Winning & Losing CE Brands Determined by Overall TV Ad Performance –What Gets Avoided and What Gets Watched
Winning Brands Include Best Buy, LG, Verizon Wireless, Sony, Palm, Canon
LAS VEGAS, NV — January 7, 2010 — TiVo Inc. (NASDAQ: TIVO), the creator of and a leader in television services and advertising solutions for digital video recorders (DVRs), today reported the winners and losers of the first annual Battle of the Consumer Electronics Brands at CES TV advertising competition. Using its Stop||Watch™ and Power||Watch™ ratings services, TiVo evaluated competing consumer electronics companies that ran national TV ads to identify brands with commercials that were most effective at retaining audiences as well as those that often fell victim to the fast-forward button, as viewed by TiVo® service subscribers. TiVo’s second-by-second, anonymous audience measurement tools enable brand managers, advertisers and broadcasters to measure DVR viewing behavior for specific commercials and programs with an unmatched level of granularity, accuracy and, importantly, increased accountability for advertisements.
TiVo announced the winning and losing brands, based on October and November national TV ads, during the 2010 International Consumer Electronics Show (CES) in Las Vegas. The evaluation criteria was based on which brands’ advertising resonated best with target consumers, as evidenced by their propensity to watch, or fast-forward, through the spots during timeshifted viewing. While overall fast-forwarding rates were key criteria, many other factors were also considered in assigning winning and losing brands including:
- Fast-forwarding rates in similar, or different, media environments (i.e. networks, dayparts, programs).
- Fast-forwarding rates for spots that ran in the first pod position.
- Fast-forwarding rates among key target groups. For example, for digital camera brands, households expecting to have a child in next 12 months (as identified by TiVo’s True Targets™ data).
- Fast-forwarding rates for different creative executions and different spot lengths.
Todd Juenger, Vice President & General Manager, TiVo Audience Research & Measurement, said, “Showcasing your best new products at CES is important, but most consumers are not walking the exhibit floor so it is critical to reach them in the living room. The results of the first annual Battle of the Consumer Electronics Brands at CES are not meant to predict which manufacturer will have the most sales, rather to provide brand managers and agencies with actionable feedback that they can use to determine if and when their TV advertising campaigns are resonating with viewers. In an intensely competitive CE environment and during these challenging economic times, having access to the most granular level of audience viewership behavior to help better evaluate the efficacy and ROI of ad spend is more important than ever.”
Juenger noted that Best Buy commercials decidedly outperformed general mass merchant retail spots (see below), and is a positive indicator that there is sustained interest in consumer electronics despite the difficult economic times.
Best Buy vs. Mass Merchants: Walmart, Target, Kmart, Sears [The winner is…Best Buy]
- Best Buy had 10-20% less overall fast-forwarding of its commercials than all four mass merchants.
- Best Buy spots also experienced 20-40% less fast-forwarding on broadcast networks than all four mass merchants.
- Best Buy spots experienced approximately 10-30% less fast-forwarding in primetime than all four mass merchants.
- Best Buy had an overwhelming 3-4 times less fast-forwarding than all four mass merchants among spots that ran in first pod position.
LG vs. VIZIO [The winner is…LG]
- Both LG and VIZIO aired more than 90% of their media schedule in cable, however, LG had 40% less fast-forwarding among timeshifted viewers than VIZIO.
- LG spots that ran in the first position of a pod were fast-forwarded only 45% of the time among timeshifted viewers compared to the 64% of fast-forwarding for VIZIO spots.
- In cable prime, LG’s heaviest genre was documentary, where its commercials experienced 25% less fast-forwarding among timeshifted viewers than VIZIO's ads in its heaviest genre, sitcom.
- LG commercials had less fast-forwarding during timeshifted viewing than VIZIO among households that were planning to buy an HDTV in next 12 months.
- LG's :15 spots were fast-forwarded 19% less than its :30 spots.
- "Colors redefine life" was the least fast-forwarded VIZIO commercial and "People are drawn to TV" was the least fast-forwarded LG commercial.
Sprint vs. T-Mobile vs. Verizon Wireless [The winner is…Verizon Wireless]
- Verizon Wireless ran more spots in primetime than T-Mobile or Sprint and Verizon Wireless had the least amount of fast-forwarding among timeshifted viewers.
- Verizon Wireless placed a higher percentage of its spots in the coveted first pod position than Sprint or T-Mobile and had 40% less fast-forwarding of these first pod position ads among timeshifted viewers than Sprint or T-Mobile first pod spots.
- Verizon Wireless' most utilized network, VH1 Classics, had 25% less fast-forwarding among timeshifted viewers than Sprint's most utilized network, The Military Channel, and approx 50% less fast-forwarding than T-Mobile's most utilized network, Fuse.
- The least fast-forwarded Verizon Wireless spot was "Blitzen has an AT&T map." The least fast-forwarded Sprint spot was "A phone for every side of you." The least fast-forwarded T-Mobile spot was "New business partner."
Video Game Consoles
Nintendo Wii vs. Sony Playstation®Network [The winner is…Sony Playstation]
- Sony Playstation aired roughly twice as many spots as Nintendo Wii in the late fringe daypart and experienced approximately 75% less fast-forwarding in timeshifted mode.
- However, Nintendo Wii spots did perform significantly better than Sony Playstation on their heaviest used networks, respectively. Nintendo Wii focused approximately 30% of its media schedule on Comedy Central and VH1, while Sony Playstation focused roughly 30% of its media schedule on Fuse and MTV. The Nintendo Wii spots in the Comedy Central and VHI combo experience half the fast-forwarding rate of the Sony Playstation spots than the Fuse and MTV combo.
- On balance we give the nod to Sony by a slim margin based on a preponderance of evidence.
