A Special Report from Media Group Online, Inc.
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TV:
No Apologies
A Special Report from Media Group Online, Inc.
With the increasing fragmentation of all media,
and specifically TV, your role as a local TV
media rep must also evolve. You must also
be an educator and advisor to guide local
advertisers through the media maze.
Your efforts start with no apologies for how TV
is changing. Change is not only inevitable,
but also welcomed, as it is often the catalyst
for something new – and something better for
your local prospects and advertisers.
This month’s Special Report from Media Group
Online focuses on some of those changes,
why you and your station have no reasons
to apologize and why what is emerging will
be of significant benefit to viewers, stations,
advertisers and media reps.
www.mediagrouponlineinc.com
The Comfort Zone
As explored in detail in Media Group Online’s September 2019
Special Report, TV: Like a Member of the Family, the TV is still
the primary viewing device in American households.
That household dominance is expected to increase as more
households and individuals become comfortable with voice
interactions on multiple devices. At the top of that list is the smart
TV, with 109.3 million users forecast for 2020, and then increasing
to 119.0 million by 2022. For comparison, Nielsen estimated
120.6 million total US TV households for the 2019-20 TV season.
Top 6 Streaming Device Options, Ranked
by Popularity, Q4 2019
Device Percent YOY Change
Smart TVs 30.7% +3.5%
Roku 20.7% +9.8%
Amazon Fire Stick 18.9% +3.1%
Gaming consoles 18.8% -0.6%
Google Chromecast 9.9% -2.6%
Apple TV 8.5% -4.9%
TiVo, January 2020
Numerous industry leaders and analysts envision the smart
TV becoming the hub, the gateway for monitoring and
controlling many household needs, including environmental
settings (thermostat, lighting, etc.). Many households are
already using Amazon Fire TV and commanding Alexa to
make necessary adjustments.
Developing and offering the right apps will drive more people to
rely on their smart TVs as such a control center. Food Network
Kitchen, a joint venture of Amazon and Discovery, allows
subscribers to interact with the service.
With the approaching launch of Portal TV from Facebook,
people will be able to sit in front of their smart TVs and talk
directly with family members and friends, and even play games,
share photos and other social interactions.
The smart TV is also critical to viewers’ streaming habits, as
approximately 70% of all consumers stream content and, more
TV:
pg. 2 importantly, the TV set is where most Americans watch full-
length TV shows and movies.
According to a 2019 survey/report from Horowitz, a consumer
research firm, 75% of survey respondents said they view
streaming content on a TV screen at least occasionally.
No Apologies Comparatively, 55% said they viewed content on a computer,
48% a mobile device and 30% a tablet.
www.mediagrouponlineinc.com
Too Many Choices?
Maybe, the apologies should come from the Subscription
Video On Demand services (SVODs), such as Netflix, Hulu and
Amazon Prime, and the Virtual Multichannel Video Programing
Distributors (vMVPDs), such as YouTube TV, Hulu+Live TV and
Sling TV, for offering too many choices.
According to TiVo’s Video Trends Report Q4 2019, the average
number of SVODs per survey respondent was 6.9% during
2019, compared to approximately 4 during 2016. As if all those
choices weren’t already too many, Disney+ and Apple TV+
launched new SVODs during 2019 and HBO MAX and Peacock
(NBC) will during 2020.
With this deluge of services and their endless hours of old and new
content, it should surprise no one that new research from YouGuv
and The Trade Desk found 75% of US consumers would prefer to
spend only $30 per month for SVOD services. That computes to
approximately three services per month at an average of $10.
TiVo also reported vMVPDs are experiencing negative trends.
First, survey respondents were less satisfied with their service
during 2019 than 2018, or 21.3% and 27.6%, respectively.
Additionally, some of the vMVPDs subscription adoption rates
are slipping. Subscriptions for PlayStation Vue have decreased
so much that Sony is pulling its plug.
Even more significant results from the TiVo survey indicate no
apologies are necessary from you or other local broadcast TV
affiliates. Survey respondents listed all four major networks in
the top 6 of those they would choose to include in their à la
carte bundle.
Consumers’ Most Popular Networks
for À La Carte Bundle, Q4 2019
Network Percent
#1: ABC 61.2%
#2: CBS 55.1%
#3: Discovery Channel 48.3%
#4: A&E 47.8%
#5: NBC 47.4%
#6: Fox 46.7%
#7: History 41.4%
#8: FX 40.2%
#9: AMC 38.3%
TV:
pg. 3 #10: Food Network 37.9%
#11: TBS 37.8%
#12: HBO 36.7%
#13: The Weather Channel 35.2%
No Apologies
#14: TNT 35.2%
#15: USA Network 34.9%
www.mediagrouponlineinc.com TiVo, January 2020
Audience Insights
It’s a given in the TV media world the older segment of Generation
Z, 15–24, watch very little traditional or linear TV and adults 50+
represent the largest percentage of traditional TV viewers.
