Forces of Change

Issue 4 • November 2019

REDEFINED MEDIA LANDSCAPE The UnreachablesCONSCIOUS DISCONNECTORS Forces of Change

Issue 4 • November 2019

The New York Times and Fast Company • 64% of study participants actually take control of their time—and how their 2 noted how unusual it was for a media decreased their mobile app usage time spent with media is monetized? And WELCOME agency like ours to be the ones to put over the past 14 months, from five how do we help set brands up for long- a stake in the ground around ethical hours per day to four hours per day term success with consumers in a dynamic, marketing. But we are a consumer-first on average. ever-changing media environment? Welcome to the fourth organization, committed to challenging • Within this group of “Conscious conventions—reaching and engaging Disconnectors,” we saw two distinct These are the questions we will tackle in issue in our series people in ways that add value and promote behaviors: “Slow-and-Steady” “Conscious Disconnectors,” with the help authentic connections. We prize consumer mobile dieters, who reduced their of leading voices from across the industry. “Imagine: Forces of choice, champion data transparency and time with apps steadily throughout We hope you enjoy what you read and Change.” take our responsibility within this media the research time frame, and invite you to challenge conventions with ecosystem very seriously. “Intermittent Fasters,” who looked us by sharing your thoughts and feedback more like yo-yo dieters, increasing with us using #forcesofchange. After that study was released, we knew we usage to a point, then cutting back, In our last report, “Net had to continue to monitor the disturbing but still reducing usage overall. trends we saw around app addiction. • When people cut back, they tend Persuasion,” we asked Erin Matts Would the trends continue, with people to cut back on gaming, mobile CEO an uncomfortable increasing their mobile app consumption browsing and social media—the apps HEARTS & SCIENCE question: Are people without limit? Or would the pendulum start where they spend the most time. to swing the other way? And if so, why? Still, the reductions weren’t always addicted to their apps? proportional to each app type. CONSCIOUS DISCONNECTORS • They’re spending their newfound And we found that, in a To answer these questions, we partnered free time with family, friends, on word, yes, they are. with OMG Research to conduct a 14-month other hobbies, with other media or longitudinal study, tracking actual sleeping. smartphone app usage across more than • 77% say cutting back their app usage Our extensive research combined 2,000 participants (with their permission) was one of the best decisions they’ve behavioral monitoring, self-reported data through a mobile meter installed on ever made. and a neurological study to determine that their smartphones. We conducted a the average smartphone user—regardless quantitative survey in which just under But not everyone cut back. During this of age or demographic—spent five hours 1,000 respondents, representative of the same 14-month time period, 36% of people a day with their apps, checking them an U.S. population, reported their mobile increased their mobile app usage and now average of 88 times a day. We also found app usage as well as their motivations in clock in at six hours per day—more than that mobile in-app experiences generated doing so. Lastly, we went to participants’ one-third of their waking hours. a 2X greater physiological response than homes, observing their day-to-day mobile linear television experiences. behaviors and asking them about those As marketers, we face a challenge ahead: behaviors in order to create a robust How do we engage people on screens We partnered with design ethicist Tristan ethnography. of Net Attention in a way that’s ethical Harris and Dr. Jean Twenge, author of and provides value rather than disrupts the now-notorious study that linked teen In the pages that follow, we’ll share the experiences or contributes to mobile app depression to smartphone and social results of what we found. (Spoiler alert: addiction? How do we help consumers media usage, to bring these findings The pendulum has swung!) At a high level, to life—and sound the alarm about our it seems we’ve reached the tipping point: growing “attention economy.”

