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Business case studies No 206 - 09.02.2018

When no one is watching

This week’s egtabite features a creative campaign initiated through Reklamkraft, the Swedish broadcasting industry association, for which the three big Swedish broadcasters joined forces to prove a point; namely that so-called zero rating breaks do actually deliver audiences. They decided to launch a product by planning ads only in zero rating breaks. Here is the story behind this crazy idea.

In Sweden, a market with very fragmented viewing, 4 out of 10 aired ad breaks has zero ratings. Even when taking only the top 15 TV stations into account, the level of zero ratings is still at 32%, which is very high.

The three broadcasters sought to confirm the assumption that these zero rating ad breaks do have value and planned a TV campaign, solely broadcast during these supposedly wasted breaks.

An ideal test case was found in Vessla, a motorcycle brand which was about to launch and - as shown by a study conducted prior to the campaign - had practically no brand recognition or awareness to speak of. Over a period of 4 weeks in August 2017, approximately 3.600 spots were scheduled on 16 channels. After the campaign, 3.400 spots registered as having zero ratings and 212 spots delivered 27 ratings, bringing the total average rating per spot at 0.008 %.

Someone was watching

As expected by the broadcasters, the campaign not only proved the effectiveness of TV advertising, but also delivered high business results, proving the zero rating concept to be exaggerated: the campaign created an increase in observation percentage and brand recognition. More than 23.000 visits to the Vessla website were registered during the campaign period and 12% of the population remembered having seen the spot, with 56% of those being able to recall the brand name.

The net cost of the delivered ratings approximated € 15.000, with a generated sales value of € 220.000. In other words: the ROI of this campaign was 14,4 – and Vessla sold out their entire stock of motorcycles just two weeks into the campaign.

Proportionally, the world's largest panel

The campaign not only highlighted the value of zero rating spots, but also proved that a better measurement system of the television ratings for the Swedish broadcasting industry is imperative.

The experience confirmed the challenges of fragmented viewing and validated the decision made by the industry’s JIC: to increase the number of set-top boxes to 3.000, more than doubling the panel (proportionally, this is a large amount, as the total Swedish population counts 9,9 million people). In addition to this, Wi-Fi households were equipped with streaming meters, enabling the measurement of viewing across all platforms via two different systems and through 6.000 boxes. In effect, making this the world’s largest panel in relation to the population.

The effects of the added set-top boxes were immediately visible. Since the start of the measurement in January 2018, one can see a reduction of 20% of the zero rating spots, with an increase in accuracy in narrow audiences, smaller channels and a stable total viewing.

The successful campaign thus not only proved the hidden value of zero rating spots for clients, but also provided the first steps in building a new measurement ecosystem.

COMPANIES

RESOURCES

» Website Reklamkraft (click here)

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