Quarter of Britons now watch majority of TV ‘on demand’

An interesting article from thedrum.co.uk about the rise of on demand TV in the UK.

A new survey compiled by YouGov has found that one in four Brits now eschew traditional broadcasts for ‘on demand’ TV.

Describing the results as a “paradigm shift in the way we use TV” the reports authors note that this figure rises to 41% of 18-24 year olds and fully 35% of smart TV owners.

When it comes to adverts the survey found that whilst only 14% of people say they pay attention to commercials that figure rose to 29% amongst 18-24 year old smart TV owners whilst one in five expressed a desire to be able to click on adverts to gain more information.

These figures rise for on demand viewers where 8% report paying more attention to adverts when they actively seek out a particular show, a figure which increases to 16% for the 18-24 demographic and to 27% of those in the same age bracket but with a smart TV.

Dan Brilot, YouGov’s Media Consulting Director, “The evidence shows that viewers are more engaged in ads when watching ‘on-demand’ content, which we’d expect as the programming has been actively selected outside the traditional ‘linear’ format. Other research suggesting that mid-roll ads are likely to be skipped less than pre-roll ads points to viewers starting in a very ‘active’ engaged mode when watching on-demand content but then slipping into the more familiar ‘passive’ lean-back mode.

“The new era of TV on-demand (TV 2.0) isn’t just about better programming choices but also more effective and targeted advertising too. The appeal of clickable ads, for example, is clear – almost a fifth of consumers want to be able to click on TV ads to find out more about the products they are interested in. This desire for a ‘call to action’ relevant to them is ideal for advertisers, particularly if the call to action is making an instant purchase using their TV set and offers a measurable clickable return on advertising investment.”

For full article click here

Where in the World Are the Hottest Social Networking Countries?

From eMarketer – a forecast pegs worldwide social networking at 1.2 billion users—and counting. But the countries with the most users and most mature usage patterns are not necessarily those with the fastest growth or the highest penetration. Unfortunately no NZ data is included.

With 1.2 billion users worldwide, social networking usage patterns vary by country and region

 While several US-based sites like Facebook and Twitter might get most of the publicity, social networking is a worldwide phenomenon that eMarketer predicts will encompass nearly 1.5 billion internet users by the end of this year.

As of December 2011, eMarketer estimates, just over 1.2 billion people around the world used social networking sites at least once per month. That represented 23.1% growth over 2010, and double-digit growth will continue throughout eMarketer’s forecast period, though the rate of change will decrease as the market matures.

Social Network Users Worldwide, 2011-2014 (billions and % change)

The region with the highest number of social network users is Asia-Pacific, where 615.9 million internet users will log on to social sites by the end of this year. About half of those users will be in China, where social network users will outnumber their counterparts in the US by nearly two to one.

Social Network Users Worldwide, by Region and Country, 2011-2014 (millions)

China and the US are the top two countries in terms of overall number of users, but the rankings of key social networking countries around the world change when examined based on penetration rates vs. growth rates. In 2012, the US will have the greatest share of social network users as a percentage of the total population (49.9%), followed by Canada (49.3%), South Korea (46.6%), Australia (44.4%) and Russia (41.9%). As a share of internet users in 2012, however, Brazil will come out on top—87.6% of web users in the country will use social networking sites—followed closely by Indonesia at 87.5%. In developing markets like these, fewer people overall are online, but among those who are on the web, social networking is often a key driver of internet usage.

The fastest growth in social networking this year, meanwhile, will come from India (where usage will increase by 51.7%), Indonesia (51.6%) and, lagging distantly, China (19.9%).

Much of this growth is due to the ever-climbing popularity of Facebook—though notably not in China, where the site is banned. eMarketer estimates the social networking giant will pass the billion-user mark by the end of 2013.

Facebook Users Worldwide, 2011-2014 (millions and % change)

This represents eMarketer’s first worldwide estimates of social network usage and Facebook usage. eMarketer bases its estimates of social network usage on the analysis of survey and traffic data from research firms and regulatory agencies; the growth trajectory of major social network sites; historical trends; internet and mobile adoption trends; and country-specific demographic and socio-economic factors. For Facebook-specific estimates, eMarketer projects based on all of the above as well as Facebook company releases.

