Future of 2016

2016 & rising

Emma O’Doherty &

Ken Nolan

Personalisation: helpful or creepy?

Aileen McDaid

Top Google searches in 2015

Has social media changed the canvassing

model forever?

Dave Bruen

Helping you stand out by

never standing still

Bill Kinlay

Couch to 5 ways

Jill Robinson & Neasa McDonagh

Are our heartbeats the new currency?

Craig McClelland

Meaningful measurement

beyond the click

David Kirkpatrick & Ricky Joyce

What’s Snap? Instant

messaging is the new social

media

Keith Wallace

Does it matter where you get your news from?

Daniel Murphy

Retail magic - why we need

both bricks and clicks

Hilary Tracey & Oliver Smith

The hot topics: Privacy, con-

nection & time

Michael Kehoe

Another good year for media

nationalism?

David Ahlstrom

TV alive and kicking

Sam Piggins & Simon Nagle

Top viewed TV programmes

2015

To own or to rent: has the

“value exchange” changed for

good?

Aoife Dunlevy

Could you live without licence

fee content?

Gillian Jordan

Life through an emoji lens

Michael Kehoe

Gaming - bigger than Hollywood

Matt Byrne

2016 & rising

Welcome to our latest Future Of, our look at what’s topical in the world of media and advertising for the year ahead. You’ll notice a common thread this year – our constant questioning of the latest topics and technologies and their implications for you in 2016. We cover emojis, gaming, elections, retail and much more!

There is a pervasive theme for 2016: Ireland is rising. We have turned the economic corner and all industries are keen to establish a more solid, upward trajectory.

2015 has laid the groundwork for what promises to be an exciting year; our global economic standing has risen, our soccer team defied the odds to compete at Euro 2016, interest in the 1916 Centenary celebrations will see domestic and overseas tourism growing.

Advertising is also rising; investment will be in growth for the third year in a row. Creativity has returned to the heart of the industry and with more available investment comes the opportunity to really test, learn and apply.

4

However, our clients and their brands still face challenges; the consumer value exchange being key. Demand for value; brand equity v private label; need for continuous engagement in market; as well as internally winning budgets for marketing investment will all continue to dominate the agenda in 2016.

And so they should. It is important that as we rise we do not forget our recent history. Accountability and return on investment, the hot topics of the recession, should remain central to everything we do, even as we bring through more creativity and innovation. As an industry we continuously have to prove advertising’s worth to business success and be fully transparent in how we deliver to clients; building real tangible partnerships.

That is where Mindshare’s Business Planning and Invention teams come in. Business Planning is rooted in research, strategy and communications challenges; it also publishes the only hourly media consumption study in the market (DILO).

2016 promises more great content from our creatively focused Invention team, which now houses social community managers, cross-media solutions and content developers. It’s an area that is eh, rising!

In 2016 our agenda is dominated by our progression in Adaptive Marketing, further digital upskilling and bringing more clients through The Loop, our home of Adaptive Marketing; where paid, owned, earned and contextual data can be interrogated, where we can question and adapt, which in turn gives our clients a real competitive edge.

Here’s to rising success for our clients and industry partners in 2016, we look forward to working with you all.

Emma O’Doherty, Managing Director Ken Nolan, Deputy Managing Director

5

We continuously have to prove advertising’s worth to business success

Personalisation: helpful or creepy?

6

The scene in Toy Story where the toy speaks directly to the boy (“That’s right, I’m talking to you Sid Phillips!”) is the epitome of personalisation in the creepiest of forms. Twenty years on, this still sums up where personalisation goes wrong – when it’s unsolicited and out of context.

In the right context personalisation is not only welcomed, but expected. When you visit a hotel you want all the staff to know your name and what you want for breakfast! The key difference is you have provided your data so are happy with it being used to personalise your experience.

We’ve given our thumbprints to Apple, our images to Facebook, our credit card details to Amazon and we allow Tesco to monitor our shopping habits. We are comfortable giving vast amounts of personal data when a personal experience is returned in exchange.

Increasingly, your personal data is becoming a commodity, with all of the big players selling your precious (anonymised) data for ‘targeted advertising’. But the general public in Ireland does not appear to be comfortable with this.

Even your TV set will become more personalised with the advent of Sky AdSmart and Sky AdVance. Outdoor advertising also plays in this space using image recognition in advertising, which is as personal as you can get.

Thinking back, we’ve ticked boxes on email lists and had our phone numbers listed in the Golden Pages. But just as cold calling received a clamp down in 2006 in Ireland, is the writing on the wall for unsolicited advertising in the future? The rise of adblocking is indicative of a backlash, but it has arisen because of annoyance and intrusion, not personalisation or relevance.

To quote another movie “with great power comes great responsibility” – advertisers and the industry have a duty to uphold. The onus is on creative to deliver something beautiful and engaging, the publisher to declutter the environment, the technology to manage frequency of exposure and the agency or governing bodies to ensure this is adhered to.

Advertisers must demand this level of diligence on their campaigns – when developing a data strategy the creative must be tailored to the need of the user and they must not be bombarded with this message repeatedly once they have converted. We need to strive to find the Goldilocks zone between personalisation & creepy: relevance.

