13 Apr
Consumers who turn to more than one platform to watch video are often highly engaged with the
programming. And, these days, consumers of all ages are comfortable seeking out their entertainment on the Internet. But TV remains the preferred format for specific types of entertainment according to data presented at the Advertising Research Foundation’s annual meeting.
The types of programs that consumers prefer to see on the TV screen include:
But online video also has its advantages. And consumers generally note the following reasons for turning to online video over TV:
It is not only younger consumers who engage in cross-platform viewing. comScore statistics indicate the following age distribution for this behavior:
Marketers should also know that consumers are not watching video online specifically to avoid commercials. According to comScore, nearly 1/3rd of online viewers report pausing the program and taking time to visit an advertiser’s Web site. As a result of these findings, NBC executives believe that when a network offers video in multiple channels, consumers engage more with the programming and use the multiple channels to suit their schedules. Further, the availability of multiple channels does not point to a decrease in traditional TV viewing. Instead, marketers have more ways to reach the most loyal watchers of specific programming.
[Source: Viewer Are More Engaged With What They Watch. Cross-Platform Video. Entertainment Marketing Letter. EPM Communications. April 1, 2010.]
9 Apr
Magazine publishers, like most content providers, have long relied on marketers for most of their revenue. As magazines shift from traditional print to the online
publication channel will readers pay attention to the ads? Josh Gordon, founder of Smarter Media Sales, recently studied this topic. Specifically, Gordon was interested in determining whether consumer behavior with respect to ads differs when it comes to a magazine’s digital edition as opposed to a Web site.
First, the study revealed that subscribers to digital magazines spend more time with a digital edition (20-30 minutes) versus a Web site visit (8-9 minutes). And over 7 out of 10 readers said ads were less intrusive and more credible in digital editions than they were on Web sites.
The consumers in this study also expressed their opinions about electronic advertising. The following percentages said the forms were “helpful or interesting”.
In general, subscribers found digital editions of magazine were easier to read, more focused, and better organized than Web sites. These findings suggest that marketers may decide to place online ads in digital editions of magazines, especially to reach specific target demographics. Over time, a growing number of readers may opt to enjoy online magazines which could bring even more ad money into the format.
[Source: Kinsman, Matt. New Study: Digital Magazines Outperform Other Electronic Media With Ads, Readers. Fologmag.com. 11 Mar. 2010. Web. 9 Apr. 2010]
30 Mar
When TV shows first started appearing online, some analysts predicted that
heavy consumer migration to the Web would impact the advertising business model. But that has not been entirely the case. Writing for the New York Times, Stuart Elliott notes that there has been more synergy than erosion as marketers increase their presence online rather than replacing what they have been doing via TV.
Elliott highlights how Jim Beam is using a Web series on ESPN.com to promote its products. But excerpts of the videos will also appear on the ESPN cable channel. Similarly, the Web series Pairings, sponsored by American Express and Constellation Brands, may soon be appearing on a cable TV channel. And even Web-only shows such as Undercover, are using big companies like Starbucks and Anheuser-Busch In Bev to sponsor their productions. Elliott writes, “[t]he pairings of Web video and television reflect a school of thought that the old and new media can coexist and perhaps even benefit from each other.”
In addition, younger consumers currently comprise the largest audience for online TV shows. To improve the current business model, networks are making changes to attract marketers. For example, the CW network, runs many of its shows online with limited advertisements. The current plan calls for the company to increase the number of commercials shown per online hour from 10 to 30. As Rob Tuck, CW’s executive vice president of network sales, puts it, “the young adult consumer sees no difference, whether it’s the TV screen or the computer screen.”
As consumers shift their attention between the many video screens they have at their disposal, marketers and media companies will develop more complex plans to get advertising messages in front of audiences. If the recent recession has taught us anything, it is that there’s no such thing as a free lunch.
[Sources: Elliott, Stuart. Old and New Media Coexisting Nicely, Thank You. New York Times. 18 Mar. 2010. Web. 29 Mar. 2010; Schechner, Sam. CW to Double Ads in Web Shows. Wall Street Journal. 26 Mar. 2010. Web 29 Mar. 2010]
25 Mar
Whether they are going to theaters, rental kiosks, or using downloads, consumers continue to show their desire for movie entertainment. A recent Market Force
Information survey reveals that nearly 7 out of 10 consumers will see at least 1 in-theater movie in the first quarter of 2010.
The chief reasons consumers visit theaters are:
Consumers also plan to increase their consumption of movies out of theaters. In 2010, the most likely channels for obtaining movies are :
Two of these channels will see significantly higher use rates this year: Kiosks (26%) and online rental (21%).
Regardless of where consumers watch movies, they say that advertising plays a key role in their decision about what to watch. The following information sources influence which movies people select:
These survey findings indicate that both studios and movie theaters should be marketing more to attract consumers to new releases and to tempt them to enjoy theater amenities ranging from sound systems to comfortable seating.
[Source: Movie Consumption is on the Rise According to Market Force Consumer Survey. Market Force. 16 Mar. 2010. Web. 24 Mar. 2010]