You needn’t apologize for the dearth of teen and very young
adult viewers for a number of reasons. First, no other age group
is as mobile or socially involved, as has been the case for
almost every generation at that age. Second, many are focused
on academics. Third, and maybe most telling, they are not yet
spouses and/or parents.
Data from The Media Audit’s September 2019 Aggregate
Survey of 57 US markets, representing more than 143 million
adults, reveals 47.7% of single adults, younger than 35 and with
no children have either heavy (300+minutes/day) or medium
(180–299 minutes/day) exposure to television. Only 10.5% said
they had no exposure.
When the data point changes to married adults, younger than 35
and no children, the percentage of those with heavy or medium
exposure to television increases slightly to 49.5%, while those
indicating no exposure decreases to 8.3%.
Add children, especially those younger than 6, to the family
household of adults 25–44 and their heavy and medium TV
exposure increases slightly. Of particular interest, however, is
those adults with no exposure to TV decreases from the 8.3%
above to 6.7%.
TV Exposure for Adults 25–44, with
Children, 2019
Adults 25–44,
Adults 25–44, Any
Children Younger
Children at Home
Than 6
Exposure Percent Index Percent Index
Heavy 300+ min./
25.7% 96 25.4% 95
avg. day)
Medium (180–299
25.3% 102 25.5% 103
min/avg. day)
Light (180–299 min/
41.7% 102 42.4% 104
avg. day)
None
7.3% 93 6.7% 85
(0 min/avg. day)
TV:
pg. 4 Based on The Media Audit’s September 2019 Aggregate Survey
The trend line of the data indicates as adults age and become
spouses and parents, especially of young children, their
No Apologies
exposure to TV increases – and today’s Gen Zers who don’t
have much time for TV are likely to follow the same pattern.
www.mediagrouponlineinc.com
TV Delivers Women
Although women like men have very busy days, women’s are
just a bit busier. Still, they’re able to spend 5 more hours during
an average week with media than men. Of those 72.49 hours,
women spend 27.2 hours (37.5%) with live TV and 4.14 hours
with time-shifted TV. Interacting with an app or the Web via
smartphone is a distant second, at 17.1 hours per week.
The Nielsen article, Attention Marketers: U.S. Women Are Eager
to Hear from You, provides another intriguing data comparison:
women 18+ watch 3.54 hours per day of live TV, and when they
are heads of the household, it increases to 4.17 hours. Even
working mothers 18+ are watching 2.48 hours of live TV daily.
The Nielsen data also indicates women respond to TV
advertising more positively than men.
Women’s Response to TV Advertising, 2019
TV Advertising Is TV Advertising Is
Meaningful Useful
Strongly Somewhat Strongly Somewhat
Exposure Agree Agree Agree Agree
All adults 10.8% 25.6% 14.2% 35.0%
Women 18+ 12.1% 28.1% 16.0% 36.9%
Men 18+ 9.5% 23.1% 12.3% 32.9%
Stay-at-home
13.2% 24.1% 18.4% 34.7%
mothers
Working
12.0% 28.7% 14.3% 35.9%
mothers
Nielsen (Scarborough), November 2019
The Media Audit’s September 2019 Aggregate Survey adds to
the understanding of women’s interaction with TV. Interestingly,
much larger percentages of working women 35 and older
watch early morning TV (5–7am) during the average weekday
than working women 18–34, or 13.0% and 6.8%, respectively.
Plus, the older working women index at almost twice the rate of
younger working women, or 127 and 67, respectively.
Both age groups of working women watch the most TV during
the evening/primetime hours, but again there is quite a
disparity. From 8pm to 11pm, Eastern and Pacific time (7pm to
10pm, Central and Mountain time), 36.1% of working women
18–34 are watching TV, compared to 57.8% of working women
35 and older.
TV:
pg. 5
No Apologies
www.mediagrouponlineinc.com
NextGen TV:
The Tube Reborn
2020 appears to be the year when the 10-year odyssey of
digital TV broadcasting, or the ATSC 3.0 technology, will
become a reality – and likely a game-breaker for everyone in
the TV industry.
The challenge is to package the technology in words and images
that will appeal to consumers and advertisers, which is the
marketing/promotions department’s job in conjunction with sales.
Convincing consumers they need to upgrade their TV to enjoy
NextGen TV features is the first step. Magid, a consumer-
centered business strategy company, conducted a survey
during October 2019 and discovered 42% of respondents
“would likely purchase a new TV” to access NextGen TV.
Unsurprisingly, early adopters of new technologies and young
adults (often those early adopters) were the most enthusiastic
responders to the survey. Fueling that enthusiasm is the
announcement at CES 2020 that 20 new TV models with
NextGen TV compatibility will hit the market during 2020.