3 Forces of Change 4 Issue 4 • November 2019 Thankfully, the industry is also starting to The Conscious Disconnectors are happier mobile devices means fewer chances question its role. Apple introduced Screen after cutting back, with three-quarters to reach consumers on these devices, Time, Android deployed nighttime vision saying it was one of the best decisions increasing the cost of mobile advertising POINT OF VIEW apps and parental controls for devices and they ever made. That’s a pretty powerful in the near-term and forcing marketers apps now abound. figure—one of the best decisions they ever to rethink where and how they spend made was not using something that didn’t advertising dollars in the long-term. But a new phenomenon has emerged in even exist 15 years ago. The figure was the fight against app addiction, driven even higher among Gen Xers and those It also means the media industry must by consumers themselves. New research with children at home. They are spending rethink ad-based models themselves. shows that 64% of Americans reduced their newfound free time with family, We may see increased investment in Are we the amount of time they spent with apps friends, reading, sleeping or—wait for it— product placement, branded content over the past 14 months, from five hours watching TV. and influencer marketing. Recent moves to four hours per day. Four hours may by publishers to adopt micropayment or still seem like a lot of time to spend glued If the trend continues, it will have large subscription models may be a harbinger of CONSCIOUSLY to a screen, but the drop is meaningful— implications for marketers and for the larger shifts to come. one that took place across genders, age digital business models that rely on groups and geographies. We call them the capturing attention. Less time spent with People understand their time and data DISCONNECTING? “Conscious Disconnectors.” are being monetized by media companies but remain wary of advertising. Streaming Conscious Disconnectors are cutting leaders Spotify, Pandora and Netflix By Renee Cassard back app usage by going on a mobile recently found that inserting just one more phone diet, making a conscious effort to ad per hour of streaming increased the check their apps less frequently or turning likelihood that users would opt for ad-free off push notifications. Only 31% went subscriptions—but a greater likelihood that cold turkey, completely cutting out or Conscious they might abandon the app completely. deleting apps altogether. In an era where Americans get a bad rap for their lack of Disconnectors are In the end, we must move from a model moderation, the majority of us are of informed consent to a model of real self-regulating. cutting back app consumer choice. By letting people usage by going on a choose the model that suits them best in What’s behind the move? The top reason each scenario—micropayments one day, people cited was “wasted time,” an mobile phone diet, watching a video ad the next—marketers The arrival of every new form of media, has now been well documented. The study said app addiction was making in- ironic answer given how many apps are can ensure their message is welcome, adds from television to video games, brings with relationship between increased mobile and person communication harder, attention marketed as helping us save time. While making a conscious value and doesn’t waste people’s time. it the notion that it will ruin our society, social media usage and unhappiness isn’t spans shorter and sidewalks and roads people tend to underestimate the total Otherwise, we run the risk of losing the our relationships or even the gray matter just correlative, but causal. more dangerous. amount of time they spend with apps, effort to check their audiences we’ve been trying to cultivate. in our brains. they do accurately assess which apps Concern about app addiction has crossed As an executive at a major media agency, are getting their attention—social media, apps less frequently But something different happened when over from academia to the dinner table. I continuously question our role in an gaming and mobile web browsing. And smartphones became ubiquitous in 2007. Four out of five consumers say they’re “attention economy” and the responsibility those are the apps they tend to cut back or turning off push Warnings about the perils of social media aware of app addiction; 49% say it we hold as stewards of the relationship on when they reduce their time spent notifications. and app addiction, especially among teens, will become a crisis in the near future, between brands and consumers who with mobile devices. But even after the weren’t just fearmongering. The negative according to a recent study by OMG advertise in these environments. reduction, these apps still dominate how psychological impact of app addiction Research. The majority of people in the users spend their time.

5 Forces of Change

Issue 4 • November 2019 “We used a multi- methodological approach 6 to understand whether people felt the need to cut

By Pamela Marsh, Ph.D. back on their app-addictive BEHIND behaviors and if so, how

Pamela Marsh, Ph.D. they went about doing it. Managing Director, Primary Research Did they cut OMNICOM MEDIA GROUP THE back consciously or NUMBERS non-consciously?” “Conscious Disconnectors” builds on the findings of two of our We used a multi-methodological approach to understand whether don’t realize the full extent of it. “Our survey data showed us that deep because they are sensitive to any potential negative effects on previous studies, “The Unreachables” (2017) and “Net Persuasion” people felt the need to cut back on their app-addictive behaviors people estimate their daily usage to be just shy of 3.5 hours, but our their children’s physical and mental well-being.) (2018). While both studies found significant levels of consumption and if so, how they went about doing it. Did they cut back behavioral data showed us that they are on their mobile apps about of video and content on mobile devices, it was our “Net Persuasion” consciously or non-consciously? Is there a tipping point that prompts five hours each day. That’s a lot of time in the day—and a substantial So, people’s motivation for cutting back was clear, but was there study that prompted this deeper study into app addiction. In our disconnecting? Importantly, we asked about what influences people gap between perception and behavior! a wake-up call or specific pattern for when and how they did it? “Net Persuasion” research, 1,000 people told us they were addicted to decrease their mobile app usage (e.g., self-imposed, influenced by Not really. Behavioral data showed us that people cut back very to their mobile apps and sacrificed other activities due to the time social pressures, privacy concerns, mental and/or physical concerns) Consequently, it made perfect sense that respondents’ number one consistently throughout the week, though people reported that they they were spending with apps. Behavioral data from those same and asked, who is responsible for app addiction (e.g., publishers, reason for cutting back was tied nearly exclusively to their feelings cut back more during the weekends. People also cut back more in survey respondents showed us that they weren’t telling stories; data device developers, brands, government or themselves)? of being strapped for time—not about concerns regarding their the evenings, though they thought they cut back most during the about their mobile phone usage was collected for three months and mental or physical health (despite the media headlines), or about day. Regardless, most people told us that they just check their apps showed that, regardless of age, people interacted with their mobile We collected 14 months (April 2018–May 2019) of mobile app usage avoiding content or ads, or even about feeling social pressure. While less frequently, which tended to work, but there were many people phones 88 times per day, amounting to five hours of usage across data from ~2,400 U.S. respondents ages 13+. Over the course of people can rationalize why they spend so much time using their who needed to go the extra mile and delete the apps from their all types of apps. Wow. the year, our behavioral data showed us that two-thirds (64%) of apps, eventually their rationalizations run thin. Having time—or not— phones: out of sight, out of mind (or use). But whether they self- all people decreased their average daily usage from five hours to in one’s day to spend time with family and friends, to focus on work, regulated their urge to check apps or deleted the apps altogether, These results, along with the past decade’s media attention on the four hours, and one-third (36%) of people increased from four hours to enjoy hobbies or just to get enough sleep is not something that nearly all (77%) people told us it was one of the best decisions they effects of mobile phone addiction, served as an alarm. We were to six hours. And when nearly 1,000 of these same people were can be rationalized with mobile apps. Interestingly, people accept have made, and half (56%) plan to continue. They see disconnecting determined to figure out how this apparent social epidemic affects surveyed in April 2019, they told us that app addiction is real, and responsibility for their heavy usage and realize it is solely up to as a path to gaining back lost time for the things that truly do consumers’ lives, attitudinally and behaviorally, and to establish they perceive it as a current and future crisis. Interestingly, while them to make any changes, successfully or not. (One caveat to this enhance their lives. what a marketer’s role could—or should—be in this space. two-thirds of people admit to their own app addiction, they often is parents, whose concerns about their children’s screen time runs

