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2013 State of Media

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2013 State of Media UNDERSTANDING GROWTH TARGETING THE NEW MOBILE AUDIOAND FRAGMENTATION 26 CONSUMER82 STATE OF MEDIA 2013 ANALYTICS DEATH OF BIG DATA, RISE OF SMART DATA 68 ESPN: End of an Empire? 34 02 VIDEO EVERYWHERE FACT, FICTION & FUTURE Letter from the President For me, working in the discussions that will continue this industry has to drive growth and progress. always been an exciting adventure. Offline and online are cohabitating It still is to this now more than ever to earn day. Nevertheless, viewers’ time, so let’s examine the continuous shakeup of content and provider advancements models. Today technologies like in the media Dish Network’s Hopper and landscape Aereo (page 6) are stirring the can make pot, but tomorrow, who knows? our jobs and the task of tracking I also happen to be a tablet addict, trends a challenging endeavor. so it’s been enjoyable to see my These rapid changes are what favorite magazines adapting to the encouraged us to write our very ever-increasing push for crossover first STATE OF MEDIA (SOM) content (page 22). This process has four years ago, and I am proud to already made for some truly creative say our mission to keep business uses of the medium and I can’t wait partners, clients, new friends and to see what’s next. Again, it all ourselves informed has successfully reminds me that we should dispel continued to this day. Now, just the premonitions and instead look like the industry in which we work, at the opportunities a more unified KSM is evolving our publication media ecosystem will produce. by giving it a new editorial style to The SOM always gives me a welcome deliver pertinent insights in a quick chance to reflect on concepts like and easily consumable format. these and discover ways we can Just before the SOM’s annual utilize its findings for our clients. I release, I frequently find myself hope it lets you do the same, and thumbing through its articles. It’s ultimately sparks the kind of creative funny, but with each read I often discussions that will benefit your feel a mix of inspiration and business well into the next year. bewilderment over the debates All the best, taking place amongst our peers. We all know that the video landscape (page 2) has evolved immensely in the past five years, but surely I’m not the only one who’s tired of hearing about Joni Williams the “death of traditional TV,” or any President medium for that matter. Our focus 312.621.9230 should instead be on the evolution of [email protected] media, and how we can all participate in what’s on the horizon. These are Vol. V state of media Contents THE CHANGinG Face of TABlets 20 BUSINESS AUDIO SPORTS 01 TUNING IN 19 OF INK 25 WAVES 33 BLITZ 02 • Video Everywhere 20 • Print Fast Facts 26 • Audio 34 • Is the ESPN Learn about TV Empire in Trouble? 22 • Print Stays Afloat On-Demand misconceptions and ESPN’s reign on the Publications are 30 • The Streaming next generation sports market has been adapting to the digital Audio Lineup providers. largely unchallenged, landscape fast, but is We break down but is that about to 11 • Spot TV it enough for them to the main players in change? 12 • Cross-Device stay alive? streaming audio. 41 • League Targeting 32 • Local Market Observations 14 • SVOD Radio new thisVol. year V SOCIAL 43 INTERACTIONS 44 • The Art and Science of Social Measurement 46 FaCEBOOK: TODAY & TOMORROW Facebook’s rise to dominance has been impressive, but where is the social network headed? 50 • Facebook Exchange GaMING 53 LaNDSCAPE 54 • The Continued Rise of Mainstream Gaming 44 56 • Is the Gaming Console Social Here to Stay? MeasUrement: 58 • Focus on Emerging Art & Technology Science SEARCH 59 TRENDS AUTOMATION: MOBILE THE ANALYTICS NATION 60 • Search landscape 67 79 Discover the new look of search & DaTA GaME 80 • The Mobile Landscape How smart data systems are and where market share is going. 82 • Focus: Mobile reshaping business intelligence. 62 • Google’s Enhanced Consumer Engagement Campaigns 68 • The Big Data Fad Learn how consumers are 71 • Marketing & Web Analytics engaging with mobile in different 64 • Search Fast Facts ways than you might think. 