For the first time since being tracked, digital media -- including online, social and mobile -- has approached parity with television as the most important medium among agency executives, according to the latest quarterly survey from Strata, the media data processing provider that services roughly half of all U.S. ad agencies. Asked what their No. 1 medium of choice was during the third quarter of 2011, 34% of agency executives cited digital, only one point lower than the 35% who cited local TV. That's the closest point of parity in the three years since Strata began querying its agency clients on the dominance of various media in their workflow and budgeting, and represents a 43% leap from the second quarter of 2011. The findings, which are based on a segment of more than 900 agencies that process about $50 billion worth of media through Strata’s systems, also reflect the rapid decline in the importance of television over the past three years, along with other traditional media, as agencies and clients refocus their energies on digital media matters and workflow. In fact, the survey indicates that digital may be at the tipping point of overtaking all other media in terms of importance, especially if the economy becomes any more unstable. While the third-quarter survey indicated that advertising budgets remain relatively stable and continue to grow overall, the agency respondents said print (52%) and local TV (24%) are the media most likely to take a hit by ad spending cuts. While the executives said their advertising plans currently remain stable, most said they don’t expect the marketplace to gain strength until after 2012, and that TV-centric categories such as automotive and entertainment are the categories asking to cut ad spending the most, according to 30% and 21% of respondents, respectively. “The economy is forcing many advertisers to look for more affordable ad avenues -- i.e., digital and radio,” said Strata President John Shelton, adding: “But it’s also important to note that digital has become much more valuable and accepted by C-level employees in recent years.” That is clearly reflected in Strata’s tracking data, which show a steady growth in the Internet, while spot TV has steadily decreased over the past 12 quarters, according to Shelton. “There hasn’t been a huge disparity between digital and TV since Strata started the survey in 2008, but the margin has steadily decreased quarter over quarter, he said, noting that “in 2008, 60% of respondents indicated that TV was a top focus, with digital at 12%." The data indicate that social and mobile are boosting the overall role of digital in agency and client organizations. Nearly nine out of 10 (89%) of respondents indicated that they would use Facebook in their campaigns during the third quarter, up 10% from the second quarter. And for the first time, YouTube (39%) was the No. 2 most desirable social medium for campaigns, surpassing Twitter (37%). Google+ is still on the outside looking in, with only 14% planning to use it during the third quarter, down 47% from the second quarter. LinkedIn was a strong No. 4 in social media choices at 22%. The iPhone and Apple’s iAds platform continued to be the market leader in mobile advertising perceptions, with 78% of respondents noting it is the device their clients are most interested in advertising on, although that is down 10% from the second quarter. Google’s Android platform, however, is closing the gap at 54%, up 7% from a year earlier. The iPad remains a strong platform among tablets at 46%, up 85% from last year. “With Amazon and Apple continuing to focus on content for tablets, 69% say that focus will make this medium more attractive to advertisers,” the Strata report noted. Despite these trends, the Strata respondents were mixed on the long-term dominance of digital vs. “traditional” media. While one-fifth said they anticipate spending more on digital than traditional media within “one to three years,” more than a third (36%) said digital will never dominate their advertising budgets. Those perceptions of ad agency executives no doubt are colored by the sentiment of their clients. Only 56% of the agency execs said they believe their clients “understand the value” in digital, while 44% said they don’t see the value.
Fueled by ubiquitous access across digital media platforms, time-shifted viewing of television programing has surged 11% among all TV households since the second quarter of 2010, according to the latest installment of the so-called “Cross-Platform Report” being released to clients by Nielsen today. Nielsen said the increase was due mainly to an increase in the penetration of digital video recorders, which jumped 13% from last year, and now stands at 39% of U.S. TV households. “Americans 25-64 spend the most time watching time-shifted content, but Americans 65+ and kids 2-11 are catching up, with heightened growth in time spent in recent quarters,” Nielsen reports, adding, “Both groups experienced double-digit growth in time spent over last year, while those middle demographics remained relatively the same. White consumers are the most likely to have a DVR and, compared to all DVR households, time-shift more content than other ethnicities.” The report also shows that Americans are not simply time-shifting TV viewing, but increasingly are place-shifting it as well. “From the bed to the bus, the living room to the laundry room, consumers are embracing all the various video platforms available to them,” the report states, noting that nearly half (48%) of Americans now watch video online, compared to 10% for mobile and 97% for traditional TV. “Mobile subscribers watching video on their phone increased approximately 36% since the second quarter of 2010, and watching video on the Internet continued to flourish,” the report notes, adding, “Even with already pervasive usage levels, traditional TV viewing saw an increase of 2 hours 43 minutes per month.”
