Hulu.com or NBC? Streaming Video versus Traditional TV

Page created by Kyle Hicks
 
CONTINUE READING
Hulu.com or NBC?
                               Streaming Video versus Traditional TV
                                   A Study of an Industry in Its Infancy

KELTY LOGAN                    The research employed online interviews among young adult viewers of online
University of Colorado-
                               streaming television and traditional television to determine how media differ in terms
  Boulder
kelty.logan@colorado.edu       of use and advertising perceptions and avoidance. Results indicated more similarities
                               than differences. Significant differences regarded the amount of use and viewer
                               attitudes toward advertising. Specifically, young adults watched 62 percent more
                               traditional television than online television and were significantly less tolerant of online
                               television advertising. These findings appeared to reflect the convenience-orientation
                               of online television viewers. Advertisers should note that advertising presence on
                               online streaming television will increase their message frequency among young adults.

                               INTRODUCTION AND REVIEW                                 important advantages to advertisers seeking to dif-
                               Thirty years ago, television was the medium that        ferentiate their media portfolio:
                               drove the creation of advertising. In 2011, adver-
                               tisers aggressively are seeking alternatives to tel-    • The advertising environment is very similar
                               evision advertising in the wake of escalating costs       to traditional television in that it provides epi-
                               and decelerating reach. Audience erosion has been         sodic television programs interspersed with
                               attributed to the proliferation of television chan-       commercials.
                               nels and the increasing popularity of media alter-      • Online streaming video (OTV) appeals to a
                               natives such as video rentals, video games, and           young audience that is difficult to reach on tra-
                               Internet use. Although the new media options              ditional television owing to their light television
                               often provide advertisers with the ability to micro-      viewership and heavy usage of technology to
                               target an advertising message, television remains         avoid advertising.
                               a reliable—if expensive—medium for achieving            • The current format of OTV does not provide
                               broad reach. This article investigates the relatively     viewers with the opportunity to zip or zap
                               new phenomenon of online access to television             commercials.
                               programming in the belief that advertisers can
                               use online streaming television to increase the effi-     OTV episodic television has been available
                               ciency of television advertising.                       to consumers since 2008. At present, consumers
                                  As of April 2010, Nielsen stopped reporting how      can access first-run television shows on all of the
                               many channels the average television household          major network sites including ABC.com, CBS.com,
                               receives because a television channel’s content is      CWTV.com, Fox.com, and NBC.com. Current tel-
                               no longer accessed in a single, easily measurable       evision programming also can be accessed on con-
                               manner (Mandese, 2010). Television viewers now          tent aggregator sites such as Hulu.com, Fancast.
                               are able to time-shift content by recording shows       com, and TV.com. These aggregator sites are the
                               or accessing content online. Online streaming           result of partnerships between networks and
                               television programming, however, offers three           production companies and, consequently, offer

276   JOURNAL OF ADVERTISING RESEARCH   March 2011                                                       DOI: 10.2501/JAR-51-1-276-287
THE FUTURE: ONLINE STREAMING VIDEO

a broader range of programs than the net-       intention to increase the advertising load       The potential effectiveness of an adver-
work sites.                                     on its online television episodes to repli-    tisement depends upon consumers’ will-
  Today approximately 85 percent of U.S.        cate the television advertising load (Fried-   ingness to view the advertising. In other
Internet users view online video. The           man, 2010).                                    words, the primary barrier to advertising
duration of the average online video is 4.3       To assess the attractiveness of the online   effectiveness is advertising avoidance. It
minutes, reflecting the dominance of the        television environment relative to tra-        has been suggested that advertising avoid-
YouTube site. YouTube accounts for about        ditional television, advertisers need to       ance in a specific medium is related to
40 percent of all videos viewed online.         understand more about consumers’ use of        perceived advertising clutter (Elliott and
Hulu.com ranks second as a video destina-       both media. This study will evaluate the       Speck, 1998; Greyser, 1973) or advertising
tion with less than a 4-percent share (com-     differences between the two media types        intrusiveness in that medium (Li, Edwards,
score.com 2010). Approximately 30 percent       in terms of both reception context and         and Lee, 2002). Although advertising clut-
of 18- to 34-year-old U.S. Internet users       potential advertising effectiveness among      ter refers specifically to overexposure to
view complete television show episodes          young adults.                                  advertising, “advertising intrusiveness”
online (Knowledge Networks, 2009).                “Reception context” refers to the degree     refers to the target consumer’s perception
  Although it is readily apparent to adver-     of audience activity associated with a spe-    of the negatives associated with advertis-
tisers that online access of episodic televi-   cific medium. This notion describes why        ing in a specific medium. Intrusion meas-
sion is increasingly popular, there is little   and how a specific consumer target uses        ures the extent that advertising interferes
information regarding how the reception         a specific medium. Conceptually, it is a       with the enjoyment of media content, or
context may affect advertising effective-       composite of motives for use of a specific     content utility. It reflects consumers’ per-
ness. A recent Nielsen IAG survey (2010)        medium, usage patterns, and affinity for       ceptions of advertising clutter and their
indicated that online video commercials         the medium.                                    perceived ability to avoid the advertising.
had better recall than television com-            “Motives for media use” are defined            Advertising avoidance—the bane of
mercials. The report suggested, however,        as “… general dispositions that influence      all advertisers—has been made easy for
that the positive results may have been         people’s actions taken to fulfill a need or    those who record television shows. They
attributable to the inability to fast-forward   want” (Papacharissi and Rubin, 2000). In       can simply fast-forward through com-
through the online videos coupled with          1984, Rubin determined that two kinds          mercials during the replay. There are other
the reduced clutter offered by the online-      of media use—ritual and instrumental—          advertising-avoidance methods, however,
video environment.                              reflected significantly different motives,     that can be utilized when viewing televi-
  Both of these advantages may be short-        content preferences, usage levels, affin-      sion programming in real time or online.
lived. On May 7, 2010, the FCC granted          ity for a specific medium, and degree of       Demographic characteristics are strong
“selectable output control” to content          involvement in the medium.                     predictors of media avoidance (Speck and
producers (Bond, 2010). The ruling is             Rubin defined “ritual media use” as          Elliott, 1997); younger consumers are most
intended to prevent the recording, shar-        “ritualized use of a medium to gratify         likely to avoid advertising. When evaluat-
ing, and piracy of movies that are aired on     diversionary needs or motives” (p. 69).        ing online advertising, for example, young
television prior to release on DVD or Blu-      Ritual use is related to enjoyment and, to     adults (18 to 34) are very likely to ignore
ray. The ruling establishes a precedent for     a certain extent, occupation of time. Rubin    pop-up windows, banner ads, and click-
content providers to disable set-top boxes      determined that ritual use is associated       through ads (Mintel, 2007). Among young
remotely—a capability that could lead to        with low levels of viewer involvement.         adults (18 to 34), more than 40 percent
further efforts to stop viewers from time-        “Instrumental use,” conversely, Rubin        reported that they avoid watching televi-
shifting programming. If this practice were     wrote, is “goal-directed use of media          sion commercials, and nearly 50 percent of
widely adopted, viewers could lose the          content to gratify informational needs or      them changed the channel when commer-
ability to fast-forward through television      motives.” Such media usage is driven by        cials air (Mintel, 2005).
commercials. Although the threat of losing      the need to know something such as a
control of the fast-forward button looms        news update, a baseball score, or even the     RESEARCH QUESTIONS
in the future, increased commercial clutter     winner of “American Idol.” Rubin deter-        The purpose of the current research is to
on Internet television soon may be a real-      mined that instrumental usage is a more        determine whether the advertising context
ity. In 2010, the CW network announced its      involving experience than ritual usage.        and potential advertising effectiveness