Aileen McDaid,Digital Strategy Director

Sources: Data Protection Commissioner and ComReg

We are comfortable giving vast amounts of personal data

when a personal experience is returned in exchange.

8

To own or to rent? Has the “value exchange ” changed for good?

Consumers are slowly moving away from the ideal of owning everything outright. Historically the aim was to own your house, your car, your phone & your cat. However, the younger generation (particularly millennials) have used or created, through technology, ways of working around this ownership idyll, making it a much more temporary state.

We have seen the rise of Uber, GoCar, Borrowmydoggy, Airbnb, Hassle; all offering alternatives to owning a car, having a pet, keeping lodgers. Borrowmydoggy allows you to take a nearby dog for a walk or stayover; you can sign up and be a dog owner for a brief period! As our daily lives become increasingly hectic we no longer feel the need to be tied to permanent fixtures.

The same can be said of the permanent job – with a shift to contract work and moving job on more frequent basis depending on our needs and desires. We have a society now used to services and platforms providing ‘instant gratification’, for example our entertainment needs are being satisfied with 21% streaming music daily (e.g. Spotify) and 31% watching subscription TV daily (e.g. Netflix). People have generally accepted advertising in exchange for free services, however it is interesting to see the growth of premium offerings, giving consumers an uninterrupted experience, but at a price (Spotify reports +10m paying subscribers globally in 2015).

Source: GroupM Media Tracker Nov 2015

9

Our grandchildren will view ‘ownership’ as a completely foreign concept, as a rental mind-set becomes the norm; particularly as technology strengthens our options and access via one click mobile payments, connected devices/homes and wearable technology becomes ubiquitous. At what point does this become an issue for products?

Well for big ticket items alternatives to ownership should be explored. Ford is already testing a car-sharing concept in the US, allowing owners to rent their car to pre-screened customers. Several years ago Malmö Järhhandel, a small Swedish DIY store, launched ToolPool, a lending library for power tools with personalised advice; while Dutch company Rent-a-Garden is offering apartment residents the opportunity to rent plants for three months – with no commitment to becoming a gardener! Here in Dublin the success of Dublin Bikes (250 bikes in 2010 to 1,500 in 2015) shows that many people are happy to cycle without the hassle of owning a bike.

Now where is that number for my cleaner, oh wait I don’t have one, but I do have the Hassle app!

Aoife Dunlevy, Senior Account Manager

We have a society

now used to

services and platforms

providing

‘instant gratification’

10

Could you live without licence fee content?

Do you complain when the €160 TV licence fee reminder arrives from the Post Office? Why should you pay, sure you hardly ever watch RTE? Well you’re not alone. In September 2015 thejournal.ie ran a poll entitled Is RTE Worth The Licence Fee? – a whopping 85% of the 8,614 respondents said no!

But are we being fair? Do we realise how much RTE content we actually consume across TV, publishing and radio? Do we really appreciate what the fee provides and that it does not go to RTE alone? How many of us know there is a provision allocated to other channels and independent productions?

To put the cost in perspective, the licence fee per household is €0.44 per day or €13.33 per month; that covers the government grant to RTE, which allows them to deliver on their cross platform remit. Of the 1.58m TV households in Ireland it is estimated that the licence fee evasion rate is c15%. That gives a total collected amount of €215m; in 2014 RTE received €179m, split 60% TV, 22% radio, 6% orchestras, 3% online and 4% TG4.

RTE uses this money, as well as commercial monies, to purchase foreign programming (e.g. Eastenders), but by far the largest bulk of the money is spent on indigenous programming such as Love/Hate, The Late Late Show, Primetime, News – all programmes that have featured prominently and consistently in the TV viewing top programmes.

11

Interestingly BBC UK ran a study entitled Life Without The BBC to see what the reaction would be if the public didn’t receive any of its content. Pre-experiment almost 70% said they would be in favour of not paying the fee or paying a reduced fee (the UK fee is£145.50, almost 30% higher than ours).

By the end of the experiment two thirds of those people had changed their mind; even those who were happy to pay the fee were even more positive about the BBC. RTE and the government need to do a similar exercise to demonstrate to us all the benefits of the licence fee.

The licence fee structure needs to be more inclusive of the changing consumption patterns; hence the touted Broadcast licence fee. If we wish to retain the quality of output we desire and expect, then we need to pay for it.

Implication for 2016

In 2016 we advertisers will once again have an abundance of great licence fee content, which will attract viewers, readers, listeners, to our brand messages. As we enjoy the benefits that this great content delivers, we should be supportive of, and engage in, better demonstration of those benefits – whether as consumers or advertisers.

Gillian JordanBusiness Director

76% of adults watched RTE TV in the last seven days, with 63%

watching yesterday. Additionally 56% cited RTE1 as being in

their top three favourite channels, with RTE2 at 29%. However

the watch-out for RTE is it’s aging viewership, with these figures

being driven by adults 45+, continued progress is needed to

stay relevant to younger audiences.