Even with more media choices, the average American continues to watch more TV. A new Nielsen report shows that in the April-July period, the average person watched nearly 2 hours and 45 minutes more a month than in the same period a year ago. That marked a rise of about 2% to an average of 146 hours and 20 minutes a month. Surprisingly, however, the amount of DVR-playback viewing barely rose. Among those in homes with a DVR, they watched on average about 24.5 hours a month via time-shifting, up just 0.1%. Nielsen says 39% of TV homes now have a DVR (45.3 million). In the second quarter, the amount of online video viewing rose by 14.7% to an average of nearly 4 and a half minutes. Viewing on mobile devices also increased substantially to an average of 4 hours and 20 minutes, up 19.8%. About half (48%) of Americans now watch at least some video online and 10% do so on mobile. Older viewers continue to watch significantly more TV than their younger counterparts. One snapshot has the amount at nearly double in an average week. Americans ages 65-plus watched an average of 46 hours and 16 minutes of TV a week, compared to 24 hours and 17 minutes for those ages 18 to 24. The percentage of homes paying for TV service held steady at about 90%, although there was some reshuffling with the number who subscribe to telco TV service up, along with satellite service, while cable declined. Nielsen says 72% of homes have both a pay-TV and broadband subscription.
Although the local TV ad marketplace is changing, TV stations' advertising efforts continue to compete aggressively with new local cable TV advertising alliances. The latest one adds local TV ad avails from satellite and telco TV services. A competitive presentation from the TVB, TV stations' main advertising group, says one cable industry's new plan, "I+" -- from the big local cable advertising sales group NCC Media, which is owned by big cable operators Comcast, Cox Communications, and Time Warner Cable -- doesn't change things much. The "I+" plan -- which describes the first letter of advertising "Interconnects," market-wide systems that sell cable advertising around the country -- was announced this past spring and will roll out fully in 2012. In the 56 markets where there are cable interconnects, the TVB says the overall average TV market penetration will rise to 67.2% from 51.5%. Still, that is nowhere near the 100% coverage that TV broadcast stations have in individual markets. In the 56 markets where "I+" goes head to head with TV stations, there are 76.8 million overall TV homes. Cable interconnects reach 39.6 million homes in those markets. The TVB says coverage from new DirecTV and telco TV services adds in 12 million homes, which brings total "I+" to 51.6 million homes. While this is an "improvement" for local cable, says the TVB, it isn't a "game changer." That's because 32.8%, or 25.1 million homes, are still not reached -- unlike broadcast stations, which reach 100% of the TV homes. The TVB says the "I+" plan is different in each market. For example, two markets add Verizon's FiOS, DirecTV, and AT&T's U-Verse TV homes; four markets factor in FiOS and DirecTV; and 11 markets include U-Verse and DirecTV. Plus, DirecTV is only adding in 23 channels for local cable advertising insertion. Presently, most cable interconnects allow local TV advertisers to buy into anywhere from 45 to 70 cable networks. Andrew Capone, senior vice president of marketing and business development for NCC Media, did not dispute most of the TVB data. But he says much of the "I+" plan came from the marketplace, "based on what Madison Avenue needed and wanted -- more impressions in cable programming in local markets." "Every spot sold will be sold on actual impressions and coverage in each network. We expect more markets and networks over successive years, based on demand," he adds. Regarding the overall TVB competitive stance, the TVB should alter its position, says Capone. (The TVB now bills itself as one for providing "local media marketing solutions.") "[The] TVB in general should be focused on generating favorable impressions and more business for all of local TV, of which cable is now a critical component." "Cable MSO's [multiple system operators] are now number 1, 2 or 3 in revenue in many major markets. And cable programming is the only positive reach and ratings story in local TV, " he adds, "versus the steadily declining net weekly circulation of many TV stations."
