Did young people just kill television?

Kennedy watching television 2018

Watching flight of Astronaut Shepard on television. Left to right: Vice President Lyndon Johnson, Arthur M. Schlesinger, Jr., Admiral Arleigh Burke, President Kennedy, Mrs. Kennedy. White House, Office of the President’s Secretary. Cecil W. Stoughton (1920–2008)

This article is brought to you thanks to the strategic cooperation of The European Sting with the World Economic Forum.

Author: Adam Jezard, Formative Content.

While previous reports of the death of traditional TV viewing have been greatly exaggerated, 2017 marked a major tipping point. Spending on online and digital advertising in the United States overtook broadcast and cable revenues for the first time ever.

The money seems to be following younger viewers, who are increasingly turning to social media, apps, gaming and on-demand TV. Marketers have even coined a term for the Millennial and Gen Y viewers who spurn traditional TV: “the Unreachables”.

GroupM, part of advertising giant WPP, predicts that, globally, time spent with online media will overtake linear TV viewing in 2018. Online will have a 38% share, TV 37%, and the balance will be spread primarily across print and radio.

Global Online Media Usage will surpass TV in 2018 Online advertising beats traditional TV for first time last year with $88B
Image: Interactive Advertising Bureau (IAB) 2017 annual report

A trend for youth

Internet advertising revenues in the US totalled $88 billion in 2017, an increase of 21.4% from a year earlier, according to the Interactive Advertising Bureau (IAB) 2017 annual report. Advertising on TV, meanwhile, fell to $70.1 billion, a 2.6% drop, for the same period.

Meanwhile, Nielsen, which reports on US TV viewing habits, said that 18-24-year-olds were watching under one hour and 49 minutes of traditional TV a day in the second quarter of 2017, a fall from two hours and 10 minutes a day the year before. This is part of a broader slide of 44% since 2012.

Older audiences are underpinning traditional TV. People aged 50-64 watched 39 hours 35 minutes a week, which is relatively flat over five years.

But those who were 65 and over viewed 48 hours and four minutes of traditional TV a week. While this is down by 1.2% from the year before, it marks an overall rise of 6% since 2012.

Reaching out to the ‘Unreachables’

Turning off the TV is gaining traction among younger folk, an Omnicom Media Group study agreed. This found 47% in the 22-45 age bracket were no longer hooked by the unblinking eye in the corner of the room.

Omnicom found that a third of households aged under-35 did not have a cable or satellite subscription, while in 2016 the smartphone replaced the TV as the device most watched by Millennials.

While younger audiences are “blending” – using apps, social media platforms, playing games – they are still watching TV, just in a different way: Omnicom says that 73% of US Millennials use online streaming services, with Netflix and Amazon the market leaders.

Distributors are already responding to this fast-changing environment by seeking to combine and own more content, as recent mergers and acquisitions activity in the media sector shows. AT&T’s bid for Time Warner, Comcast and Disney’s vying for Fox, and T-Mobile’s planned merger with Sprint are some of the more headline-grabbing attempts.

Ad-free zones?

But how much studios will charge and whether new streaming services will carry advertising – and how much and for whom – are questions open to debate. Netflix and Amazon have taught a generation that ad-free television for a low-price subscription is the norm.

Farid Ben Amor, who is part of the World Economic Forum’s Future of Information and Entertainment Initiative, said: “Between streaming services and traditional TV, video remains the predominant way millennials spend leisure time, but conventional commercials are far less tolerated among this group. Brands and programmers need to collaboratively create new ways for digital advertising to reach this audience if they are to sustain the financing necessary for content at today’s production quality. “

There are also questions over whether regulators in the US and beyond will stand for what some have called a “Balkanization” of content. The Department of Justice at the end of April stepped in to block the AT&T-Time Warner deal, a move now the subject of a legal challenge.

The DoJ has argued the merger would mean substantially less competition and higher prices for consumers unless some of the subsidiary content companies or linear networks were spun-out. In response, the companies said the government must prove the merger “will likely (not potentially or possibly) lessen competition substantially, in a video marketplace that is experiencing revolutionary, unstoppable transformation and growth in competition at all levels”.

Who has the money?

One further point about the separation of ad spend on media consumed by younger and older viewers is worth considering: according to Omnicom, the US Millennial market is worth $1.3 trillion, which the marketing company calls “staggering”.

However, this is dwarfed by the spending power of older generations. Marketing Charts points out: “Baby Boomers have the highest average monthly spend per [US] household, of $765. That figure is about 50% higher than Millennials’ average of $508.”

It adds: “These figures bring to mind a seminal statistic released by Nielsen in 2012: that [by 2017], Boomers would control 70% of disposable income in the US.”

