Just An Online Minute... Ad Skipping and Media Usage

  • by June 23, 2005
A new study by consulting firm Accenture projects that nearly 10 percent of all TV commercials in the United States will be skipped by 2009, or $6 billion worth of ads. Why? Digital video recorders. TiVo. Cable company DVRs. That's why.

The study finds that nearly 40 percent of U.S. homes will have DVRs by 2009. Currently, about 8 percent of homes have DVRs with 2 percent of all ads skipped.

The Accenture report estimates that CPMs (cost-per-thousand) will increase at a compound annual rate of 3 percent through 2010.

Beyond DVRs, a new survey conducted by market researcher BIGresearch finds that media usage is growing fastest among 18- to 24-year-olds. It's really no surprise, is it? Young people are early adopters of new technology and new media, including wireless video via mobile phones and portable devices, portable game players, Internet video, and MP3 players.

BIGresearch's "Simultaneous Media Survey" surveyed more than 14,000 consumers and examined the impact of the Internet, picture phones, instant messaging, blogging, cell phones, MP3 players, satellite radio, text messaging, TiVo/Replay TV, and Web radio.



"The 18- to 24-year-olds are digital nomads who have adopted new media more readily than any other age group," says Joe Pilotta, BIGresearch's vice president of research. "Not only do they use new media more, they are influenced by it much more than any other age group when it comes to making purchase decisions."

The study found that 17.2 percent of 18- to 24-year-olds say that Internet media influences their purchases of apparel and 13.2 percent say it affects their car and truck purchases. In addition, 20.7 percent of respondents say e-mail influences their purchase of consumer electronics products, 6.2 percent say instant messaging affects dining out decisions, and 3.1 percent say blogging influences consideration on car and truck purchases.

Other notable findings: 29.6 percent of 18- to 24-year-olds say they use or access blogs; 79.8 percent use instant messaging; 45.3 percent enjoy MP3 devices and iPods; 12.2 percent enjoy satellite radio; 30.6 use picture phones; 58.3 percent employ text messaging; 17 percent use TiVo or ReplayTV; and 44.4 percent access Web radio services.

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