- Sony Playstation had a higher percentage of spots in the coveted first pod position and those spots had approximately 37% less fast-forwarding in timeshifted mode than first pod spots for Nintendo Wii.
- Sony Playstation spots that ran in its most utilized cable prime genre, sitcoms, had 31% less fast-forwarding in timeshifting mode than Nintendo Wii spots in its most utilized genre, reality.
- Sony Playstation's least fast-forwarded spot was "Drops Brick on a See-Saw."
BlackBerry® vs. Palm® Pre™ [The winner is…Palm Pre]
- While BlackBerry aired a higher percentage of its overall spots in the coveted first pod position, Palm Pre spots that ran in the first pod position actually experienced 20% less fast-forwarding in timeshifted mode than BlackBerry spots.
- Palm Pre commercials had less fast-forwarding in timeshifted mode than BlackBerry spots among households with income greater than $150,000.
- Approximately 97% of Palm Pre's spots were :15s and had 30% less fast-forwarding in timeshifted mode than its :30s.
- Approximately 26% of BlackBerry's spots were :60s and experienced only 4% more fast-forwarding in timeshifted mode than its :30s spots.
- "Band Plays Live" was the least fast-forwarded spot in timeshifted mode for BlackBerry.
Canon Rebel vs. Nikon COOLPIX vs. SAMSUNG DualView
[The winner is…Canon Rebel]
- Canon Rebel aired far fewer spots than the other competing brands. Nikon COOLPIX aired twice as many spots as Canon Rebel and SAMSUNG Dual View aired more spots than both Canon Rebel and Nikon COOLPIX combined. However, those Canon Rebel spots generally performed better among timeshifted and targeted audiences.
- Canon Rebel had highest percentage of spots in the coveted first pod position and those spots had between 33-40% less fast-forwarding among timeshifted audiences than did Nikon COOLPIX and SAMSUNG DualView spots in the first pod position.
- Canon Rebel focused the largest percentage of its ads on the cable networks USA, TNT, and History and the spots running on History had less fast-forwarding among timeshifted audiences than any other networks for any of these three brands.
- Nikon COOLPIX and SAMSUNG Dual View both allocated roughly 20% of their cable prime media schedules to the reality genre with SAMSUNG experiencing 22% less fast-forwarding among timeshifted audiences than Nikon COOLPIX.
- Canon Rebel spots experienced less fast-forwarding in timeshifted mode among households that are anticipating having a child in next two years compared with Nikon COOLPIX or SAMSUNG DualView.
Juenger added, “Based on these winners and broader emerging DVR viewing trends, it stands to reason that competing brands with stronger creatives, more effective ad placement, and the wherewithal to leverage audience behavioral research to better understand how their ads are resonating with consumers are experiencing significant cost efficiencies from their campaigns. In fact, more effective and accountable advertising is becoming increasingly more critical for brand managers and agencies as many industry experts estimate that probably at least half of all
U.S. homes will have a DVR in the next couple of years.”
The Stop||Watch™ ratings service, introduced in February 2007, is offered via an easily sortable database of ratings for nationally run programs and advertisements from cable and broadcast networks, with data going back to September 2006. The service now tracks ratings for 112 networks from 5:00am – 11:30pm.
TiVo’s Power||Watch™ ratings service provides advertisers access to second-by-second program and commercial ratings data, with demographic segmentations, for 35,000 households who have volunteered to take part in a “passive” consumer panel. The Power||Watch™ ratings service provides subscribers the ability to look at TV viewing broken down by standard household demographics including income, geography, ethnicity, number of children and tenure of TiVo subscriber, among others. TiVo can associate household data with the viewership data then produce program and commercial viewership reports by aggregate demographic and behavioral audience groups. All reports prepared by TiVo using this data are anonymous. TiVo True Targets™ data is information based on TiVo’s Power||Watch™ ratings service sample that affords advertisers a better understanding of television behavioral segments and can help significantly improve consumer targeting and ROI.
TiVo Stop||Watch™ ratings service data is derived from a daily, aggregate, anonymous, stratified random sample of 350,000 TiVo subscribers – from which the second-by-second “clickstream” of behavior and viewership is collected and assessed. The Stop||Watch™ ratings service includes data for: Total Viewing, Live Viewing, Timeshifted Viewing (less than 1 hour, 1-6 hours, 6-24 hours, 24-48 hours, 48-72 hours, 3-7 day, and 7-14 day delay and C3), Program Ratings, Commercial Ratings and a Commercial Viewership Index. The Stop||Watch™ service uses ad occurrence data from TNS Media Intelligence to identify commercial spots. For more information on the TiVo Stop||Watch™ ratings service, visit https://stopwatch.tivo.com.
About TiVo Inc.
Founded in 1997, TiVo Inc. (Nasdaq: TIVO – News) developed the first commercially available digital video recorder (DVR). TiVo offers the TiVo service and TiVo DVRs directly to consumers online at www.tivo.com and through third-party retailers. TiVo also distributes its technology and services through solutions tailored for cable, satellite, and broadcasting companies. Since its founding, TiVo has evolved into the ultimate single solution media center by combining its patented DVR technologies and universal cable box capabilities with the ability to aggregate, search, and deliver millions of pieces of broadband, cable, and broadcast content directly to the television. An economical, one-stop-shop for in-home entertainment, TiVo’s intuitive functionality and ease of use puts viewers in control by enabling them to effortlessly navigate the best digital entertainment content available through one box, with one remote, and one user interface, delivering the most dynamic user experience on the market today. TiVo also continues to weave itself into the fabric of the media industry by providing interactive advertising solutions and audience research and measurement ratings services to the television industry. www.tivo.com
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