Commentary

As Millennials Tune Out, Stream In, Expect Sponsorship To Trump Spots

It's been in the proverbial post for a while but it seems that the way the young and old consume "television" is finally starting to look very different. Ofcom's latest annual research has revealed among 16- to 24-year-olds viewing of traditional, linear television has dropped by a quarter. Of the video and television content viewed by this Millennial age group, just a third is live, linear television, the regulator reveals in its latest research.

It is this age group that is the driving force behind the use streaming services, such as Netflix and Amazon Prime, trebling. The difference between young and old is most noticeable when comparing Millennials, watching just 36% of their television content live on a normal set, compared to 83% for those over 65.

This leaves the younger age group devoting 20% of their content consumption to paid on-demand services, 13% to free on-demand content and 14% watching video clips on the likes of YouTube.

So, what does it mean? Well, probably not quite as much as you may think in terms of actual content. It's clear that Millennials have not ditched the main television in the lounge for endless YouTube sessions, watching vloggers get up to crazy antics and pass on make-up tips. Instead, they appear to be supplementing the TV set with the smaller screen of a laptop, smartphone or tablet to watch conventional shows that are not offered on mainstream television. This is far more about young people wanting to watch shows when it suits them on a device that is right for the setting. The research doesn't show that Millennials are disenchanted with conventional television and are watching YouTube clips and "funnies" unearthed on Facebook. Like those a little older than them, they're choosing to watch "House Of Cards" or "Orange Is The New Black."

The impact on advertising is pretty clear. If you're trying to get in front of Millennials, they're a lot less likely to be watching live television than older age groups, because the streaming services they are supplementing the TV set with don't feature advertising breaks. It is time, then, to be looking at product placement and, where offered, sponsorship of a show or a genre of entertainment. The latter might not be able to help with Netflix but when a show is watched through a catch up service, such as All4, the one eye-catching advert will always be the brand which bring you "comedy on 4" or "drama on 4."

Television advertising is in rude health but interruption is dying a very slow, long-drawn-out death. As younger viewers mature and have families of their own it's likely that, outside of the social 'must see' live shows like "X Factor," streaming will rise in significance. That means more sponsorship and product placement and less signing big cheques to fill the ad breaks with. Just like in online content, the smart money is out there looking for ways to be a part of the content, through the likes of native, rather than trying to scream out from the sides in banners that are increasingly either unblocked or unseen.

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