If Online TV Provider Satisfies, Cable Gets Cut

According to a recent Adroit Digital study about how viewers approach video consumption and their thoughts on video advertising, 63% of the respondents said that if an online provider could satisfy their broadcast TV viewing needs, they would cancel their cable subscription. Men are more likely to cut the cord than women; 67% compared to 57% respectively. 66% of 18–24-year-olds would cut the cable. This number decreases with those 45 and over at 51%.

The study was fielded from April 17 through April 21, 2014. targeting U.S. consumers 18 years of age or older and owning a television, smartphone, and personal computer or laptop. The study garnered 2,000 completed surveys.

A Summary of Major Findings in the Report:

  • 68% of all viewers surveyed are consuming video content from YouTube; 51% from live television broadcasts, and 49% from Netflix. Women are bigger Netflix viewers than men, 56% to 43% respectively.
  • 69% of men believe their TV is becoming more like a monitor for self-selected programming compared to 51% of women. 63% of those 18–24 believe the same.  Only in the 45+ age group that the minority, 47%, holds this belief.
  • 36% of all respondents indicated that more than half of their video consumption is on-demand as opposed to live broadcast. 13% of all respondents watch more than 75% of their video content on-demand. 35% of 18–24-year-olds, and 32% of those 45 and over, are consuming more than half of their video consumption from an on-demand source.
  • 28% of respondents indicated they consume 15 or more hours of streaming video content through a game console or web TV device weekly. Among those watching 15 hours or more of streaming video content per week, ages 35–44 are the largest consumers of streamed video at 33%.
  • 68% of respondents would be more influenced by a short video than a text-based ad when seeking new product information. 70% of men, 64% of women, 72% of those 18–24, and 62% of those 45 and over, would be more influenced by a short video compared to static or text-based of content.
  • 51% of all respondents indicated when watching a 30-minute recorded or on-demand program that they are more likely to watch the entire program including commercials than not.
  • 56% of all respondents indicated they skip online video ads most of the time. 24% let the online video ad content determine if they would skip the ad.
  • 75% of the respondents indicated that there is someone else in their home accessing video content at the same time they are via different devices often times or sometimes. 30% indicated others viewing at the same time they are.

Study Demogaphics

Gender

% of Category

   Female

43%

   Male

57%

Age

   18-24

34%

   25-34

37

   35-44

15

   45+

14

Source: Adroit Digital Study, June 2014

28% of respondents indicated they consume fifteen or more hours a week of streaming video content through a game console or web TV device. Men are more likely than women to consume between five and fifteen hours weekly of streaming content, 38% to 35% respectively.

Among those watching 15 hours or more of streaming video by age group, those ages 35–44 are the largest weekly consumers of streamed video at 33%. Both the youngest respondents, ages 18–24, and the oldest respondents, age 45 and over, fell on the lower end of the power-watcher scale at 24% each.

Hours Spent Per Week Consuming Online Or Streamed Video Content Through A Game Console Or Web TV Device (Apple, Roku, Chromecast) 

Hours Spent Watching

% of Respondents

0–5 Hours

35%

5–15

37%

   Men 

38

   Women 

35

15–30

17%

   18-24

24

   35-44

33

30+

11%

Source: Adroit Digital Study, June 2014

68% of all viewers surveyed are consuming video content from YouTube; 51% are consuming video content from live television broadcasts; and 49% are consuming video content from Netflix. Women are heavier viewers of Netflix, 56% compared to 43% of men. Women more than men are also using DVRs as a video content source, 32% to 28% respectively. 

Sources From Which Video Content Consumed

Source

% of Respondents

Netflix

49%

Web enabled device (Apple TV, Chromecast, Roku, game console)

25

Other online streaming source

22

YouTube

68

Live television

51

DVR

30

 Source: Adroit Digital Study, June 2014

The  survey respondents indicated a fairly even spread across how long varying lengths of video content hold their attention. The majority of all respondents were split into thirds across categories from 1 minute to more than 30 minutes. 10%, stop viewing in less than one minute.

18–24-year-olds indicated the greatest likelihood to tune out in under sixty seconds at 16%. This number drops to 5% in those 35 years of age and older. Those respondents 35–44 seem to have the greatest interest in staying tuned in. 35% of this group indicated they will watch a single piece of video content for more than 30 minutes.

Average Time Spent Watching Any One Piece Of Video Content

  • Less than 1 minute, (10%)
  • 1 to 10 minutes, (30%)
  • 10 to 30 minutes, (30%)
  • More than 30 minutes, (30%)

Source: Adroit Digital Study, June 2014

When asked in which content category our respondents were, there doesn’t appear to be a clear-cut content champion. The top categories for those most likely to respond to an online video ad are health and fitness, 35%; tied for the second spot are sports and outdoors along with news and current events, 33%; and third, fashion and beauty, 32%.

Top Categories For Most Likely To Respond To An Online Video Ad Across The Sexes And Ages Are:

  • Men, sports and outdoors, (41%);
  • Women, fashion and beauty, (45%);
  • 18–24, sports and outdoors, (36%);
  • 25–34, health and fitness, (39%)
  • 35–44 and 45 and older, it is news and current events, at 41% and 42% respectively.

Source: Adroit Digital Study, June 2014

It’s clear the way viewers are consuming video content is shifting quickly, concludes the report. The phrase “video content” is a strong indication the worlds of online, broadcast, and cable TV are on a collision course. What traditionally has been thought of as programming is now just another form of digital content, says the report.

Currently, US advertisers are spending in excess of $65 billion annually on television advertising. For brands, television advertising is a tried and true formula for reaching consumers with a known and trusted measurement system established over decades. In the digital world, it has taken online advertisers slightly over a decade to effectively market, sell, and measure digital ads to secure digital dollars with a system that brands understand and accept. It’s inevitable there will be dollars traditionally spent on broadcast and cable that will transition to digital dollars for video content, opines the report.

For additional information, please visit Adroit Digital here.

 

 

 

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