Video and Audio: Consumer Migration
Video and audio have long been considered cornerstone channels for brand advertising. While traditional media channels like linear TV and terrestrial (AM/FM) radio are still king in creating mass reach, the consumer shift to digital platforms has accelerated during the pandemic. Given greater targetability with digital channels, now is an opportune time for advertisers to take advantage of the current and expected future growth of digital platforms.
Over-the-Top (OTT) Video
Consumption of OTT video, which is internet-based content that is streamed on a device other than desktop, laptop or mobile, continues to rise. According to a recent study by Comscore, cable/satellite subscribers are down 6%, while cord cutters (those who have cut the cord in the last five years) and cord nevers (those who have not had cable/satellite subscriptions in the last five years) have each increased 3% in April 2020 vs. April 2019. By year’s end, eMarketer projects roughly 6.6 million will cut the cord.
There may be concerns that the majority of viewing could be focused on ad-free platforms like Netflix; however, a recent Mintel survey of CTV consumers indicated 80% had watched at least some ad-supported programming.
Among adults 18-54, the share of listening has shifted drastically over the last six years. Edison Research indicates that while terrestrial AM/FM radio accounted for nearly 53% of all listening in 2014, it now only accounts for roughly 40%. Streaming audio and podcasts grew from 15.5% to just over 32% in that same time. It is most evident in the 18-34 demographic, where streaming audio and podcasts account for 43.5% of time spent with audio.
Similar to concerns over whether users are listening to ad-supported content, a study by OMG Research, Edison Research and Pandora revealed 54% of listeners reported streaming content on an ad-supported platform and 59% of paid audio subscribers also listen to ad-supported audio.
Video and audio are excellent ways to engage with consumers—whether via traditional channels or streaming services or a mix of both. Understanding the consumption habits of your consumers will drive you to the placements that are right for your brand.
Not sure what mix of traditional and digital channels will have the greatest impact on your target market? Give us a shout, and we can help you navigate the most effective channels to drive your business forward.
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