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ADVERTISING

Advertising Effectiveness

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ADVERTISING SALES

Terrestrial TV, the Media Closest to Consumers

KOBACO has performed quantitative and qualitative analyses of the patterns of media use of Korean consumers every year through MCR (Media & Consumer Research). According to the 2011 results, terrestrial TV is the media that has the highest ratio of contact, 97%, and the longest time of use, 163 minutes, among the ten major media, which shows that terrestrial TV is the media that Korean consumers use the most.

Considering the highest monthly reach, 99.6% of terrestrial TV advertising, terrestrial TV is the media that can reach the largest number of consumers in the shortest period of time. In addition, it received the highest scores in entertainment value, reliability, fairness and usefulness among the ten major media. Taking into consideration that it is highly likely that the trust and preference on a certain media can be transferred to the advertisements on that media, it is self-evident that terrestrial TV has unrivaled power in the Korean market.

Highest Ratings and Efficiency

Among the top 1,000 programs in terms of ratings aired in the first half of 2012, as many as 995 were terrestrial TV programs. Korean terrestrial TV networks have dominance in programs, unchallengeable by cable networks.

  • Terrestrial TV still a leader, Even in the Era of Smartphones

    As opposed to what one might think, the advance of mobile devices such as DMB, smart phones and smart pads are increasing the influence of TV. According to the 2011 MCR, 22% watched terrestrial TV on the new platforms such as mobile devices, PCs and notebook computers. Also, one out of four SNS users answered that their interest in TV increased since their use of SNS. Among them, 38% have written comments about characters or products on TV and 23% have read such comments written by others on SNS.

  • Radio, Top in Advertising Attention

    The attention rate of radio advertising is 76%, the best among media. Radio is also a personal media with which the audience can easily identify themselves, it has low production costs that make it easy to add or change copy content according to advertising strategies, and it has the advantage of a portable media to which people can pay attention while driving. It also has another advantage in that it allows various exposure strategies for advertisers that target a specific group of consumers, since it has a high level of channel loyalty and segmentations of listeners.

The Power of Public Channels

  • Trustworthy in Viewer Ratings and Brand Values

    In the first half of 2012, the public channels put eight programs in the top 10 of the most watched programs. The power of public channels was also proved in an analysis on the ratings in the capital region by time. During primetime hours (20:00 ~ 23:00), ‘Public Channel 2’ had the highest rating (11.8%), followed by ‘Public Channel 1’ (11.0%) and ‘Private Channel’ (11.0%).

    Q1-Q2 Seaoul Metropolitan Area Hourly Nielsen Ratings: MBC 11.8%, KBS2 11.0%, SBS 11.0%

    KOBACO performed a brand evaluation of channels in its 2011 MCR. The result was that the public channels were ranked in the top three for every category of the survey including channel TOM, program recognition and willingness to recommend, which proved the value of their brands.

    Broadcast Channel Branding Asset Evalution

The Effectiveness of PPL (Product Placement) Advertising

  • Rapidly Growing PPL Advertising

    PPL (Product Placement) is a type of advertising that gives viewer-exposure to a product by placing it to be used as a prop for a broadcast program. As a result of the 2009 revision of the Broadcasting Act, PPL was added to the types of broadcast advertising, and KOBACO began its sales in May 2010. PPL advertising has seen rapid growth since its introduction to the market. In 2011, the annual PPL expenditure on terrestrial TV increased 449%, the number of programs containing PPL increased 134%, and the number of its advertisers increased 142%.

  • KOBACO knows how to maximize the effectiveness of PPL

    Such rapid growth is the very proof of the .effectiveness of product placement. The viewing rate of PPL has increased from 3.77% in 2010 to 5.75% in the first half of 2012. This rating is more than 1.8 times as high as that of program advertisements, and even higher than the first commercial aired right after a program, which normally obtains the highest rating within that commercial break.

    Yearly Nielsen Ratings for Programs with PPL : 2010-3.77, 2011-4.91, 201-5.75

    Monthly Nielsen Ratings for Programs with PPL

    Research shows that more than one out of three viewers correctly remembers the brands whose products appeared as PPL in a program that he or she watched the previous day (correct recognition rate of 35.4%). Among them, more than half express favorable feelings (55%) and purchase inclination (54%) toward the indirectly-advertised brand.

    To be successful and obtain the types of results previously discussed, professional planning is a must. It is necessary to set up a careful plan of execution taking into account factors such as program genres, product categories and other elements. For example, KOBACO discovered through its research on advertising effectiveness that simple placement draws higher brand recognition in entertainment shows while a higher level of indirect advertising gets clearly higher recognition in dramas.

    KOBACO, which has the most advanced know-how in indirect advertising, guarantees the best outcomes of your advertising.