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THE MEDIA MARCH 2017_DIGITAL

television research of the new RAM data has shown that the media agencies and their clients are likely to proceed cautiously in the adoption process. The TV broadcasters are likely to take a page out of the radio broadcasters playbook: running LSMs parallel with the new SEMs for a while. The panel is designed to measure broadcast viewing, including time shifted viewing. Ongoing expansion to 4 000 households will allow for more granular data analysis across a broader range of target markets and it will allow for more channels to reach the minimum threshold to qualify for reporting. Focusing on delivering a high quality representative panel is sensible, given that international trends underline that the TV set will continue to account for the majority of viewing for some years. The new ES will provide amplified information into the evolution of viewing, albeit on a generic rather than channel level. It will cover viewership in terms of device, location, technology used, and platforms including internet, and how programmes are watched. Future proofing the currency is high on the agenda: Investigations into the integration of return path data panels with people meters, an international trend, are underway. The chart below shows that advertising support for TV has remained robust, even growing during 2013 when the panel was being resuscitated. Nielsen’s Ad Dynamix shows that support has strengthened inexorably over the last three years. Caveats are that Ad Dynamix reports on rate card investment, and does not comprehensively monitor digital investment. Of course TV has benefitted from print’s decline – its share dropped from 30% (2012) to 20.7% (2016). Between broadcasters, the competition has been intense. After a difficult 2015 e.tv and OVHD are showing signs of recovery. DStv, and the Viacom channels it carries continue to perform solidly, while SABC has been under pressure for the last two years: When the panel was overhauled to be more representative of the South African population as a whole, better black representation should have favoured SABC1, and indeed that channel has increased its share of the overall TV market. Unfortunately, there has been erosion of investment in SABC3 and, to a lesser extent, SABC2. This can be attributed to SABC’s extreme local content policy. It is a broadcasting truism that advertising revenue follows audience ratings. The TAMS panel data shows that while SABC1 has gained significant share of all adult ratings, the loss of share by SABC3 in 2016 has been swift and substantial. DStv and e.tv reaped the benefits. Because advertisers tend to value affluent consumers in particular, strength in the upper LSM groups enables DStv to attract ad investment, significantly ahead of its overall market share. n TV’s share of advertising continues to increase 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 47,5% Jan -Dec 2012 48,3% Jan - Dec 2013 50,0% Jan - Dec 2014 53,5% Jan - Dec 2015 56,2% Jan - Nov 2016 Cinema Direct Mail Internet Out of Home Print Radio TV SABC’s share of TV investment is under pressure 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 21,4% 19,9% 20,5% 37,3% 36,6% 38,0% 40,3% 42,4% 39,2% 43,2% 42,2% Jan -Dec 2012 Jan - Dec 2013 Jan - Dec 2014 16,2% 17,8% 36.9% 35,9% Jan - Dec 2015 4.1% Jan - Nov 2016 DStv Viacom SABC e.tv + OVH SABC1’s gains in terms of adult ratings have been offset by SABC2/3 losses 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 28,5% 27,8% 29,6% 27,9% 31,7% 18,2% 19,0% 16,7% 18,0% 19,2% 11,7% 10,3% 10,2% 9,0% 5,8% 16,8% 15,1% 16,7% 14,8% 14,2% 24,1% 27,0% 26,9% 29,5% 29,2% 2012 2013 2014 2015 2016 SABC1 SABC2 SABC3 e.tv OVHD DStv StarSat DStv’s dominance in the LSM 9/10 sector enables it to draw disproportionate ad investment 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 70,5% 8,2% 8,2% 43,2% 16,7% 19,7% 17,5% 23,3% 36,7% 2,0% 25,5% 50,0% AD LSM 1-4 AD LSM 5-6 AD LSM 5-6 AD LSM 5-6 SABC1 SABC2 SABC3 e.tv OVHD DStv StarSat 10 | themedia www.wagthedog.co.za


THE MEDIA MARCH 2017_DIGITAL
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