Sources: Nielsen/TAM; Dail Debates 18th January 2013; RTE Annual Report 2014; TGI 2014; http://www.bbc.co.uk/mediacentre/latestnews/2015/life-without-the-bbc

12

Top Google searches in 2015

Ireland The World“How to”1. How to use the new Snapchat2. How to make pancake mix3. How to eat pomelo4. How to draw a minion5. How to bleed radiators

News moments1. Rugby World Cup 20152. Karen Buckley3. Lamar Odom4. Paris5. Eurovision 2015

People of sport1. Conor McGregor2. Jonah Lomu3. Ronda Rousey4. Tyson Fury5. Stephanie Roche

Searches1. Lamar Odom2. Charlie Hebdo3. Agar.io4. Jurassic World5. Paris

Global News1. Charlie Hebdo2. Paris3. Hurricane Patricia4. Isis5. Nepal

Global Sporting Events1. Copa America2. Wimbledon3. Tour de France4. Rugby World Cup5. Super Bowl

14

Life through an emoji lens

Emojis have truly infiltrated our daily lives from conversations to texting to social media; with nearly half of all captions and comments on Instagram containing emojis. People process logos and images three to four times faster than text, so the popularity of emoji use comes as no surprise.

There’s even a world emoji day! Celebrated globally World Emoji Day takes place on July 17th. In 2015 over 300,000 tweets contained #WorldEmojiDay, almost 100,000 more than Web Summit 2015.

With the growth in messaging apps such as Viber, WhatsApp, Snapchat and Messenger could emojis be a personable, effective means for brands to connect with consumers?

What is an emoji?

Some describe emojis as ‘the first truly global language’ or ‘a modern day hieroglyphics’; in 2015 the Oxford English Dictionary chose the ‘tears of joy’ emoji as its word of the year and defined an emoji as: a small digital image or icon used to express an idea or emotion in electronic communication:emoji liven up your text messages with tiny smiley faces.

How are brands using emojis?

Emojis possess the ability to add a layer of fun and connect emotionally with consumers, but they are also a new way to communicate and convey brand meaning. As emojis are becoming the first globally understood language they are being incorporated into campaigns across many categories.

What’s next for these modern hieroglyphics?

If a picture paints a thousand words an emoji could entice a thousand emotions, drive stand out and aid brands in maintaining or creating distinct personalities. The potential does not end there. They may be the future of online security, with a password of four emojis now being declared more secure than a standard numerical password. They may also have a place in the future of search, as Bing allows users to conduct searches using emojis.The possibilities seem to be endless. We simply love emojis everywhere and anywhere.

People process logos & images 3-4 times faster than text

15

#PepsiMoji – Pepsi, Canada

A simple case of using the

emotive nature of emojis

to stimulate connection to

a brand - putting smiles on

people’s faces has never

been easier and simple,

natural conversation follows.

#EndangeredEmoji - WWF

WWF discovered 17 existing emojis of endangered

animals and gave life to #EndangeredEmoji.

Animal lovers were able to donate via their

#ShareaCoke – Coca-Cola, Global

Sharing a Coke was made easier than ever

before with the first ever branded emoji, used as

part of it’s global campaign.

Dominos

Dominos made ordering pizza easier by simply

asking you to tweet the pizza emoji – they’d over

500 orders on the first day!

#TacoEmojiEngine – Taco Bell

After 32,000 people signed a petition to get a

taco emoji created -#TacoEmojiEngine was a thank

you to all taco lovers. Tweet the taco with any other

emoji and a video or image will be tweeted back

from -#TacoEmojiEngine.

tweets,

re-tweets

and likes.

Michael Kehoe Business Planning

Sources: Instagram 2015; Jon Puleston & Satsuki Suzuki “The Quest to design the perfect icon” & Intelligent Environments

16

Gaming: bigger than Hollywood

Cinema box office takings have seen a revival, 2015 was the perfect storm of blockbuster sequels, with up to seven movies outperforming 2014’s grossing title Mrs. Brown’s Boys D’Movie (€3.8m). Wide Eye Media estimated increasing Irish Box Office takings on 2014’s €99.9m, up to 5% depending on how the late release of Star Wars performed. But globally Gaming revenue of over $80bn eclipses box office takings by approximately double. Gaming is now the biggest and fastest growing industry in entertainment; in 2017 gaming sales worldwide are estimated to be over $100bn and there are currently 1.2bn gamers worldwide.

• 1.3m daily adult gamers in Ireland are spending 4 hours per week gaming

• The average age of a gamer now 37 years old

• Irish gender split is 57% male to 43% female

Why are we so slow to harness the advertising opportunities?

In-game advertising (IGA) is a vital marketing medium and previous perceptions in terms of scale, age & gender are being challenged:

Gaming is now the largest and fastest growing

industry in entertainment

So what does this mean for advertisers?

We need to consider how we can deliver innovative gaming-oriented strategies within the larger communications framework. We can reach a lot of people, targeted by age, demographics and interests, in certain contexts at certain times. The level of engagement offered through these virtual worlds is increasing. The key is to understand the gaming audience and the environment and spend time engaging with the audience innovatively and contextually in a non-intrusive manner.

Is anyone doing it well?

Excellent examples of IGA include ordering pizza in EverQuest II or Metal Gear Solid’s Snake eating Doritos, drinking Pepsi and spraying himself with Axe (Lynx) deodorant to replenish his health. In next year’s general election will we see any of the Irish political parties replicate Obama’s successful IGA campaign? Could they gain kudos or engage the younger hard to reach electorate through dynamic IGA?

