Technology is radically changing consumer behavior and forcing the TV industry to adapt. Out of chaos comes opportunity.
Chaos: DVR and Cross Platform Fragmentation – Are Nielsen’s overnight ratings loosing relevance?
This week, USA Today illustrated how Nielsen’s time-shifted data, coming in weeklong delay, can rebrand networks as winners or losers. Furthermore, “Just 47% of viewing by young-adult DVR users was live, down from 61% four years earlier”. If these trends continue, the traditional overnight ratings will loose value as the currency of the TV economy.
Two separate analyses conducted by comScore and Arbitron and backed by the Coalition for Innovative Media Measurement, found multi-screen TV engagement is on the rise (see articles below). Jeff Siegel, SVP of Worldwide Advertising at Rovi, acknowledges, “Challenges exist for advertisers as they strive to measure effectiveness of campaigns on new platforms and across a fragmented viewership”. With cross platform and social media measurement in increasingly high demand, traditional overnight ratings will further decrease in value.
Opportunity: Big Data and Social TV
Its not all doom and gloom. Eric Savitz, writing for Forbes, claims OTT distribution may actually be strengthening viewer relationships with brands by creating more opportunities for interaction. Among the more exciting perks waiting online are enhanced CRM capabilities and, once the wrinkles are ironed out, the tremendous power of big data.
Start-ups, television manufacturers and cable operators are scrambling to market with second screen applications designed to bring wandering consumers back into the fold. Albert Cheng, executive VP of digital media and chief product officer at Disney-ABC Television Group, remains skeptical of Social TV, citing a relatively small audience and the cost of having writers create supplementary content. Still brands and networks from Viacom, Discovery Communications, the Food Network, USA, A&E, Coke and Pepsi are all wading into the Social TV waters (see related articles below) hoping to cash in.
For all this news and more (Twitter is launching brand pages surrounding hashtags!) keep reading the Social TV News. Read the rest of this entry »