For full article click here

Love of Control Has Made Tablets Indispensable

From Read Write Web a great post about the benefits of tablets for those who use them.

A  study from BBC.com and Starcom MediaVest finds that tablets do wonders for news consumption. Tablet owners report reading more stories from more sources on more topics than non-tablet users, they enjoy the experience more, and they go straight to the source more often, rather than relying on aggregators.

But the study also found that the benefits of tablets extend beyond news. Subjects reported a range of improvements tablets brought to their lives, and many of them were unexpected. The study broke down tablet owners based on how long they’ve had tablets and found that all of the positive effects increased over time. Tablets aren’t a fad; they’re fundamentally changing the way people use the Web.

Tablets Are More Than Just Portable

The majority of tablet owners agree that these new devices “offer more than just portability and convenience,” and that sentiment only increases over time. Roughly the same proportions use the tablet at home more than they anticipated. Only 48% of people who have owned a tablet for less than six months use it more than they expected to, but that proportion increases to 57% by the end of the first year.

It takes some time for people to get used to their tablet. Only 44% find that tablets are a seamless part of their lives in the first six months. But by the time they’ve owned a tablet for a year or more, nearly 70% feel that it’s an integral part of their routine.

Another interesting finding was that tablet owners report increased efficiency more than they do “fun,” which runs counter to the popular perception of tablets as unserious devices meant for play. While 62% reported that tablets let them do things more efficiently, 51% said their tablets let them have more fun. And 67% of the subjects said they were “excited to see what tablets become capable of,” so the future of tablet computing looks bright from consumers’ standpoint.

Tablets Whet News Consumers’ Appetites

As far as the content consumed on tablets, the study concentrated on news, a media category that has a ways to go to recover from the disruptions of the digital age. It found that 78% of tablet owners follow more news stories, in terms of both volume and variety, than they did before.

Respondents reported that tablets substantially improved many aspects of the news experience. 81% reported that “tablets make following the news more interesting and enjoyable,” and 78% felt that “tablets substantially improve the news experience overall.”

Tablets Bring Immersion and Control

One of the strongest signals of what tablet owners like about the experience is the customization and control it offers. 85% of tablet owners find it easier to customize and interact with tablet-specific content.

For full post click here

US Tablet and e-book reader ownership surge in the holiday gift giving period

According to research by The Pew Research Center ownership levels of tablets and e-readers almost doubled in the US over the Christmas holiday period. The research found that 19% of adults in the US currently own a tablet, an increase from the 10% who said the same in December 2011. See full article here

Can Any Competitors Catch the iPad?

eMarketer predicts 60 million iPad users in the US by 2014, up from 28 million in 2011

Five years ago, there was no iPad and no tablet market to speak of. Today, however, the tablet market is thriving and projected to enjoy a steep growth trajectory in the coming years, with Apple’s iPad at the forefront of device adoption. According to global market research firm IHS iSuppli, which examined 2011 tablet shipments, the iPad accounted for 62% of worldwide shipments in 2011.

Amazon’s Kindle Fire, which debuted right in time for the 2011 holiday shopping season, met analysts’ expectations and shipped 14% of all tablets in Q4, cutting slightly into the iPad’s dominant lead. In total, Amazon shipped 3.9 million Fire tablets that quarter, or 6% of tablets for the year.

Tablet Shipments Worldwide, by Vendor, 2011 (millions of units and % share)

iSuppli’s findings also suggest that Apple’s own smartphone product, the iPhone 4S, might have cut into some iPad sales in Q4. Those who might have purchased an iPad may have instead used the discretionary spending toward a new iPhone. With the iPad 3 coming in just months, however, Apple is sure to attract new tablet shoppers, and Amazon will have to work furiously to maintain double-digit market share.

eMarketer predicts iPad penetration in the US will nearly double from 2011 to 2013, from just over 12% of internet users to 22%. But even as iPad usage grows, other tablets will account for a greater share of tablet users in the US, with the Apple device’s user share predicted to drop from 83% in 2011 to just 68% by the end of 2014.