                                                                                          March 2011   JOURNAL OF ADVERTISING RESEARCH   277
THE FUTURE: ONLINE STREAMING VIDEO

vary significantly between viewers of           • RQ5: Does the perception of advertis-                television programs viewed in “real time”
traditional, non-recorded television pro-            ing intrusiveness vary between viewers            and programs that were recorded for later
gramming, and OTV programming. Spe-                  of traditional broadcast television and           viewing. Only participants who watched
cifically, this research seeks                       OTV?                                              television in “real time” during the past
                                                • RQ6: Do methods of advertising avoid-                3 months were included in the sample,
• to determine whether the degree of                 ance vary between viewers of tradi-               and the questionnaire specified that all
  involvement with the medium differs                tional broadcast television and OTV?              responses pertain only to “real time”
  between television viewers and OTV                                                                   viewership.
  viewers;                                      METHODOLOGY                                              The unusually specific requirements
• to determine whether the amount of            A 75-item       online     questionnaire      was      for participation resulted in a high rate of
  viewer involvement is related to the ten-     developed and modified for users of tel-               disqualification. Only 27.9 percent of all
  dency to avoid advertising; and               evision and OTV. The questionnaire was                 respondents qualified for participation in
• to determine whether the tendency to          pre-tested on a small sample of students               the research and completed the question-
  avoid advertising differs significantly       to ensure clarity. The questionnaire con-              naire (See Table 1). It should be noted,
  between television and OTV viewers.           sisted of six major sections focusing on               however, that viewership of complete tel-
                                                motives for media use; level of media use;             evision episodes via streaming video has
  Because no prior research has inves-          media content; affinity for the medium;                more than doubled among young adults
tigated OTV use in terms of motives for         perceived advertising intrusiveness; and               during the past 3 years (Knowledge Net-
use, types of programs viewed, amount           advertising avoidance. All measures were               works, 2009), indicating the increased
of usage, and affinity for the medium,          established, five-point Likert-type scales             likelihood of this participant profile in the
the following research questions will be        (See Appendix A).                                      future.
addressed. This information will provide             A   professional    online-research      ser-
an understanding regarding whether the          vice collected the data. A national sample             SUMMARY OF RESULTS
viewing context differs between television      of approximately 380 participants was                  Comparison of Reception Context for
and OTV.                                        recruited for each media type (television              Television and OTV
                                                and OTV) between the ages of 18 and 34.                Motives for Media Use. The primary
• RQ1: Do viewers of traditional televi-        Participants were screened to reflect the              motive for media use—entertainment—
  sion broadcasts have different motives        gender, race, ethnicity, education, and                did not vary significantly between users of
  for media use compared to viewers of          income of the U.S. adult Internet users                television and OTV. Nearly 60 percent of
  OTV?                                          (See Appendix B). Participants also were               television viewers and 70 percent of OTV
• RQ2: How does viewership of tradi-            screened for media usage.                              viewers reported that they had used the
  tional television differ from viewership           Specifically, all participants had viewed         medium for entertainment (See Table 2).
  of OTV in terms of types of program-          episodic television programs on tradi-                   Confirmatory use of exploratory factor
  ming viewed?                                  tional television and OTV during the past              analysis—employing television and OTV
• RQ3: How does viewership of tradi-            3 months. Regarding traditional television             data—determined that the loadings of
  tional television differ from viewership      viewership, the screener and question-                 items for Motivations for Media Use cor-
  of OTV in terms of hours of usage?            naire explicitly differentiated between                responded to the two patterns of media
• RQ4: How does viewership of tradi-
  tional television differ from viewership      TABLE 1
  of OTV in terms of media affinity?
                                                Participant Screening Results
                                                                        TV Group   %                 OTV Group %               Total        %
  Furthermore, no prior research has inves-
tigated attitudes and behaviors regarding       Total Screened          1,346       100.0            1,360       100.0         2,706        100.0
online advertising. This information will       Screen Outs              934           69.4           953          70.1        1,887          69.7
provide an understanding regarding the
                                                Partials                  33            2.5             30           2.2          63            2.3
relative receptivity to advertising among
viewers of television and OTV.                  Completes                379           28.2           377          27.7          756          27.9

