Ian Essling and Jason Clough of Comscore uncovered trends in U.S. digital commerce, which reached $1 trillion for the first time last year, a benchmark resulting from a buildup of year-round spending rather than mostly focused on the holiday season. Their data was comprised of two types, mobile (mobile or tablet) and digital (mobile or desktop) commerce. Each was defined as dollars spent online in non-travel, retail categories. Mobile now accounts for 40% of all digital retail dollars spent. Groceries, which includes pet supplies, health and beauty and baby supplies, saw record mobile and digital growth last year, overtaking apparel for the first time. In addition, while in the past, U.S. consumers were resistant to buying big ticket items, such as rugs, TVs, consumer electronics, a car or furniture, online, today such actions have become commonplace.
With 90% of Gen Z using their platform, Snap’s Aarti Bhaskaran and Kara Louis shared six top trends gathered over three years of studying this cohort from a combination of consumer insights and media measurement. As the most diverse generation in the U.S., Gen Z values authenticity and looks for personal online experiences in ways that inform how they engage with content.
Mark Loughney of Hub Entertainment Research unveiled the results of an online survey which looked at U.S. consumers’ media consumption patterns while in transit. Hub’s survey was of 2,566 U.S. consumers ages 16 – 74. There were no exclusions. It included TV and non-TV homes, pay subscriptions and non-pay subscriptions and so on. They weighted to U.S. census data, including age, gender, ethnicity, income and size. The data was collected from mid/late November 2022.
Fifty years ago, defining TV was pretty simple but the video landscape has changed dramatically in the last 10 years. Video is growing today, and this is driven by CTV. TV formats have their own personalities and content to define them. TV should not be approached in isolation because that is not how consumers approach it.
Mark Loughney – Senior Consultant, Hub Entertainment Research
Mark Loughney of Hub Entertainment Research unveiled the results of an online survey which looked at U.S. consumers’ media consumption patterns while in transit. Hub’s survey was of 2,566 U.S. consumers ages 16 – 74. There were no exclusions. It included TV and non-TV homes, pay subscriptions and non-pay subscriptions and so on. They weighted to U.S. census data, including age, gender, ethnicity, income and size. The data was collected from mid/late November 2022.
Over the air (OTA) radio is still overwhelmingly the most used device and medium in the car, with two-thirds using it “all” or “most” of the time. Smart phones were the most common mobile device present and music overwhelmingly the most popular genre. Commuter numbers look nearly identical to drivers. One-third of drivers claim that their passenger will use a different device in the car “all or most” of the time. That jumps to 50% for those with children. Also, the presence of a tablet nearly doubles when a child is present. Even though today, OTA radio remains king of the road, mobile hotspot usage and the streaming of music will likely increase as people retire older vehicles. The biggest change in media consumption habits came with flying, where books, followed closely by personal music, are the media most often consumed.
Key Takeaways
In the car, OTA radio is the most used built-in option (81%), followed by CD players (50%) and satellite radio (41%). This makes sense if you consider that about half of the cars on the road are five years old or older, many 10 years or older.
OTA radio is the most frequently used medium in the car (83%) and smart phones are the most common portable device on hand (73%). A tablet’s presence goes from 20-35% when a child is present.
Typically, one-third of drivers said their passenger is using a different device while they travel.
When flying, print was the most common “ever use,” followed by personal music and streaming. Magazines were about average, with at least half saying they use them sometimes.
Aarti Bhaskaran – Global Head of Ad Research & Insights, Snap Inc.
Kara Louis – Group Research Manager, Snap Inc.
With 90% of Gen Z using their platform, Snap’s Aarti Bhaskaran and Kara Louis shared six top trends gathered over three years of studying this cohort from a combination of consumer insights and media measurement. As the most diverse generation in the U.S., Gen Z values authenticity and looks for personal online experiences in ways that inform how they engage with content.
The data presented showed how Gen Z are visual communicators and mobile video natives. They trust real content from friends and family, pay attention early in ads, care about purpose messaging and want immersive shopping experiences, ideally personalized with AR.
The Q&A after the presentation covered other aspects of the study including global differences, ad lengths, content creators and costs, and Gen Z-favored brands.
