TV retains “super media” status
January 2011
Growing audience levels and rising ad spend show television remains a form of “super media” despite the many challenges to its status, according to Deloitte.
They estimate 40 million new viewers will tune in for the first time around the world this year, with an extra 140 billion hours of content being consumed. Advertising expenditure on TV is set to grow US$10 billion, hitting US$191 billion in 2011, a 5th successive annual increase.
On average, individuals will dedicate three-and-a-quarter hours each day to linear broadcast material, measured against 15
minutes utilising social networks. In NZ our viewership of TV is higher at an average of 4.15 hours and amongst the heaviest viewers of TV in the world.


The medium is also set to enjoy strengthening influence over other types of media, like books and music.Similarly, pay-TV subscription sales are anticipated to climb by 20% worldwide, indicating a broad-based resilience across
various revenue streams.
While there are challenges ahead from digital technology, online audio visual and social networking, other innovations like Apple TV and Google TV that will reshape the industry.
“Prophecies of the imminent obsolescence of television will again be proved wrong in 2011 and instead its status as a ‘super
media’ will be reinforced,” Deloitte announced.
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If you’re going to the effort of developing a campaign for your brand and investing on TV, it needs to be focused on longer term brand growth. Many TV brand campaigns with limited budgets are short and sharp because of the chosen format (Masthead and info brand ads like Brand Power and Discover) or don’t have the budget to spend on media because the agency has over spent proportionately on production. While these campaigns create good brand awareness and lift sales in the short term, they don’t build the brand.

TVLowCost is focused on brand building, not just creating brand awareness. Our approach is ideal for reigniting challenger brands that already have reasonable awareness and distribution levels but limited budgets. They need good strategy and creative to reconnect with their consumers and be able to afford to invest in further campaign flights using the same ad.

Our experience and proven production model have ignited leading brands in New Zealand and around the world. Our consumer insights; strategy; creative ideas; smart media buying; and testing and measurement have built stronger brands for all our clients. And all within a realistic budget.
Our low cost approach means we put more into media than production and fees.
Brand like UDC, Morning Fresh and Outward Bound have been able to afford successive campaigns. Our average residual share gain in NZ is 9.4%.

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In NZ the average 30″ ad costs around $100,000 to develop. Suppose too that the media spend on the average ad is $400,000, so the total advertising budget per ad is $500,000.

From international research and testing over 3,500 ads worldwide, irrespective of category, type of advertising, country or media, only about 30% of the finished ads are very effective (Source: Admap 2003).

Pretesting an ad costs around  $15,000 for 2 groups. By pretesting you are significantly increasing your ad’s chances of success. In fact, the ROI for a pretest  has be calculated at 900% if you get it right! (Source: Admap 2003).

TVLowCost includes pretesting in our all-inclusive TV Packs. We always provide 360°degree strategic creative and at least 3 concepts to be pretested.

How many times has your agency ‘sold’ you an idea? Pretesting tells us which ad will most likely make consumers buy versus being sold to.

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Consumers dislike masthead advertising:

• 61.8% of people 18+ disliked or were ambivalent to masthead/advertorial style ads*  Those that disliked them found them 1) Fake/pretending to be news/annoying/lame; 2) Boring; 3) Lack of intelligence/condescending; 4) Too many of these style ads now

• There are now 13 (and growing) masthead format ads on TV in New Zealand

• 74.7% of Baby Boomers disliked masthead/advertorial style ads** This sector is the fastest growing, biggest spending demographic in NZ


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* UMR Research Omnibus July 2009. Margin of error 3.6%

** Senioragency Goldmine Baby Boomer Study 2007. Margin of error 3.0%


Winning creative awards is the way ad agency creatives work their way up the ladder. This obsessive focus on awards is most often at the detriment of sales. It’s a fact that a lot of the most awarded ads have resulted in flat sales.

Ads still need to be creative … they just need to sell
At TVLowCost, we know that creative ads cut through (we deliver 3 x 15 second ads in our package). Our creative team know that the ads have to deliver sales. It’s simple – if the ads don’t work- you won’t place again. With an average 25% increase in sales our clients are placing the ads again and again. Win – Win.


No wonder TV delivers sales like no other media. While fragmentation of media usage is a concern for most marketers, a 2008 study by The NZ Television Broadcasters’ Council highlighted that viewership grew by 8.6% over 2007.
Outward Bound Out Performs
Based on the same budget in 2008 vs 2009 – and radio/magazine vs TV – website hits for Outward Bound are up 77%, and 0800 call enquiries are up 47% – and the campaign is only just over half way through!

25% average increase in sales
In the campaigns developed by TVLowCost to date, we have delivered, on average, a 25% increase in sales. As marketers look for greater value and accountability from their partners, in a tougher economic environment, sales results like that would be welcome news in a negative news environment!


In a recent NZ quantitative research study* into Baby Boomers, when asked what were their major concerns for their future, Health & Wellbeing ranked No1, followed by Money, with family/grandchildren ranked  No 3. Even in a recessionary environment, Boomers will continue to invest in themselves …the key is to make sure your communications resonate with this much overlooked audience. The opportunity for OTC brands to specifically target the Boomers is enormous, and the returns will reward the investment.

* Senioragency NZ Goldmine Study 2008

TV is the sweetspot for Boomers 50+

If your OTC brand derives significant sales form the 50+ … the TVLowCost model is a perfect solution. Against a 50-69 Socio 1-4 target audience, the $45k media delivers approx 450 TARPs* Plus 3 x 15 second tv commercials in the package mean that different brand benefits … or different brands can be supported.

* Seasonal variations apply, based on 15 sec tvcs