A TV Dinner

Data protection 2013

A TV dinner: TV campaigns for every budgetTuesday 9 September 2014 @DMA_UK #dmatv

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Introduction

Matt Sullivan, Consultant, DMA@DMA_UK

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TV advertise your products and services without breaking the bank…

Pete Mills, Founder, the broadcast house@broadcasthouse

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TV Advertise Your Products and Services

Without Breaking The Bank…

September 9th, 2014

THE AGENDA

• About Us A very brief background..

• Back in the day The TV advertising landscape as it was

• How it has changed What the landscape looks like now

• A look at the future A top line view

• Summary and Questions Over to you

• Tour of our facilities Live examples of our work

ABOUT THE BROADCAST HOUSE

Pete Mills, founderex Commercial Director of JML (his family business)

ABOUT THE BROADCAST HOUSE

• UK’s only fully integrated DRTV agency

• Full creative TV production

• Clearcast compliance

• TV and radio media/buying

• Post campaign analytics ‘under one roof’

ABOUT THE BROADCAST HOUSE

• Uniquely we have control of two x TV shopping channels on

Sky Digital broadcast platform – The Dept Store (Channel

681) and The Mall (Channel 682)

ABOUT THE BROADCAST HOUSE

• 14 full time staff, 5 edit suites ‘in house’ and we retain state of

the art TV studios

ABOUT THE BROADCAST HOUSE

• Over 30 active clients including Dyson, Cotton Traders, Robert

Dyas, Remington, Damart and Fred Olsen

Our DRTV and TV Shopping Clients

Back In The Day…

Media Landscape

Back In The Day – Media Landscape

• The 1990’s saw the inception of cable and satellite TV in the UK

• The initial offerings were small, fragmented and the technology unstable - Channel Five barely worked!

• The dominance of ITV remained all powerful – 50% share of

commercial ratings and BBC

• Analogue broadcast technology meant that ownership of TV

stations and access to bandwidth was very prohibitive

Back In The Day – Media Landscape

• Limited hours of broadcast on most TV stations

• The ratings of airtime were very high and the cost of airtime was extremely expensive

• Very little short term media deals, limited DRTV and no infomercial

airtime

• TV regulation was managed by the Independent Television

Commission

Back In The Day…

TV Production

Back In The Day…. TV Production

• TV production and TV advertising budgets dominated by large

agency networks with large agency pricing

• 1990s – the era of the iconic advert matched by astronomic

budgets. A £million plus budget for 30 second creative often norm

• Technology employed was expensive and often unreliable. An

edit suite could cost up to £300k and the cost per day for edit

could be £1,500.00 per day

• TV advertising remained the bastion and marketing tool of brands

NOT entrepreneurs

Examples of TV Adverts

Back In The Day…. TV Production

But that was all set to change due to a

wholesale restructure of TV landscape….

What The TV Landscape Looks Like Now

Media Landscape

Several major changes occurred at the

start of the 2000’s

The TV Landscape Looks Like Now – Media

• Explosive introduction of Sky Digital Platform driven by free dish

promotion – now 11.2 million homes

• Digital TV audiences overtook terrestrial viewing

• Digital satellite broadcast technology – 10 x cheaper for new

channels and 10 x more efficient bandwidth

• Result = 600 TV channels on Sky Digital Platform including 32 x

standalone TV shopping channels

The TV Landscape Looks Like Now – Media

• Collapse of ITV Digital platform led to the formation of Freeview to

enable digital Britain – now 19 million homes

• Regulatory change – EU ‘Broadcasting with Frontiers’ legislation

opened up ‘Teleshopping Windows’ on all channels

• OFCOM was formed and the ASA took over TV regulation with the introduction of the BCAP code

What these changes meant to the DRTV

and TV Shopping Industry:

• The huge increase in TV channels and splintering of

ratings/audiences changed the broadcast landscape for advertisers

• Testing of new concepts became possible with significantly

lower media budgets

• Ability to target much more niche audiences via specific TV

stations

• The path to scalability of campaigns became easier

The TV Landscape Looks Like Now – Media

• For infomercial advertisers now possible to advertise 30 minute

infomercials on multiple TV shopping channels and 150 x

channels in the UK including ITV, Channel Four and Five

• Exponential growth in VOD both online and via digital TV

platforms

• Exciting new potential in 3 minute adverts and TV sponsorship

The TV Landscape Looks Like Now – Media

What The TV Landscape Looks Like Now

TV Production

• Massive developments in technology dramatically dropped costs

– new edit suites cost £7k vs £300k

• Digital camera equipment is less expensive but far superior cinematic quality

• All voice overs are typically recorded in home studios and down

loaded

• All content is delivered digitally to TV stations – no more tape!

The TV Landscape Looks Like Now – Production

• Agents and talent work to ‘buy out’ terms allowing clients to

produce content at low cost

• Content is usually produced for multiple platforms – TV, on line

• New advertising agency model – creative, production and post

production exist as one unit to avoid mark up

• Now possible to produce high quality TV adverts for as little as

£20k

• Industry result – TV is accessible to most advertisers

The TV Landscape Looks Like Now – Production

The Future of TV

The Broadcast House View of The Future of TV

• Cost of linear spot airtime to remain static due to ‘over supply’ model….

• Continued growth in time staggered viewing – currently 12% of

total viewing

• Migration of TV viewing to devices to continue unabated with

growth in YouTube and IPTV platforms

• Destination programming to maintain mass audiences

The Broadcast House View of The Future of TV

• Growth of ‘teleshopping’ to continue with large number of brands

utilising three minute DRTV adverts

• VOD advertising to grow to target specific audiences including

ABC1 demographics

• UK produced infomercials and tailored TV sponsorship to be used

to drive sales of direct and online brands

• Continued converging of TV and online media where responsive

creative remains king…

Thank you for your time

Questions & studio tour

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