278   JOURNAL OF ADVERTISING RESEARCH   March 2011
THE FUTURE: ONLINE STREAMING VIDEO

TABLE 2                                                                                          TABLE 3
Motivations for Media Use                                                                        Factor Matrix: Motives for
                           TV (n = 379)                       OTV (n = 377)                      Television Viewership
                                           % Agree/                            % Agree/                               Factor 1   Factor 2
                           Mean SD         Strongly Agree     Mean SD          Strongly Agree    Motivation           (Ritual)   (Instrumental)

Entertainment              3.76     0.74   57.6               3.90    0.66     67.6              Arousal/Excitement   –0.07      –0.96

Pass Time                  3.72     0.74   53.8               3.64    0.79     48.0              Companionship         0.06      –0.74

Habit                      3.65     0.72   48.3               3.51    0.69     33.4              Entertainment         0.77      –0.01

Relaxation                 3.57     0.82   46.1               3.57    0.77     49.2              Economics/            0.52      –0.00
                                                                                                 Inexpensive
Economics/Inexpensive 3.45          0.92   41.2               3.87    0.79     59.9
                                                                                                 Escape/Forget         0.39      –0.45
Convenience                3.16    1.04    40.7               3.48    0.98     53.8
                                                                                                 Habit                 0.93       0.09
Social Interaction         3.48    0.79    36.3               3.03    0.86     19.1
                                                                                                 Information/         –0.03      –0.79
Escape/Forget              3.26    0.85    26.1               3.16    0.87     24.0              Learning
Information/Learning       3.02    0.91    20.3               2.85    0.99     17.5              Pass Time             0.78       0.06
Companionship              2.90    0.99    20.0               2.74    0.96     13.6              Relaxation            0.63      –0.06
Arousal/Excitement         3.02    0.83    15.8               3.25    0.81     24.9              Social Interaction    0.43      –0.37

                                                                                                 Convenience           0.26      –0.48

use (ritual and instrumental) identified            Independent      groups’    t-tests   also
by Rubin (1984). Entertainment, the pri-          revealed that motives for media use var-
                                                                                                 TABLE 4
mary motive for both television and OTV           ied by gender. Specifically, men were more
groups, is classified as ritual usage.            likely than women to use television and
                                                                                                 Factor Matrix: Motives for
  For each group, two factors were pro-           OTV for information, arousal, and excite-      Online Streaming Television
duced by the oblique-rotated, principal           ment than women (Tables 6 and 7).              Viewership
axis factoring method employed by Rubin.
                                                                                                                      Factor 1   Factor 2
For the television group, the first factor        Media Content. Both television and OTV
                                                                                                 Motivation           (Ritual)   (Instrumental)
had an Eigenvalue of 6.33 and explained           users were more likely to watch enter-
                                                                                                 Arousal/Excitement    0.34      –0.53
57.5 percent of the total variance. The sec-      tainment types of programming than
ond factor was less substantial with an           informational programming (See Table           Companionship        –0.08      –0.84

Eigenvalue of 1.04, explaining 9.4 percent        8). Canonical correlation analysis deter-      Entertainment         0.88       0.17
of the total variance (see Table 3). For the      mined that certain program types were          Economics/            0.72       0.09
OTV group, the first factor had an Eigen-         associated with ritual or instrumental for     Inexpensive
value of 5.76 and explained 52.4 percent of       television use, but there was no association
                                                                                                 Escape/Forget         0.32      –0.57
the total variance. The second factor was         between program types and motivation for
                                                                                                 Habit                 0.62      –0.22
less substantial with an Eigenvalue of 1.47,      OTV use (See Appendices C and D).
explaining 13.4 percent of the total vari-                                                       Information/         –0.07      –0.88
                                                                                                 Learning
ance (see Table 4).                               Level of Media Use. Respondents indi-
  Independent groups’ t-tests revealed            cated the number of hours and minutes          Pass Time             0.64      –0.14
that television users were more likely to         they spent with each medium (televi-           Relaxation            0.64      –0.24
use the medium for social interaction than        sion and OTV) during the previous day
                                                                                                 Social Interaction    0.11      –0.73
OTV users. OTV users, conversely, were            for each of six, 3-hour time periods. The
                                                                                                 Convenience           0.47      –0.25
more likely to use the medium for conven-         methodology assumed that respondents’
ience and economics (See Table 5).                recall regarding their own actions was

