TV Viewers Statistics
Today, some interesting statistics and observations from online and cross-platform conferences I have been attending lately.
Watching Online Video
65% of people watch TV programming on traditional TV sets only.
29% are cross platform watchers.
6% use the internet only.
Originally scripted content - live or time shifted?
45% Live only
16% After 7 days
19% Within 7 days
20% Within three days
Cross-Platform Viewers - Why do you watch TV on the internet?
71% Missed an episode
38% Less Ads
25% Like to see past episodes
- Americans are consuming more online video content than a year ago.
- Time spend per video has increased because of the availability of more long-form content.
- Most Americans are still watching an overwhelming portion of their video on traditional TV sets.
TV Viewing per Week per Viewer
TV Sets - 36 hours
Online video - 1.6 hours
Online video is still in its infancy.
Advertiser Spending Totals
$81 billion - total dollars spent on traditional TV
$25 billion - Cable
$22.7 billion - Online
Advertising Growth Rates
14.8% - Cable TV (an amazing growth rate)
9.9% - Network TV
5% - Internet Display Ads
2% - Search Advertising
Online Advertising Growth Trends
- Search continues to lead revenue, but display advertising is growing fast.
- This growth is being driven by enhanced banners and video.
- Rich media and banner display advertising grew because companies are now using display advertising to build brand, not just to drive immediate sales.
- The online advertising community is beginning to learn that direct response advertising is not the only way to use banner advertising.
The Role of Behavioral Targeting
- Cookie-based audience buying is the hot new trend in online advertising. New tools have given advertisers the ability to follow potential customers from site to site, and for long periods of time.
- Because of this enhanced tracking ability, advertisers that previously used paid search are switching to banners.
- Advertisers track a specific customer's behavior from site to site, then hit her with the perfect customized display ad at the perfect time. Previously, this was not possible.
Changes in Metrics
- The trend is to kill the click.
- Ad click metrics are becoming a fossil. The feeling is that the click is a crude tool that ignores brand opportunities and is too susceptible to fraud.
- In 2007, a third of internet users had clicked on an ad within the last month. Today, that figure is down 16%.
- 84% of people NEVER clicked on an ad during the previous month.
- Advertisers still long for a more reliable ROI measurement on their campaigns. They want to know more about how the audience interacts with their ads.
- The recession motivated corporate America to really drill down on a tangible ROI. This is a change from year's past.
The Rebirth of Display Advertising
- Content providers have worked hard to build a quantifiable case that display ads are a great way to drive retail sales.
- They have invested boatloads of research money, and done study after study.
- The display ad is being positioned as the next great branding tool.
Advertisers Using Online for Brand Awareness
- Branding is the new holy grail of internet advertising.
- A customer can see the ad, not click and the advertiser still gets value.
- The click has caused advertisers to leave money on the table.
- Agencies are making headway in convincing advertisers that online advertising can be powerfully effective WITHOUT a click.
The Unique Opportunity for Cable Companies
The next great opportunity is the building of rich research databases to support continued growth for cross-platform tracking.
The cable companies are scared to fully utilize these tools because it may start a privacy revolt.
In the future, advertising will transition to become less platform-centric, and become more customer lifestyle aware. It will follow you from morning TV, to internet at the office, to the cell phone in the car.
Combining this data with GPS data will mean customers can't hide.
- Cable operators have access to concurrent data for both TV viewing and internet activity. It is possible to follow customers from the TV set, to the internet, and in some cases, to the phone as well.
Graeme Newell works for 602 Communications as a broadcast and cable marketing consultant. He specializes in emotional marketing. He guarantees that his teasing seminar will immediately increase your news ratings or his workshop is free. Find out more here.
Article by Graeme Newell