Friday, August 26, 2011 | Edited by Daniel Moores
Online Video Streaming Reaches Tipping Point

More than half of the U.S. population and 80% of Internet users are now streaming video as part of their regular TV diet, according to a new study from Omnicom media agency OMD.

The study suggests that the video streaming trend is poised to grow further with technological advances that improve the quality of the experience.

Streamers already deviate from the traditional viewing standard: about 27% of their TV intake occurs outside of regularly scheduled programming times.

It prompts the question -- just how a big a threat is streaming to normal programming patterns as transmitted by broadcasters, cable and satellite operators?

The study showed that 24% of the nearly 1,600 respondents who regularly stream videos have either already cancelled their cable or satellite service or are open to doing so. The research did not specifically address the reasons for that churn, or the mindset to consider cancellation.

But at the very least, the growth in viewing to video streams should be setting off alarms at mainstream TV programmers. Of course, many are on the case: CBS has an agreement with Netflix and NBC, ABC and Fox are partners in Hulu, to name just a couple of examples.

OMD researchers say they don't believe that video streaming will become the primary TV programming source, at least in the foreseeable future. "We don't look at it as a replacement for TV, but rather as a complement to traditional TV viewing," said Erin Bilezikjian-Johnson, group director, custom Research & Insights, OMD.

The reasons for the growing popularity of streamed content are pretty clear. People don't want to be tied to programming schedules dictated by others; they find the number of ads and interruptions -- as well as the general tenor of the messaging in traditional TV channels -- to be annoying, per the study.

That said, the study also found that nearly two-thirds of respondents would not cancel their cable or satellite service and rely solely on streaming video. For now, quality appears to be an issue curbing the growth of video streaming.

When asked why they don't watch more streaming videos, the answer most often provided (37%) by those polled was that they simply prefer watching regular TV. And 22% said that streams were "difficult to watch with other people." Twenty percent cited general quality issues, while another 20% said streaming screens were too small.

But those objections will likely vanish with "improvements in the quality of the video streaming video experience," thus fueling additional growth, the OMD report stated.

Among those who regularly view streamed content, about one-third of respondents said they do it daily or multiple times a day. Another 14% said they do it four to six times a week, while 20% reported viewing streamed content two to three times a week.

Overall growth is likely to come from older viewers -- as two-thirds of respondents 35 years old and up said they would watch more streamed content in the next 12 months than they do now, compared to only about a third of the 18- to-34-year-olds. But younger viewers will drive video streaming to additional technology platforms. About half of the respondents age 34 or younger said they planned to watch more content on portable devices in the future, compared to just 7% of those 50 and up.

The top five most popular streamed genres, the study reported, are weather reports, news, full-length TV shows, celebrity news and gossip and music videos. The takeaway for advertisers, said Pamela Marsh, director of custom research and insights, OMD: "If the intent of the advertiser is to achieve larger reach," then news and weather and other "time-sensitive content" should be part of the buy.

The top reasons cited for watching: entertainment, the freedom to watch at any time, to catch up on a missed programs, the ability to watch anywhere and commercial avoidance.

As to formats, most of those polled said they would prefer to see an ad before a video stream than in the middle of it. And half said they would prefer to have a choice of ads to consider being exposed to as opposed to being forced to watch a specific ad. Seventy percent said they would prefer to watch funny ads in video streaming -- more than double any other ad genre.

(Source: Online Media Daily, 08/23/11)
Do You Need a Mobile Marketing Strategy?

For Audi, BMW, and Land Rover, mobile marketing is likely -- or should likely be at the forefront of their digital marketing initiatives. The reason is spelled out in a new report released from The Media Audit on mobile Internet usage.

According to the national report, not all automotive consumers are alike when it comes to mobile Internet usage. Among Audi owners, 63.7% have accessed the Internet via a smart phone, iPod Touch or similar mobile device in a typical week, a figure that is twice that of the general population. Similarly, 56.6% of BMW owners have reported Internet usage via a mobile device (79% more likely to be a mobile Internet user), and among Land Rover owners, 64.5% are mobile Internet users (more than twice as likely compared to the general population).

Among all U.S. adults, 31.6% have accessed the Internet via a mobile device in a typical week. The figure represents more than 45.9 million consumers across The Media Audit's 80 measured markets.

Mobile marketing expenditures are projected to substantially increase -- possibly quadruple over the next few years, as more consumers are drawn to mobile devices that have access to the Internet. The new report highlights some of the consumer and media audiences that have quickly adapted to mobile Internet usage and technology, thus impacting how local and national marketers will need to allocate advertising dollars.

From a demographic standpoint, mobile Internet users are younger, more educated, and affluent compared to the general population, and skew male. According to the study, 53.5% of mobile Internet users are male, while 46.5% are female. Furthermore, those who earn $100,000 or more in annual household income are 71% more likely to be mobile Internet users, and those consumers under the age of 45 are considerably more likely to be mobile Internet users compared to those who are over 45. Consumers without a college degree are 16% less likely to be mobile Internet users, while college graduates are 23% more likely.