US iPad Users and Penetration, 2010-2014

eMarketer forecasts significant growth in the number of tablet users, predicting there will be 54.8 million tablet users in the US by the end of 2012. And by the end of 2014, that number will nearly double to 89.5 million.

IHS iSuppli is forecasting strong sales for the iPad 3 and expecting Apple to sell out of its supply. Given the rapid adoption of tablets in general, consumers are undoubtedly a few steps ahead of marketers in terms of usage and sophistication. In light of Apple’s product release and stealthy forecasts, marketers should examine their tablet marketing strategies and design campaigns based on usage trends and with an eye to creating tablet-specific experiences.

For full article click here

Most Likely iPad Buyer Is a Male, Pet-Owning Gamer (Who May Be a Scientist)

Article by Ina Fried at All Things D about who is the typical iPad buyer. While the iPad is clearly a hit among lots of demographics, from non-reading toddlers to senior citizens, there are still certain sets of people that are more likely to go out and buy one of the Apple tablets. The folks at marketing firm BlueKai have compiled some of that data into a handy infographic.

Among the three characteristics most tied to iPad purchasing are being male, a pet-owner and into video games. Close behind are scientists, travelers (both international and domestic) and, bizarrely, organic food proponents. Perhaps the latter, though, is tied to having the kind of disposable income necessary to purchase a device that, while undeniably fun and useful, likely doesn’t replace any other device.

Of course, as previously mentioned, the tablet’s popularity extends even to female liberal arts majors who don’t care whether their food is processed. Indeed, a recent survey by Nielsen shows that the iPad is tops on the holiday wish lists for kids of all genders and food preferences.

Apple actually swept the top three spots on that list, with the iPod touch and the iPhone being the next most popular wishes among the 6-to-12-year-old set. As a point of reference, the iPad and iPod touch also topped last year’s survey, so it appears not all kids are getting their first pick of presents. It would seem some are being told they had better get an iJob first.

For full article click here.


How to balance length and frequency of online video ads

Mark Husak, director of media development, Europe, MIllward Brown

Article here

Online video provides a tremendous opportunity to shape how and who your brand message reaches in ways television has never done. From frequency capping and optimisation of dwell time or click through, to context and page position, choice and control of brand content is truly mind boggling.

But some of the big basic questions still remain, questions advertisers are still grappling with for conventional TV. Like how long should my ad be? What’s the most efficient frequency of exposure? Do people have the patience for longer formats online or is frequency the way to go to beat the clutter? Or is it just a matter of how much you can afford.

Dynamic Logic research helps us shed some light on these questions. And the answer is… well it depends on what the brand’s objectives are for using online video in the first place. Let’s first look at brand awareness:

Brand Awareness Uplift (Control vs. Exposed)
Video Length (sec.) 1 2 3-5 6-9 10+
10 or less 1.02% 1.08% 2.17% 3.39% 3.69%
11-20 1.48% 2.31% 2.22% 2.45% 4.86%
21-30 2.53% 3.90% 5.22% 5.81% 7.56%
Over 30 2.13% 5.85% 3.90% 3.69% 4.51%
Source: Dynamic Logic Market Norms.Based on over 650 case studies with over 500,000 control and 225,000 exposed survey respondents

Short spots build awareness and more exposure frequency builds it further, up to +3.69% on average for videos under 10 seconds (10+ frequency) to +7.56% on average for  videos of 21-30 second length (10+ exposures) . Longer spots also perform better than shorter spots and also continue to build brand awareness with increased exposure.  For example, at the 3-5 frequency range, videos 10 seconds or less achieve an average uplift of 2.17%. This increases to 5.22% uplift on average for videos 21-30 seconds long at the same frequency range.

This is true on average for anything up to 30 seconds. But look at what happens for ads over the standard 30 seconds. Brand awareness uplift is maximised after about 2 exposures (uplift of 5.85%) . After that extra exposures don’t really do much at all. In fact more exposures might hurt a little as people tune out as uplifts range from 3.90% uplift for 3-5 exposures to 4.51% for 10+ exposures. The best effect is created with a slightly shorter spot, more times.