                                                                                            March 2011   JOURNAL OF ADVERTISING RESEARCH    279
THE FUTURE: ONLINE STREAMING VIDEO

TABLE 5                                                                                         basis of gender. Television and OTV levels
                                                                                                of usage did not vary significantly on the
Independent Groups’ t-Tests: Comparison of Television and
                                                                                                basis of age (18–24 versus 25–34 years).
OTV Motives for Use
                      Group         N          M          SD          t          df     p       Affinity for the Medium. Though there
Social Interaction    TV            379        3.48       0.79        7.56       754    0.001   was no significant difference between
                                                                                                the OTV and television groups in terms
                      OTV           377        3.03       0.86
                                                                                                of media affinity, among OTV users,
Convenience           TV            379        3.16       1.04        4.28       754    0.001   men had significantly more affinity for
                      OTV           377        3.48       0.98                                  the medium (M = 2.74, SD = 0.89) than

Economics             TV            379        3.45       0.92        6.74       754    0.001   women (M = 2.53, SD = 0.89), t(375) = 2.23,
                                                                                                p < 0.05.
                      OTV           377        3.87       0.79

                                                                                                Comparison of Perceived Advertising
TABLE 6                                                                                         Intrusiveness and Avoidance for
                                                                                                Television and OTV
Independent Groups’ t-Tests: Comparison of Motives for
                                                                                                Advertising Intrusiveness. An independ-
Television Use by Gender                                                                        ent group’s t-test indicated a significant
                              Group        N          M        SD         t       df    p       difference between the means, t(754) = 2.82,
                                                                                                p < 0.01, suggesting that users of online
Arousal/Excitement            Men          207        3.12     0.83       2.61    377   0.010
                                                                                                television regarded advertising as more
                              Women        172        2.89     0.81
                                                                                                intrusive than television users. Nearly 60
Information/Learning          Men          207        3.14     0.91       2.01    377   0.001   percent of OTV users agreed that advertis-
                              Women        172        2.87     0.89                             ing was distracting, whereas fewer than
                                                                                                half of the television users agreed with the
                                                                                                same statement (See Table 10).
TABLE 7
Independent Groups’ t-Tests: Comparison of Motives for OTV                                      Advertising Avoidance. An independent
Use by Gender                                                                                   group’s t-test indicated a significant differ-
                              Group        N          M        SD         t       df    p       ence between the means, t(754) = 2.34, p <
                                                                                                0.05. This suggested that television view-
Arousal/Excitement            Men          206        3.37     0.78       3.03    375   0.001
                                                                                                ers were more likely to avoid ads than OTV
                              Women        171        3.11     0.83                             viewers. The responses indicated that tel-
Information/Learning          Men          206        2.98     0.99       2.85    375   0.001   evision viewers had different alternatives
                                                                                                versus OTV viewers. For example, 47 per-
                              Women        171        2.70     0.95
                                                                                                cent of the television group indicated they
                                                                                                were most likely to switch channels dur-
extremely reliable for a 24-hour period            average of 2.9 hours of OTV usage during     ing commercials, whereas the OTV group
but diminished significantly beyond that           the prior day, nearly 2 hours less media     was most likely to mentally tune out the
scope.                                             usage per day compared to the television     commercials (See Table 11).
  Television users reported an average of          group (See Table 9).
4.7 hours of television usage during the              An independent t-test revealed that men   DISCUSSION
prior day, which was consistent with the           watched more hours of television (M =
4.8 hours estimated by the U.S. Census             338.09 hours, SD = 277.62) than women          RQ1:      Do viewers of traditional televi-
(2009). Compared to the television group,          (M = 236.94 hours, SD = 236.94), t(377) =                sion broadcasts have different
the OTV users reported far less media              1.99, p < 0.05 whereas the level of OTV                  motives for media use compared
usage. Specifically, OTV users reported an         usage did not vary significantly on the                  to viewers of OTV?

280   JOURNAL OF ADVERTISING RESEARCH   March 2011
THE FUTURE: ONLINE STREAMING VIDEO

TABLE 8                                                                                    rather than instrumental motivations and
                                                                                           evoked similar, relatively low levels of
Programming Preferences                                                                    viewer involvement.
                               TV (n = 379)                   OTV (n = 377)                  OTV satisfies an economic need, how-
                                              Every                           Every        ever, that television does not address.
Program Type                   Mean    SD     Week (%)        Mean   SD       Week (%)     Specifically, a key differentiating motive

Movies                         4.05    1.20 50.4              3.37   1.52 35.2             for OTV use is the ability to access televi-
                                                                                           sion content without paying for cable-tel-
Drama                          3.80    1.42 47.8              3.17   1.58 31.7
                                                                                           evision access. There also were indications
Sitcoms                        3.52    1.52 40.4              2.93   1.53 24.9             that men were more likely than women
Sports                         3.27    1.58 35.6              2.45   1.57 18.3             to use both television and OTV for infor-
                                                                                           mational needs and, therefore, exhibited
Action                         3.12    1.60 30.9              2.93   1.53 21.4
                                                                                           higher levels of involvement with the
Talk                           2.96    1.56 27.2              2.26   1.47 13.5
                                                                                           media. Finally, it appeared that viewer-
Reality                        3.00    1.60 26.4              2.46   1.56 17.2             ship of OTV more likely was a solo activity
Variety                        2.80    1.60 23.5              2.39   1.58 17.5             that may have been conducted in an out-
                                                                                           of-home environment. Out-of-home usage
News                           2.79    1.59 23.0              2.20   1.48 13.0
                                                                                           may have explained the fact that OTV
Humor                          3.09    1.41 22.2              2.74   1.54 18.5             usage—compared to television usage—
Children’s                     2.54    1.64 21.6              2.30   1.58 15.3             was less likely to be motivated by social
Fake News                      2.68    1.55 19.3              2.31   1.52 13.5             interaction.