Recent advances in virtual reality like Oculus Rift allow the users a more immersive experience that is more like reality. As this kind of technology advances the possibilities for content creation, engagement, data collection and social media interaction are endless. We are approaching the day where taking a realistic test drive from the comfort of your couch becomes the norm.

Matt Byrne, Account Manager

17

1.3m Irish adults

spend 4 hours

gaming every

week

Source: GroupM Media Tracker 2015

18

Helping you stand out by never standing still

With an invigorated Irish economy and buoyed business confidence, we are finally seeing the advertising market return to a more solid growth pattern in Ireland. Globally growth has become sluggish and continues to lag GDP, but digital remains the pace-setter; in fact we estimate that across 2008-2015, digital added two ad dollars to TV’s one. Keeping pace with this rate of change and investment into digital is high on GroupM Ireland’s agenda as we move into 2016; it is digital that is creating the most challenges globally and locally.

In 2015 we answered this challenge with our globally redesigned digital services function - GroupM Connect; focusing on biddable media, technology, data, security and the development of programmatic.

In Ireland, 2016 will see GroupM Connect take the lead in programmatic with our premium private marketplace offering, including exclusive access to services such as online video (Irish Times, Videology, Communicorp and TG4), as well as continuing to push smart partnerships and technologies that give our clients distinct advantages.

You can’t stand still if you want to stand out

Connect came hot on the heels of our newly established integrated trading unit structure here at GroupM Ireland, where we are once again setting the pace of change for our industry in response to clients growing concerns and challenges – typically involving real-time connectivity, cross-platform solutions and fast adaption. This very much supports Mindshare’s positioning of Adaptive Marketing, with efficient cross-disipline teams and speed of response key.

Source: GroupM This Year Next Year. RECMA

One voice trading

Essentially our trading proposition is based

on ‘one voice trading’, always starting with individual client communication needs, but then aggregating volume across media and clients to take to the market, which creates efficiencies for all our clients. Globally we are the biggest media group and growing at the fastest pace, with 31% market share. In Ireland our share of market stands at 25% and is growing steadily on the back of consistent new business wins in 2015. That scale will benefit our clients in delivering value, never more so than in an inflationary market.

With increased demand comes increased media prices and this year we are seeing some suppliers aggressively looking to rebalance their offering.

In 2016 GroupM services will provide significant and tangible competitive advantage to all our clients, across all media channels. In this environment, we look forward to not standing still for a single moment.

Bill KinlayCEO GroupM

19

Retail magic – why we need both bricks and clicks

Online shopping is growing every year. In Ireland, internet retailing grew by 15% in 2014 to achieve value sales of €2.4bn. Estimates for Western Europe predict the value of digital retail sales to be up by 12.7% to $313.3bn in 2015.

While these growth figures are impressive, online retailing still only represents an estimated 7.3% of all retail sales across Western Europe, the rest is in physical stores.

In Ireland, Amazon commands the largest value share of online retailing (7%). Interestingly, this online giant opened a physical store, Amazon Books in Q4 2014 in Seattle. With their arsenal of online data on readers’ habits they hope to be able to sell more books in store; featuring reviews and ratings by Amazon users and the same prices as on their website.

Crucially the store provides instant gratification – choosing a book and bringing it home straight away – as opposed to waiting for delivery.

This indicates there is a role for both channels to work together - omnichannel retail. So, what role does both online and physical retailing play in consumer shopping habits?

A survey of adults in Germany, UK and Italy showed that two thirds of people will continue to shop as a social activity as much or more than they are currently doing, and they are likely to shop in physical stores.

The serendipity of finding something, as opposed to researching specific items, may be more suited to physical stores, as they offer a browsing environment.

According to Richard Perks, Director of Retail Research at Mintel “There’s no serendipity online…online is difficult to browse, and clearly people still want to go to shops, although the high street of the future may not be a place to buy, but more a leisure outlet.”

20

The physical store as an experiential zone for leisure is catching on, Nike’s Nature Amplified: The Art + Science of Feeling, is a special environment where the consumer is invited to experience sensation related to the technology applied in shoe design.

In Ireland, we seem to have retained our love for in-store purchases. For example, in the home appliance category 70% of people do pre-purchase research online, while only 17% will actually complete the purchase online. For mobile phones, 71% complete some research online, while only 23%will complete the purchase online. For TVs, 58% who researched online, purchased in-store.

21Sources: Raconteur.net The future of shopping is both bricks and clicks Google Consumer Barometer Euromonitor 2015 Emarketer Western Europe’s Maturing Seattletimes.com The Connected Consumer Webloyalty 2015

SHOPPING BEHAVIOUR

Implications for advertisers

The future of retail is one where physical stores are key for discovery and serendipity and online presence is vital for research. The consumer should be able to choose to buy in store or online; they expect brands to have an omnichannel presence so they can complete their purchase journey in a way that suits them personally.

A sale is a sale regardless of the channel it comes from. Just make sure you have the right channels in place to begin with.

Hilary Tracey Business Planning Director

Oliver SmithHead of Search

24

Another good year for media nationalism?

