Thursday 6 December 2012

40% of TV viewers in the US, have a second screen open at the same time. Passive viewing, turned off audiences, are hitting TV Stations Advertising.



Nielsen, the firm of TV ratings, have released new figures from October about second screen usage in the US. (The full report is here but you'll have to enlist, although for free http://www.nielsen.com/us/en/insights/reports-downloads/2012/state-of-the-media--cross-platform-report-q2-2012.html)

That is the trend where people watch TV and at the same time, use a smartphone, tablet or laptop. Indeed. Exactly as I am doing whilst I write this blog and my missus is doing the same thing - probably updating Streamabout video actually.

But both of us almost every night, are second screen users.
Which of course has a dramatic affect on TV "viewing" and certainly TV advertising engagement. Basically we're, what's called, "snacking" on TV.

Not good for the medium.

Neilsen today says we're part of 85% of adults who do that monthly and a massive 40% who do it daily. And remember, Neilsen are the bible of TV viewing so this is very pertinent. Given that not every home has a tablet or smartphone, this is also truly astonishing. 

Older people use tablets, younger use smartphones the research shows.

And it shows the power of online is preferred compared to TV broadcasters fare. Yet again, they should see this coming but they won't and they don't. 

Even if they look at Netflix usage, it averages 5 hours and 20 minutes a day! Wow indeed. TV is getting dead in the water without question. TV Advertising makes less and less sense and at one stage I was at the helm of Ireland's largest TV Advertising buyers. So it's not bias on my part, it's that the world has changed and TV broadcasters haven't.

It's pure and simple. Advertising money chases Audience and with 40% of the audience using a laptop or spending 5+ hours on Netflix, clearly they're not watching TV. And yet Ad agencies haven't got around to measuring this passive audience yet - neither have TV stations because it will mean their airtime is less valuable.

Although RTE, the Irish state broadcaster, is already starting to experience it.
In 2011, its Ad revenue is down -40% on 2007. It actually produced a deficit of nearly 17 million euro after receiving a staggering 183 million euro from Government. So if they were to stand on their own feet, without Government subvention, they'd lose circa 200 million euro

Government subvention to a broadcaster is also a strong potential conflict and RTE have been in hot water this year about its coverage of the Presidential Election. If your company receives that kind of investment that simply keeps you "afloat", how critical would you be of the investor? so how critical are they of Government?

So the threat of online and second screens, as shown by Nielsen, must put their future under further threat. And indeed, all traditional TV broadcasters.

It's a sea change that isn't going to go away.

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