So, while marketers are keen to win over younger generations of consumers, do they risk ignoring the grey dollar at their peril?

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

Advertising

the European Sting Milestones

Featured Stings

These campaigners want to give a quarter of the UK back to nature

How to build a more resilient and inclusive global system

Stopping antimicrobial resistance would cost just USD 2 per person a year

How we can win the war against antibiotic resistance

Record-breaking heatwaves killed about 1,500 people in France

UN chief condemns air strike that hit school bus in northern Yemen, killing scores of children

Charges against Baha’i in Yemen must be dropped: UN experts urge release of detainees

Better outreach to citizens needed to improve effectiveness of European Commission’s public consultations, say Auditors

This South African lawyer is reading while running marathons – for book donations

Intervene, don’t overthink – the new mantra of systems design

How storytelling can be a force for social change

Brexit talks started with a London handicap and Brussels’ sternness

Why the 33,000 staff European Commission did not have a real contingency plan for the refugee crisis?

MEPs call for EU rules to better protect minorities’ rights

The EU learns about fishing and banking from tiny Iceland

Tougher defence tools against unfair imports to protect EU jobs and industry

Iceland’s slowdown underlines the need to fix structural issues

The COP22 is under full deployment while Donald Trump threatens openly to withdraw the US from the Paris agreement

Britain aligns with EU rivaling US on trade and Iran, abandons bilateral ‘Midsummer Night’s Dream’

The EU Parliament blasts the Council about the tax dealings of the wealthy

Parliaments broadly agree on next steps for economic, monetary union

One million facing food shortages, nutrition crisis after Mozambique cyclones: UNICEF

Zuckerberg, a paella, and the mighty EU questionnaires that would stop Whatsapp acquisition by Facebook?

UN chief ‘alarmed’ by violations of UN-backed ceasefire in Libya

Millions denied citizenship due to ideas of national, ethnic or racial ‘purity’: UN rights expert

Why press freedom should be at the top of everyone’s agenda

ECB money bonanza not enough to revive euro area, Germany longs to rule with stagnation

Erasmus+: an expected budget of €3 billion to be invested in young Europeans and to help create European Universities in 2019

Court of Auditors: EU spending infested with errors well above the materiality threshold of 2%

Why Obama asks approval from Congress to bomb Syria?

A Sting Exclusive: “Regulators and the shipping industry collaborating for a sustainable future”, written by the Secretary General of IMO

Nicaragua ‘crisis’ still cause for concern amid murder, torture allegations: Bachelet

Tax evasion and fraud threaten the European project

Meet Cipta: the comic book hero using her powers to tackle bullying in schools

The Ecofin deceives the SMEs with the EIB €10bn capital increase

What does a good digital ID look like?

“The markets have moved on renewables, policy makers must keep up”, A Sting Exclusive by Erik Solheim, Head of UN Environment

Future of Rohingya refugees in Bangladesh ‘hangs in the balance’ – UNHCR chief

How can batteries become more sustainable? This young scientist might have the answer

G20 LIVE: “Our response needs to be robust…otherwise we will only find the fire we are trying to put out”, UN Secretary General Ban Ki-moon just lit up G20 in Antalya Turkey

The Future of Retail: Changing shopping patterns will mean retailers need to invest in costly and complex solutions

EU and New Zealand launch trade negotiations

Lagarde’s metamorphoses, not a laughing matter

The ‘abuse of food relief in Yemen’ must end now

We know ethics should inform AI. But which ethics?

China greenlights first underwater high-speed railway

EU Youth Conference concludes in Luxembourg with concrete plans on how to create real youth participation

EU Parliament shows its teeth in view of 2014 elections

How to stop data leaks

2019 Innovation Scoreboards: The innovation performance of the EU and its regions is increasing

Youth platforms call on German Government to break down legal barriers for young volunteers and pupils

Economic growth ‘exceeds expectations’ but trade tensions are rising: UN report

Now’s the time to take up cycling – here are 6 reasons why

Much more than a ‘lifeline’ for millions of households, remittances can spur global growth, says UN agency

‘Ticking bomb’ health warning over deteriorating conditions facing Cyclone Idai victims

Rapid action needed for people to meet challenges of changing world of work

UN agency chiefs condemn Saudi-coalition led air strike that killed dozens in western Yemen

UN General Assembly President defends ‘landmark’ migration compact

Antibiotics are contaminating the world’s rivers

How young entrepreneurs should be supported: what assistance should governments provide?

Around 23 million boys have married before reaching 15; ‘we can end this violation’ says UNICEF chief

A dangerously hot climate, simmering political tensions: ‘This is not the summer of our youth,’ UN chief warns

Yemen ceasefire deal: ‘Potential’ now to restore humanitarian lifeline to millions

More Stings?

Speak your Mind Here

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s