Global marketing is now an established discipline, with brand strategies designed to capitalise on common global consumer characteristics, which are then implemented locally. However, when it comes to targeting Irish consumers, one size doesn’t fit all.

Our media link with the UK market is a unique phenomenon due to the geographic, cultural and linguistic closeness of the two islands. But do we engage with UK content the same as Irish content? The answer is no. Irish content, offline or online, obviously has greater engagement than global content. UK newspaper publishers learnt this in the mid-1990s when they tried to target Irish readers with little more than ‘Irish’ in the masthead and four pages of local stories. Their decision to later produce full Irish editions saw increased circulations and readership.

Starbucks had a localisation mishap on social media when their Irish account tweeted “Show us what makes you proud to be British for a chance to win”, with an obvious backlash from Irish followers.

Why are RTE and TV3 so focused on home produced programmes? Last year RTE had a budget of €40m to make local programmes, such as Love Hate, Amber and Clean Break. Over 50% of TV3’s programmes were home-produced in 2015 and Sky Media’s commitment to Moone Boy and 50 Ways To Kill Your Mammy yielded some of their strongest performances in the local market to date (outside of sport). Irish viewers can’t get enough – 48 of the top 50 programmes in 2015 were home produced or Ireland centric (i.e. sporting events).

25

It is not just a phenomenon in broadcasting or print. Four of the top five online publisher groups are Irish owned with predominately Irish content; while Irish internet users are eight times more likely to pay attention to ads on Irish premium content sites than on international sites.

What does this mean for advertisers? Well, today the definition of content embraces everything from TV shows to viral videos, from magazine editorial to branded communications. Regardless of format 2016 will provide Irish audiences with increased ‘media nationalism’, including 1916 Centenary, the general election and Euro 2016. This in turn provides brands with more opportunities to harness these audiences; but we must choose wisely and ensure we remain on strategy – both in the type of local opportunities we exploit and where.

David AhlstromHead of Invention

“Irish content, offline or online, has greater

engagement than global content”

“Branded content, sponsored content,

native advertising are all growing fast

both online and offline”

-WPP CEO Sir Martin Sorrell

Sources: Advantedge, The Association of Online Publishers Ireland 2013

26

Has social media changed the canvassing model forever?

The possibilities offered to the world of politics, through the effective use of social media, were first witnessed during Barack Obama’s landmark 2008 US presidential campaign. In 2015 we witnessed how social media was front and centre in our Marriage Equality referendum. Real people shared real stories and people on either side of the debate crossed swords, in what was a most passionate campaign.

In early 2016 an Irish general election is about to take place. The result of the last was effectively determined before anyone went to a polling station, so will this be our first election where social media will play a pivotal role?

Will social media play a role?

Irish general elections are peculiar beasts: a meeting of parties and personalities, national policy and parish pump priorities. Though detailed figures aren’t available, younger people are generally more apathetic when it comes to voting. However, in both last year’s marriage referendum and in Obama’s successful 2008 campaign it was, in part, the mobilisation of younger voters through social media which transformed the campaigns. So can the politicians use social media to engage hearts and minds and get the young vote out?

Irish general elections are

peculiar beasts

Well I don’t think so. In a general election, nothing is black and white; it doesn’t offer the either/or choice that a referendum or a US Presidential election offers. It doesn’t present the voter with a tribe of fellow travellers to journey with. A myriad of interests are represented, issues can be complex, supporters of the same party will have different priorities; and regardless of how people vote, the current predictions are that a centre-right led coalition of some description will be returned to power. No change there.

Singular and emotive is the key to social success

In truth, communications and social media are at their most powerful when they are singular in their intent, and emotive in their tone.

The emotive trumps the rational, a reason why successful brand communications are more likely to pull on our heartstrings, than give us brain strain. This is also why I believe that political parties will struggle to do more than replace some paper flyers when they take to social media this spring.

The marriage referendum was an undoubtedly emotive affair, and it’s likely that the next time we will see such impassioned participation is when a referendum is called to repeal or replace the 8th Amendment to the Constitution, the right to life of the unborn. #HomeToVote may trend again, though not this March.

Dave BruenBusiness Director

27

#HomeToVote

may trend again,

though not this March.

28

TV alive & kicking

TV is most definitely alive. According to the latest Nielsen viewing figures, Irish adults 15+ watched for an average of 3hrs 35mins each day in October 2015, seven minutes per day longer than in October 2014. 90% of this was live (as broadcast), with the other 10% time shifted (paused or recorded and played back). Interestingly 15-24 year olds are watching more TV than this time last year, with an increase of 18mins per day.

So what exactly are we all watching? Live TV events have always attracted large numbers of viewers, from entertainment shows such as The Late Late Toy Show (1.18m), The Voice of Ireland (592k) and The Rose of Tralee (583k); to live sports such as Rugby World Cup (1.05m), GAA (787k) and soccer (704k).

The importance of live events was once again proven with TV3’s coverage of the Rugby World Cup, which saw the station break it’s own viewing records. On Sunday October 11th an average of 1.05m viewers watched Ireland beat France; the highest ratings ever achieved by TV3. TV stations are paying large amounts of money to secure these valuable live properties, with TV3 outbidding RTE for the 2015 RWC and the Six Nations 2018-2021.