As advertisers weigh the benefits of mobile marketing which can include messaging, display or search, the platform is largely recognized as a means to increase location awareness. Thus national advertisers as well as local advertisers will have to leverage marketing intelligence to get a better understanding of their customer's mobile Internet behavior.

An example illustrating the varying degrees of mobile Internet usage can be found in findings related to the fast food category. According to The Media Audit report, frequent consumers of fast food -- those who consume fast food three or more occasions in a typical week, are 28% more likely to be mobile Internet users.

However, among the different fast food brands, Subway and Taco Bell consumers are significantly more likely than McDonald's or Burger King consumers to have access to the Internet via a mobile device. According to the report, 42.8% of monthly Taco Bell consumers have accessed the Internet via a mobile device, while 41% of Subway consumers have done so. Furthermore, only 37.6% of monthly McDonald's consumers are mobile Internet users, while 34% of Burger King consumers have access to the Internet via a mobile device. Among fast food consumers least likely to access the Internet via a mobile device are those who have eaten at Boston Market and Hardee's in the past month.

(Source: The Media Audit, 08/23/11)
Tablet Commerce: A New Marketing Target

According to a new report by Forrester Research, in partnership with Bizrate Insights, the number of Americans owning tablet devices is forecast to increase at a compound annual growth rate of 51% between 2010 and 2015, while tablet commerce is expected to grow rapidly over the same period.

Nine percent of surveyed online shoppers say they own a tablet device; among them, 78% own a smartphone as well, while 22% of tablet owners (2% of online shoppers) own a tablet only.

Shopping online is a popular activity among tablet owners: 47% of tablet owners say they've purchased something via their tablet and an additional 13% have shopped via tablet without buying.

Among online shoppers who own tablets, most prefer tablets to smartphones when buying online and most find their tablet as easy to use as their computer when doing so:
  • 72% of Gen X, 67% of Boomers, and 65% of Gen Y say they use their tablet more than their smartphone to shop online
  • 62% of Gen X, 60% of Gen Y, and 57% of Boomers say it's just as easy to visit and buy from retail sites via tablet as it is via PC
Some Key highlights of the report include such things as:
  • Market penetration for Tablets has increased from 9% pre-iPad2 release to 12% post release
  • 26% of those who do not currently own a Tablet plan to purchase one within the next year
  • Most owners are Generation X or Baby Boomers, their average household income is over $109,000 (56% greater than non-Tablet owners), and nearly half have children under 18
  • 75% of Tablet owners bought their Tablet to complement their other devices
  • Tablet ownership among online buyers skews female, as does ecommerce overall. Within each gender, a greater percentage of men own the device than women. Tablet ownership is highly correlated to household income, with owners having significantly higher household income levels than non-Tablet owners.
Tablet owners are valuable customers for online retailers:
  • 60% have shopped online with their Tablet; of those, 78% have placed an order using their Tablet
  • Tablet owners spent 28% more per order on average on orders than non-Tablet owners
  • 56% have downloaded a shopping app; retailer specific apps are the most popular
  • Men are participating in ecommerce through their Tablets at a greater rate than women: 63% of men have shopped, with 81% converting to purchase, while 58% of women have shopped, and 75% have converted to purchase. 37% of those who have not shopped online with their tablet say they "haven't needed to, or haven't thought to."
The Tablet is increasing the total amount of time spent online:
  • 49% of Tablet owners report spending more time online than they did prior to owning a Tablet and 42% are spending the same amount of time online
  • The most common complaints of 56% of owners who have shopped online through their Tablet are that the experience is limited (unlike on a computer), it's difficult to click on what they want, and the lack of support for Flash technology
  • While often considered a mobile device, says the report, Tablets are most frequently used at home. The top three locations for usage are the family room/living room, the bedroom, and the airport/airplanes. Outside of the top three locations, a greater percentage of men tend to use their tablets in a stationary environment, such as the office, whereas a greater percentage of women use their Tablets in the car and at restaurants or coffee shops.
As adoption grows, tablets will likely provide at-home and portable (but not truly mobile) shopping experiences, while the role of smartphones solidifies as a complement to the in-store shopping experience, Forrester notes. Findings for this study are based on two surveys among more than 28,000 online buyers immediately after purchase from Jan 26 to Feb 28, 2011, and more than 20,000 online buyers from March 14 to April 5.

(Source: The Center for Media Research, 08/24/11)

Daily Sales Tip: Radio Drives Traffic To Websites

Advertisers increasingly want to drive traffic to their websites. If you have not already downloaded the information from RAB's Radio Marketing Guide, go to rab.com and look under the Research tab for Radio, then Radio Marketing Guide (deep link -- http://www.rab.com/public/marketingGuide/rabRmg.html). Scroll to "Online Searches" and you will see one out of every four Americans have initiated an online search based on something they heard on the radio. This should be compelling information for any advertiser wanting to drive traffic to their site. You can download the information as a PowerPoint slide and get the data.

While you are on the Radio Marketing Guide pages, scroll to "Radio and the Internet." You'll see that unaided recall of brand names is 4.5 times higher with Radio added to an Internet campaign.

Source: John Potter, VP/Training, RAB

1-800-232-3131 | www.rab.com | To unsubscribe, CLICK HERE and enter REMOVE in the subject line.