segmentation studies have historically struggled
  to measure media consumption, particularly
  television
• TVNZs market is television/media
• Marketing plans, NPD, creative briefs, etc. are
  developed off the back of segmentations
• Media bought off demographics (the missing link)
• Media buying based on tonnage/numbers, not added
  value

9
Barriers to Overcome

• Reducing a full segmentation study down to key
  questions/statements
• Investment in a pilot study to determine validity
  of the questions/statements
• Changing from a face to face to self completion
  methodology with collages
• Reverted back to a face to face interview
• Entire programme high risk/no guarantees

10
The Masterplan to Conquer the Galaxy
Television Currency - Peoplemeters 1,200 People 5
Readership Currency 12,000 People 10 Face to
Face Interview
Consumers Product and Service Usage Self
Completion
Data Fusion Statistically matches information
from both samples Demographics Media
Behaviour Adding Peoplemeter viewing to 12,000
Readership Respondents
11
The Masterplan to Conquer the Galaxy
Television Currency - Peoplemeters 1,200 People 5
Readership Currency 12,000 People 10 Face to
Face Interview
Consumers Product and Service Usage Self
Completion
Critical TVNZ Viewer segmentation questions
Other TVNZ category questions
Data Fusion Statistically matches information
from both samples Demographics Media
Behaviour Adding Peoplemeter viewing to 12,000
Readership Respondents
12
What will some of the outputs cover?
13
Fleshing out TVNZs Viewer segments

• Ongoing and indepth profiling of our viewer
  segments
• media consumption
• attitudes towards life/lifestyles
• consumption of products/services
• The ability to profile programme ratings by the
  Viewer segments using the currency for TVNZ and
  competitor properties

14
But wait, there is more and were not just
talking steak knives

• Viewer loyalty
• The case for using
• MORE of TVNZ

15
Viewer Loyalty to TVNZ Programmes

• Awareness that TVNZs ratings are higher than
  those provided by other broadcasters is well
  known and old news to agencies/advertisers
• Top programmes
• Ratings/Rating band analysis

16
Rating Bands by Channel for 18-39February
August 2001 (Peak)
TVNZ screened 44 out of the top 45 regular
programmes/series
Source ACNielsen/DV5
Peak1800-2229
17
Rating Bands by Channel for 25-54February
August 2001 (Peak)
TVNZ screened all of the top 45 regular
programmes/series
Source ACNielsen/DV5
Peak1800-2229
18
Rating Bands by Channel for 18-49February
August 2001 (Peak)
TVNZ screened all of the top 45 regular
programmes/series
Source ACNielsen/DV5
Peak1800-2229
19
Viewer Loyalty to TVNZ Programmes

• To capture new business and re-energise
  advertisers interest in TVNZ and television,
  another criteria for programme selection is
  needed.

20
Rationale and Support for Viewer Loyalty

• Demonstrate that not only does TVNZ attract large
  audiences, it also delivers quality - viewers who
  are more loyal to our programmes

when an interesting show is interrupted by an
interesting commercial the momentum of aroused
interest does carry over as programme
involvement increases, all measures of
advertising effectiveness increase (recall,
purchase interest and pre/post behaviour change)
Krugman

• However, advertising effectiveness still relies
  on
• Strength of the creative
• How compelling/on strategy is the message

21
The Philosophy Behind the TVNZ Viewer Loyalty
Model

• Viewing loyalty to programme/ Greater Ad
• duration of ad break effectiveness
• programme

22
TVNZs Viewer Loyalty Model

• TVNZ model incorporates aspects from other
  international models
• Use of raw ACNielsen PeopleMeter data (currency)
• Data for each programme/episode analysed at the
  minute by minute resolution level, including the
  ad breaks
• Analysis will be exclusive to TVNZ

23
TVNZs Viewer Loyalty Model
First, what constitutes a viewer? Viewer watch
at least 20 of the programme/episode WHY?
Excludes casual viewers - switching in during ad
breaks on other channels - arriving early for the
following programme - same criteria used in other
studies
Second, what defines loyalty? Other studies used
watch 80 or more of the programme TVNZ is
using watched 90 or more of the programme
(harsher measure/greater commercial credibility)
24
Calculation for Determining Viewer Loyalty
Viewer loyalty
Watch 90 or more of the programme/episode
Viewers of the programme/episode
Have watched at least 20 of the programme
(excludes casual viewers)
25
TVNZs Viewer Loyalty Model
Loyalty will be expressed as an index based on
the target group e.g. 25-54s, Lion Red drinkers,
etc.
26
How far has TVNZ got on its journey to the
final frontier?

• We have made good progress on the journey,
  boldly going where no media company has gone
  before

• The mission of pulling the pieces of our research
  jigsaw puzzle is just past the next solar
  system...

..and when it is, we will go forth and conquer
the galaxy
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