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The Canadian Television Industry. Welcome to Canada!. A confederation of 10 provinces Two founding European ancestries - England and France - hence two official languages and two parallel media structures

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Presentation Transcript
slide2

Welcome to Canada!

A confederation of 10 provinces

Two founding European ancestries - England and France - hence two official languages and two parallel media structures

Multi-cultural community, with some of the highest concentrations of ethnic diversity in the world

the canadian market
The Canadian Market

Source: CDN - BBM Nielsen Media Research – Jan ‘07

32 million people

40 TV markets

13 million TV households

total advertising revenue
Total Advertising Revenue

Source: TVB Canada – Net Advertising Volume 2006

$13.7 billion total advertising market

$3.2 billion is TV

$99 - per capita TV ad spend

top tv markets in north america
Top TV Markets in North America

Millions of people aged 2+

- Toronto is 5th largest market in North American

Source: Canadian- BBM Nielsen Media Research Fall 2007,US-Nielsen Media Research, January 2007, Population estimates

top 10 canadian tv markets
Top 10 Canadian TV Markets

Source: BBM Nielsen Media Research Fall 2007

dramatic population concentration
Dramatic Population Concentration
  • The top 10 markets represent 70% of the total population
  • This concentrated population distribution has lead to exclusively market-specific television planning and execution
    • National ratings are not utilized as they would not accurately reflect Top 10 vs minor market deliveries
    • Given the importance of each major market, it is imperative to ensure delivery of planned support levels in each
      • E.g. Toronto represents almost 22% of Canada’s total population
canadian advertising revenue growth 2002 vs 2006
Canadian Advertising Revenue Growth2002 vs. 2006

TV +25%

Newspaper +7%

Radio +29%

Out-of-home +36%

Internet +74%

Total Dollars $ (000)

Source: TVB Canada, Net Ad Volume – CRTC/CNA/NMR/IAB

share of canadian tv viewing conventional broadcast vs specialty cable
Share of Canadian TV viewingConventional/Broadcast vs. Specialty/Cable

Viewers 2+, Mo-Su 6a-6a, 2006-2007

What WeWatch

Source: BBM Nielsen Media Research 2006-2007

canadians exposure to ads on us stations
Canadians’ exposure to ads on US stations

Source: BBM Nielsen Media Research 2006-2007 P2+

  • In spite of almost 18% share of total Canadian viewing to US stations, exposure to US-placed ads is small
    • While much of the programming airing on Canadian stations is of U.S. origin, cable and satellite companies are required by law to substitute American broadcasts with Canadian signals (programs and commercial) when both stations are airing the same program/episode simultaneously (i.e. Simulcast)
    • Implemented to protect Canadian advertisers’ interests by ensuring that Canadians watch Canadian commercials
    • Not surprisingly, Canadian broadcasters strive to maximize simulcast opportunities
slide11

Canadian Television Viewing PatternsAverage Per Capita Viewing - Adults 25-54

CDNs are watching more television today than they did 10 years ago

Hours Per Week

Nielsen Media ResearchSeptember to May 96/97-03/04

BBM Nielsen

September to August 04/05-06/07

* Different measurement systems cannot be directly compared.

average per capita weekly viewing hours by demographic group
Average Per Capita Weekly Viewing Hours(by demographic group)

Source: BBM Nielsen Media Research 06-07

television technology adoption
Television Technology Adoption

Source: CDN – BBM Nielsen Media Research – Jan ‘07, Media Stats – Feb ’07;

US - Nielsen Media Research – Jan ’07;

2007 Media Technology Monitor (MTM)

99% penetration of Canadian households

89% of homes have either cable or satellite

54% are digital

27% are HD-equipped

characteristics of the canadian television industry
Characteristics of The Canadian Television Industry

Regulatory Body

Broadcast ownership groups

Audience measurement

Planning and Buying

regulator
Regulator
  • Canadian Radio-Television and Telecommunications Commission (CRTC) is an independent agency responsible for regulating Canada's broadcasting and telecommunications systems
  • The CRTC reports to Parliament through the Minister of Canadian Heritage
  • The Canadian industry comprises public and private ownership – however majority the are private
  • Current regulations limit commercial time to 14 minutes per hour in prime-time
  • Canadian broadcasters are required by the CRTC to produce and

air Canadian content

  • The intent is to develop popular programming relevant to Canadians as well as to support the production and talent communities
english broadcasters
English Broadcasters
  • Canadian program production:
    • All private broadcasters provide some original Canadian content
    • However, developing original programming is costly relative to size of the Canadian market
    • As a result, Canadian broadcasters purchase US programming and maximize simulcast for largest viewing audience potential
    • Where relevant, broadcasters will produce a Canadian version of a US hit - e.g.“American Idol”
  • Major broadcaster groups own both conventional and specialty/cable stations
english broadcasters21
English Broadcasters
  • CBC is the national public broadcaster in Canada
  • CBC’s mandate is to develop and deliver programs that reflect the Canadian experience
    • CBC provides extensive national coverage in all major & minor markets
    • CBC receives funding from the federal government as well as revenue from commercial sales
french broadcasters
French Broadcasters