Now let’s look at purchase intent.

Purchase Intent (Control vs. Exposed)
Video Length (sec.) 1 2 3-5 6-9 10+
10 or less 0.86% 1.11% IFR 1.68% 1.76%
11-20 0.91% 0.58% 1.45% 2.00% 2.11%
21-30 0.97% 2.33% 3.57% 3.50% 2.65%
Over 30 2.27% 2.71% 2.03% 2.16% 1.36%
Source: Dynamic Logic Market Norms.Based on over 650 case studies with over 500,000 control and 225,000 exposed survey respondents

The effect of frequency here paints a grimmer picture. The shortest spots (under 10 seconds) are still generally immune, growing from +0.86% uplift after one exposure to +1.76% exposure at the 10+ frequency level. Even 20 second ads grow purchase intent even after 10 or more repetitions (to +2.11%). However, for longer activity, there seems to be an inverse relationship between length and the tolerance people have to its recurrence. For example, 21-30 second videos achieve maximum uplift after 3-5 exposures. Past this,  frequency is hurting the brand as patience levels have reached a limit.

For longer spots (greater than 30 seconds), the threshold is even shorter. Two exposures achieves maximum (+2.71%), after which activity is just antagonising the viewer.

What does all this mean? Well, if you’re just trying to get your brand known or keep it top of mind, lots of frequency with short spots online work just fine. Longer lengths work even better, but you need to balance effectiveness with efficiency.

On the other hand, if you are trying to really influence purchase in the short term, longer spots may be the way to go, but be careful not to overdo it on the frequency. You already have their attention. Use it wisely.

Gen Xers Are Online Media Kings

A new eMarketer report, “Gen X: Demographic Profile and Marketing Approaches” indicates that 34-45 year old consumers are as comfortable with digital as with traditional media. “To effectively engage with Gen X, brands need a strategy that incorporates multiple channels—including mobile, social and online video—with authentic, relevant messaging,” the report notes.

The report recommends that brands would be wise to include online video in the media mix, along with TV.

Gen X constitutes the largest online video audience. eMarketer forecasts that 74.2.% of Gen X internet users will watch online video at least monthly in 2011, and that percentage is expected to grow to 80% by 2015.

Most Gen Xers are online. eMarketer estimates that 88% of the segment are web users in 2011, and that number is expected to increase to 90.9% by 2015. They are slightly more likely than the general population to visit online retail sites and significantly more likely to visit mobile retail sites, according to comScore.

Top product categories purchased online by Gen Xers in fall 2010 included apparel, airline tickets, books and hotel reservations, concluded a survey by GfK MRI.

For more information see http://www.emarketer.com

TV + Newspapers: Increase Brand Impact by 72% and Ad Impact by 200%!

Pioneering neuroscience research commissioned by the NMA through Millward Brown measured the magnitude of brain responses to brand and advertising stimuli among people who had previously been exposed to test advertising in newspapers and in a commercial break within a TV programme.

Research was conducted by Dr Lawrence Farwell of Brainwave Science using his patented ‘brain fingerprinting’ technique. This measures the brain’s recognition response to stimuli that are significant to the individual.

Six brand campaigns were tested. Looking at results for all six brand tests together, there was a strong incremental effect on brand impact when people were exposed to both newspaper ads and TV advertising. ‘Brand impact’ measures the average response across all brands to the positive brand stimuli – i.e. salience, messages, brand values and brand affinity.

TV and newspapers individually showed good levels of brand impact, but the TV and newspaper combination was 72% higher than TV solus. See chart below.

There was a very strong 200% incremental effect on advertising impact for TV plus newspapers compared to those seeing TV solus. ‘Advertising impact’ is the average magnitude of brainwave response to ad stimuli from the test ads – essentially ‘unconscious’ ad recognition. See chart below.

For more information see: http://www.nmauk.co.uk/nma/do/live/research?sectionArticleTypeId=37

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