According to the Magid survey, consumer excitement is
initially focused on NextGen TV’s promises of consistent audio,
4K HDR video, immersive audio and multiple audio tracks.
These could be from different sports broadcasts and/or allow
consumers who are neither English- or Spanish-speaking to
listen in their languages.
The next major step is the development of programming that
delivers NextGen TV features, a process that will require a
number of years to become the standard.
As NextGen TV strolls to center stage, BIA released its forecast
during early 2020 for the future revenues NextGen TV is
expected to generate – and it’s a rather spectacular 50% during
the next decade. This equates to a potential compound annual
growth rate (CAGR) of 8% for local broadcasters.
Your station (and you) will be able to offer your clients interactivity,
addressability, dynamic ad insertion, mobile, attribution and first-
party data support.
The bottom line as it has always been in media and advertising
where consumers go, advertisers will and must follow. NextGen
TV is definitely a no-apology zone!
TV:
pg. 6
No Apologies
www.mediagrouponlineinc.com
Leveraging Impressions
and Addressability
For decades, local broadcast media reps in both TV and radio
were often confronted with potential advertisers’ concern
that people who don’t live near their stores/businesses would
see and hear their commercials and questioned the value of
spending the money. Many reps probably had to apologize –
and leave without a sale.
The use of ratings, which is still the mainstay at the local level,
also didn’t provide media reps and their prospects and clients
with a totally clear picture of what audiences they were buying.
Another reason to apologize.
Smart TVs NextGen TV and the technologies (with some help
from TVB, Nielsen and others) will change all that and, during
2020, the process will continue to accelerate.
The two major concepts at the root of this change, both
of which you may be aware, are moving from ratings to
impressions for media-buy transactions and addressability,
which allows national and local advertisers to buy very
specific audiences.
Because audiences are so fragmented today, many advertisers
and agencies want a system that allows them to compare
apples to apples, or linear TV viewership, SVODs, social media
and all the other new media channels consumers are using.
The days of engaging with households and devices will not end
entirely, but that approach will become a minor, but still helpful,
tool. In these days of consumers demanding personalization,
“advertisers and agencies want to buy engagements with
individuals,” according to David Hohman, executive vice-
president, demand-side media, at Nielsen.
Now, smaller, local advertisers will be able to buy (and you
will be able to sell) according to impressions and target very
specific audiences, including those in local businesses’
immediate neighborhood, with very specific messages.
An additional benefit for all involved is the combination of
the smart TV, NextGen TV and 5G technology will deliver
much more precise viewer/consumer data and analytics, and
quickly. Advertisers will not only be able to tweak messages
almost immediately, but also improve the coordination of their
messages across all media for optimum performance and
maximum ROI.
TV:
pg. 7
No Apologies
www.mediagrouponlineinc.comThe Long Game
Peering too far into the future is always an iffy
proposition, but a recent Deloitte report, The Future
of the TV and Video Landscape by 2030, presents
four scenarios of that future – and linear TV still has a
prominent role and could be the big winner in one.
Scenario #1: Universal Supermarket – Deloitte
thinks a few digital platform companies will control
all the components of the TV and video market:
creation, aggregation and distribution of content and
will establish direct relationships with customers.
Broadcasters will not favor this scenario as they don’t
receive advertising revenues, but must rely on revenue
shares from these “supermarket” companies.
Scenario #2: Content Endgame – During this possible
future, content owners have the control, providing digital
platform companies with some content, but distributing
most of it through the content owners’ channels.
Additionally, they will establish those direct customer
relationships.
Scenario #3: Revenge of the Broadcasters – National
broadcasters have been able to transform to digital
platforms successfully and are major players in TV and
video. They are able to provide on-demand content
and are the voice at the other end of direct customer
relationships.
Scenario #4: Lost in Diversity – If scenario #1 is
a “supermarket,” then scenario #4 is more like a
“strip mall.” Neither broadcasters nor digital platform
companies control the TV and video market. Many
players are in the game and a proliferation of distribution
channels and superior content provide viewers with
more choices.
Regardless of which scenario (or an entirely different
future) emerges ten years hence for TV and video, you
will have no reason to apologize for it. Linear TV will not
only survive, but also thrive. The best reason to keep
your day job.
Sources: Media Village Website, 1/20; Statista Website, 1/20;
Nielsen Website, 1/20; Advanced Television Website, 1/20;
TiVo Website, 1/20; MediaPost Website, 1/20; The Media Audit
Website, 1/20; TV Technology Website, 1/20; Ad Exchanger
TV:
pg. 8 Website, 1/20; Deloitte Website, 1/20.
Prepared: January 2020
© 2020 Media Group Online, Inc. All rights reserved.
No Apologies
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