Fox Study For Upfront: TV Still Rules Supreme

Media-agnostic data emphasizes TV's impact on purchase decisions

May 5, 2008

-By John Consoli, Mediaweek


NEW YORK While many television networks, including NBC and CBS, are approaching the upfront marketplace with sales presentations that include hefty praise and pitches for their digital platforms, Fox is concentrating its efforts on selling television as the overwhelming choice for advertisers to get their best return on investment.

Fox sales and marketing executives said that while it is trendy to praise online and emerging media for their effectiveness in targeting consumers, only a small percentage of online opportunities motivate consumers like TV spots can.

To prove the point, Fox hired custom research firm Marketing Evolution, which compiled the results of 40 previous "Return on Marketing Objectives" studies it did for individual advertisers across major product categories.

The aggregate study found that, compared to online and print, TV advertising proved the most effective by a big margin in the areas of product awareness and familiarity and intent to purchase. Combining all those factors, Marketing Evolution found TV accounts for nearly 70 percent of the impact on consumers' purchase decisions, said David Gantman, evp of Marketing Evolution.

"We look at the impact of each of the media platforms within the campaign and measure how aware and familiar consumers say they are from each medium and how that impacts their purchase intent," Gantman said. "Our methodology was media agnostic."

Jon Nesvig, president of Fox Broadcasting sales, explained the impact of the report on Fox's upfront positioning: "During the upfront, we will make all of our digital assets available to advertisers and include them in packages.

"But when you strip away all the veneer, television is still the most powerful way for advertisers to reach consumers," said Nesvig.

He said that despite TV's challenges -- continued questioning of the proper negotiating currency to determine pricing and an overall drop in prime-time ratings -- he believes the medium still has the most influence over consumer spending decisions.

Andy Donchin, evp, director of national broadcast at media agency Carat, agreed. "As a media-buying agency, we are so ingrained in moving some of our clients' dollars into the digital world," Donchin said. "But while I am embracing the new, I am protecting the old. I still believe in the power of television. Yes, advertisers need to reach targeted audiences, but mass reach is still important, as is the mass awareness TV builds. And for all the success of the Internet, television often is driving its viewers to Web sites."

Donchin said he is seeing a resurgence in advertisers' belief in television. They are realizing, he explained, that using TV as the main marketing vehicle helps to direct customers online, where deeper marketing messages and offers are made.

Among some of the Marketing Evolution conclusions: TV delivers the strongest consumer awareness relative to dollars invested; influences about twice the volume of impact for purchase intent; and can be successful in launching or maintaining a brand.

The report concludes by stating, "It's clear that television should continue to be a core medium for both launching and sustaining marketing campaigns, with print, radio, out of home, online and cinema playing an important complementary role in an advertisers' overall media plan."

The study, titled "Examining TV Advertising ROI: Six Truths You Should Know," does not analyze any specific network or programming, so any network could benefit from it.

Keeping dollars in the TV marketplace could benefit all the networks, but Fox, as the ratings leader among adults 18-49, has to believe it stands to benefit more.

"Television needs to continue to prove its worth to advertisers," Nesvig said. "And research like this proves our value to them."


Fox Study For Upfront: TV Still Rules Supreme

Media-agnostic data emphasizes TV's impact on purchase decisions

May 5, 2008

-By John Consoli, Mediaweek


NEW YORK While many television networks, including NBC and CBS, are approaching the upfront marketplace with sales presentations that include hefty praise and pitches for their digital platforms, Fox is concentrating its efforts on selling television as the overwhelming choice for advertisers to get their best return on investment.

Fox sales and marketing executives said that while it is trendy to praise online and emerging media for their effectiveness in targeting consumers, only a small percentage of online opportunities motivate consumers like TV spots can.

To prove the point, Fox hired custom research firm Marketing Evolution, which compiled the results of 40 previous "Return on Marketing Objectives" studies it did for individual advertisers across major product categories.

The aggregate study found that, compared to online and print, TV advertising proved the most effective by a big margin in the areas of product awareness and familiarity and intent to purchase. Combining all those factors, Marketing Evolution found TV accounts for nearly 70 percent of the impact on consumers' purchase decisions, said David Gantman, evp of Marketing Evolution.

"We look at the impact of each of the media platforms within the campaign and measure how aware and familiar consumers say they are from each medium and how that impacts their purchase intent," Gantman said. "Our methodology was media agnostic."

Jon Nesvig, president of Fox Broadcasting sales, explained the impact of the report on Fox's upfront positioning: "During the upfront, we will make all of our digital assets available to advertisers and include them in packages.

"But when you strip away all the veneer, television is still the most powerful way for advertisers to reach consumers," said Nesvig.

He said that despite TV's challenges -- continued questioning of the proper negotiating currency to determine pricing and an overall drop in prime-time ratings -- he believes the medium still has the most influence over consumer spending decisions.

Andy Donchin, evp, director of national broadcast at media agency Carat, agreed. "As a media-buying agency, we are so ingrained in moving some of our clients' dollars into the digital world," Donchin said. "But while I am embracing the new, I am protecting the old. I still believe in the power of television. Yes, advertisers need to reach targeted audiences, but mass reach is still important, as is the mass awareness TV builds. And for all the success of the Internet, television often is driving its viewers to Web sites."

Donchin said he is seeing a resurgence in advertisers' belief in television. They are realizing, he explained, that using TV as the main marketing vehicle helps to direct customers online, where deeper marketing messages and offers are made.

Among some of the Marketing Evolution conclusions: TV delivers the strongest consumer awareness relative to dollars invested; influences about twice the volume of impact for purchase intent; and can be successful in launching or maintaining a brand.

The report concludes by stating, "It's clear that television should continue to be a core medium for both launching and sustaining marketing campaigns, with print, radio, out of home, online and cinema playing an important complementary role in an advertisers' overall media plan."

The study, titled "Examining TV Advertising ROI: Six Truths You Should Know," does not analyze any specific network or programming, so any network could benefit from it.

Keeping dollars in the TV marketplace could benefit all the networks, but Fox, as the ratings leader among adults 18-49, has to believe it stands to benefit more.

"Television needs to continue to prove its worth to advertisers," Nesvig said. "And research like this proves our value to them."
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