Broadcast Sponsorship - UK - July 2007

Table of Contents

• Issues in the Market
• Main issues
• Definition
• Consumer research
• Abbreviations
• Market in Brief
• A growing share of a shrinking market...
• ...but still the bridesmaid to spot ads' bride
• Reducing regulation: not too late, but still too little
• New technology the key driver of future growth
• Reaching the young
• Avoiding ads, seeking sponsorships...
• ...but ads still build sales, while sponsorships build brands
• Fragmentation: opportunity rather than threat
• Competition: internal, not external
• Industry perspectives
• Finding the right marketing mix
• The creativity question
• Measurement and understanding
• Internal Market Environment
• Key points
• TV viewing: quality more important than quantity
  • Figure 1: Time spent watching TV on an average weekday, 2005 and 2006
• Radio penetration rates high and steady
  • Figure 2: Time spent listening to radio during the last seven days, 2005 and 2006
• Declining share of listening masks sustained high levels of reach
• Viewing and listening habits
  • Figure 3: Frequency of watching TV programmes, February/March 2007
  • Figure 4: Viewing habits, February/March 2007
• More channels: more planning, more flicking
• Tuning in to local commercial radio
  • Figure 5: Type of radio regularly listened to, February/March 2007
• Ad avoidance
• Regulation
• Television
• Channel sponsorship offers biggest boost for niche players
• In danger of losing gaming cash?
• ' Junk' food ad ban increases pressure
• Radio
• Channel sponsorship a slow burner
• Product placement
• Advertiser-funded programming
• Greatest potential in radio
• Broader Market Environment
• Key points
• Economic climate
• Positive patterns of overall adspend
• Technology
• Multichannel television
  • Figure 6: UK multichannel TV penetration, by platform, 2002-07
• Interactive TV
• Personal Video Recorders
• Up to a third of ads being fast-forwarded, but it' s not all bad news
• Radio platforms
  • Figure 7: Favourite means of listening to the radio, February/March 2007
• DAB digital radio
• DTV
• Internet
• MP3
• Mobile
• The Internet
  • Figure 8: Computer, Internet and broadband take-up, 2002-06
• Competitive Context
• Key points
• The marketing mix
  • Figure 9: UK broadcast sponsorship share of total adspend, by medium, 2004 and 2006
• The media mix
  • Figure 10: Total UK adspend, by medium, 2004 and 2006
• Sponsorship escapes online onslaught
• The sponsorship mix
  • Figure 11: UK sponsorship market, by sector, 2002-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Television Sponsorship
• Key points
• A strong performance bucks the advertising trend
  • Figure 12: Estimates and forecast of expenditure on UK television programme sponsorship, 2002-12
• ITV still the dominant sponsorship player
  • Figure 13: Estimated expenditure on UK television programme sponsorship, by broadcaster, 2006
• Digital expansion aids Channel 4
• Sponsorship most important to BSkyB
• Cost gap closes on airtime
• The future
• More platforms, more channels, better activation
• Uncertainty over PVR and interactive effects
• Factors incorporated in the forecast
• Radio Sponsorship
• Key points
• Passing the £100 million mark
  • Figure 14: Trends and forecasts in expenditure on radio programme sponsorship and promotions by UK companies, 2002-12
• Sponsorship high on the radio agenda
• Increasing competition from new TV channels
• Local stations take the lion' s share
  • Figure 15: Expenditure on UK radio sponsorship, by type of broadcaster, 2006
• The future
• New platforms offer greatest opportunities
• Factors incorporated in the forecast
• Trade Perspectives
• No sponsorship is an island
• Are sponsorship and spot advertising good neighbours?
• Frequency versus creativity
• How can success be measured?
• Future development of broadcast sponsorship
• The Consumer -- Advertising and Sponsorship Target Groups
  • Figure 29: Advertising and sponsorship target groups, by demographic sub-group, February/March 2007
• Pro-Sponsors (31% of respondents, or 9.5 million Internet users aged 16+)
• Who are they?
• Captive Audience (29% of respondents, or 8.9 million Internet users aged 16+)
• Who are they?
• Non-Commercials (41% of respondents, or 12.6 million Internet users aged 16+)
• Who are they?
• Where to target the target groups
  • Figure 30: Advertising and sponsorship target groups, by programming regularly watched on terrestrial TV, February/March 2007
  • Figure 31: Advertising and sponsorship target groups, by programming regularly watched on satellite/cable/Freeview TV, February/March 2007
• Interactivity and the call to action
• New radio formats also provide opportunities
  • Figure 32: Advertising and sponsorship target groups, by favourite means of listening to the radio, February/March 2007
• Broadcast Sponsorship - UK - July 2007