Game                           2.91    1.46 19.0              2.17   1.48 11.9
                                                                                             RQ2:    How does viewership of tra-
Magazines/Documentaries        2.60    1.45 14.2              2.21   1.44 11.9                       ditional television differ from
Soaps                          1.84    1.39 10.3              1.75   1.34       8.5                  viewership of OTV in terms of
                                                                                                     types of programming viewed?
Religious                      1.66    1.25    6.9            1.62   1.24       7.4

TABLE 9                                                                                    The results indicated that, overall, the
                                                                                           television and OTV groups did not differ
Media Usage by Daypart (Prior Day)                                                         in terms of program content preference.
Time Periods                 TV (n = 379)            OTV (n = 377)        Index Vs. TV     Users of television and OTV were more
5:00 AM–7:59 AM                 8.7%                   9.0%               103              likely to view entertainment content (e.g.,
                                                                                           comedy and drama) rather than informa-
8:00 AM–10:59 PM              11.0%                   12.5%               114
                                                                                           tional content (e.g., news and sports).
11:00 AM–1:59 PM              14.2%                   14.5%               102
2:00 PM–4:59 PM               17.0%                   16.5%                97                RQ3:    How does viewership of tra-
5:00 PM–7:59 PM               21.3%                   19.6%                92                        ditional television differ from
                                                                                                     viewership of OTV in terms of
8:00 PM–11:00 PM              27.7%                   28.0%               101
                                                                                                     hours of usage?
                             100.0%                  100.0%
Average Hours of Use            4.7                    2.9                 62              Television viewership was significantly
                                                                                           higher than OTV viewership among young
                                                                                           adults. These findings were consistent
The findings suggested that there were        primarily were used for entertainment        regardless of whether participants were
no significant differences between users      rather than information. This suggested      younger (18–24), older (25–34), male, or
of television and OTV in terms of motives     that both television and OTV were used       female. Specifically, participants reported
for media use. Both television and OTV        to satisfy primarily ritual motivations      an average of 4.7 hours of television usage

                                                                                      March 2011   JOURNAL OF ADVERTISING RESEARCH   281
THE FUTURE: ONLINE STREAMING VIDEO

TABLE 10                                                                                           television group. Nearly 60 percent of
                                                                                                   OTV users agreed that advertising was
Perceived Advertising Intrusiveness
                                                                                                   distracting; fewer than half of the televi-
                      TV (n = 379)                              OTV (n = 377)                      sion users agreed with the same statement.
                               %                                         %
When I watch          %        Neither                          %        Neither      %              RQ6:     Do   methods    of     advertising
television in         Strongly Agree    % Disagree/             Strongly Agree        Disagree/               avoidance vary between view-
real time, the        Agree/ nor        Strongly                Agree/ nor            Strongly                ers of traditional broadcast tel-
advertising is …      Agree    Disagree Disagree                Agree    Disagree     Disagree                evision and OTV?
Distracting           48.3          31.1       20.6             57.0      27.6        15.4
Disturbing            33.3          37.2       29.6             39.3      31.8        28.9         The findings suggested that television
                                                                                                   viewers were more likely to avoid adver-
Forced                51.2          33.5       15.3             56.7      30.8        12.5
                                                                                                   tisements than OTV viewers, reflecting
Interfering           51.5          34.3       14.2             56.0      29.7        14.4         the greater number of avoidance options
Intrusive             48.1          37.2       14.7             53.6      31.6        14.9         available to television viewers. For exam-
                                                                                                   ple, 47 percent of the television group
Invasive              36.7          43.5       19.8             43.2      36.6        20.1
                                                                                                   indicated they were most likely to switch
Obtrusive             35.9          43.0       21.2             42.0      39.0        19.0
                                                                                                   channels during commercials. OTV view-
                                                                                                   ers were most likely to mentally tune out
TABLE 11                                                                                           the commercials.

Advertising Avoidance
                                                                                                   CONCLUSIONS
                         TV (n = 379)                            OTV (n = 377)
                                                                                                   The research suggested that young adults
                         % Never/ %               % Almost       % Never/ %           % Almost     (ages 18–34) used online episodic televi-
During commercials       Almost   Some-           Always/        Almost   Some-       Always/      sion to augment their traditional television
I…                       Never    times           Always         Never    times       Always       use. Young adults appeared to watch the
Leave the room             8.7         63.9       27.5           17.3        47.7     25.0         same types of programs for the same ritu-

Mentally tune out          9.0         45.9       45.1              8.8      38.2     53.1         alistic motives regardless of the medium.
the commercials                                                                                    The disparate amount of viewing time
                                                                                                   attributed to the two media suggested,
Switch programs          10.8          42.0       47.3           27.0        35.5     27.4
                                                                                                   however, that television was the primary
during commercials
                                                                                                   medium, accounting for more than 60 per-
Lower the volume         34.3          39.6       26.1           25.2        41.1     33.7         cent of the total viewing time.
during commercials
                                                                                                     Online     episodic   television    (OTV)
                                                                                                   appeared to provide an economical, addi-
versus 2.9 hours of OTV usage. Interest-              terms of affinity for the specific medium.   tional usage occasion. Young men (ages
ingly, although men watched more tel-                 Among the OTV group, however, men            18–34) appeared to be an attractive target
evision than women, men and women                     indicated significantly more affinity for    for advertising within OTV programming.
reported similar levels of OTV use.                   the medium.                                  They demonstrate higher levels of affin-
                                                                                                   ity for the medium compared to women
  RQ4:      How does viewership of tra-                  RQ5:   Does the perception of advertis-   viewers and were more likely than women
            ditional television differ from                     ing intrusiveness vary between     to use the medium for informational
            viewership of OTV in terms of                       viewers of traditional broadcast   use, indicating greater levels of viewer
            media affinity?                                     television and OTV?                involvement. Furthermore, although OTV
                                                                                                   advertising was viewed as intrusive, it
There      was   no   significant    difference       The online television group regarded         was more likely to be viewed than televi-
between the television and OTV group in               advertising as more intrusive than the       sion advertising because the OTV viewer

