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:
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.
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.
2. High-quality content is also the key to ad engagement: The quality of ad content is vital to driving ad recall. Of respondents:
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.
4. Consumers will pay for archive content, but this demands that producers create effective metadata strategies.
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.
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
Enjoying show and want to watch through ad break
Doesn’t seem worth changing channel
Find the advertising entertaining
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:
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)
Approximate % of Respondents
Trailers for new shows on TV
Reviews in magazines/newspapers
Recommendations on social networks
Recommendations from video sites
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.
The report concludes by noting that quality content reigns supreme among other conditions:
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.