BBC & ITV have agreed to share the British TV rights for the competition, keeping BT and Sky Sports out of the picture until 2021; the deal is worth £50m a year. However that is tiny compared to the Premier League TV rights that were agreed for 2016-2019, with Sky & BT paying £5.14bn. In the US the NFL eight year TV deal (2014-2022) is worth a staggering £25.95bn. But where there are viewers there is subscription and/or advertising revenue to be had.

For advertisers keen to get their message across to the masses acquiring access to such sought after events comes at a price. For example, to access all 51 live games of the 2016 Six Nations on RTE will cost approximately €70k, while Euro2016 could be €170-200k. Other 2016 highlights will include the Olympics, the 1916 Easter Rising celebrations and the General Election. These stand out, water cooler moments don’t come cheap, with vast premiums placed on them compared to normal TV spots. This can range from +50%,+150% or +200% up-weight on price.

Source: Nielsen, all adults 15+, average viewing

Implications

The future of TV is still alive and kicking as we are still captivated with live TV events, whether locally or from around the world. These events bring family and friends together like no other medium that an advertiser cannot ignore.

Simon NagleSam Piggins

Group Trading Directors

29

30

Couch to 5 ways

In recent years there have been seismic shifts in how TV content is being consumed and while few people have totally disregarded their TV set, we have been freed and can now watch from our couch in five different ways: Live; Time Shifted Viewing (TSV) – when we pause or record and playback; Repeat/+1 hour offerings; Video On Demand (VOD) and Streaming – done through connected devices. Rather than cannibalising live TV viewing, these additional platforms have grown total TV content consumption. Irish people watched 3hrs 35mins of live TV per day in October 2015 compared to 3hrs 5mins in 2005.

When you add in time-shifted viewing the average time spent increases by 28 minutes per day. It seems the more ways consumers have, the more TV they will actually watch.

Great content will grow audiences cross platform. The graph illustrates how the opening episode of Sky Atlantic’s Fortitude grew from 481k viewers from live airing to nearly 2.7m viewing across all platforms; 80% of total viewers watched in ways other than live.

Viewing in these new ways is more prevalent for ‘box-set’ type content, such as Fortitude or Game of Thrones, but it is growing amongst young viewers.

Source: BARB Individuals consolidated viewing Sky Go based on downloads factored to BARB TS viewing: 29.01.15-08.02.15

The IpsosMRBI Total Viewing Study (May 2015) revealed that 46% of 12-17 year olds watch live TV (versus 77% of adults); more than half of their total viewing is online/TSV - this generation likes to watch on demand.

31

We have to review our measurement techniques as they no longer capture the full TV consumption picture. Nielsen currently measures Live TV and TSV up to seven days after live airing (but measures up to 28 days) and doesn’t measure VOD at all.

In light of changing consumer behaviour this current measurement is becoming less meaningful.

However in the US, Nielsen has devised a new total audience measurement tool, which will roll out in Q1 2016; measuring PVR, VOD, connected devices (e.g. Xbox, Apple TV), mobile, tablet, PC and digital publishers (e.g. YouTube) alongside live TV viewing. In Ireland, TAM’s Future Group is exploring a total audience solution to be available in Ireland by 2017.

There are cost implications to develop and run such a system, but these should be out-weighed by the benefits:

• A full picture of viewing by content type – proper attribution of all eyeballs

• A timeline of viewing behaviour – prompting questions on placement and campaign timelines (e.g. should direct response ads be placed in programmes where >50% of viewing happens after seven days?)

• More impactful and targeted ad placement

All of which leads to greater efficiencies in media investment and even more eyeballs on your advertising!

2016 priority:To start valuing the total roll up of viewers beyond ‘live’; agencies and broadcasters must work together to demonstrate this to advertisers in the absence of a total measurement tool.

Jill Robinson, Head of Operations Neasa McDonagh, Group Director

32

TOP TV PROGRAMMES 2015Rank Channel Date Programme Adults 15+

TVRs 000s

1 RTE1 27-Nov Late Late Toy Show, the 34.7 1,169

2 TV3 11-Oct Rugby World Cup Live (Fra v Ire post-match) 31.0 1,046

3 TV3 11-Oct Rugby World Cup Live (Fra v Ire) 31.0 1,046

4 TV3 18-Oct Rugby World Cup Live (Ire v Arg) 29.1 982

5 TV3 04-Oct Rugby World Cup Live (Ire v Ita) 25.7 867

6 RTE1 04-Jan Charlie 24.1 817

7 RTE2 20-Sep Sunday Game live (Senior Football Final) 23.3 787

8 RTE1 27-Nov Weather (post nine o'clock news) 22.2 750

9 RTE2 16-Nov Euro 2016 qualifier (Ire v Bos) 21.0 708

10 RTE2 11-Oct Euro 2016 qualifier (Pol v Ire) 20.9 704

11 RTE1 23-Oct Late Late Show, the 20.7 699

12 TV3 27-Sep Rugby World Cup Live (Ire v Rom) 20.6 694

13 RTE1 18-Jan RTE news: nine o'clock 20.0 678

14 TV3 18-Oct Rugby World Cup Live (Ire v Arg post-match) 19.8 670

15 TV3 04-Oct Rugby World Cup Live (Ire v Ita post-match) 19.8 667

16 RTE2 06-Sep Sunday Game Live (Senior Hurling Final) 19.7 665

17 RTE2 01-Mar RBS 6 Nations 19.6 663

18 RTE1 24-Dec Mrs Brown's Boys: mammy's christmas punch 18.8 635

19 TV3 03-Oct Rugby World Cup Live (Eng v Aus) 18.5 625

20 RTE2 05-Sep Saturday Game Live 18.4 621

Source: Nielsen/Advantedge

Top viewed TV programmes 2015

33

34

Are our heartbeats the new currency?