* Source: BBM Nielsen Media Research Fall 2007

French data is measured byPortable People Meter methodology, which captures out-of-home viewing. English capture in-home household viewing with People Meter technology

  • French-speaking population base is 7.7 million – 24% of total Canada
  • Quebec networks feature mostly locally made productions:
    • Why? - to reflect Quebecers’ overwhelming preference for “home-grown” product (versus English Canada where US product is preferred)

MarketProgram2+ Rtg*

Montreal F Banquier 40.6

Montreal E House 17.4

Toronto House 16.0

french broadcasters23
French Broadcasters
  • Overall tuning levels are equivalent in both English & French Canada.
    • However, there is less fragmentation in French Canada - hence higher ratings
  • SRC (French-language equivalent of CBC) is also a national public broadcaster.
public broadcasters
Public Broadcasters
  • CBC/SRC - Canadian Broadcasting Corporation/ Société Radio-Canada – national
  • Télé-Québèc - Quebec (regional)
  • Saskatchewan Communications – regional
  • TVO - Ontario’s public broadcaster
  • Knowledge Network - British Columbia-regional
multicultural broadcasters
Multicultural Broadcasters

Source: Statistics Canada 2006 Census

  • 2006 Census: Stats Canada employed 62 languages in completing the form census
  • Broadcasters are expanding their multilingual programming services
multicultural broadcasters26
Multicultural Broadcasters

Source: Statistics Canada 2006 Census

  • Rogers:
    • Ontario – OMNI.1 and OMNI.2
    • Calgary – OMNI
    • Edmonton – OMNI
    • Vancouver – Channel M
  • Vision
    • Canada's multi-faith and multicultural broadcaster is available as a basic service on cable and satellite
  • Fairchild TV
    • A popular Asian channel thatis carried by the listed cable, satellite systems and broadcast
  • Canwest
    • Montreal - CJNT
aboriginal broadcasters
Aboriginal Broadcasters

APTN - (Aboriginal People’s Television Network) is a mandatory service available in over 10 million Canadian households and commercial establishments

Inuit and Métis people have the opportunity to share their stories with the rest of the world on a national television network dedicated to Aboriginal programming, documentaries, news, dramas, entertainment specials.

slide28

Audience Measurement - Currency

  • Base: Demographic Groups* within DMA’s
    • Cost Per Rating Point - CPRP
    • Cost Per Thousand - CPM
  • CPRP and CPM is the currency for planning and buying commercial airtime in Canada
    • CPRP is always DMA-specific
  • A National Rating is not functional in Canada:
    • Population skews to major centres
    • Under-represents rural Canada

* Definition options: measurement data may be extracted usinga variety of qualitative criteria

slide29

Audience Measurement - Methodology

  • BBM Nielsen provides meter measurement nationally and in three markets, 52 weeks a year:
    • Toronto, Vancouver and Calgary
    • National audiences measured through a national meter sample
  • Quebec and Montreal Francophones are measured by BBM Personal Portable Meters
slide30

Audience Measurement - Methodology

  • Diary measurement for these 7 major markets occurs in the fall, spring, and summer:
    • Halifax
    • Quebec
    • Montreal Anglo
    • Ottawa/Gatineau
    • Kitchener/London
    • Winnipeg
    • Edmonton
audience measurement methodology
Audience Measurement - Methodology
  • Diary measurement for these minor markets occurs in the fall and spring:
  • Saint John -Moncton
  • Okanagan-Kamloops
  • Sherbrooke
  • Sudbury-Timmins/North BayS.S.M
  • Kitchener/London
  • Barrie
  • Windsor
  • St.John’s –Corner
  • Windsor
  • Saskatoon
  • Regina-Mooose Jaw
  • Saguenuay
  • Red Deer
  • Rim.Mat.Sep.Illes
  • Thunder Bay
  • Carleton
  • Sydney-Glace Bay
  • Rouyn-Noranda
  • Charlottetown
  • Riviere du Loup
  • Prince Albert
  • Brandon
  • Pembroke
  • Lloydminister
  • Yorkton
  • Medicine Hat
  • Terrace-Kitimat
  • Dawson Creek
  • Kenora
slide32

Planning and Buying

  • The Canadian advertising industry, comprising broadcasters, agencies, and advertisers, operates similarly to the US
  • Key Objectives: Broadcasters
    • Manage inventory for maximum return
    • Build client base
    • Maximize unit rates
    • Forecast the market place accurately
    • Increase sales year over year
    • Increase share of tuning/advertising $
    • Implement successful program strategy
    • Realize margins via product placement, integration, sponsorship
    • Offer multi-platform extensions and multi-media opportunities
slide33

