ITV Commercial Investor Seminar - ITV plc
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ITV Commercial Investor Seminar
2021 on track to be ITV’s largest ever year in ad revenue,
surpassing 2015’s previous record
£1,856m £1,834m £1,950m
£1,761m £1,777m £1,795m £1,769m
£1,577m
2014 2015 2016 2017 2018 2019 2020 2021 F
Source: ITV data
Renaissance of TV advertising 1. Rediscovery of TV advertising among core categories 2. Re-evaluation of the value of ITV as an advertising partner during the pandemic 3. Revitalised customer base following the rise of e-commerce and DTC brands 4. Reinvention of TV advertising, building on core successes with an evolving addressable proposition
New models and partnerships
1. Rediscovery
“Premier Foods “P&G CEO pledges
credits TV ongoing support
advertising for for marketing as
sales boost” brand spend
ramps up”
P&G Unilever L'0real
2017 2018 2019 2020 2021
Source: ITV data
TV accounted for 64% of
our video day in 2020
Source: 2020, BARB / comScore / Broadcaster stream data /
Average video
IPA Touchpoints 2020 (lockdown) / Pornhub / Rentrak
3.5%
time per day 13.0%
All Individuals: 5 hrs, 16 mins 9.3%
All Individuals / 16-34s
16-34s: 4 hrs, 54 mins
3.0%
Broadcaster TV 63% / 36.3%
36.3%
2.8% Subscription VOD 11.2% / 19.3%
25.2%
63.7% 1.7%
YouTube 13% / 25.2%
TikTok 3.5% / 9.3%
11.2% Other online video 3% / 4.6%
4.6%
2.6% Other adult video 2.8% / 2.6%
19.3% 1.8%
DVD 1.7% / 1.8%
Facebook 0.9% / 0.7%
Cinema 0.1% / 0.1%
Broadcast accounts for 91%
of our video advertising day
Average video 1.4%
5.6%
advertising time 1.8%
per day
5.2%
Source: 2020, BARB / comScore / Broadcaster stream
All Individuals: 19 mins 15.5% data / IPA Touchpoints 2020 / Rentrak *TikTok ad time
16-34s: 12.5 mins modelled at 2% of content time – the same as YouTube
2.0%
All Individuals / 16-34s
Broadcaster TV 91% / 77%
77.0%
YouTube 5.6% / 15.5%
Other online video 1.8% / 2%
TikTok 1.4% / 5.2%
91.1%
Cinema 0.1% / 0.2%
2. Re-evaluation
Flexibility for Low-cost access Trusted, brand- Reassessment
advertisers to to TV advertising safe environment of the benefits
buy late during pandemic of brand vs.
activationDelivering more flexibility “The relaxation of late ITV axes late booking fees booking charges has until at least end of year allowed us to spend Broadcaster hopes to be ‘significantly more flexible significantly more on TV” partner for advertisers’ Gayle Noah, Media Director, L'Oréal UK & I
Brands came for the value… but stayed for the results
3. Revitalisation: e-commerce and DTC brands
‘Disruptor’ brands have revitalised spend among incumbents DTC challengers Incumbents
DTC and e-commerce brands revitalise key sectors
% linear ad revenues from DTC and e-commerce brands 2019 vs 2021
Automotive Food Delivery
+ £34m + £37m
+ 11% total + 40% total
revenues revenues
25%
24% 50%
49%
% ITV Revenues
% ITV Revenues
22%
6%
2019 2021 2019 2021
Source: Nielsen Ad Dynomix, Jan – Sept 2019 vs Jan – Sept 2021“TV advertising is a critical part of our marketing strategy. By investing heavily in TV right now we can grow brand awareness and trust quickly, generate significant short term sales, and know that the business will also reap the longer term benefits that only TV advertising provides.” Darren Bentley, Chief Customer Officer Cazoo
ITV AdVentures: media-for-equity deals
“At NatWest, we know well the power of TV advertising to build our brand and our business. We're delighted to work with ITV to create a partnership that helps some of the UK's most progressive and innovative entrepreneurs discover this for themselves as well as access the financial support and training they need to grow.” Marg Jobling, Chief Marketing Officer NatWest Group
4. Reinvention of
TV advertising
CFlightVOD-only brands –320 campaigns from advertisers new to ITV
InfoSum: secure datamatching
Dynamic creative with Cablato Dynamically created advertising creative, tailored according to multiple data targeting signals, e.g. • Geo / postcode • Audience demo • Life stage • Interests • Weather • And more…
CFlight cross-media
measurement CFlight
• Unprecedented broadcaster
collaboration
• Gold standard for cross-
platform viewing
• De-duplicated audience
measurement across
broadcasters, platforms and
video formatsCarriage agreements Market-defining commercial terms 1) ITV Hub as native player within both platforms, adding significant addressable viewing 2) Linear addressable tech and data terms agreed, unlocking more inventory: best of both worlds
M&S and BGT ecosystem
Product Placement Licensing Idents, Broadcast & ITV Hub Social
HORIZONTAL PARTNERSHIP INTEGRATION
Internal Comms Marketing Promos Consumer & Trade PR
Digital
DisplayM&S Food
Fresh Market update
6-week bespoke campaign featuring
ITV Weather’s Lucy Verasamy
• Adverts featuring M&S fruit, veg,
meat and fish products
• 24 x 60” episodes
• Contextually placed post-6pm
ITV News and National WeatherWW and This Morning
Wellness partnership
• Blend of airtime and broadcast sponsorship
• digital / social / app content
• on-screen talent and viewers
• Developed territory beyond food, linking to
other health and wellness topics
• Reinforced WW manifesto of building healthy
habits for real life.Purple Bricks product placement in Corrie
ITV Commercial Investor Seminar
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