282   JOURNAL OF ADVERTISING RESEARCH      March 2011
THE FUTURE: ONLINE STREAMING VIDEO

was less likely to be distracted by compan-        media including income, education,            DR. KELTY LOGAN is a member of the advertising faculty
ions and had fewer options to avoid the            geographic location, and innumerable          at the University of Colorado at Boulder. She earned
advertising.                                       other, unknown covariates. As a conse-        her Ph.D. at The University of Texas at Austin. She has
  Online television may be in an early             quence, the sample screening process          over 20 years of experience as a marketing executive
adoption phase. Though young adults                generated a unique participant profile.       in the advertising, broadcast network, and product
already have formed viewing habits                 By requiring the same usage experience        marketing industries. She worked for multinational
that are difficult to break, teenage view-         from all participants, the design gained      advertising agencies in New York and Europe,
ers may be more inclined to incorporate            certainty at the risk of generalizability.    managed program promotion for NBC, and directed
online viewing into their television view-       • The research design relied on self-           brand management for Mars, Inc. As an academic
ing routine. Therefore, the percentage of          reporting. It is possible, for example,       she focuses on the challenges of the new media
total viewing attributed to online viewing         that research responses reflected how         environment for advertisers.
among young adults may expand over the             participants feel they should respond
next few years.                                    rather    than   their   actual   opinions.
  Advertisers should note that advertising         This especially may be true regarding
presence on OTV will increase their mes-           the attitudes and perceptions about           APPENDIX A
sage frequency among the young adult               advertising.                                  Measures
media target and, in particular, the young
adult male target. Advertising viewed in           Future research should address the            • Motives for Media Use were measured
an online television context also appeared       limitations posed by the sample. By con-          using an established 30-item, five-
to have a greater chance to be seen by the       ducting research among respondents who            point Likert-type scale (1 = “strongly
young adult target than ads viewed in a          were not screened on the basis of recent          disagree” and 5 = “strongly agree”) to
traditional television context.                  exposure to both types of media, it will be       assess a variety of gratifications sought
  OTV, however, does not provide suf-            possible to compare results with those of         from media use such as “Because it
ficient advertising reach as a stand-alone       the present study and determine the effect        relaxes me,” “Because it entertains me,”
medium owing to the relatively low usage         of the sample composition.                        and “So I can get away from what I’m
levels among the young adult target.               In addition, more should be learned             doing” (Rubin, 1981; Papacharissi and
The combination of low usage levels and          about how the young-adult target defines          Rubin, 2000).
broad programming choices will make it           their media environment. Do they, in fact,      • Level of Media Use was measured using
difficult for advertisers to achieve effective   distinguish between television and OTV            an established self-reporting process
reach solely through OTV presence. Given         when discussing television viewership?            (Rubin, 1984). Respondents indicated
the similarities between the television          Do they regard online television viewer-          for each of six, 3-hour-long time periods
and OTV groups regarding programming             ship as an extension of television usage or       the number of hours and minutes they
type, it would make sense for advertisers        as another aspect of online entertainment?        spent using television or OTV during
to extend their network buys to include            It would appear that the era of media           the previous day.
the online versions of all appropriately tar-    convergence is underway. When facing            • Media Content was measured using an
geted programs.                                  a paradigm shift in response to techni-           established 16-item, five-point Likert-
  The research design generated two limi-        cal innovation, the challenge is to define        type scale (1 = “Never watch” and 5 =
tations regarding the results:                   the category and determine the segments           “Regularly watch”) to report how often
                                                 based on the consumer needs. Future               participants watched various catego-
• The sample screening process generated         research regarding comparison of media            ries of television programs (Rubin 1981,
  a unique participant profile. Specifically,    in this period of rapid media evolution           1984). The program categories included
  all participants had used television           should help define both the category and          areas such as “Situation Comedies,”
  and online television within the past 3        segments.                                         “News,” “Game Shows,” and “Reality
  months. The screening process was an                                                             Programs.”
  effort to avoid obtaining results that are                                                     • Affinity for the Medium was measured
  confounded by individual differences                                                             using an established five-item, five-
  between the users of different types of                                                          point Likert-type scale (1 = “Strongly