Planning and Buying

  • Key Objectives: Agencies
    • Lowest costs in market place
    • Flexibility with suppliers
    • Insightful and innovative client solutions
    • Preferred client status
    • Added value at no cost
    • Growth in existing business
    • Increased margins
    • Growth of client base
    • Delivery of established objectives
planning and buying
Planning and Buying
  • Key Objectives: The Advertiser
    • Lowest rates
    • Deep consumer insights & effective communication strategies
    • High profile/ visibility
    • Creativity & Innovation
    • Positive business results
    • Flexibility
  • Media planning begins with an in-depth briefing on the client’s overall business, marketing objectives, and advertising objectives – both historically and the coming year
planning and buying35
Planning and Buying
  • Key components of the television plan are:
    • Target group – who is the media plan intended to reach
    • Why – increase sales, brand launch, brand awareness, etc.
    • When – time of year
    • Where – geographical coverage
    • Media mix – various television platforms, etc.
    • Reach/Frequency = Gross Rating Points (GRPs) on market-by-market basis
    • Day-part mix – % prime, % weekend, etc.
    • Estimated costs (reflect agency’s experience, clout, and prevailing market conditions)
  • Client approval to the media plan/ budget release, permits Media buyers to proceed with negotiations/ commitment
the canadian upfront
The Canadian Upfront
  • Canadian Broadcasters and agencies attend the US ‘Up Front’ to prepare for selection of US programs for the upcoming Canadian Fall TV season
    • The ‘up fronts’ allow the Canadian contingent the opportunity to view the new programs and gage audience reaction
  • Canadian broadcasters participate in aggressive bidding for selected programs and complete negotiations Los Angeles
  • Each Canadian broadcaster hosts a Fall presentation event in early June
the canadian upfront37
The Canadian Upfront
  • At the same time, agencies are preparing for negotiations by assessing spending volumes and program preferences
    • Broadcaster/agency agreements are a combination of agency and client-specific commitments
  • Agreement base options – CPM (network) or CPRP (specific market)
additional tv buying details
Additional TV Buying Details
  • Client buying can occur at any point in the year. Campaigns can be purchased :
    • Short term, long term
    • Seasonally – Fall, Winter, Spring, Summer
    • National, regional, local
  • Historically the highest demand for commercial time occurs in the fall of each year, followed by spring, with the lowest demand in summer and Jan/Feb
  • Market pricing typically reflective of supply and demand
    • Early marketplace entry is critical to securing the best inventory at lowest rates
the national buy
The National Buy

Quebec City

Edmonton

Montreal

Vancouver

Halifax

Calgary

Ottawa

Winnipeg

Sudbury

Thunder Bay

Toronto

Kitchener/London

the national buy40
The National Buy
  • Assumed objective – to deliver a consistent weight in all planned markets
  • Upon client approval, all national networks operating in Canada are contacted for briefing and invitation to submit proposal
    • Objectives will define mix of conventional and specialty
    • Again, share of tuning will guide share of budget
the national buy41
The National Buy
  • Of note, each program is evaluated for rating delivery in each DMA separately
    • Likely that the same program will deliver a different rating in each market
    • Completed network buy will deliver variable weight levels by DMA
  • Buyer will purchase inventory from regional and then local inventory in order to deliver overall weight consistent with established objective
the regional buy
The Regional Buy

Ottawa

Thunder Bay

Sudbury

Toronto

the regional buy ontario example
The Regional Buy – Ontario example
  • The regional buy (usually defined by province) comprises a number of markets – buy objectives by DMA can be consistent or variable.
  • Upon client approval, all regional networks operating in Ontario are contacted for briefing and invitation to submit proposal
    • Again, share of tuning will guide share of budget
the regional buy ontario example44
The Regional Buy – Ontario example
  • Of note, each program is evaluated for rating delivery in each DMA separately
    • Likely that the same program will deliver a different rating in each market
  • Last buy layer in regional buy – local inventory to deliver overall weight consistent with established objectives
the local buy toronto example
The Local Buy – Toronto example
  • Upon client approval, all stations operating in Toronto are contacted for briefing and invitation to submit proposal
    • Generally share of tuning will guide share of budget
  • Completed buy will comprise multiple stations that together deliver GRP, daypart, and budget objectives established for the market
accountability to advertisers
Accountability to advertisers
  • Pre-buy reports provide an overview of completed buys:
    • Estimated
    • GRP and audience deliveries
    • Review of station selection and share
    • Program & added-value highlights
    • Spending details
  • Post-buy reportsprovide an analysis of actual audience deliveries
    • GRP and audience deliveries by station on a local market and national level
    • Compensation details for station/network under-deliveries
    • Lessons learned/ indicated action