A new IBM online survey of consumer digital media and entertainment habits overwhelmingly suggests personal internet time rivals TV time. From IBM's forthcoming study The end of advertising as we know it co-authored by Saul Berman and Bill Battino.
Dr. Saul J. Berman, Global Business Services Partner and Global Executive
A new IBM online survey of consumer digital media and entertainment habits shows audiences are more in control than ever and increasingly savvy about filtering marketing messages.
Conducted by the IBM Institute for Business Value, the survey of more than 2,400 households in the United States, United Kingdom, Germany, Japan and Australia covered global usage and adoption of new multimedia devices and media and entertainment consumption on PCs, mobile phones, portable media players and more.
The global findings overwhelmingly suggest personal internet time rivals TV time. Among consumer respondents:
- 19 per cent stated spending six hours or more per day on personal internet usage, versus 9 per cent of respondents who reported the same levels of TV viewing
- 66 per cent reported viewing between one to four hours of TV per day, versus 60 per cent who reported the same levels of personal Internet usage
- 81 per cent of consumers surveyed globally indicated they've watched or want to watch PC video
- 42 per cent indicated they've watched or want to watch mobile video
Consumers are seeking consolidated, trustworthy content, recognition and community when it comes to mobile and Internet entertainment. Armed with PC, mobile and interactive content and tools, consumers are vying for control of attention, content and creativity.
Despite natural lags among marketers, advertising revenues will follow consumers' habits.
To effectively respond to this power shift, IBM sees advertising agencies going beyond traditional creative roles to become brokers of consumer insights; cable companies evolving to home media portals; and broadcasters and publishers racing toward new media formats. Marketers in turn are being forced to experiment and make advertising more compelling, or risk being ignored.
"Consumers are demonstrating their desire for both wired and wireless access to content: an average of 81 per cent of consumers surveyed globally indicated they've watched or want to watch PC video, and an average of 42 per cent indicated they've watched or want to watch mobile video," said Bill Battino, communications sector managing partner, IBM Global Business Services.
"Given the rising power of individuals and communities, media and entertainment industry players will have to become much better at providing permission-based advertising and related consumer-driven ratings services," Battino added.
The steady growth of consumer adoption of digital music, video, and other entertainment services - though markets are still small by comparison to traditional media - show households are no longer "one size fits all," and content providers and marketers must follow suit. 23 per cent of respondents reported using a portable music service (e.g., iTunes); 7 per cent reported having a video content subscription for their mobile phones; 11 per cent reported a PC-based music service; and 18 per cent reported an online newspaper subscription.
Consumers in a Multiscreen World: A new global IBM survey shows the TV and the internet are on equal footing as entertainment sources. 66 per cent reported viewing from 1 to 4 hours of TV per day, v/s. 60 per cent who reported the same levels of personal internet usage. Consumers are increasingly turning to online destinations like YouTube, MySpace, Facebook, games, or mobile entertainment v/s. traditional television.
Saul Berman, IBM media and entertainment strategy and change practice leader, said, "The internet is becoming consumers' primary entertainment source. The TV is increasingly taking a back seat to the cell phone and the personal computer among consumers age 18 to 34. Just as the 'Kool Kids' and 'Gadgetiers'(1) have replaced traditional land-lines with mobile communications, cable and satellite TV subscriptions risk a similar fate of being replaced as the primary source of content access."
Television viewing shifts
- In the largest digital video recorder market, 24 per cent of US respondents reported owning a DVR in their home and watching at least 50 per cent of television programming on replay.
- Surprisingly, 33 per cent in the US reported watching more television content than before the DVR.
- More than twice as many UK consumers surveyed use video on demand services than own a DVR, and less than a third of UK consumers have changed their overall TV consumption as a result of DVR ownership.
- In Australia, despite owning a DVR, most respondents prefer live television or replay less than 25 per cent of their programming.
Online content trends
Consumers are increasingly contributing to online video or social networking sites: nine per cent of German and seven per cent of US respondents claim to have contributed to a user-generated content site; 26 per cent of US respondents reported contributing to a social networking site.
While the numbers were slightly less from other countries like the UK (20 per cent) and Japan (9 per cent), they are also significant. Australia topped all countries surveyed with 36 per cent contributing to social networking sites and 9 per cent contributing to video content sites. Of those who contributed content, an average of 58 per cent worldwide did so for recognition and community, not monetary gain.
Mobile content trends
In the UK, nearly a third of users who watch mobile TV reduced their standard TV set viewing patterns as a result of new mobile device services. 18 per cent said they reduced "normal" television by a little and another eight per cent reduced "normal" television by a lot; four per cent substituted television on their regular TV with their new device altogether.
For respondents in Germany who had watched mobile video, 23 per cent prefer to view user generated content, and 21 per cent prefer video trailers or promotions.
Survey Methodology and Demographics
Conducted from mid-April through mid-June 2007 by the IBM Institute for Business Value, the Internet survey was split 64 per cent female and 36 per cent male. It proportionately reached demographic groups 18 years and over with approximately 45 per cent surveyed between the ages of 18-34, 25 per cent surveyed between ages of 35-44, and 30 per cent surveyed age 45 and over. The questionnaire covered 38 questions and generated 885 respondents in the US, 559 respondents in the UK, 338 respondents in Germany, 263 respondents in Australia and 378 respondents in Japan. Respondents reported a range of household salary levels, though the vast majority was under US $100,000.
This consumer study is a component of the upcoming report The end of advertising as we know it co-authored by Saul Berman and Bill Battino, planned for the fall. It is the latest in a series of thought leadership papers including, The end of television as we know it, Navigating the media divide: Innovating and enabling new business models and Beyond access: Raising the value of information in a cluttered market, providing recommendations for broadcasters, advertising agencies and media distributors including telecommunication and cable companies.
As part of its ongoing consumer research efforts, IBM is making the full survey results available for free download at: www.ibm.com/media/adsurvey07