Brands looking to connect with Gen Z should:
Adapt to visual communication: 95% of Gen Z have used visual communication when messaging friends, and 54% of Gen Zs agree that digital avatars/Bitmojis help them express themselves.
Leverage mobile video: For Gen Z, mobile is a complement to TV with 1 in 2 (54%) like watching shorter shows or bite-size highlights of TV shows.
Ensure real, brand-safe content: 89% say it’s important to watch videos in a place that feels like a trusted and safe space.
Use immersive experiences: Interactive and personalized shopping experiences are a must—92% of Gen Z are interested in using AR for shopping, with over half of Gen Z saying they’d be more likely to pay attention to an ad that uses AR.
Capture their attention early: Despite having the lowest overall active attention across generations, Gen Z has the highest active attention in the first 8 seconds.
Feature purpose-driven messaging: 73% of Gen Z are likely to be loyal to a company that speaks to social issues, posts information or has ads about social change.
Across all platforms, creative continues to have the dominant effect ranging from 46% to 49% of the effect of the campaign. The proportional effect of media and brand vary by platform depending on the targetability of the medium, the ability to build reach and the appeal to younger audiences such as is the case for social media.
Key Takeaways
NCS uses a framework of five keys: Creative, Brand, Media (Targeting, Reach and Recency). Going back to 2006, Project Apollo found that creative, media and other factors contributed 65%, 15% and 20% to the success of a campaign. In 2017, a similar study yielded 49%, 36% and 15% contribution for creative, media and brand. Of course, in 2017, digital media provided for vast improvements in targeting over 2006.
In the current 2022/23 analysis, NCS broke up the composition of impact into the five expanded keys allocating the effects on campaign success as follows: creative 48%, brand 21%, reach 14%, targeting 11% and recency 4%.
Looking at the brands contribution, over half comes from loyalty. When comparing linear and digital, brand is much more important for digital, 25%, and media turns out much more important for linear, 39%, likely driven by reach and frequency. Creative is roughly the same for both at 49% and 48%.
Within social media advertising, the distribution is 46% for creative, 28% for media and 26% for brand. Targeting accounts for most of the media effect and loyalty accounts for most of the brand effect.
Fifty years ago, defining TV was pretty simple but the video landscape has changed dramatically in the last 10 years. Video is growing today, and this is driven by CTV. TV formats have their own personalities and content to define them. TV should not be approached in isolation because that is not how consumers approach it.
Key Takeaways
The rapidly changing landscape: 70% of U.S households have at least one connected TV; Roku and Amazon are still among the top OEMs; 94% of viewing on linear is still live or same day.
Growth is due to the increase in streaming especially FAST which are having double digit growth. But how will the landscape unfold as, and if, the economy downturns. TUBI expects one in three streamers to reduce their channels.
There has been a rapid decline in pay subscriptions over the last 5 years from 66% to 43% with a concomitant rise in cord cutters. Cord-nevers have leveled off at 13% having risen to 20% in 2020.
COVID caused a rapid bump in viewing of TV and video, it retreated during 2021. But now we are seeing a renewed growth in the total amount of television and video. While there is a slow erosion, linear is still alive and well.
One important story is the growth overall of exposure to video through different channels such as gaming and social. But it is content as well as mobile availability that is driving growth. Nearly 50% of linear content consumed is news, sports and movies. However, movies have lost a 5% share over the last 5 years, no doubt the loss coming from the growth of SVOD.
Sports occupies a unique place in content. It accounts for more than half of all social media posts, and sports fans index at 124 for pay tv subscriptions.
At ARF SHOPPER 2023, which took place in Chicago and virtually on March 9, the industry’s leading marketers and retailers came together to explore the latest research-based consumer insights, and how they are using this data to understand today’s shoppers, build innovative experiences and brand loyalty. Attendees learned about consumer behavioral shifts, how retail media networks are gaining traction in digital marketing strategies, and the latest shopping trends.
Changes in the media landscape and viewers’ behaviors have major implications for measurement, as outlined by the ARF’s Chief Research Officer, Paul Donato. Read more »
