April 23, 2015
The Interactive Advertising Bureau recently found that one-third of Americans now own connected TV sets, while one-third of those consumers stream video to their TVs daily. According to new survey findings from consulting firm Deloitte, video streaming services such as Netflix, Hulu and Amazon have now surpassed live programming as the viewing method of choice for many consumers. The survey determined that 56 percent stream movies and 53 percent stream TV shows, while 45 percent still prefer watching live broadcasts.
“And Internet-video services are valued more highly than cable or satellite TV among consumers aged 14-25, a group Deloitte dubs ‘Trailing Millennials’ — another worrisome indicator for the pay-TV biz,” reports Variety. “For that age group, 72 percent cited streaming video as one of the most valuable services versus 58 percent who said the same for pay TV.”
Not surprisingly, the numbers lean toward traditional TV with older age groups. For example, 80 percent of Generation X prefer pay TV and 47 percent chose streaming, while 89 percent of Baby Boomers selected pay TV and 43 percent prefer streaming.
Cord cutting was also evident in the lower age group. Deloitte found that 25 percent of the Trailing Millennials had “either cancelled their pay-TV services in the last 12 months or haven’t had one for more than a year,” notes Variety. “Moreover, younger viewers now more commonly watch TV shows on mobile devices or PCs — rather than on a TV set. Among Trailing Millennials, 57 percent of time spent watching TV programs occurs on computers, tablets and smartphones.”
The Deloitte study also found that nearly three-fourths of respondents multitask more during television commercials than during digital ads. Meanwhile, IAB points out that digital ads are catching up with traditional TV advertising. Internet ad revenues totaled $49.5 billion in the U.S. last year, a 16 percent jump over 2013.
“Ad spending on broadcast and cable television combined totaled $65.7 billion over the course of the year,” reports The Wall Street Journal.
“Mobile advertising was one of the main growth areas during 2014, bringing in $12.5 billion over the course of the year, or a 76 percent increase from $7.1 billion in 2013. Social media advertising was another bright spot, totaling $7 billion in 2014 spending, up 57 percent from $4.5 billion in 2013.”