TV Sourcing and Viewing Continues to Change

According to the latest Nielsen Cross-Platform Report, Americans spend more than 33 hours per week watching video across the screens, but how they're consuming content, traditional TV and otherwise, is changing.

Consumers are increasingly making Internet connectivity a priority; 75.3% pay for broadband Internet (up from 70.9% last year):

• 90.4% pay for cable, telephone company-provided TV or satellite
• Homes with both paid TV and broadband increased 5.5% since last year

Consumers are seeking out the subscription service that makes the most sense for them, says the report. The number of homes subscribing to wired cable has decreased 4.1% in the past year at the same time that telephone company-provided (telco) and satellite TV have seen increases of 21.1% and 2.1%, respectively.

Nearly a million more homes are subscribing to broadband while skipping a traditional paid TV subscription. There are 5.1 million broadcast-only/broadband homes, and though broadcast only/broadband homes comprise a smaller subscriber group; the number of these homes has increased by 22.8% since Q3 2010.

Whether they're cord-cutters or former broadcast-only homes that upgraded to Internet service, these homes represent a growing group of U.S. consumers. Interestingly, roughly the same percentage of consumers in broadcast-only/broadband homes watch traditional TV, stream or use the Internet as in all cross-platform homes; the difference between these groups falls to time spent on these activities. Even broadcast-only/broadband homes spend the majority of their video time watching traditional TV: 122.6 minutes, compared to 11.2 for streaming on average each day.

(Source: The Center for Media Research, 03/02/12)

IPG: Mobile Key To Agency Growth

New research from Ernst & Young indicates that 88% of TV viewers say they multitask with a computer while watching TV. And nearly half of viewers say they are on their mobile phone while watching TV.

In a panel discussion in New York Tuesday put on by Ernst & Young to discuss its research, Interpublic Group CEO Michael Roth mused: “Our lives are blurring from a device standpoint.”

For clients, that’s both a blessing and a curse, he said, noting that commercials “give you a break” from watching content, and that allows viewers to check emails or go online to view content that may or may not be related to the TV programming.

The challenge for advertisers and agencies, he added, is to make commercials that engage viewers so they don’t completely disengage with the TV set.

Mobile technology, said Roth, is key to the company’s future growth -- given that in many markets, mobile has bypassed other technologies to become the primary communications means for consumers. “We’re getting double-digit growth in emerging markets” like China and Brazil, said Roth, adding that those growth rates will continue.

Smartphones will be the core device that integrates other forms of communications, he said, adding that consumers are using smartphones more frequently to access the Internet than computers.

But there’s a “disconnect,” said Roth, between the amount of mobile usage -- which is soaring -- and ad spending in the space, which is lagging. He likened it to the same gap that occurred when Internet usage first took off a decade ago. It took a while for advertisers to shift significant amounts of money from traditional media, which was being used less, to digital. Just as that gap has narrowed, so will the gap that now exists on the mobile front between consumer usage and ad spending.

The Ernst research also found that the average home in the U.S. now has four devices connected to the Internet, an average that will likely climb half again in just two to three years.

Michael Fries, president and CEO of cable company Liberty Global, responded that the more devices households have connected to the Internet the better -- at least for his business. "I want 10 devices in the home because [consumers will] need a bigger pipe," to connect to the Web. He predicted that in three years' time, providing subscribers with Internet connections will constitute 40% of Liberty's revenues.

~Steve McClellan - OMD

Social Media Chatter Ups Live TV Stats

Rather than cannibalize “old media,” some online activities can actually boost viewership. In particular, new research shows that social media can significantly increase consumers’ TV time.
    
A majority (58%) of heavy engagers -- i.e., consumers who share related thoughts via social networks at least 10 times a week -- report watching more live TV, according to a iModerate Research Technologies study.

Adam Rossow, vice president of marketing at iModerate, says there are several reasons for the synergy. “The respondents in this study consistently remarked that it makes TV more fun,” he said.

There is also “the desire to keep up with the conversation” -- especially if and when someone becomes recognized as an online authority on a particular show or genre. 

An increasingly number of viewers also "love the social interaction and frequently add shows to their viewing lineup due to social chatter,” Rossow notes. “That adds up to more time spent on social networks and more hours watching television.”

Among some 150 males and females who engage in what Rossow calls “social TV” at least once a week -- the emerging behavior has also made these viewers into more active consumers and influencers.

To that end, one-third of respondents said their primary reason for engaging in social TV was either to give feedback to the television network or show support for their television program.

What sort of consumers are participating in social TV? iModerate found three specific types, which it groups as “The Spots Nut,” “The Extrovert” and “The Girlfriend.”

Sports nuts are 25-54 males that partake in social TV primarily for “big games.” They post more than five times a week on social media and enjoy debating sports, talking trash, celebrating and venting about their teams and showing off their sports knowledge.

Extroverts are 18-34 year-old males who have a vast network of virtual and personal friends. They make new friends online in chat rooms. By posting about social TV, they consider social friends to be “real” friends.

Finally, “the girlfriend” is a 25-44 female who mainly engages in social TV while watching dramas and reality shows. According to iModerate, she relates deeply to her favorite shows and looks forward to the “girls’ night out” aspect of interacting with them through social TV.

The study also found that, beyond giving feedback and supporting their shows, individuals engage in social TV to be relevant and recognized, be part of a community, maintain relationships, and have virtual “hang out time” with friends.

~Gavin O'Malley - OMD (3/21/12)