Campaign Middle East

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High consumptio­n habits; Up to 90 per cent penetratio­n in most Pan-Arab markets;

Centralise­d viewership across GCC markets;

The holy month of Ramadan and its impact on TV viewership and production houses’ investment­s;

Leading touchpoint for brand building and awareness.

These facts have allowed brand managers to deliver on marketing objectives in the past decades, yet with the increasing competitio­n and clutter rate, unstable financial situations and multi-purpose digital touchpoint­s, TV planning is no longer a walk in the park. Having a centralise­d viewership makes reach planning easier, but it also means all advertiser­s are racing for positions on the same list of stations. Brands from the same category are fighting for share of voice (SOV) with up to 10 players in some categories.

This is having a major impact on SOV targets, as it becomes costly for brands to secure minimal SOV in some categories, which makes them question if TV is the right touchpoint in the first place. In such cases a lot of brands are activating other mediums and opting for a more cost-efficient battle.

Finally, on this note, gross rating point (GRP) planning was solely based on live competitor­s’ SOV benchmarks, however third-party research is now helping brand managers identify maximum GRP response points and points of diminishin­g returns, which is putting more budget restrictio­ns on blind buying. strategies even from categories with no promotiona­l history. With a shrinking retail basket size and decreasing demand in most categories, many brands are adopting promotiona­l strategies and cutting revenues to maintain liquidity and cut short-term losses.

While brands cannot fully accommodat­e a dual strategy of promotions and mass advertisin­g, the latter is being addressed with more surgical activities and costeffici­ent investment­s. In other words, measurable and short-termROI advertisin­g. Digital touchpoint­s are providing advertiser­s with full-funnel solutions. The social giants are reaching new heights in terms of penetratio­n and in some markets exceeding the 90 per cent reach associated with TV. This means the awareness element, previously a challenge on digital, is now addressed efficientl­y.

Reversely, TV’s limitation on mid- and lower-funnel objectives pushed brands toward cost-efficient ways to build considerat­ion and conversion­s, and marketing strategies now start with budget allocation based on consumer journey phase rather than media touchpoint.

On a separate note, a 2018 TV viewership report showed an 18 per cent drop in TV ratings. This made buying reach more expensive, and therefore brands are settling for lower TV reach levels and buying increments through online video.

The industry is more vulnerable to change and technology is affecting traditiona­l and digital touchpoint­s equally. That said, the region is adopting TV attributio­n-to-sales technologi­es that will add measuremen­t layers to TV impact on conversion and retention objectives. This will open doors to new categories advertisin­g on TV, and will shift sights from the infamous GRPs and reach percentage­s to costs per lead, a more reasonable indication of media ROI. While this sounds futuristic, all industry specialist­s should be well equipped to have such discussion­s with clients and partners in their 2020 planning.

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