Pan-European media owners are realising the competitive advantage
of appealing to local audiences, writes Edward Shelton.
’A-lop-bop-a-doo-bop-a-lop-bam-boom means the same in any language’ used
to be a favourite saying of Bill Roedy, president of MTV Networks
International, when talking about his channel’s global appeal and its
strategy of broadcasting the same programming across whole
Whilst Roedy’s rhetoric is still just as compelling, something must have
changed because MTV, and many other pan-European broadcasters are now
taking advantage of new digital technology to customise their services
for local tastes.
The advent of digital satellite transmission a couple of years ago made
cutting local windows into generic services cheaper, but the thinking
has changed too. Broadcasters have realised that, although Little
Richard’s lyric might evoke the same feeling in Belgrade as in Bolton,
to maximise the return from a strong media brand like MTV, you need to
mix in local identity.
MTV is taking advantage of the new technology to produce split services,
says Tania Alonzi, board account director at CIA Medianetwork
’The point is that they still have the same brand values. They used the
technology to improve the editorial offering and to be more flexible for
As of this month MTV has four European services: UK, pan-northern,
central and southern. It has chosen to split them to reflect local
tastes, with the pan-northern and UK services focusing on Britpop and
indie music, the central German service playing more techno and dance
music and the southern Italian-focused service playing more Europop.
’The most significant thing is that pan-European channels are
identifying that competition is local, and are acknowledging this, hence
all the local feeds,’ says Liz Workman, vice-president executive
regional media director at Leo Burnett Media.
The new tailored services allow advertisers to increase weight in
particular regions, thus meeting local requirements.
One of the problems with the original pan-European services was
’People have realised that pan-European English language broadcasting
does not work,’ says Gary Bridge, International Media Manager at
Hence, Eurosport, which started with just a handful, now offers 14
CNN International, which originally had the same schedule everywhere,
not only now has four separate services for different parts of the world
(including a European one), but is also experimenting with a German
Partly as a result of these changes, pan-European media and especially
pan-European television (PETV), are expanding both audiences and ad
Services have also been increasing their networks with Eurosport, NBC
Europe and CNNI now in more than 70 million homes.
’A lot of people are raising their pan-European budgets, adding TV where
it was previously just print,’ says Georgina Hickey, head of buying at
’We’ve seen a definite increase in the clients that want to advertise
pan-regionally. Traditionally, it was big corporates like cars,
airlines, hotels. We now use it for companies like Philips,’ says
’More businesses are looking at things on a pan-European basis
generally, not just media choices,’ says Martin Vernon, sales director
at EBN, which has carried more than 150 brands in its first two years on
A trend that has also helped the growth of pan-European media is the
tendency for agencies to centralise their business. Including a
pan-European solution in the media plan is then an obvious
The PETV market is now worth around dollars 260m (pounds 157m) according
to Alonzi, showing probably 10% to 15% growth in recent years with the
improvement helping to fund the new tailored services. She says the
increase reflects the fact that the medium is being sold better, is more
accountable and is more flexible.
The point about PETV channels, according to Workman, is that they
provide a ’nice umbrella opportunity. You are never going to get the
coverage you get locally’. Leo Burnett uses it in conjunction with local
media on Reebok, for example.
’It is also effective in terms of production - you can use the same copy
across the whole continent,’ says Workman.
Hickey says PETV is typically about 25% of the cost of an average
national channel. ’It is helpful to have at least some TV coverage in
territories where the brand would not be able to afford the national
channels. This is important, in order to get retailers to take the
goods,’ she adds.
The other useful thing about these channels is that because they have to
fight national media for revenue, they have to be more imaginative in
how they do business, and many put a lot of emphasis on sponsorship and
similar non-spot opportunities.
But there are still only a very small number of niche audiences being
adequately served by pan-European channels. Best served are the youth
market (MTV), and the business market (EBN, CNBC, CNNI), although there
are other audiences claimed by these and other channels.
The success of Cartoon Network in recent years, for example, has
produced a reasonably strong pan-European children’s buying opportunity
which also brings some housewives, and there is a good male sports fan
audience on Eurosport.
BBC World and NBC Europe have AB profiles and do not just appeal to
business people, according to Hickey. ’Eurosport also delivers a range
of different audiences depending on what sport is on,’ says Hickey.
