Media Trends in America. Past, Present and Future--Duane Sprague

American Trends in Media and Media Usage By Duane “DJ” Sprague

Age Group Distribution Media Usage by Age Group Media Consumption Trends Media Consumption by Women Newspaper Trends and Efficiency U.S. Media Trends

Birth to 12 Year Olds

Age Distribution Birth to 12

Born 1994-2006

52.4 Million

17.6% of U.S. Population

20.7% Hispanic

Birth to 12

13 to 17 Year Olds

Age Distribution 13 to 17

Born 1989-1993

21.5 Million

18% Hispanic

13 to 17

13-17 Media Consumption Habits

Internet

Ipods

Cable TV

Text Messaging

Video Games

Recorded Music and Movies

18 to 34 Year Olds

Born 1972-1988

69 Million

18.3% Hispanic

18-34 “What Ad Media Influence Your Purchase of Vehicles?” %

18-34 “What New Media/Technology Do You Use Regularly?” %

35 to 54 Year Olds

Born 1952-1971

86.5 Million

29% of U.S. Population

12.5% Hispanic

35-54 “What Ad Media Influence Your Purchase of Vehicles?” %

35-54 “What New Media/Technology Do You Use Regularly?” %

55 Years Old and Up

Age Distribution 55+

Born up to 1951

68.8 Million

23% of U.S. Population

7.1% Hispanic

55+ “What Ad Media Influence Your Purchase of Vehicles?” %

55+ “What New Media/Technology Do You Use Regularly?” %

Daily Media Consumption by Media Source

The Average Consumer Will Spend 9 Hours and 35 Minutes a Day Using Media in 2006

2009 Nielsen Study: Average American Daily Media Usage

Where the Ad Money Goes TV $70B Radio $19.8B Internet $23.4B Print $37B

Ad Spending by Household

2004 U.S. Ad Spending in Measured Media Totaled $1,287 Per HH Percent of Total Ad Spending Per HH

Hour by Hour Radio Listening Habits

Hour-by-Hour Radio Listening Curves

Peak radio audiences can vary from:

Hour to hour

Day to day

Station to station

Age group to age group

Quarter to quarter

“ Below the line” Marketing Trends

Online advertising

Video-on-demand (cable TV)

Direct mail

Consumer promotions

Public relations

“ Below the line” Marketing Trends

Event marketing

Podcasting

email and internet (more broadband connections)

In-store displays

Event sponsorships

Product placement

Product exhibits

General Media Consumption Trends

Media Consumption Trends

People are spending less time reading newspapers and magazines

Going to the theatres more often

Listening to more radio

Spending more time on the internet

More TiVo to record program and zap commercials

More satellite radio

TV Trends

TV is still the number one consumed media source and leisure time activity (consumers spend ½ their leisure time and 11% of their lives watching TV)

Networks however are trending down. In the 1985-86 viewing season, ABC, CBS, and NBC held almost 70% of primetime share. By the 1999-2000 season they held only 36%

In 1980 ABC, CBS and NBC had a 90% share. In 1997 ABC, CBS, NBC and FOX had a 47% share.

TV Trends

On average, U.S. consumers watch TV about 18 hours a week. Almost 6 hours of this (33%) is devoted to the major broadcast networks

The more income people make, the less time spent watching TV. Adults who earned more than $60,000 in 1999 watched 26% less TV than the average viewer

TV and the Internet Trends

TV viewing is increasingly part of a multi-tasking multi-media experience.

Nielsen Study released on 10/08 found that:

31% of home Internet users in the U.S. have the TV on in the background

More than 80% of Americans who watch TV and use the Internet use both simultaneously

Online usage is complimenting, not substituting traditional TV viewing

TV Trends

We will see an increase in the development and use of “on demand” or “opt-in” commercials, information and programs. A hybrid of web interactivity and cable TV

Auto manufacturers are trending downward on TV and upward on events, sponsorships, and internet marketing (getting closer to the consumer with lifestyle relevant info and communications, known as “ reality marketing ”)

Reality Marketing

Reality Marketing Trends

Any marketing or advertising that allows a seller to get the product closer to the consumer so they can see, touch and experience it

Marketing that gets closer to the interests and lifestyle of the target audience

Dealership Media Usage Changes in Percent in Past 10 Years Radio 15% TV 6.4% Print -13.5%

Working Female Media Usage (2004 Media Audit)

All Female Media Usage in Minutes (BIG research 2004)

The Newspaper is Less Attractive

Advertising rates are far outpacing market penetration

Market penetration is trending down as the number of households increases

The average reader is over 45

Newspapers will be closing and becoming financially unsustainable

Younger adults cannot be reached by the paper at all

More subscribers admit not reading the paper they receive

Paid classifieds have been almost entirely replaced by free online classifieds

COST Increase HH Growth Circ . Increase

Newspaper Reach Mon-Sat (Audit Bureau of Circ. 9/30/00-9/30/05) Front Page 54% Reach # Reach % 196,313 18.2% 225,769 20.9% 241,465 22.4% 249,318 23.1% 257,170 23.8% Sports 28% Reach # Reach % 101,792 9.4% 117,061 10.8% 125,204 11.6% 129,276 12% 133,347 12.3% Business 26% Reach # Reach % 94,521 8.8% 108,699 10.1% 116,261 10.8% 120,042 11.1% 123,823 11.5% Food 24% Reach # Reach % 87,250 8.1% 100,388 9.3% 107,318 9.9% 110,808 10.3% 114,298 10.6% Employ. Classified 11% Reach # Reach % 39,990 3.7% 45,988 4.3% 49,187 4.6% 50,787 4.7% 52,386 4.9% Section Read Frequently Reach 1 st Day 2 nd Day 3 rd Day 4 th Day 5 th Day

Summary

Traditional media that offer one-way communication at set times like broadcast TV and newspaper are slowly losing the big audience shares they once possessed as the younger more tech savvy generations replace the older generations

Media that offer on-demand, interactive, personalized, mobile or custom information are gaining popularity with Gen Y and Gen X

Summary

Because of the increasing fragmentation of media and communication tools, and the ever evolving use of technology, demographic targeting, message relevance and media mix will become more important than ever