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© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Page 1August 2009Getting Consumers’ Attention© Copyright 2009. Yankee Group Research, Inc. All rights reserved. Page June 2009© Copyright 2009. Yankee Group Research, Inc. All rights reserved. www.yankeegroup.com
Getting Consumers’ Attention
August 25, 2009
Carl D. Howe, DirectorAnywhere Consumer Research
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My Main Point Today
Anywhere Media is transforming media
and advertising
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Agenda
• The Anywhere revolution
• Changing consumer behavior around media
• Recommendations
• Q&A
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Connectivity Sparks
• A common network
• Broadband demand
• Wireless ubiquity
These are forming theAnywhere Network
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Anywhere Is a Revolution
Battles under way and ahead willtransform the world we live in.
This will bring the largest technologychange in our lifetimes.
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Mobility Is Driving Anywhere
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Wireless Growth Is Driving Italy Past the Anywhere Tipping Point
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And Japan…
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. . . And Even the U.S.
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Poll 1
Have you watched a television show on your computer in the last 30 days?
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Food for Thought: NBC Universal’s “Heroes”Watch Episodes Online for Free
• NBC Universal Total Audience Measurement Index (TAMi)• Second episode of “Heroes”• Note: Log scale
• Audience size = 17 million people• Implications and repercussions
• Pay TV, ISP, media
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But TV Audiences Have Been Shrinking
Source: Yankee Group and TV Bureau of Advertising, 2009
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Internet Sites Are Growing Dramatically
Source: Yankee Group, Internet Systems Consortium, MediaPost, ClickZ, AllBusiness.com, Media Buyer Planner, Zooknic.com, 2009
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Mobile Internet Domains Are Growing More Than 500 Percent a Year
Source: Yankee Group and dotMobi, 2009
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Internet Ad Prices Are in Free Fall
Source: Yankee Group, Internet Systems Consortium, MediaPost, Clickz, AllBusiness.com, Media Buyer Planner, Zooknic.com, 2009
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Agenda
• The Anywhere revolution
• Changing consumer behavior around media
• Recommendations
• Q&A
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Consumers are drowning in a surplus of media choice
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U.S. Consumers Now Spend the Most Time Online
Source: Yankee Group Anywhere Consumer: 2008 U.S. Entertainment Survey* Yankee Group estimate; this response was not listed in this survey question
How much time do you spend daily on the following activities?
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Poll 2
Which activities do you do while watching television?
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Plus They Multitask More
• More than half of respondents acknowledge that they are online or talking on the telephone while watching television.
• Advertisers take note: This shows consumers are saturated with media.
Which of the following activities do you do while watching TV?
Source: Yankee Group Anywhere Consumer: 2008 U.S. Entertainment Survey
n = 1,503
Percent of Respondents
11%
8%
11%
16%
27%
33%
36%
53%
56%
60%
0% 10% 20% 30% 40% 50% 60% 70%
Other
SMS
Listen to the radio
None of the above
Instant message
Read the newspaper
Read a magazine
Talk on the phone
Surf the web
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Remember This?Online Ad Revenue Is a Third of TV Revenue
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Is Anywhere Taking the Media Industry Here?
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Anywhere Media is transforming media
and advertising
Remember Today’s Main Point
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Anywhere media
Screen independent, on demand and easy to consume
Anywhere Consumers
Mobile Mobile InternetInternetInternetInternetTVTV Other Other
DevicesDevices
TV consumers
TV media
Internet consumers
Internet media
Mobile consumers
Mobile media
Changing the Channels to Anywhere Media
Anywhere Media is media delivered to consumers when and where the consumer will pay attention to it.
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7%
10%
20%
28%
30%
36%
55%
82%
0% 20% 40% 60% 80% 100%
Other
Can watch outside of my home
Like older/classic TV shows
Was interrupted while watching onTV
Wanted to watch the programagain
Has fewer commercials
Catching up with older episodes
Missed the episode when it wason TV
Consumers Use Internet Video as Video on Demand
• 82% of Internet video viewers watch TV shows online because they missed the episode on TV.
• VoD numbers pale in comparison.
• DVR is more about ad skipping than time shifting.
• 79% of DVR owners fast-forward through commercials most or all of the time.
• DVR owners are more likely to watch online when they fail to watch or record an episode.
• Internet video is not yet compelling enough for viewers to cancel their pay-TV services.
.
Why do you watch full episodes of TV shows online?
Source: Yankee Group Anywhere Consumer: 2008 U.S. Entertainment Survey
n = 294 (watch full episodes of TV shows online)
Percent of Respondents
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AT&T’s Masters Coverage Showed Promise
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Anywhere Media Results in the U.S.
Advertising revenue for TV won’t pass 2008 levels until 2012.
$52,675 $50,459 $50,357 $51,686 $53,791 $56,177
$23,204 $23,632 $23,289 $25,642 $28,436 $31,127$115 $184 $241 $323 $431 $566
2008 2009 2010 2011 2012 2013
Mobile InternetInternetTV
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Agenda
• The Anywhere revolution
• Changing consumer behavior around media
• Recommendations
• Q&A
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Recommendations
Media companies:• Think twice before committing to an ad-only business model.• Embrace a flexible content platform.
Advertisers:• Negotiate extra spots in 2009 and 2010 with your media buys.• Look for ways to be less obtrusive.• Demand measurable results.
Network operators• Recognize that video is the lead property.• Don’t overpromise behavioral ad data.
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And Recognize That Mobile Isn’t the Last Screen
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And New Kinds of Consumers Need New Services
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Conclusions
• Consumer attention will limit media and advertising growth.
• Anywhere Media is transforming media and advertising.• Consumers are drowning in too much media.• Consumers will choose how and where they access media.• The media business must adapt to consumer choice.
• TV advertising will get a reality check during the next two years.
• Don’t think mobile is the last screen.
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Q&A
Did you know? Teens still discover music through friends and radio.
Yankee Group’s Attitude & Behavior Surveys track this data and more.
Sign up for a complimentary snapshot of our most recent results at
http://www.yankeegroup.com/live/survey_data_snapshot.html.
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Q&A
Did you know? Of people with a mobile phone, smartphone users spendsignificantly more time using the mobile Web.
Yankee Group’s Attitude & Behavior Surveys track this data and more.
Sign up for a complimentary snapshot of our most recent results at
http://www.yankeegroup.com/live/survey_data_snapshot.html.
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Carl D. Howe, Director, [email protected]
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