                                                                                            March 2011    JOURNAL OF ADVERTISING RESEARCH         283
THE FUTURE: ONLINE STREAMING VIDEO

 disagree” and 5 = “Strongly agree”) to         APPENDIX B
 assess the importance of each medium           Sample Composition
 importance in the context of the
 participants’ daily lives (Rubin, 1984).                                               U.S. Internet Users* (%)   TV Group (%)   OTV Group (%)
 Statements reflected sentiments such
                                                Gender
 as “If the television wasn’t working, I
 would really miss it.” The five items          Male                                    50.0                       55.0           55.0
 were summed to calculate a mean score          Female                                  50.0                       45.0           45.0
 for television (α = 0.85, M = 2.64, SD =       Age
 0.93) and OTV (α = 0.85, M = 2.65, SD
                                                18–24                                                              51.0           49.0
 = 0.90).
• Intrusiveness was measured using an           25–34                                                              49.0           51.0
 established index that summed a seven-         Race/Ethnicity
 item, five-point Likert-type scale (1 =
                                                Caucasian                               78.1                       73.0           67.0
 “Strongly disagree” and 5 = “Strongly
                                                African American                        10.7                       8.0            8.0
 agree”) regarding their perception of
 advertising intrusiveness (Li et al., 2002).   Asian                                   11.3                       6.0            12.0
 Scale items included “distracting,” “dis-      Hispanic                                                           8.0            9.0
 turbing,” “forced,” “interfering,” “intru-
                                                Other                                                              5.0            4.0
 sive,” “invasive,” and “obtrusive.” The
                                                Region
 seven items were summed to calculate a
 mean Intrusiveness Score for television        South                                   36.8                       27.0           32.0
 (α = 0.89, M = 3.33, SD = 0.76) and OTV        Northeast                               18.1                       26.0           27.0
 (α = 0.88, M = 3.45, SD = 0.80).
                                                Midwest                                 24.9                       25.0           22.0
• Advertising Avoidance was measured
 using a four-item, five-point Likert-type      West                                    23.3                       22.0           20.0
 scale (1 = “Never” and 5 = “Always”)           Income
 to assess the respondent’s likelihood to       Less than $35,000                       32.9                       34.0           34.0
 engage in specific advertising avoid-
                                                $35,000–49,999                          22.0                       24.0           24.0
 ance behaviors such as “Leave the room
 during television commercials” (Speck          $50,000–74,999                          23.4                       21.0           23.0
 and Elliott, 1998). The five items were        $75,000+                                21.6                       21.0           19.0
 summed to calculate a mean Ad Avoid-
                                                Education
 ance Score for television (α = 67, M =
                                                High school or less                     39.2                       16.0           15.0
 3.24, SD = 0.65) and OTV (α = 0.68, M =
 3.12, SD = 0.77).                              Some college                            23.0                       45.0           45.0
                                                College+                                37.7                       39.0           40.0

                                                *Pew Internet Project, February, 2009

284   JOURNAL OF ADVERTISING RESEARCH   March 2011
THE FUTURE: ONLINE STREAMING VIDEO

APPENDIX C
Canonical Correlation Matrix for TV Viewing Motives and Programs (n = 379)

                        Root 1 (Instrumental)                             Root 2 (Ritual)
Canonical Correlation   0.63                                              0.48
Eigenvalue              0.66                                              0.30
Wilks’ lambda           0.33                                              0.33
Significance            p < 0.001                                         p < 0.001
                        Canonical coefficients   Structure correlations   Canonical coefficients   Structure correlations
Viewing Motives
Arousal/excitement      –0.41                    –0.89                     0.08                    –0.10
Companionship           –0.03                    –0.72                     0.52                      0.06
Entertainment           –0.01                    –0.50                    –0.23                    –0.62
Economy/inexpensive     –0.05                    –0.53                     0.45                    –0.10
Escape/to forget        –0.36                    –0.76                    –0.14                    –0.30
Habit                    0.06                    –0.44                    –0.53                    –0.65
Information             –0.50                    –0.89                     0.23                    –0.02
Pass time                0.17                    –0.31                    –0.25                    –0.55
Relaxation               0.05                    –0.52                    –0.35                    –0.58
Social interaction       0.00                    –0.60                    –0.34                    –0.48
Convenience              0.04                    –0.57                     0.06                    –0.16
Program Type
Sitcom                  –0.02                    –0.31                    –0.37                    –0.58
Talk                    –0.09                    –0.53                     0.00                    –0.15
News                    –0.06                    –0.58                    –0.11                    –0.08
Magazine/documentary    –0.28                    –0.75                     0.33                      0.08
Sports                   0.00                    –0.26                    –0.08                    –0.09
Movies                  –0.28                    –0.47                    –0.35                    –0.56
Drama                    0.08                    –0.31                    –0.52                    –0.66
Humor                    0.00                    –0.50                     0.01                    –0.26
Variety                 –0.02                    –0.46                     0.19                      0.00
Action                  –0.15                    –0.41                     0.11                    –0.25
Game                    –0.14                    –0.58                    –0.15                    –0.19
Children’s               0.10                    –0.41                    –0.16                    –0.10
Daytime serials         –0.07                    –0.66                     0.02                      0.08
Religious               –0.49                    –0.79                     0.42                      0.33
Fake news               –0.11                    –0.46                     0.03                    –0.06
Reality                  0.02                    –0.38                    –0.18                    –0.23

                                                                          March 2011   JOURNAL OF ADVERTISING RESEARCH   285
THE FUTURE: ONLINE STREAMING VIDEO

APPENDIX D
Canonical Correlation Matrix for OTV Viewing Motives and Programs (n = 377)

