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Optimizing Communication and Marketing Strategy with Nielsen Total Audience

7 minute read | Mila Lubis | February 2019

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Media contact: Mila Lubis, Phone: +62 8551082304, Email: miladinne.lubis@nielsen.com

OPTIMIZING COMMUNICATION AND MARKETING STRATEGY WITH NIELSEN TOTAL AUDIENCE

Indonesian Consumers Spend Approximately 5 Hours Consuming Media

Internet Penetration Growth Drives Dual-Screen Habit

Jakarta, 28 February 2019 – Media consumption these days is becoming more complex with the presence of internet. The growth of internet is impacted by the high growth of smartphone users (125% vs 2013). Now, 79% of internet users access internet through smartphones.

As a result, all generations have adopted the internet and the internet penetration continues to grow across all age groups. The highest penetration is in Millenial (born 1980 – 1999) and Generation Z (born above 2000) with 58% and 50% respectively. Meanwhile,  Generation X (born 1969-1979) reached 33% and Baby Boomers (born 1946-1964) reached 9%.

Today, Indonesian consumers spend on average 5 hours per day consuming content, either through conventional media or through the internet. Nielsen Study in 2018 showed that although the duration of TV viewing was still the highest at an average 4 hours 53 minutes per day, the duration of accessing the Internet was the second highest with an average of 3 hours 14 minutes per day; followed by listening to the Radio (2 hours 11 minutes), reading the newspaper (31 minutes) and reading the Magazine (24 minutes). (Illustration 1)

The increasing consumption of the Internet has made the dual-screen habit between digital media and conventional media common. Even consumers can now enjoy media content through various types of digital devices. On the other hand, the right measurement of viewers is now becoming more complex because of the high percentage of duplication between conventional and digital media consumption. There are at least 50 percent duplication on TV vs Digital, 62 percent on Radio vs Digital, while Print vs Digital reaches 72 percent. (Illustration 2)

It has become a challenge for the industry players to be able to have the right, unduplicated measurement between conventional media and digital media. The challenge is related to the content and ads which are consumed in both conventional and digital media. The fact is that measuring the viewers who see advertisements or content on digital media is not as easy as measuring those on conventional media. Digital media has various measurement metrics such as Video Views, Click Through Rate, Page Views, Impressions which referring to the ‘activity’ without knowing the ‘who’ behind the activity. The other challenge is to measure viewership both across digital platforms and across devices without any duplications.

“To be ready for digital, there are 3 things that we need to pay attention to. First is the business model, second the ecosystem and the third is the data currency.” said Sukma Archie, Vice President, MNC Group.

Responding to the Challenge of Audience Measurement with Nielsen Total Audience

Industry players can now measure viewership in both conventional and digital media in an easier way, and even further can see the demographics of viewers who consume content and ads. Nielsen Total Audience offers solid measurements from Digital Ad Ratings, Total Ad Ratings, Digital Content Ratings and Total Content Ratings.

Digital Ad Ratings is a solution to define a unique audience from each person exposed to online advertising through different platforms, and to measure the On-Target Audience of the ad campaign. On-Target percentage is the number of impressions that are presented to the main target audience against the total impressions that are presented when the digital advertising campaign takes place.

For example, when advertisers determine the On-Target Audience for a particular advertising campaign is female 13-39 years-old, with Digital Ad Ratings, we can know from Total Impression (120,356,628), in fact the ad has been exposed to 85 percent of the desired On-Target Audience and has a reach of 22,227,182. The rest 15 percent is Off-Target Audience. Advertisers can also find out the coverage percentage based on the desired age category (Illustration 3).

With Total Ad Ratings (TAR), advertisers can measure extended and unduplicated audience reach of those who view a campaign through both TV and digital. As an example of the Total Ad Ratings (TAR) data, among female viewers aged 13-39 years-old, the ad campaign viewed through TV obtained a reach of 65 percent while through Digital only obtained 3.3 percent reach. With TAR, advertisers can also know that viewers who are duplicated in both TV and Digital obtained 16 percent reach. (Illustration 4)

“We see that the industry is responding very positively and starts adopting Total Ad Ratings (TAR) in many different campaigns. The objective is to obtain Reach, in which by implementing TAR we can quantify the reach of audience on both TV & Digital. We can get many insightful consumer behaviour by implementing TAR that is really helpful for advertisers to adjust their campaign,” said Adrian Anwar, Senior Vice President, EMTEK Group

Other Nielsen study, Digital Content Ratings, has been applied to one of the Thailand soap operas entitled Nieow Huajai Sut Glai Peun (The Spirit of the Ruler). The first episode of this immensely popular drama series on Channel 7 HD was aired on 1 July 2017 and achieved a TV rating of 6.4 amongst all TV stations and obtained a total audience of 4.281 million viewers.

With Digital Content Rating, we can also know the details of audience profile of Nieow Huajai Sut Glai Peun (The Spirit of the Ruler) episode 1. Those who are watching via TV are 58 percent women, 28% of the viewers are over 50 yrs old and the viewing duration is 55 minutes. Viewers who watch via Online Live is 56 percent women, 45% of the viewers are 21-34 years old with the viewing duration of 31 minutes. Meanwhile, more than half (53%) who watch via Online (Video on Demand) are 21-34 years old with viewing duration of 12 minutes.

From various findings we can conclude that digital media plays a role in completing the communication strategy. “On one side, the role of conventional media especially TV is still dominant in giving significant audience reach. On the other hand, digital media has its advantages in terms of audience engagement for the younger segment.” said Hellen Katherina, Executive Director Nielsen Media.

Illustration 1: Media Consumption Share of Time

Illustration 2: Duplication of Conventional and Digital Media

Illustration 3: On-Target Audience Digital Ad Ratings (Sample)

Illustration 4: Total Ad Ratings Measurement (Sample)

Read in Bahasa Indonesia

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ABOUT NIELSEN DIGITAL AD RATINGS

Digital Ad Ratings is a census based methodology survey to measure reach or unique audience, on-target and GRP of a digital ad campaign. Nielsen is partnering with Facebook for the audience demographic information

ABOUT NIELSEN TOTAL AD RATINGS

Total Ad Ratings (TAR) is using Audience Link technology in real-time data match from TV Audience Measurement and Digital Ad Ratings. TAR measures unique audience and duplication across TV and digital platforms. It calculates each unique reach from each platform (TV reach only/digital reach only).

ABOUT NIELSEN DIGITAL CONTENT RATINGS

Digital Content Ratings is a tool to measure the unique audience and rating from digital content. The data can be filtered by content type, demographic, device, platform, date, frequency, etc.

ABOUT NIELSEN

Nielsen Holdings plc (NYSE: NLSN) is a global measurement and data analytics company that provides the most complete and trusted view available of consumers and markets worldwide. Our approach marries proprietary Nielsen data with other data sources to help clients around the world understand what’s happening now, what’s happening next, and how to best act on this knowledge. For more than 90 years Nielsen has provided data and analytics based on scientific rigor and innovation, continually developing new ways to answer the most important questions facing the media, advertising, retail and fast-moving consumer goods industries. An S&P 500 company, Nielsen has operations in over 100 countries, covering more than 90% of the world’s population. For more information, visit www.nielsen.com.