With the proliferation of cable networks these days, from giant general interest channels like USA to tiny niche ones like the Military Channel, it’s no wonder that advertisers like to have a clear idea where their money is going. A new survey of media buyers and planners from Beta Research of Syosset, N.Y., finds that respondents plan to increase ad spending on nine of the top 10 cable networks ranked highest in terms of brand identity. Those networks include ESPN, Comedy Central, Food Network and HGTV, all of which are known for focusing on one narrow area, such as sports or home décor. But also important to media people when it comes to placing client dollars is whether networks offer good online advertising opportunities. Six of the top 10 cable networks in that area were also among the top 10 media people planned to increase spending on. ESPN ranked first in both of those categories as well as brand image, while ABC ranked first in brand image, online opportunities and upfront presentation among the broadcast networks. Andrew Klein, president of the cable TV division of Beta Research Corporation, talks to Media Life about why ratings aren’t always the most important factor in determining spending, what results differ from last year, and how much upfront presentations matter.
Who takes part in this survey?
Telephone interviews are completed with agency media directors and supervisors, media planners, media buyers and advertisers who are influential in cable TV buying decisions.
What did you find most interesting or most surprising about this survey?
As in the past, on many measures of ad executive perceptions, several top-ranked basic cable networks rated equal to or higher than the broadcast networks and they were not necessarily those with the highest Nielsen ratings. They had distinct, clear brand identities and were also top-ranked in our consumer brand studies.
Were there any changes that stood out compared with past results for this survey?
On most measures, the top 10 cable nets were similar to past years. However, the order of the top 10 can sometimes change. For example, in 2007, the percent planning to increase ad spending increased for TBS, TNT, Discovery Channel and HGTV.
What sort of reasons for doing so do ad executives generally cite when they say they plan to up their ad spending on certain networks? (I.e., is it based on the content, the demographics, the ratings, etc.?)
Unfortunately, the questionnaire is too long for us to ask these open-ended questions. Instead, we correlate rankings on specific measures to plans to increase ad spending. It appears that all of the above play a role.
What do the networks where ad executives plan to increase their spending have in common?
Many of the top-ranked networks seem to have a clear program identity (ESPN, Discovery Channel, Comedy Central, HGTV, Food Network) or an appeal to a specific demographic group (e.g. Comedy Central and adults 18-34 or ESPN and men).
On plans to increase ad spending, eight of the top 10 networks were also among the top 10 networks on having appealing audience demographics. On the other hand, three high-Nielsen-rated general entertainment networks -- TBS, TNT and USA -- also ranked high on ad spending intentions.
ESPN is top-ranked for brand image and also on top in a number of other categories. Why does their brand image stand out, and how important is it in influencing spending decisions?
Networks that ranked high on this measure by ad executives appear to have a distinctive, clear and positive brand image. Among the top 10 cable networks on percent planning to increase ad spending, seven were also in the top 10 on brand image.
Also, ESPN and other specific networks rated high on online advertising opportunities. Networks on multiple platforms tended to rate high on brand image.
ABC is tops in just about every category for broadcast networks. Have you seen this in past surveys, and what does it indicate about advertisers' attitude toward the network?
ABC has ranked tops among broadcast networks on many categories in the 2007, 2006 and 2005 Beta studies. In 2004, NBC ranked first. Results indicate very positive perceptions of ad executives towards ABC programming.
How important are upfront/formal presentations in influencing spending plans?
My guess is that they are still influential, although formal presentations may become more frequent than upfront presentations.
Among the top 10 cable networks on ad spending intentions, eight were in the top 10 on evaluation of upfront/formal presentations. The percent attending the average cable network upfront/formal presentation did not differ significantly between 2007 and 2006.