Top Digital Trends for 2012

A recent report from eMarketer lists trends and projections for digital usage and marketing for the rest of the year. Many of the trends have significant impact on broadcast television and other media, with the top trends revolving around mobile and online video.

The top tends for 2012 compared to the year before in the U.S.:

• Smartphone users will increase from 90 million to 107 million. Market penetration will reach 44% of mobile phone users.
• Adult ereader users will increase from 33 to 46 million. 24% of Internet users will use an ereader.
• Tablet users will grow from 34 to 55 million. Nearly one-out-of-four Internet users will use a tablet.
• Online video viewers will grow from 158 to 169 million with 71% of Internet users viewing online video
• Mobile video viewers will rise from 45 to 55 million. One-out-of-three online video viewers will watch on a mobile device.
• Online video ad spending will reach $3.1 billion, up from $2.2 billion.

According to eMarketer, video is the fastest-growing segment of online advertising, and for good reason. The amount of online and mobile video content is exploding, and most of this content is supported by some type of video spot -- typically an in-stream ad or overlay.

Further, non-video content is often supported by in-page video ads that expand when the user clicks on them. Video ads are considered more engaging and effective than static banners.

ABC, Nielsen Team To Measure iPad Video Consumption

More big media companies want to determine consumer usage and reach of new digital media platforms.

Now Disney/ABC Television Group has announced an effort with Nielsen to measure video consumption on iPads.

With 55 million different versions of iPads now sold -- and another 3 million new iPads sold in the last few weeks -- the companies say it's important to understand how consumers are using the iPad when watching video.

Nielsen will create a panel by asking 200 people to download a special "meter," which will measure reach, duration, frequency and page views of their iPad apps and Web usage. The opt-in Nielsen iPad panel will aggregate and measure video consumption, app usage and other activity over the course of a year.

The companies believe the study will offer the first view of actual iPad behavior -- as opposed to self-reported data -- along with demographics and other insights.

Disney has been studying consumer tablet behavior for some time, but now wants some deeper data. “Nielsen’s proprietary technology has the potential to deliver unprecedented additional details about consumer viewing patterns,” stated Peter Seymour, executive vice president of strategy and research for Disney Media Networks.

Cheryl Idell, executive vice president at Nielsen, added: “The insight gleaned from this study, using these metering capabilities, is an example of how we meet our commitment to deliver cross-platform understanding to the industry.”

Disney isn't the only media company looking to find deeper analysis. Recently, media agency Group M announced a deal with Nielsen to measure cross-platform -- traditional TV and other digital media -- reach and frequency of Group M clients media campaigns.

Mobile Connected Devices Boosting Sales of Consumer Electronics

The consumer electronics industry will have stronger than anticipated growth in 2011, according to the semi-annual industry forecast released on Monday by the Consumer Electronics Association.

The industry is estimated to surpass $190 billion in overall shipment revenues this year, a growth rate of 5.6 percent, which is higher than the previous projection from January. The U.S. Consumer Electronics Sales and Forecast (July 2011) also projects industry shipments will grow in 2012, reaching an all-time high of $197 billion.

"Innovation continues to drive the electronics industry to record levels, even in the face of declining economic growth overall," said CEA President and CEO Gary Shapiro. "Newer, innovative product categories, like tablets, not only meet consumer demand but also help bolster our industry and strengthen the overall American economy."

CEA expects the surging sales of mobile connected devices to be significant enough to push the overall industry higher than previously projected:

• Tablet computers are projected to grow 157 percent in 2011, with more than 26.5 million units being shipped to dealers and resulting in $14 billion in shipment revenue.
• Smartphone sales will also see major growth this year and will continue to be the primary revenue driver for the industry. Smartphone unit sales will climb an estimated 45 percent and reach more than $23 billion in industry revenue.
• eReader unit sales will double this year, with more than 16.5 million units being shipped, resulting in $1.8 billion in revenue.

"One year ago, tablets were a new and unproven market, and now they, along with other mobile connected devices including smartphones and eReaders, are leading the entire industry to positive growth," said Steve Koenig, CEA's director of industry analysis. "The revenue boost from these innovative products is undeniable as a number of other CE segments are reaching maturity and sales are naturally declining."

CEA estimates 88 percent of U.S. households own at least one digital television. Given this high penetration rate, sales of digital displays are expected to fall this year. However, this category remains an important contributor to the industry's bottom line with 2011 revenues topping $18 billion.

Network-enabled displays, however, are a growth segment, with an estimated 10.4 million network-enabled displays shipping to dealers this year. 3D displays will also see better-than-projected growth as 3D becomes a standard feature in displays and is incorporated into more sets across product lines. An estimated 3.6 million 3DTVs will ship in 2011, up from a projected 1.9 million units in January.

Despite slower display sales, consumers are continuing to upgrade their in-home theater experience, and audio sales are rebounding this year. Soundbars are leading the way with 2.4 million units expected to ship in 2011, an increase of 250 percent from last year.

In-vehicle technology is also poised for a strong year, as technology in new vehicles is resulting in double-digit growth. As consumers seek to integrate existing devices and content into their vehicle, such as Internet radio, automotive entertainment technology revenues are up more than five percent.

Digital cameras will also have a healthy year with unit shipments growing three percent.

(Source: Consumer Electronics Association, 07/18/11)