Declining exposure to TV commercials is having a negative effect on young consumers talking about products and brands, according to a new study.
A study from Engagement Labs, which measures word-of-mouth interactions, says this is increasing due to young consumers cutting the traditional pay TV cord in favor of video streaming services.
Average weekly actual conversations among consumers ages 13-20 have dipped to 94.6 a week in 2018, from 115.2 conversations in 2013. For consumers ages 21-29, conversations are down from 102.3 to 93.2.
Research also points to digital replacing TV as the main platform driving conversations: Television as a percentage of all paid-media driven conversations is down to 31.6% in 2018, from 37.4% in 2013. By contrast, digital media is up 31.8%, from 16.6%.
Among other media, print has declined to 16.8% from 21.7%, while outdoor is at 7.8%, down from 10%, and radio comes in at 6.8%, down from 7.1%.
Overall, there is has been a modest decline when looking at all consumer-related conversations -- dipping to an average of 73 conversations a week last year, from 76 in 2013.
At the same time, the study notes an increase in conversations among older consumers -- with viewers ages 30-39 up to 80.3 from 73.3; viewers 40-49 up to 66 from 62; viewers 50-59 at 61.3 from 57.4; and viewers 60-69 up to 53.9, from 51.4.
Research results indicate conversations among consumers drive about 19% of purchases, according the MIT Sloan Management Review.
Nearly 40% of millennials receive TV services via streaming services other than cable, and half are
considering the move, according to CG42 Management Consulting, cited in the research.
Research data for 2018 and 2013 came from approximately 36,000 respondents, for both years, reporting on the brand conversations they had in the day prior to interview — more than 350,000 total consumer conversations in each year.