Following TV audiences – how will BBC Three’s plans impact the industry?
Changes in television viewing habits are nowhere near as dramatic as we may think, writes MEC’s Harriet Westcott.
Last month it was announced that the BBC Trust has approved the corporation’s plans to make BBC Three online-only. The chair of the Trust, Rona Fairhead, stated that it only saw its long-term future online; however, is this actually reflective of TV viewing habits and what will be the impact on the industry?
There is no doubt that TV viewing habits are changing; however, this is currently not as dramatic as one may think.
The most pronounced change we are seeing are viewers migrating from the TV set to other screens. Indeed, in 2014 TV viewing did decline by just under 5 per cent but this was driven by TV set viewing falling, whilst viewing on other screens actually grew year-on-year by 17 per cent.
Looking at 2015 to date, commercial impacts are undeniably continuing to fall; however, for adult viewing this is less than 1 per cent. Instead, it is the younger audiences, that BBC Three is aimed at, seeing the biggest loss at -8 per cent.
It’s important to recognise that this decline is coming from heavier TV viewers watching less TV, as total TV reach has actually remained stable over the past five years. So although some viewers are moving across screens, live TV and shared viewing experiences are still important. The TV still has a place in the living room for now.
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To target the viewers that are moving cross-screens, and online, we have to understand the impact this will have on programming and advertising. With online comes data, and with data comes many more opportunities. Personalisation is one of these; All 4 currently enables personalised ads with its Adapt iVoD format and has successfully delivered campaigns for Coke and Burberry.
As new TV viewing methods allow for further personalistion, providing increased levels of knowledge on the consumer and more individual TV viewing screens, we are likely to see more brands investing in this area.
Looking to Sky AdSmart, we can also expect to see more TV traded programmatically. As online video becomes increasingly programmatic, it is logical that online TV will follow in the same way.
Programmatic TV is already off the starting block in the US and Australia, so the UK should not be far behind, though there are of course many barriers to overcome – not least the current trading mechanics and methods of buying.
Another major consideration for advertisers is the measurement of online TV, as well as understanding of reach. BARB has been in existence since 1981 and provides a standardised measurement for TV viewing, as well as a basis for standardised currency for TV trading.
New TV viewing habits and buying approaches present the need to adapt how we measure viewing levels. Will the spot buy remain or do we switch to buying a number of impressions, reaching only the audience we want? Do we move to digital metrics such as CPV, CPCV, the list could go on?
BARB’s Project Dovetail is moving to provide a solution to some of these issues, fusing BARB panel data and device-based data, but this takes time to ensure the integrity of measurement is not lost, and we still need to account for reach across multiple devices.
Whilst the BBC is taking a bold move in shifting BBC Three solely online, this is not indicative of the current total TV market place, nor the entire TV viewing audience. We’re not yet at a place where we only see ads with our names on, and for products we want to buy.
However, while BBC Three jumps in head first we should definitely be paddling so we don’t miss the exciting opportunities ahead or let the challenges defeat us. Another evolution of TV advertising lies ahead and we’re in a fortunate position to learn from others in paving our own way.
Harriet Westcott is group account director at MEC.