To decrease ad spending in a downturn or not? Pay TV viewers shown to keep buying despite economic conditions and look to ads to form purchase decisions
4 November 2009
Synovate reveals habits of Pay TV viewers and impact of engagement at annual CASBAA Convention
HONG KONG — Synovate (思緯), a leading global market intelligence company, presented today at the annual CASBAA Convention (The Cable & Satellite Broadcasting Association of Asia), showing that pay TV viewers continue to spend on a variety of purchases despite the condition of the economy, demonstrate trust in advertising, and look to ads to form purchase decisions.
These findings provide insights to advertisers to not cut ad spending during economic downturns, as this group of high-value consumers look to ads to shape their purchase criteria.
Synovate's presentation centred on the habits of pay TV viewers and revealed findings from the exclusive Synovate Engagement Study 2009.
Steve Garton (冼嘉頓), Executive Director of Media (媒體研究行政總監) at Synovate, comments: "Advertisements do their best work early on in a consumer's purchase decision process. If brands are not in people's minds at this early stage, the product or service may not be in the consumer's consideration set."
Habits of Pay TV viewers
From the Synovate PAX 2009 survey, pay TV viewers are willing to pay extra for quality, have greater trust in products they have seen advertised, and are prepared to consider buying new brands. The key reason why this group was important for marketers during the downturn is that the number of pay TV viewers agreeing to these three statements actually increased during the more severe recession period of quarter 3, 2008.
Seventy-eight percent of pay TV viewers said paying extra for quality is worthwhile when asked in Q3 2008, a 7% increase compared to the pre-economic crisis period of Q4 2007 to Q2 2008. Please see Figure 1 below for further information.
Whilst pay TV viewers kept spending despite the poor economy, more than half (57% during Q3 2008) agree that adverts are a good way to learn about new products and services.
Synovate Engagement Study 2009
Engagement refers to the emotional equity that a channel has with its viewers. It combines various aspects like how much personal meaning viewers attach to it, how it suits their lifestyles, and how much they enjoy the viewing experience. Advertising can be further reinforced by channel engagement to create a higher communication impact.
Synovate has developed an index which measures the engagement of TV channels. On a scale of 1 to 100, the score covers a channel?s personal meaning to viewers, its fit with their lifestyles, channel advocacy and other values to the viewer.
The result of this study shows the higher the engagement level, the more receptive consumers are to ads.
Furthermore, core viewers are the most engaged. Please see Figure 2 below for further information.
Figure 2 - Engagement level and Frequency of viewing
"The findings from this Synovate Engagement Study demonstrate that engagement is a key attribute to power the effectiveness of ads. This concept should resonate with marketers, and with agencies and media owners who devise ad placement strategies. Pay TV emerges as a strong, engaging environment to maximise ad impact," Garton says.
"Marketers can gain value from considering channel engagement. Think of how much there is to gain when ad dollars are spent on the right channel through understanding of engagement levels."
Contact(s) for this press release
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Jennifer Chhatlani
Global Marketing Director |
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222 South Riverside Plaza |
Tel: +1 312 526 4359 |
Synovate generates insights to help clients drive competitive brand, product and customer experience strategies. Now part of Ipsos, with offices in over 80 countries, our approach combines best in class global research capabilities with personalised service, local knowledge and the flexibility to create teams and processes that meet clients' specific requirements. At Synovate, our clients sit at the top of our organisational chart, driving us to continually develop more innovative research solutions that predict actual business outcomes.
For more information on Synovate visit www.synovate.com.