Media General's broadcast revenues were hit by lower advertising sales in the third quarter. Marshall N. Morton, president and chief executive officer of Media General, said the global markets, uncertainty in the government's plan domestically "and a downward turn in the economy all contributed to a further softening of the advertising market." Total revenues sank 11.4% to $144.7 million. Taking out political advertising, broadcast revenues for the quarter decreased 2.4%. But advertising improvement is coming, per the company, which said the pace of fourth-quarter broadcasting business is up 9% to 11% ahead of last year (excluding political advertising). Next year Media General expects better advertising results, with the Summer Olympics and the Super Bowl on eight NBC stations. Digital businesses were the silver lining for the company --- with local media Web sites getting more than $8 million in revenues, a 13% hike, and $1 million in cash flow. Overall, Media General had operating income of $5.7 million versus $11.5 million in the 2010 third quarter. Its net loss of $29.8 million widened in the period, partly due to a non-cash impairment of $26.6 million. This was compared with a net loss of $10.7 million.
Veteran research executive Stacey Schulman is leaving her senior role at Turner, overseeing research in the animation, sports and digital content areas. She joined the company four years ago, having spent many years at Initiative and an Interpublic corporate group. The move comes amid a restructuring in the Turner sales group, with Gregg Liebman getting a notable increase in responsibility, according to an internal memo from Turner’s Chief Research Officer Jack Wakshlag. Liebman becomes senior vice president of ad sales and sports research for Turner. He will oversee research operations across all content areas for TV and digital, including Cartoon Network, CNN and the entertainment networks. Reporting to him will be a research chief for all individual ad sales and sports units. The move “increases our organizational effectiveness by leveraging natural and complementary business synergies,” Wakshlag wrote. Liebman had headed ad sales research at CNN. Wakshlag added that Schulman, senior vice president entertainment ad sales and sports research, has opted to leave. “I respect and accept Stacey's choice, and thank her for the leadership, drive for excellence and creativity she has shown as part of our team." Schulman spent four-plus years as executive vice president of research at Initiative until 2006, and then led the Consumer Experience Practice at Interpublic. Liebman joined Turner Broadcasting in 2004 after his time at Zenith Optimedia and Saatchi & Saatchi.
The hotly anticipated return of AMC’s “Walking Dead” TV series this week not only won in the traditional ratings but also scored a record high in mobile entertainment check-in service GetGlue. Entertainment fans and members of the social network check-in to share what they are watching or reading. For the evening of its premiere, Oct. 16, "Walking Dead" generated 42,930, the highest single-evening total for a show GetGlue has ever recorded. The social network reports that 20,000 of these members checked in during the first 20 minutes of the show. Through the week, “Walking Dead" accrued 67,449 check-ins. The social buzz for the show on GetGlue has increased exponentially since its previous season. The sixth and final episode of the show that aired last December had 6,252 check-ins. While “Walking Dead” dominated GetGlue on the night of its premiere, it still trails check-in leader "Big Bang Theory." According to the company’s weekly chart of most popular shows on the network, the CBS nerd comedy had 81,973 check-ins for the week of Oct. 10-16. AMC’s hit series took the number two spot, but the new FX cable series “American Horror Story” was third, trailing by a large margin with 33,672 check-ins. In addition to sharing comments about their tastes on GetGlue, members also gain badges for their loyalty to certain brands. The cable and small networks actually fare better in the GetGlue charts, as the social connectivity of the service maps best against series with strong fan bases and cult followings. Shows such as “Dexter,” “Vampire Diaries” and “Supernatural” tend to chart well. While CBS’ “Big Bang” sitcom may lead the chart, Fox’s “Fringe,” (28,205 check-ins), NBC’s “Community” (20,485 check-ins) and ABC’s “Modern Family” (20,251) are the only other major network shows in the mix.
According to new consumer research from Leichtman Research Group, about 44% of American TV households now have at least one digital video recorder, up from 8% in 2005, and 62% digital cable subscribers now use video-on-demand at least monthly versus 52% a year ago. However, about 90% of all TV viewing in the U.S. is still via live TV, says the report. In addition, 73% of all digital cable subscribers have ever used Video on-Demand, with 87% of this group having watched an on-Demand program or movie in the past month. Overall, about 62% of digital cable subscribers used on-Demand in the past month, compared to 52% last year. Additional significant findings show that:
CIMM is taking a pro-active role in advancing new media nomenclature and processes with both itsLexicon (terms and definitions associated with Set-Top Box data measurement) and Asset Identification Primer (glossary of asset terms). These documents form the basis for this column, which offers a common language for Set-Top Box nomenclature that can expedite the roll-out of the data for its many industry applications. The past few columns have explored the range of common terms and common language between the current media marketplace and the emerging STB and Addressable marketplace. This week we look at a range of terms and definitions all related to purchasing that refer to similar behaviors but might have dissimilar definitions, measurement criteria or applications. In this landscape you need to pack a Lexicon so you don’t get lost. BuySee also: Order CIMM DEFINITION : Reserved for future potential e-commerce use in On-Demand (e.g., purchase DVD or soundtrack to movie just viewed). 2: An advertiser / agency media schedule purchase. OrderSee also: Buy CIMM DEFINITION : In Video On-Demand, Order starts playback for transaction-oriented pay content. Shopping Cart CIMM DEFINITION : Saves content to a list for later purchase. Purchase Data CIMM DEFINITION : The information collected about consumer spending habits, often in dollars, used to help track ROI and advertising campaign efficiency and success. Please refer to the CIMM Lexicon online at http://www.cimm-us.org/lexicon.htm for additional information on these and other terms.