                                          Root 1 (Instrumental)                             Root 2 (Ritual)
Canonical Correlation                     0.71                                              0.44
Eigenvalue                                1.00                                              0.24
Wilks’ lambda                             0.26                                              0.52
Significance                              p < 0.001                                         p < 0.001
                                          Canonical coefficients   Structure correlations   Canonical coefficients   Structure correlations
Viewing Motives
Arousal/excitement                         0.63                     0.70                    –0.54                    –0.46
Companionship                             –0.53                     0.82                    –0.50                    –0.03
Entertainment                             –1.53                     0.12                     0.11                    –0.77
Economy/inexpensive                       –0.04                     0.18                     0.16                    –0.79
Escape/to forget                          –0.51                     0.64                     0.56                    –0.39
Habit                                     –0.37                     0.51                    –0.37                    –0.51
Information                               –0.13                     0.88                     1.16                    –0.03
Pass time                                  1.28                     0.24                     0.71                    –0.56
Relaxation                                 0.10                     0.42                    –0.09                    –0.74
Social interaction                         0.53                     0.77                    –0.87                    –0.31
Convenience                                0.27                     0.34                    –0.15                    –0.44
Program Type
Sitcom                                    –0.01                     0.56                    –0.42                    –0.55
Talk                                       0.23                     0.76                     0.13                    –0.01
News                                       0.05                     0.71                     0.16                     0.18
Magazine/documentary                       0.09                     0.77                     0.18                     0.17
Sports                                     0.03                     0.61                     0.26                     0.11
Movies                                     0.17                     0.63                    –0.52                    –0.51
Drama                                      0.14                     0.59                    –0.21                    –0.32
Humor                                      0.07                     0.61                    –0.15                    –0.36
Variety                                    0.03                     0.70                     0.27                     0.09
Action                                    –0.00                     0.52                    –0.12                    –0.30
Game                                       0.30                     0.84                    –0.01                     0.05
Children’s                                 0.02                     0.61                    –0.08                    –0.00
Daytime serials                            0.05                     0.71                     0.06                     0.25
Religious                                  0.22                     0.75                     0.37                     0.34
Fake news                                 –0.08                     0.55                    –0.38                    –0.26
Reality                                    0.03                     0.64                     0.06                    –0.02

286     JOURNAL OF ADVERTISING RESEARCH   March 2011
THE FUTURE: ONLINE STREAMING VIDEO

REFERENCES                                          GREYSER, S. A. “Irritation in Advertising.” Jour-      www.marketingcharts.com/television/online-
                                                    nal of Advertising Research 13, 1 (1973): 3–10.        video-ads-beat-regular-tv-ads-12655/nielsen-
ABERNATHY, A. M. “Differences between Adver-                                                               online-vs-tv-ad-performance-apr-2010jpg/]
tising and Program Exposure for Car Radio           KNOWLEDGE NETWORKS. “Use of Internet to
                                                                                                           accessed on May 15, 2010.
Listening.” Journal of Advertising Research 31, 2   Watch Full TV Episodes Has Tripled since 2006
(1991): 33–42.                                      among 13–54 Online Audience.” March 18, 2009
                                                                                                           PAPACHARISSI, Z., and A. M. RUBIN. “Predictors
                                                    [URL: http://www.knowledgenetworks.com/
                                                                                                           of Internet Use.” Journal of Broadcasting & Elec-
BOND, P. “FCC Backs Studios’ VOD Plan.”The Hol-     news/releases/2010/031810_tv-web.html]
                                                                                                           tronic Media 44, 2 (2000): 175.
lywood Reporter, May 7, 2010 [URL: http://www.      accessed on May 15, 2010.
hollywoodreporter.com/hr/content_display/
                                                                                                           RUBIN, A. M. “The Interactions of Television
news/e3ieedb56d6b7d31495515d322a83bdd347],          LI, H., S. M. EDWARDS, and J.-H. LEE. “Measur-
                                                                                                           Uses and Gratifications.” Paper presented at the
accessed on May 15, 2010.                           ing the Intrusiveness of Advertisements: Scale
                                                    Development and Validation.” Journal of Adver-         Annual Meeting of the Association for Educa-

COM S CORE .   “comscore releases March 2010 U.S.   tising 31, 2 (2002): 37–47.                            tion in Journalism, East Lansing, MI, 1981.
Online Video Rankings.” April 29, 2010 [URL:
http://www.comscore.com/Press_Events/               MANDESE, J. “Nielsen Turns the ‘Channel’               RUBIN, A. M. “Ritualized and Instrumental
Press_Releases/2010/4/comScore_Releases_            Off, Permanently.” MediaPost News, April 29,           Television Viewing.” Journal of Communication
March_2010_U.S._Online_Video_Rankings]              2010    [URL:      http://www.mediapost.com/           34, 3 (1984): 67.
accessed on May 15, 2010.                           publications/?fa=Articles.showArticle&art_
                                                    aid=127158] accessed on May 5, 2010.                   SPECK, P. S., and M. T. ELLIOTT. “Predictors of
ELLIOTT, M. T., and P. S. SPECK. “Consumer Per-
                                                                                                           Advertising Avoidance in Print and Broadcast
ceptions of Advertising Clutter and Its Impact      MINTEL GROUP. Attitudes towards Advertising in
                                                                                                           Media.” Journal of Advertising 26, 3 (1997): 61–76.
across Various Media.” Journal of Advertising       Digital and Broadcast Media – US. Chicago, IL:
Research 38, 1 (1998): 29–41.                       Mintel Group, 2005.
                                                                                                           U.S. CENSUS BUREAU. “Statistical Abstract of
                                                                                                           the United States: Information and Commu-
FRIEDMAN, W. “Net Gains: Nielsen Sizes up           MINTEL GROUP. Attitudes towards Media – US.
                                                                                                           nications.” 2009 [URL: http://www.census.
TV Hits Online.” Media Daily News, February         Chicago, IL: Mintel Group, 2007.
12, 2009 [URL: http://www.mediapost.com/                                                                   gov/compendia/statab/cats/information_

publications/?fa=Articles.showArticle&art_          NIELSEN IAG. “Premium Online Video Meas-               communications.html] accessed on January 20,
aid=100220] accessed on March 2, 2009.              urement 2008–09.” April 21, 2010 [URL: http://         2009.

                                                                                                      March 2011    JOURNAL OF ADVERTISING RESEARCH      287
Copyright of Journal of Advertising Research is the property of World Advertising Research Center Limited
and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright
holder's express written permission. However, users may print, download, or email articles for individual use.
You can also read