A Journey to Find Maximum ROI and Profitability

► Today’s Media Map is as complex and dynamic as anyplace on Earth. Unpredictable forces can suddenly and dramatically alter the landscape.

► For businesses and brands of all sizes, but especially local retailers, charting a course across the Media Map is not an easy task, but this MEDIACENTER Special Report should help make it easier.

► Television, radio, print and direct mail occupy familiar positions, but some continue to shrink, some are relatively stagnant and others are growing. The most striking change is the vast ocean of the Internet and its strong currents, social media and mobile marketing.

Television’s Peaks Soar Above the Clouds

► Television has withstood all the forces that batter and buffet its supremacy on the Media Map. Its strength is undiminished; and it still has the largest veins of treasured consumers running deep into its core.

 

► According to Nielsen’s Q1 2014 Cross-Platform Report, the average time spent per adult, 18+ watching TV per day has remained essentially unchanged since Q1 2012, at just more than 5 hours.

► “Listening to AM/FM radio” has decreased from 2 hours, 53 minutes to 2 hours, 46 minutes while “using the Internet on a computer” and “using a smartphone” have increased significantly.

The Dynamics of Television Demographics► Nielsen data clearly indicate that traditional TV

viewership among young adults, 18–24, has eroded significantly since Q1 2011, declining by 18%, during the three-year period ending Q1 2014.

► A 2014 Harris Interactive study concluded that, although online video was more popular among young adults, “these emerging online services are being used in addition to, rather than instead of, traditional television programming.”

► At the opposite end of the age spectrum, older adults continue to increase their weekly television viewership, with adults, 50–64, reaching 45 hours, 18 minutes and adults, 65+ watching 52 hours, 3 minutes.

Unstable Ground Under Print Media

► The total circulation of 541 US newspapers of various sizes increased 3.0% for the period ending September 2013; however, all of the increase was attributable to more digital circulation at the largest newspapers.

► The 2013 Association of Audited Media (AAM) data also showed that daily print circulation decreased from 85% of total circulation at the end of September 2012 to 71.2% at the end of September 2013. 

► Total estimated spending in major media and for marketing services during 2014 is $390 billion, a 3.2% increase. Television will increase 2.9%; radio, 2.1%; and the Internet, 18.2%; while newspapers will decrease 8.0% and magazines, 2.4%.

The Internet Radio Inundation

► According to February 2014 data from Nielsen, broadcast radio reached 91.7% of listeners, 12+ every week – and this rate is rather consistent across all age groups.

► The Nielsen data also showed that Average Quarter Hour (AQH) ratings, which are often more revealing, have been decreasing since the fall of 2010 among teens and young and middle-aged adults.

► Digital, or Internet, radio is inundating the quiet waters of broadcast radio. There will be 159.8 million Internet listeners during 2014, and a projected 183.4 million by 2018. By the same year, digital radio ad spending will increase 173% and broadcast radio will decrease 15.3%.

Direct Mail: All Trails May Lead to a Dead End

► According to 2013 BIA/Kelsey research, the highest percentage of local ad dollars will still be spent in direct mail during 2017, or 25.0%; however, that will be a 2-percentage-point decrease from 2012’s 27.0%.

► The first major challenge to direct mail is the “paperless” society. All Social Security checks are paid via direct deposit. As of February 2014, approximately 75% of all employed consumers were receiving their wages via direct deposit.  

► During 2013, 74% of online households paid their bills online on the biller or their financial institutions’ Websites and 62% paid via just the billers’ sites compared to 53% paying with a check.

Post Office Peril

► The US Postal Service had been able to reduce the billions of dollars of red ink it accumulated during the past few years; however, its losses spiked again during Q2 2014, with a net loss of $2 billion as compared to $740 million for Q2 2013.

► A 2012 study of 2.8 million checking account holders found that 46% of Baby Boomers and 27% of seniors were using online banking.

► During Q2 2014, first-class mail volume decreased 1.4% and totaled $21.5 billion in revenues. Standard mail, which is more commonly known as junk mail, generated more revenue, $4.2 billion, than shipping, $3.1 billion.

The Waters of the Internet Extend Beyond the Horizon

► During 2013, there were 122.5 million US households. The TV penetration rate was 94%, or 115.6 million households, according to Nielsen.

► According to IHS Technology research, Internet penetration of US households reached 80% at the end of 2013, or 98 million, with 71.3% having high-speed service.

► August 2013 research from eMarketer found that 2013 was the first year Americans spent more time with digital media (online, mobile and other) than watching TV, 5 hours, 9 minutes and 4 hours, 31 minutes, respectively.

Smooth Sailing on the Open Waters of Mobile

► Mobile accounted for most of the increase in the daily use of digital media from 2010 to 2013, having exploded 487.5% during this four-year period.

► According to the Nielsen Digital Consumer Report Q1 2014, Americans spent 34 hours monthly on their smartphones compared to 27 hours monthly on their computers.

► A summer 2013 survey showed how the growth of mobile actually benefits, or complements, TV. Of all smartphone owners, 25% said they had a local news app, which was the second most-popular channel to obtain local news after local TV news broadcasts.

Social Media is Big Water► During 2014, Facebook is used three times as

much as the next closest social media platforms, LinkedIn and Instagram, among persons, 12+. Facebook usage, however, hasn’t increased even one percentage point from 2013 to 2014 while Instagram has increased 58.3%.

► Snapchat usage increased 333% from 2013 to 2014. Teens and adults, 18–24, have driven the growth of Snapchat and Instagram, as they are the dominant age group using these sites.

► According to a 2013 Ipsos study, Americans, 18–64, spent an average of 3.2 hours on social media networks. The average was higher among adults, 18–34, at 3.8 hours, but even 50–64 year olds were spending 2.4 hours per day using social media.

Reading Today’s Media Map Correctly

► Television and the Internet (and all its components: social media, mobile marketing, e-commerce, etc.) will be the dominant features on the map – and their supremacy is likely to grow.

► All media that depends on printed paper may retain much of their effectiveness during the near term, but their strength and usefulness will only diminish or disappear entirely during the next 10 to 20 years, and beyond, because of too many technological revolutions on the horizon.

► Radio is sure to be a viable medium for decades into the future, but Internet radio may supersede over-the-air broadcasting. It’s likely that radio and the Internet won’t be as complementary as TV and the Internet.

Charting Your Course

► The future Media Map is likely to have fewer choices – certainly effective choices – which is a benefit to large and small advertisers.

► The complementary nature of TV and digital media will only increase and advertisers should find the combination is all they’ll need to engage fully with tomorrow’s consumers. 

► Retail customers will naturally migrate to these prominent features on the map, which will make it easier for you to target the highest qualified consumers and generate maximum ROI and profitability.