Neilsen’s latest quarterly Three Screen Report has some very important findings for TV advertisers, and it actually should something that the major networks and sports networks should be able to leverage to their favor. Here are some important findings of the Report:
Americans averaged roughly 153 hours a month watching TV at home during Q1, nearly three more minutes than the same quarter in 2008. Although Neilsen reports that more people are downloading their favorite shows and watching them on their computers and phones, I also think that many people still have the TV on while we’re using those devices, but TV watching continues. Multi-tasking is increasing by the day. Yes, I am watching Magic vs. Cavs while I write this, and yes Lebron is unreal. Heard some talk radio today saying they don’t think he has “the drive” of Kobe yet. Really?
The 79.5 million viewers who watched time-shifted TV during the quarter (up from 58 million a year ago) averaged over eight hours doing so. That’s an increase of 40 percent versus the same quarter last year and a full hour more than the most recent quarter (Q4). Yes, more people are figuring out how to use their DVRs, people are busier than ever and as a result, more people are zipping right by commercials.
I think this news is actually the worst for advertisers of prime time programs on major networks. Although American Idol’s live format may have many watching live, I’m also willing to bet many also watched delayed, even if it’s just that 20 minute delay to avoid all of those commercials. Most other prime time viewing likely has a much higher time shift watching percentage. In fact, studies in Europe have shown in past years that drama is the number one genre of time-shifted viewing, accounting for nearly 40% of all time-shifted viewing. Feeling good about advertising in the CSI franchise?
However, sports programming could fast become the holy grail for advertisers. It’s live programming with a short shelf space. Few will watch once they know the score already, and in today’s “news everywhere” environment, it’s awfully hard to avoid headlines and scores, or a text from your buddy, a tweet, etc. Further, live play-by-play allows for more “pop-up” branding and messaging, which I think we’ll start to see more of. Sure, there are some that are recording games and watching later, but not nearly to the extent of prime time programming.
The combination of brands having a tough time reaching young men and the staying power of sports to elude the DVR should continue to be good news for sports programming garnering top advertising dollars and more new advertisers. As the TV upfront extravaganza just concluded, there had to be more and more media buyers asking those tough questions about the number of people skipping by those expensive commercials, putting aside the expense of the creative. However, a new study, Advertising in the DVR Age, conducted by the DVR Research Institute, shows that 75 percent of advertising executives don’t consider themselves to have relevant information about how DVRs are impacting advertising strategies. That is astounding and has to be unnerving, particularly at a time when dollars are being squeezed so tight and execs are demanding to know “the numbers” on everything.
In fact, the estimate is that 16% of all TV ads will be skipped over by 2011, which equates to a cool $14 billion down the drain. That, sports fans, puts a whole new spin on the famous quote, “I know half of my advertising money is wasted, I just don’t know which half.”
Dynamic Sports Marketing Blog 