Multiple Devices Fragment Brand, Consumer Relationships

Collage-Phone-Laptop-Tablets-AA change in consumer behavior continues to fragment the advertising industry, challenging brands, agencies, content marketers and application developers to capture consumers' attention.

If more than 80% of overall respondents to a recent study multitask online while watching TV, how much time do consumers spend with each bite of content, and what does the distraction take from advertisers trying to connect? The Deloitte report, State of the Media Democracy, released Wednesday explores changing trends across a variety of generations, consumption patterns on devices, and the influence of advertising.

The report focuses on four generations and five distinct age groups, providing insight into how consumers ages 14 and older interact with media, products and services, mobile technologies, the Internet, attitudes and behaviors toward advertising and social networks -- and what future preferences.

Overall, the increase of multiple media continues to have less influence on consumers, according to Gerald Belson, Deloitte vice chairman and U.S. Media and Entertainment. While video influences consumers the most when considering making a purchase -- up more than 20% -- banner and search advertising continue to decline. Less than 50% now find paid search influential when making a decision, down from about 60% during the past three years.

Despite the onslaught of new media and devices hitting the market, consumers still appreciate the most basic service. Some 93% of Americans rank Internet access as the most valued household subscription, attributed to the multiple WiFi devices that now exist in the home. Gaming consoles have become the most preferred method for Americans to connect their TV to the Internet.

About 59% of all respondents said they would pay more for faster Internet service, compared with about 70% of tablet owners.

Tablet ownership rose 177% during the past year, with nearly a third of tablet owners saying it is now one of their top three most preferred consumer electronic devices. Some 26% of the U.S. population own a laptop, a smartphone and a tablet.

More than 80% of consumers are multitasking while watching TV, whether watching movies or broadcast television. More people prefer to rent movies versus owning them. Tablet owners stream movies 70% more often than non-tablet owners and intend to watch movies more than any other content in the next 12 months. And 2 to 1 of consumers would rather rent than buy content such as movies.

7 comments about "Multiple Devices Fragment Brand, Consumer Relationships".
Check to receive email when comments are posted.
  1. Henry Blaufox from Dragon360, March 21, 2013 at 11:51 a.m.

    "80% of consumers multitask while watching TV..." So what else is new? Remember when your mother yelled not to watch TV while doing your home work? How many times have we told our kids the same thing?

  2. John Grono from GAP Research, March 21, 2013 at 3:41 p.m.

    While "80% of consumers multitask while watching TV" MAY be true, it all depends on how the question is asked ... "Have you ever multitasked while watching TV?" ... "well of course I have Mr. Researcher". So, do NOT interpret this to mean that "80% of the time that consumers watch TV they multitask" unless specific recency and frequency data to support that is also furnished.

  3. Michael Natale from MCM Media Sales, March 21, 2013 at 3:46 p.m.

    You're right, they actually multitask 90% of the time while watching tv. Traditional ad model is done, spend more and get less is the new advertising model.

  4. John Grono from GAP Research, March 21, 2013 at 4:30 p.m.

    Michael, people have ALWAYS 'multi-tasked' while watching TV. Sure they are doing it on communicable devices now which is a game-changer. SOME people may have their iPad or smartphone with them when they watch SOME programmes on TV, but to say that they do it every minute of every occasion that they watch TV is delusional (fact: the device penetration is not even that high). And a question Michael, in your opinion does TV or radio have a higher rate of multi-tasking, because I seem to recall the high incidence of at-work and in-car radio listening.

  5. Michael Natale from MCM Media Sales, March 21, 2013 at 4:56 p.m.

    Of course they have and now there are 10x the distractions John. Secondly, who in their right mind listens to traditional radio anymore and if they do, who doesn't switch stations when 4 minutes of annoying commercials come on? But, moreover who doesn't have either commercial free satellite radio Pandora, Spotify or use their blue tooth enabled phone to stream their own music?!!! is a Dinosaur John, certainly for the young generation and more and more for older folks, which by the way multitask all the time (younger generation I mean)...if you have kids watch them watch in one hand during content and certainly during commercial breaks. Face it we all like to be connected and commercials are more and more a terrible nuisance as we collectively young and old gain back control of our lives by programming our own content through whatever device we happen to use at the time. And if you extrapolate the affluent audience (who happen to have most of the buying power) traditional tv advertisers have a MUCH more difficult time getting their message across because these folks are wired all the time. John the idea that television advertisers would pay higher cpm premiums year after year for less ratings is ridiculous.

  6. John Grono from GAP Research, March 21, 2013 at 5:55 p.m.

    I agree that kids wtach TV with a phone and a tablet at hand. While I don't have kids I've observed many friends families. But you know the other thing I have noticed? That once they get a little bit older that pattern changes (I'm talking phone not tablet) - and it often coincides with starting their career or relationships. Sure they've changed ... but for ever and a day? If I look for some longitidunial evidence I go back to some number crunching I did in about 1997 regarding 16-24s. The premise was that the Interent would affect TV viewing for 16-24s and they would never be the same again. (I know I'm talking about text-base internet not video-based internet but I'm commenting on the wisdom of the time.) You know what ... that was 15 years ago. They are all now in that 30-49 cohort ... and the TV viewing of that cohort now is basically the same as it was for the 30-49s back in 1997. Yes they changed. No they didn't change for ever appears to be the answer. The jury is out on video-internet and it is a challenge to broadcasters to 'harness their brands' and to deliver on whichever medium works best. But why do TV CPMs keep inflating? Because as media fragments, TV (while each programmes average audience IS declining) offers the biggest fragments. Reach is the name of the game and whilever TV delivers reach more efficiently than other media it will charge a premium (I know I would!). Once TV fails to do that CPMs will be affected.

  7. Michael Natale from MCM Media Sales, March 22, 2013 at 1:37 p.m.

    I know tv still offers the most potential reach (I say potential because advertisers are paying for their spots to be viewed and that is happening less and less based on all we've discussed)'s jsut a tough pill for anyone to swallow to hear they have to pay more for less year after year. We are our own tv networks not John...we program whata we want and when we want and how we want and we don't want commercial interruptions and we certainly lack the patience for them that we once had because we want to take ownership of our time more and more as technology improves our way of life. And the younger gerneation that gets older and will be 30-49 who gre up used to programming their own content will bypass commercials more and more.

Next story loading loading..