In Ireland we are early adopters of wearable technology, with 37% stating they had previously used or were interested in using it.

Wearables are becoming a common sight with activity trackers, smartwatches and everything in between. But it’s not just members of the public that can benefit, companies can use them as a means of collecting data, improving products/services and targeting customers.

Data collection can be as simple as calories burned during a run to the hours spent in deep sleep. Advertisers then have the opportunity to target consumers based on their specific needs, for example, trouble sleeping –with ads ranging from new beds and mattresses to pyjamas to lavender pillows or medication.

How about an alert if you’re falling asleep at the wheel of your car?

Wearable technology has really found a natural home in the fitness and health sector. Activity trackers like Fitbit and fitness enthusiasts, allowing them to monitor their own performance. The data provides brands and services the opportunity to reward existing or target new customers.

For example, lower premium health insurance could be offered to those who actively use a tracker / exercise regularly. Energy and hydration products could target those exhibiting signs of tiredness, encouraging rehydration to get performance back on track.

A means of collecting data,

improving products/services

35

Wearable tech poses challenges for advertisers in ‘advertising real estate’, especially smartwatches, where the screen is particularly small v smartphones. We have seen the seamless transition of the MPU 300x250 from desktop to mobile, but it won’t be that easy converting its use to wearables.

Advertisers will have to be creative, ensuring the ad can be seen and that the message isn’t lost. However, glanceability is a new KPI describing the ease at which users will look at their smartwatch; citing that ads served to the smartwatch are harder to ignore (or are more glanceable) than the ads on the smartphone buried in our pockets or handbags. A quick glance could connect us to available restaurants or taxis, record our favourite TV programme or alert us to traffic problems or accidents ahead.

Wearable technology holds an abundance of opportunities as consumers continue the uptake and more data becomes available. Effectiveness will come with smarter targeting, highly relevent messages and products or offers adapted to those users or customers.

Craig McClellandAccount Executive

Source: nVision

36

Meaningful measurement beyond the click

Click-through rate (CTR). It is persistent. More persistent than many a commentator would have ever predicted. When comScore revealed in 2009 that the number of clickers had halved, we thought that would be the end of it. But it’s still here. We don’t care too much about it, but it’s still hanging around. Kind of like Vince Vaughan.

Isn’t it dead already?

Somehow, against all the odds it has survived, sitting on media reports in the absence of metrics of substance; mainly because it is simple and there isn’t much else we can benchmark against. To quote Warren Buffett “We’ve been studying what was measurable, not what was meaningful”.

To give some context, both consumption behaviour and advertising spend have changed dramatically in the last ten years. Where and how people consume content and news has not simply evolved, it has been revolutionised. The growth in digital spend has almost wholly been sourced from the decrease in print spends. In 2015, digital advertising spend has now hit 24% (up from 7% in 2009) and print is down to 30% (from 54% in 2009). Consumption in the market is changing, so too must our approach to understanding results.

Attention please!

The ‘view’ has been an acceptable metric for traditional marketers for decades, but for some reason early adopters of digital marketing gravitated to the click as their metric of choice. An interesting development has seen the Financial Times selling advertising based upon an attention metric: the length of time an ad appears in front of targeted audiences. Though not completely unique, this move represents an important sea change, where the buying model and the KPIs now relate to one another.

We have turned a corner – technology has caught up and allowed us to measure beyond the click and even beyond viewability. Metrics that matter include in-view time, dwell time on ad, hover time; so that we can truly have a meaningful conversation about the impact of digital display. This is of vital importance to advertisers, representing a move to metrics that truly relate to the campaign goals and ultimately to business objectives.

Attention Metric: “The length of time an ad appears

in front of targeted audiences”

37

Moat analytics reporting: The heat map on the left shows what part of the ad the user is focussed on. On the right, engagement metrics are shown, these focus on the amount of attention the user has with the ad unit and not the click.

David Kirkpatrick, Digital Strategy DirectorRicky Joyce, Director of Ad Technology

Source: GroupM estimate

We have turned a corner –technology has caught up andallowed us to measure beyondthe click and even beyondviewability. Metrics that matterinclude in-view time, dwell timeon ad, hover time; so that wecan truly have a meaningfulconversation about the impactof digital display. This is of vitalimportance to advertisers,representing a move to metricsthat truly relate to the campaigngoals and ultimately to businessobjectives.

Moat analytics reporting: The heat map on the left shows what part of the ad that theuser is focussed on. On the right, engagement metrics are shown, these focus on theamount of attention the user has with the ad unit, and not the click.

