TV Trends: Consumers Demand Control

Posted by fanshawe

July 11, 2008

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Research and Markets has announced the addition of eMarketer’s new report “TV Trends: Consumers Demand Control” to their offering.

This TV Trends: Consumers Demand Control report addresses the question of why television content stays much the same, while the ways and places it is viewed mushroom. Video-on-demand (VOD), digital video recorders (DVRs), the broadband Web, and 3G mobile phones are giving TV consumers new ways to access and watch TV.

This report estimates that by 2012 nearly 25% of all TV content watched each day will be time-shifted, on-demand, on the Web or on a mobile device. This does not spell the end of the traditional live TV broadcast or the traditional 30-second ad break, but clearly, TV advertising will need to evolve if it is to keep pace with consumer usage. Key questions the “TV Trends” report answers:

* How many DVR and VOD households will there be in the US in 2012?
* What are the prospects for traditional TV advertising in the US?
* What impact are Web, DVR and VOD usage having on TV advertising?
* How do DVRs change TV usage?
* How many Internet users are watching full-length TV episodes online?
* And many others

The TV Trends report aggregates the latest data from marketing and communications researchers with analysis to provide the information you need to make smart, accurate business decisions.

Executive Summary:

While the average amount of TV content consumed by US viewers has grown over the past decade, an increasing proportion of TV is being accessed and viewed in nontraditional ways. Video-on-demand (VOD), digital video recorders (DVRs), the broadband Web and 3G mobile phones are giving consumers new ways to access and watch TV. eMarketer estimates that by 2012 nearly 25% of all TV content watched will be time-shifted, on demand, on the Web or on a mobile device.

This does not spell the end of the traditional live TV broadcast or 30-second ad break, but, clearly, TV advertising will need to evolve if it is to keep pace with consumer usage.

Despite a slowing economy, US TV advertising spending is likely to grow in 2008 on the back of the presidential election and the Summer Olympics. But in 2009 and beyond, the traditional TV advertising environment will become increasingly challenging. This report estimates that TV advertising spending will reach $75.4 billion in 2012, up from $67.8 billion in 2007—a compound annual growth rate (CAGR) of only 2.1%. Online advertising spending, in contrast, is forecast to grow annually at 19.2% over the same period and will overtake TV advertising spending in the US within 10 years.

The TV sector is rapidly being subsumed into the larger video sector, where traditional boundaries between devices, content and usage are increasingly blurred. Traditional TV broadcasters and advertisers have little time to reinvent themselves and their organizations to take advantage of the interactive, on-demand and mobile video future.

Companies Mentioned:

America Online (AOL) Digital Marketing Services, Inc. (DMS)

Associated Press (AP)

Avenue A / Razorfish

Bernstein Research

BIPE

Borrell Associates Inc.

Burst Media

Center for Hispanic Marketing Communication at Florida State University

ChoiceStream

Convergence Consulting Group Ltd.

Deloitte Research