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Consumer TV Viewing Trends
by Jack Loechner, Wednesday, November 13, 2013 6:15 AM
According to a joint study by Ovum and Avid, 71.5% of broadcast and studio executives believe that over 11% of average audience viewing time will be delivered by web services by 2017. More
than a quarter of all respondents (consumers) predict that over 30% of audience viewing time will be delivered by web services in 2017, an increase of almost 10 times in just four years on
rates seen in the US and Western Europe today. Broadcast and studio executives see these new web-delivered services as revenue drivers, with 91% of respondents citing multi-screen delivery as a
key source of growth. A second study surveyed consumers directly to identify patterns of consumer activity and their impact on monetization models for premium video content. The web
based survey of 3,011 consumers across the US, UK, Germany, and Brazil, seeks to better understand issues such as:
- How are consumers discovering new shows, and is there any
difference in viewing platform between discovery, engagement, and loyal viewing?
- With multi-platform delivery options, is media viewing becoming more personal, more social, or a
combination?
- What motivates consumers to purchase content?
- How are consumers using VoD and digital video recorder (DVR) technologies, and what is the impact on ad viewership
and attitudes toward advertising?
The paper reports on the results of this second phase of research and provides five key insights for media professionals into viewing
behavior and monetization in a world of digitization and consumer control. Research highlights: 1. In a rapidly evolving market where significant time and effort goes into
developing new ways to approach audiences, the strongest driver of audience engagement is still high-quality content with outstanding image and audio rendering.
- Of
respondents, 65% identified the visual and audio experience as a key driver of enjoyment.
- 66% watch ads if both the editorial content and the advertising content are high
quality.
2. High-quality content is also the key to ad engagement: The quality of ad content is vital to driving ad recall. Of respondents:
- 47% recall ads because
they are funny
- 32% recall an ad because they found the story engaging
- 31% recall ads that have well-developed characters
3. Delivering shows via online,
social, and mobile platforms not only allows consumers to personalize their viewing experience, but also lets broadcasters move audiences to the platform that maximizes the value of media
assets.
- Of consumers in this research, 14% are already testing out new shows on laptops, tablets or smartphones, while 30% are returning to appointment-based viewing once they
have become fans.
4. Consumers will pay for archive content, but this demands that producers create effective metadata strategies.
- Of consumers, 37% are
prepared to pay for old episodes of their favorite shows when offered in context, which is more than are prepared to pay a premium for news or scheduled entertainment content such as
scripted or non-scripted reality.
- However, thought phase 1 of the research showed that while media producers could monetize as much as 33% of their archives to take advantage of
those opportunities, most of that archived material is currently inaccessible.
5. Mass media events are increasingly experienced on the second screen. This emergence of the
"digital water cooler" requires high-level, end-to-end workflows with an integrated capability to publish to second-screen web services.
- While watching the Olympics on TV, 63%
of consumers with a PC, tablet, or smartphone were simultaneously looking at other scores or match information.
The study asked why audiences continue to watch TV ads, when
there are so many opportunities to skip ads, change channel, or simply do something else on the second screen. Split by genre, high levels of engagement with sports and movies
keeps audiences watching throughout the ad break. For kids and reality/entertainment, passive viewing habits are relatively more important. Across all genres, the quality of both the
editorial content and the ad content is vital in driving engagement.
Audience Reasons
For Watching TV Ads Watch ReasonGenreEnjoying show and want to watch through ad breakDoesn’t seem worth
changing channelFind the advertising entertaining Movies 29.8% 18.7% 7.2% Sports 24.4 13.0 7.2 Drama
23.4 18.9 7.7
Entertainment/Reality 18.9 18.1 8.7
Kids 13.6 9.4 8.9
Source: Ovum/Avid, November 2013 Broadcasters, ad producers, and creative agencies will all play a
symbiotic role in maintaining and growing audience engagement with TV ads. They must deliver high-quality inspirational content that delivers an appealing visual and audio experience, as
well as great characters, a great narrative, and – importantly for ads – delivering comedy. What audiences enjoyed about the last ad they thought was memorable. Responses in
order of importance ranging from about 48% of the respondents almost linearly down to just under 10% of respondents considered most memorable:
- Ad was funny… about 48% of
respondents
- Like story in ad
- Liked characters in ad
- Liked music in ad
- Amazing visuals
- Ad was informative
- Liked product
- Liked
celebrity
- Thought ad was moving… about 9% of respondents
In order to understand the patterns of content discovery, experimentation, and fan engagement in the
context of the growing use of social media, on-demand services, and the DVR, the data shows that across all respondents, TV-based promotion is still the best way to market TV shows. 39% of all
respondents say that their most common way to discover new shows is from trailers, and 21% from channel surfing.
How Audiences Are Discovering New TV Shows (all age groups)
DiscoveryApproximate % of Respondents Trailers for new shows on TV 39%
Channel surfing 21 Friends recommendations 17 Reviews in magazines/newspapers 9
Recommendations on social networks 6 Recommendations from video sites 4 Billboards/Outdoor advertising 2
Source: Ovum/Avid, November 2013 It is a logical, but under-examined behavioral assumption, says the report, that if audiences become fans of a
new show they discover online, they will then want to view future episodes as soon as they become available, leading to a rise in appointment-based viewing. The study finds that
the percentage of respondents making sure they are in front of the TV increases for a show for which they have become a fan. It may seem counter-intuitive, but in the new TV market, driving
users to DVR content is an important content marketing strategy to drive growth as well.
- Try to make sure I’m
home 29.8%
- Record episodes ‘til I can watch 29.2%
The report concludes by
noting that quality content reigns supreme among other conditions:
- High quality, inspiring content will drive audiences to view, engage, and purchase. It is also vital for
advertisers to grasp the critical importance of delivering similarly high quality, inspiring advertising content. Of consumers, 66% will watch advertising, regardless of the technology they
have to ad skip or alternative screens they have to look at, if both the editorial content and the advertising content is engaging and delivers a great audio visual experience
- It may
seem a paradox, says the report, but giving audiences the opportunity to catch up on and discover new shows on-demand can drive appointment-based viewing. Multi-platform web video
services, whether delivered via subscription VoD or catch-up models, create the opportunity for audiences to experiment with new shows at their own convenience
- How audiences are
discovering content is also changing, with social media becoming an increasingly important discovery channel for new shows, particularly for youth audience segments
- More than one-third
of consumers said they would pay for archive episodes of their favorite shows. However, their willingness to both view and pay is highly dependent not just on the personal preference and
profile, but also on context
- Broadcast audiences continue to value major mass media events such as the Olympics or Soccer World Cup, but the way audiences are experiencing these events
is ever more personal and socially connected. While watching the Olympics on TV, 63% of consumers with a PC, tablet, or smartphone were simultaneously looking at other scores or match
information
It is becoming vital for live broadcasters to deliver content to the second screen that can exploit the additional engagement potential of these devices, though this
creates additional production and publishing complexity. It is also important, concludes the report, that publishers can quickly respond to the unpredictable ways that socially connected
audiences engage with live content. For
additional information and access to the
PDF file, please visit here.