THE POWER

June Free-To-Air TV Update

INTERVIEW:
Why Advertisers Use FTA
to Target ABs

Numbers of the valuable AB demographic watching free-to-air (FTA) television in Australia have increased dramatically over recent years, reinforcing the value of the medium to advertisers when targeting this profitable population group.

Spinach Advertising and Saatchi & Saatchi have both designed campaigns in recent times that have capitalised on FTA's reach into the AB heartland.

"We relaunched Renault into the Australian market with an extensive use of FTA," said Craig Flanders, Managing Partner Spinach Advertising. "We used it to position the brand and launch new models to the AB demographic.


Craig Flanders,
Spinach Advertising


Joe Lunn,
Saatchi & Saatchi

"We have extremely good awareness of our advertising and the positioning line for Renault - 'we don't just make cars, we create cars'.

"This awareness has been almost totally driven by FTA advertising," said Craig.

Saatchi & Saatchi has run a number of television campaigns aimed at ABs - solus and integrated - for Olympus Digital Cameras since taking on the account mid-2002.

"Olympus is now ranked number two in digital camera market share," said Saatchi & Saatchi Media Manager, Joe Lunn. "This is an incredible result considering they were in 8th place just 12 months ago."

Incredible, yes. Surprising? Not really.

The average number of ABs watching local prime time FTA television was 657,000 during the first eight weeks of ratings in 2003. This is an increase of eight percent from the same period in 2002, and an increase of 42 percent since 1996.

Meanwhile, Pay TV has actually lost prime time audience in this valuable target group. Pay recorded a prime time average of only 68,000, down from 77,000 during the same period in 2002.

"We're specifically targeting high-income individuals," said Joe. "In using a mass reach medium to target a 'niche' segment such as ABs, we obviously needed to understand how their usage differed from the average viewer, and then tap into those opportunities.

"From 6pm to the evening's peak at 8.30pm, total viewers increases by approximately 50%, dropping back to initial levels by 10.30pm. AB viewing on the other hand more than doubles by 8.30pm but, more importantly, has still retained about 75% of maximum viewing levels by 10.30pm. This indicates that once ABs are in front of the television they are more inclined to stick around.

"The launch of the Olympus Digital Mju in March relied solely on television to launch a high-end product retailing at $799.

Craig made the point that while FTA is a mass medium, "There are good opportunities to reach identified segments like the AB demographic.

"Combined with the intrusive communication properties of the television medium, this makes it a powerful advertising tool, ideal for spearheading key campaigns."

Joe agreed that the most obvious strength of FTA lies in the numbers. "No other medium comes close," he said. "Another benefit for a client such as Olympus lies in the trade appeal. If digital camera retailers see we're on television, they know we're serious about supporting the product."

Though ABs are typically heavier users of less passive media such as newspapers and the Internet, Joe said, it is FTA that achieves the cut-through.

"By the time dinner is over, these highly active, time-poor consumers turn to television for an escape from those pressures. And it's in these moments that ABs finally have the mental 'head-space' to fully absorb our client's message."


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