David Kirkpatrick, Digital Strategy Director Ricky Joyce, Director of Ad Technology

Source:GroupM estimates

38

What’s Snap? Instant messaging is the new social media

Instant messaging usage on mobile has grown globally from 60% in 2012 to 75% in 2015, in that time we have also seen a drop of 11% for SMS and 17% for MMS. In Ireland SMS/MMS usage dropped 6% in a single quarter in 2015. Consumers have made the visible shift to data led messaging apps.

The nature of sharing is changing, Facebook usage is becoming more passive; we are still checking newsfeeds, but not posting or interacting as much; active usage has dropped from 64% (2012) to 42% (2015).

Consumers are now building their own private messaging groups to connect with friends. Content and links once shared publicly are now being shared within non-trackable instant messaging apps or ‘dark social’ (a term to describe website referrals that are difficult to track).

Who is instant messaging?

Everyone apparently! However penetration is highest among 25-34s at 83% (in line with smartphone penetration), while frequency is highest with 16-24s. We’re also not sticking to one platform, using a combination of messaging apps depending on who we are talking to or what services we need.

What does the future look like?Messaging apps are becoming more like social media platforms – multi-purpose tools. Kik has created its own bespoke in-app web browser, WeChat offer ecommerce opportunities, Facebook Messenger is trialing a personalised assistant ‘M’, while Snapchat is looking to monetise advertising opportunities. The one common theme is they are all looking for opportunities to ensure users stay ‘in app’ for longer. Advertisers looking to capitalise need to ensure their comms match the unique service, functionality and user base of the platform.

Sources: Comreg Global Web Index 25015

39

What’s the opportunity for advertisers?Consumers are there. In their millions. Here’s a look by platform:

WhatsApp – the largest and most used messaging app worldwide has no paid advertising. Facebook purchased it for $16bn in February 2014 and has not disrupted its founding ethos – no ads, no games, no gimmicks. However, BBC used WhatsApp’s broadcast function to push news headlines, while Hellman’s successfully launched Whatscook, the first live recipe service. So watch this space!

Facebook Messenger – with Messenger, Facebook is allowing more advertising opportunities and apps are being built and used directly within it. At the moment it is predominantly games, but expect to see brands like Ticketmaster or Hailo soon.

Snapchat – where users can send videos, photos or texts for a specific view period, has seen massive growth, especially in younger age groups (84% under 35). 52% of Irish teens have used it in the last month, making Ireland the highest teen usage per capita in the world!

Keith Wallace, Account Director

MessengerSnapchatWhatsApp

40

Does it matter where you get your news from?

As newsfeeds become more populated with publisher content, where are people getting their news - print, websites or straight from their personal, curated social feeds?

If you follow the adage that the advertisers follow the consumers then INM’s Nov 2015 reported increase in advertising revenues for the first time in eight years (+1.1%) driven by the growth of online revenue (+43%), goes someway to proving that while printed paper circulation is declining, the demand for news is still strong. The newspaper industry has moved to a multi-platform news brand model, highlighting that it is the considered opinion that matters, not the medium through which it is conveyed.

Are younger people interested in news?

There is a clear trend among younger audiences (18-34s) away from print to online (is anyone surprised by this?); and while the over 55s are becoming more prevalent on Facebook, 18-34s are still far more inclined to get their news from online sources (including news websites/apps). Twitter especially has become a key source of updates for news events as they break. A Digital Youth Council presentation in 2015 stated that 35% first hear about news/current affairs from social media, and that figure is far ahead of broadcast media or friends and family.

Quick or quality?

Considered editorial takes time to create and

time to consume. This can conflict with modern demands for quick, short form information. Some consumers just want to be kept in the loop or read at a glance, currently serviced well by social platforms.

However, misunderstanding, misinformation and even deception can stem from short form news, or news delivered with no context and accountability. So what are the implications for news brands and what can they do to combat this?

What did you do yesterday?

41

Adaptability is key

News brands must continue to instil an understanding of the value of quality editorial and the responsibility news media has in society. They also need to meet consumers where they want to consume their news and that is increasingly via social platforms.

The news brand hub (whether paywalled or not) will need to be comfortable with how it can amplify its content in other spaces. Content will need to be responsive to the platform, with adjustments of headlines to cater for the environment to ensure the essence of the story does not get lost in translation.

The Digital Youth Council (DYC) survey found that 51% regularly watch videos over 5 minutes, 54% want more 15-40 second clips of news and entertainment and 65% click for more after watching the short clip. News can be condensed into short form videos with the goal of drawing viewers/readers to their owned news platforms for more considered analysis – whether printed or online.

Consumers expect the delivery of the content to fit the platform they are already choosing to engage with. So while the considered opinion will always matter more, the medium through which it

is seeded to consumers must be catered for.Alignment is necessary across all platforms with content pieces for the reward of broader reach.

Conclusion

It certainly matters where you get your news from, but consumers must be met within the spaces they are already active. The responsibility falls to news brands and advertisers alike to adapt and accommodate the ways younger audiences are already choosing to consume information.

Daniel MurphySenior Account Manager

Sources: GroupM Media Tracker Nov 2015, TGI Choices 2015

Sources of news online

42

@MindshareIRL Visit our blog www.mindshareworld.com/Ireland/blogMindshare Ireland

For Ongoing Media Updates