As a marketer, you need to stay abreast of changes in advertising. But with all the froth that usually accompanies advertising news, you can’t be faulted for simply tuning it out. But really, there are important “sea changes” in the ad world that affect your business. Here’s my distillation of big impact changes — and evidence of societal changes.
Last week Advertising Age featured a special pullout section on “Consumers on the Go”. Great read! Even more alarming is BusinessWeek’s expose cover story, “How Much of Your Audience is Fake?”. Let me save you time. Here are highlights and a couple bonuses.
Where to find consumers? Think it’s all web? Think again. TV still rules with a composite of 36 hours:07 minutes weekly viewing; #2, radio of course at 12 :58 .Smartphone, (app+web) only 7:14; PC total 5:34; and tablet social network 3:34. (Source: Nielsen Total Audience Report. Q1, 2015)
Cutting the Cable? More than 9 million households in 2015 have cut the cable and no longer pay for tv. That’s up by 4.5 million from 2011 and in total, now represent 7.8% of U.S. television households. And if they’re cutting the cable what are Americans watching? Netflix in 37.7 million homes; Hulu 9 million. By comparison, Comcast / xFinity services 22.4 million homes; DirecTV 20.4 M — and falling. (Source: public data assembled by Kantar Media.)
Let’s Talk Dollars: TV’s reign to end! Zenith Optmedia forecasts that TV will still rule in 2017 advertising dollars: 34.6%. But,internet advertising will be nearly equal, 34.1% of all advertising, up from its 2015 level at only 28.2% of ad dollars. The total 2017 USA media spend $67.2 billion. So, online seems rocking it with social media (online) and “just in time / just for me” data consumption; while TV’s for entertainment.
Is that a smartphone in your pocket, or…are you still carrying a feature phone? Adults 55 plus are more likely to continue to use feature phones (44%) than their children. In fact, millennials, 18 to 34 aren’t likely to be caught dead with a feature phone: only 8% use feature phones. Thus, it’s no surprise that the future is definitely mobile-enabled. (Source: ComScore, three month average for June 2015)
To put an exclamation point on it, two-thirds (67.5%) of Millennials live in mobile only households.