New political or social movements have brand names that pull in some emotional value on TV. But what about specifics? That's elusive -- and probably should stay that way for short-term or mid-term success. The "Occupy Wall Street" movement has gained a lot of TV exposure. As usual, it comes from news coverage and virtually no paid messaging (though the movement now has some nice retro-looking, movie-like key art). Many disagree about comparisons with a recent and earlier popular movement: the Tea Party, which is more structured, perhaps with bigger coffers of money and a more specific agenda. Both come to the TV screen not necessarily with all the answers -- and, perhaps more importantly, not with designated leaders. In some way, that's how to build a political or social brand on television: offer more emotional connections and let supporters build in their hopes, dreams and icons. That makes sense, since such recent movements attempt to deviate from the structural hierarchy that comes with older institutions -- Democrat, Republican or otherwise. "Occupy" has a sub-brand, "99%" -- the reference to U.S. citizens who aren't part of the super rich. Some people say this sub-brand also means "Anti-Business." Some say the Tea Party's sub-brand is "Anti-Government.". Still, such designations aren’t always clear. One Tea Party bigwig, Mark Meckler, said on Fox News Wednesday, that party proponents "love the system of government." Hmm... not exactly. No doubt Occupiers have conflicts as well. The media focus has shown the fringes: not all Occupiers are airhead hippies; not all Tea Partiers are conservative, self-absorbed witless snobs. Still, you can come to some obvious, easily digestible conclusions from the TV exposure. Fox News' Neil Cavuto says one thing comes across from virtually all media coverage for sure: both Tea Party and Occupy supporters are pissed off. Brand messaging takeaway: The government system, in its current form, doesn't work.
Facebook just announced some sweeping changes, among them “frictionless” sharing for viewers of Hulu and Netflix. Once you install these apps on your Facebook page, anything you watch on those services is automatically shared on your real-time ticker, e.g. “Sean is watching 30 Rock on Hulu.” Friends can click through to watch the same episode with you, and chat live on Facebook while you watch. This is a massive leap forward in the concept of “social TV” -- or is it? It depends on your definition of “social TV.” From a “social as sharing” standpoint this will certainly be huge. But will this affect consumers’ linear TV consumption and will these sharing features lead to a rise in non-linear co-viewing? Both are unclear. Here’s our view - if serendipity strikes, a friend out of however-many-you-have on Facebook may choose to watch and chat about that same episode of “30 Rock” on Hulu with you at that very moment. What are the odds? At best, this is a “micro-social” TV experience. The big, proven potential of social TV still lies with linear TV, where there is an opportunity to create social television experiences among large groups of people. Linear TV still dominates viewing consumption. Nielsen says the average American consumes 35+ hours of linear TV per week compared to 2 hours 25 minutes of time-shifted TV and 33 minutes of video on the web. Every marketer will agree that linear TV is unique in its ability to attract large and sustained audiences. And with social media, linear TV has gotten even more engaging. Today more than two-thirds of viewers are on a “second screen” while watching TV. Over the last several years, social media has created a new shared viewing experience, cultivating passionate audiences for shows like Glee and True Blood and driving viewership for events like the MTV Video Music Awards and The Oscars. Deloitte predicts that more than 1 billion TV-related tweets will be sent in 2011 - you’re missing half the fun if you’re not engaging on two screens. This is significant for networks and marketers because people watching linear TV and using social media are highly engaged viewers. The more they share via social networks, the more they influence their social graph, potentially driving tune-in and ratings. Socially engaged viewers are powerful influencers. We believe that fostering social experiences around linear TV provides the greatest benefits to the television audience, networks and marketers.