66 • SEO vs. PPC Campaigns 73 • Programmatic Buying Automation Marries Expertise 86 • Mobile Fast Facts 75 • Cookies & Privacy Mobile: The Future of Broadcast? How Brands Target Consumers Across Multiple Devices What’s Going on With Spot TV Pricing? Tuning In Video EverYWHere: MYTH-BUstinG THE TV RUmors. State of Media • 1 Video EverYWHere How Traditional and Digital Viewership Are Collectively Driving TV’s Future 2 • Vol. V • ksmmedia.com Convergence is happening, but the process is muddled and rife with drama. The brave new television world is one of lawsuits, threats, overnight sensations and technology-driven change. At stake in the battle for consumer video eyeballs are billions of dollars, viewership convenience, programming innovation and the entire television landscape as we know it—and that’s just the beginning. Due to video viewing fragmentation, in the form of early adopters. That day to watch live TV. Add in DVR marketers now have an increasingly being said, traditional advertising playback, online video, video games complicated landscape to inherently looks for groups with and DVD playback and the living address and must have a deep commonalities (with the exception room television set gains another 50 understanding of the elements of a few select product categories), minutes of use per day. The obvious driving fragmentation. Those so early adopters can help identify conclusion here is that traditional include programming delivery where the market is potentially TV remains the undisputed king systems and their relative adoption headed. This means that until the in terms of time spent with video. levels, measurement efficacy and market actually falls in line with the overall effects of an on-demand low-cost equipment and broad However, there has been a fair viewership model. Both hype and an choice, mass adoption and targeting amount of argument associated overly-enthusiastic entertainment segmentations can’t happen. with younger viewership and their community are adding to migration towards alternative video industry confusion, making it Myth-Busting platforms. Nielsen has found that very easy to lose perspective. 18-24 year olds currently watch just The first essential step in gaining over 23 hours of traditional TV per It’s important to know that true perspective on the video week versus two and a half hours consumer adoption can only be landscape is to dispel the most of online video per week. While the accelerated by the following factors: egregious rumors and myths: lion’s share of their viewing is still technology availability and choice, Traditional TV is Not Dead live TV, it is important to note that reasonable price points, awareness According to Nielsen, U.S. consumers there has been a steady decline in and overall ease-of-use. Adoption sit in front of a television an average viewership within this age group can’t be defined by a few outliers of four hours and 39 minutes per over the last three years. The Traditional TV Viewing, by Age 3000 2250 1500 750 Weekly time minutes spent in Weekly 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012 Q4 2012 Q1 2013 Source: Neilsen 65+ A50-64 A35–49 A25-34 A18-24 T12-17 State of Media • 3 18-24 year old age segment actually watches about 11 fewer minutes of Cord Cutters in the US, 2008-2013 (millions) TV per day in 2013 than in 2012. 5.0 4.70 Both the 12-17 and 18-24 age 4.5 4.0 3.74 3.58 groups have registered a 12 3.5 percent viewership decline (in 3.0 minutes per week) since Q1 2.5 2011. The 25-34 and 35-44 age 2.0 1.5 1.05 0.93 1.08 0.96 groups have each experienced a 1.0 6 percent decline in the last two 0.5 years, exhibiting the effects of 2011 2012 2012 2013 2008-2012 2008-2012 2008-2012 alternative video options. However, (Forecast last year) (estimated this year) (forecast this year) (forecast last year) (estimated this year) (forecast this year) while the declines are noteworthy, Source: MarketingCharts.com alternatives are not yet robust enough to overtake television’s of them receive video content on This difference does not imply a huge hold on overall viewership. other devices such as a computer, disparity of usage. And while Zero In addition, the peaks and valleys smartphone or tablet (37 percent on TV households are by definition associated with time spent watching a computer; 16 percent on Internet never viewing traditional television, traditional television signify how TV; 8 percent on smartphones, and it is questionable whether their content plays a big role in viewership. 6 percent on tablets). More than interest levels are dramatically Ratings increases in Q4 and Q1 and 50 percent of Zero TV households different than light TV viewers. decreases in Q2 and Q3 are common are composed of consumers Finally, it is unclear whether these due to new content and production under 35, un-married, with no cable cord-cutters are migrating schedules that are dictated by children in the household who more to online content or to traditional television networks. also live with roommates. It is satellite and telco subscriptions Consumers are still following the generally understood that their instead. Cable subscriptions viewing periods defined by program primary motivation for cord- declined by 2.7 million year-over- creators and will continue to do cutting is the high expense of year in Q1 2013, but telco providers so as long as the content remains cable subscriptions combined (Verizon FiOS, AT&T U-Verse) competitive.
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