’Women like tennis. Obviously for Indy Car you get a lot of men.’
Some of the potentially strong general entertainment PETV channels such
as NBC Europe have not, so far, carried as popular programming as they
could. But this may now be changing as well, according to agencies.
NBC is also one of the US companies that is in a position to expand the
PETV market by leveraging from its US base, offering big advertisers a
better deal in the US if they put some money into the European
NBC in the US has a huge amount of top-rated programming which it is now
beginning to pass to the European network before selling to national
networks like ITV and Channel 4.
The station’s European output is now divided between NBC Europe, which
carries business programming during the day before switching to
entertainment in the evening, and CNBC Europe, which is a 24-hour
CNBC, which has been going for a year, has surged ahead of its closest
rival, EBN, with 2.7 million viewers, compared to EBN’s 1.7 million.
Despite CNBC’s ratings boast, agencies consistently say audience
measurement is the main problem with PETV. Although half a dozen of the
measurement systems in each country now measure pan-European channels
too, many of the channels do not subscribe to them. MTV, for example,
will not buy the GfK data in the crucial German market because it does
not take account of guest viewing which would put MTV’s figures up
Leading the way in terms of audience measurement is Eurosport, which has
around 70% of its audience people-metered. Tom Keaveny, a Eurosport
sales director, says that for PETV channel research is crucial.
’For us it is additionally important in proving that we are bigger than
just a sports channel and have lots of different audiences. People tend
to think of PETV in terms of MTV for youth and CNN for the business
audience.’ He says the Eurosport revenues have grown from a 1994 index
of 100 to a projected 156 this year.
’The research argument has gone from harmonisation of data to
accessibility of data,’ says Workman. ’Harmonisation is too much to ask
for, but our argument is that if a channel is being measured it should
buy the data.’
Agencies say the new European Media Survey (EMS), which began in 1995,
is useful, but it only gives weekly reach and share of viewing and does
not allow agencies to build up pictures of how many people are watching
individual programmes. ’It’s a tool; it gives you an idea’, says
’It’s meaningless for TV,’ says Bridge. ’The audiences for different
sports on Eurosport, for example, are very different.’
Another problem is the inconsistency in viewing across different
countries (as a result of local tastes or distribution patterns),
meaning that some markets do not benefit as much from a pan-European
approach. France, for example, has a lower penetration of satellite and
cable TV channels than other countries and when a pan-European campaign
is being planned, there can be difficulties. ’It is not always easy to
get the French guy to chip in,’ says Bridge.
With PETV developing, pan-European print has had to defend its
’Print has become a lot more imaginative in order to combat TV, offering
integrated marketing packages with Web sites for example, and different
formats like gatefold,’ says Hickey. Time magazine, for example, has
decentralised its European editorial from the US, allowing it to focus
on subjects more relevant to the European audience. It is also trying to
increase its share of national advertising by introducing separate
advertising editions for the UK, France and Germany, where advertisers
wishing to target just one of these markets can appear.
In print, the language issue is more important than in PETV, so titles
tend to cater for the business traveller or AB demographic, but there is
National Geographic and Reader’s Digest which offer mass appeal.
Elite pan-Euro titles include the Wall Street Journal, Business Week,
The Economist, Time, Newsweek, Financial Times and the International
Apart from adding the new territories of the old Eastern bloc to their
distribution, these titles have had to react to the added competition
posed by pan-European broadcasters. This has not necessarily been a bad
thing for them.
Chris Manning, associate publisher of Time magazine in Europe, Africa
and the Middle East, says: ’There is more competition now but the growth
of pan-European broadcast has helped to grow the international
PAN-EUROPEAN NICHE MARKET
- Business people: CNBC, CNNI, EBN, BBC World, NBC, Euronews, Wall St
Jnl, Newsweek, Intl Herald Tribune, FT, Time, Business Week, Economist,
- 16- to 24-year-olds: MTV
- 16- to 34-year-olds: MTV, NBC Europe, TNT, Eurosport
- Men aged 16 to 44: Eurosport, BBC World, NBC Europe, Discovery,
National Geographic, The European
- Children: Cartoon Network
- Housewives with children: Cartoon Network
- Women aged 16 to 44: BBC Prime, NBC, Eurosport, Reader’s Digest,