Ad Sales Blog

One in three TV viewers becomes an "On Demander" bypassing traditional viewing

How much traditional TV are people watching? Media Research firm Say Media reports that one out of three people in the US has given up watching live TV for Internet TV and time-shifted video.

Consumers are spending less time with live television and more time with online content as well as time-and-device-shifted premium video content. This group is young, educated and affluent – and are increasingly difficult for marketers to reach through traditional broadcast media.

The researchers identify two groups among those giving up on live TV:

"On Demanders"

• -Watch less live TV than a year ago and more     streamed video content
  -Are young, educated, affluent
  Own 5.4 devices for streaming video
  -Consume 30 hours of video content weekly
  -Are least receptive to TV, online and mobile ads

"Opt Outs"

-Do not watch live TV
Are younger (30% are 18-24), live in urban areas
-Get their video content time and device shifted
-Own 3.9 devices for streaming video
-Are most receptive to mobile and online ads

Most people I know are viewing more online and mobile video, which really did not exist just a few years ago, but the results of this study seem a little extreme. I'm a little suspect of the results...

Say Media, previously Videoegg, is a rich media advertising network that delivering over 100 million uniques in 400 leading video, gaming and social network sites and applications. Clearly they have lot invested in our believing that video TV viewing has moved on to new media platforms.

According to the methodology, findings are based "a passive behavioral analysis via comScore's opt-in panel, of 1,159 Internet users" as well as eight interviews with "Off-the-Grid households" in Chicago and San Francisco." 

While a comScore panel is highly credible source, I believe that someone opting onto one of thier research panels is going to be more advanced in their media consumption that the average user. 

For that reason I'm suspect of the claim that a third of all TV viewers are "off the grid" of traditionl  TV viewing. 

But another findings might be more important that the overall numbers for media sales issues: the qualitative aespects the viewers. Even if comScores panels have more new media enthusiasts than an average sample of Americans, the groups with the panel will likey still maintain their characteristics. 

For me this finding is the most important:

 

Media buyers and sellers take note. Some of the most important TV demograpics are slipping away from traditional TV viewership.  

 

Read more findings from the study at Marketing Profs 

 

Hyperlocal without the hype

This video make me shudder and think. As Local Media Guru Gordon Borrell interviews BuzzMachine's Jeff Jarvis all the scary things we suspect about the future of local media check out. Local newspapers not changing fast enough to survive? Check. Local news without local newspapers? Check. But Jarvis is OK with  this. Why? Because journalism will survive. His model for how this will happen is fascinating. This video is worth your time watching:   

PS: I'm very proud that Gordon Borrell will be joining me at the Digital Magazine Symposium I'll be chairing on March 9th in New York City. I've been following him a long time. Few have the kind of insight he has.  

 

"We have met the media and he is us"

News Years eve in downtown London. They put on a great fireworks show centered around the "London Eye," a gigantic ferris wheel attraction. On New Years Eve they turn the London Eye into one big fireworks launcher and put on a great show. 

As I watched the fireworks display I could not help notice that the event was being covered in a way that would have been unheard of 10 years ago.

Look at the bottom of the picture and see the hundreds of digital cameras and cell phone cameras snapping away. New media is personal media.

 This event was recorded by thousands of personal journalists each hoping to capture a tiny piece of the event. In the hours of waiting before the display I saw ONE cameraman from the BBC. Who had the best coverage? One BBC camera against tens of thousands of personal cameras. Wonder where content for the new social media platforms will come from? Look at this picture. Part of the new media is us!  

UK follows Denmark as second country where Internet ad revenue overtakes TV

In the US where television advertising still commands the largest share of ad dollars what has happened in the UK is unthinkable; Internet advertising revenue has surpassed TV ad revenue for the first time. From a recent report in the The Guardian newspaper: 

 The UK has become the first major economy where advertisers spend more on internet advertising than on television advertising, with a record £1.75bn online spend in the first six months of the year.

UK advertisers spent £1.75bn on internet advertising in the six months to the end of June, a 4.6% year-on-year increase, according to a report by the Internet Advertising Bureau and PricewaterhouseCoopers. To put this in perspective, in 1998, when the IAB first measured internet advertising, just £19.4m was spent online.

The internet now accounts for 23.5% of all advertising money spent in the UK, while TV ad spend accounts for 21.9% of marketing budgets.

The IAB's figures show that of the total of £1.75bn spent on internet advertising, £1.05bn, or 60%, was spent on search advertising on websites including Google, up 6.8% year on year.

The UK is not the first country where internet ad spend has overtaken TV spend, Denmark reached the milestone about six months ago. But it is the first major economy to do so.

How soon do you think this will happen in the US? 

Read the entire article in the Guardian 

How viral video works

 

Here is a great video that explains what makes successful viral videos tick. Please sit thorough the cliche intro about the historical beginnings of communications. What is extremely insightful comes after when the video describes how viral videos are different from just any video short, how they propagate, and why they work. Worth watching!!  

Push vs. pull

As I enthusiastically pitched the latest, coolest, online marketing product my client cut me short, "I sell a dull product. Nobody will click on a banner to read more about it. People buy it because they need it, and when they don’t need it they don’t want to know anything more about it."
The core benefit on online media is engagement. But what happens when your client is selling a dull product and true engagement unlikely?

For many, there is another category of dull products getting a lot of attention these days, presidential candidates. With many contests extremely close it is often not the engaged, well informed voter who decides elections, rather the undecided, unengaged swing voter who might see all candidates as very dull.

That is why we see a curious pattern of media spending.  While all candidates are using the Internet to raise money and engage their base of voters, the vast bulk of the outgoing media spend is on television because it is a "push" media.

According to eMarketer on those undecided voters...

"Generally speaking these are the typical targets who are difficult to reach using the Internet. That’s why in this political season, 50-80% of ad budgets are going into television, whereas only 1-2% of political ad budgets are spent online. It’s not to say the candidates are not using the Internet to their huge advantage, Barack Obama’s amazing online funding machine has proved to be the key advantage to his success. But when it comes to reaching out towards the uninterested, the uninvolved, and the even bored participants, very often traditional media there’s a big advantage over the newer online ones.”

On a call.
If your advertiser’s product is very dull, put the  "engagement" talk on the back burner and talk about the virtues of “push” media. Push media succeeds in these situations because viewing the ads is not voluntary. When you are selling very dull products forget about "permission marketing" you need to recommend "push." Now share the story, stated above, about the presidential race. Now sell the push media you have, Print media, television, and radio are "push media." For online media sell e-blasts, which “push” a message to a target audience's inbox.  

Estimates as to how much has been spent so far this year online on political campaigns (not much):