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Forces of Change Over the decades, people raised red flags about the “boob tube” and other technologies— Issue 4 • November 2019 but mobile devices have documented physical and psychological detrimental effects. 8 CONSCIOUS And 4 in 5 people have heard about mobile app addiction. DIS Over the past decade, the effects of mobile phone CONNECTORS addiction have risen to the forefront of media attention.

Screen Time Massive Data Privacy Damages the Brain Breach Exposed Psychology Today publishes a roundup of peer-reviewed The Guardian and the New York Times broke the story Nomophobia medical studies on the variety of effects from overuse of of how a British political consulting firm, Cambridge OMG researches screen time: impaired dopamine function and reduced Analytica, harvested and sold the data of Facebook The term “Nomophobia” (fear of people’s self- cortical thickness, among others.5 users to the Donald Trump election campaign.9 being without a mobile phone) is regulatory behaviors coined after a U.K. study finds out around app addiction 53% of people experience anxiety Text Neck when they don’t have access to a Smartphones Linked to mobile phone.1 CNN reports that smartphones are the Psychological Issues Teens and Screens leading cause of neck issues, including Cause Concern muscle strain, disc herniations and The U.S. National Library of Medicine correlates pinched nerves. Over time, usage can “the problematic use of cellphones with personality Pew Research publishes a report revealing 54% of flatten or reverse the natural curve of variables: extraversion, neuroticism, self-esteem, U.S. teens say they spend too much time on their your neck.3 impulsivity, self-identity and self-image, as well as cellphones and two-thirds of parents express concern issues like sleep disturbance, anxiety, stress and, to a over their teen’s screen time. But parents face their own lesser extent, depression.”7 challenges of device-related distraction.11

2011 2013 2015 2016 2018 2018

2008 2012 2014 2016 2018 2018 2019

OMG’s App Addiction Center for Humane Advertising Industry Research Is Published Technology Is Founded Takes Notice The WSJ, The NYT, MediaPost and Ad Age cite Omnicom Media Group’s Net Persuasion Their goal: “to increase awareness around MediaPost reports that 280 Apple Releases research, which revealed that people spend how tech is being deliberately engineered million people worldwide are Psychologists five hours—88 interactions—per day across “Screen Time” to addict human users to it and what the “mobile addicts,” checking their Apple Releases mobile apps.10 Publish Warnings ramifications of this are.”4 phones 60+ times per day, and Apple releases Screen Time in an attempt to that 71% of Americans even Night Shift curb phone addiction and provide more tools The Journal of Applied Psychology publishes sleep with their phones.6 to quantify time spent on iOS devices.12 “Evening exposure to LED-backlit screen(s) Apple releases Night Shift in iOS 9.3, affects circadian physiology and cognitive a way of modifying the iPhone’s and performance,” detailing the physical and iPad’s displays so that less blue light is cognitive effects of cellphone addiction, e.g., present, designed to help people fall 8 sleep loss and trouble focusing.2 asleep easier.

1: Merriam-Webster 2: American Psychological Society 3: CNN 4: Center for Humane Technology 5: Psychology Today 6: MediaPost 7: NCBI, 9 8: The Verge 9: Fast Company 10: Hearts & Science and OMG Primary Research Net Persuasion Research 11: Pew 12: CNET

IN 2018, PEOPLE SPENT Because of the time spent using apps… hours ON LINEAR TV VS 1.4 hours (FOR GEN X & MILLENNIALS) EVERY DAY ACROSS % 5 ALL MOBILE APPS 49 hours PEOPLE SPEND ON DESKTOP 2 LESS TIME WITH OTHER FORMS OF ENTERTAINMENT 41 % PEOPLE DO AND THEY INTERACTED WITH APPS LESS PHYSICAL ACTIVITY times 36 % PER DAY1 PEOPLE DON'T GET ENOUGH % SLEEP 35 88 PEOPLE NEGLECT

HOUSEHOLD % CHORES 27 PEOPLE NEGLECT People were spending an average of five hours a day on HOMEWORK OR their mobile devices. Think about what that means: That’s a third of our waking hours per day. It’s quite shocking when WORK we look across genders, age and demographics to see that people are interacting with this device for that amount of time. 24% Everyone has their screen of “net attention” at all times—it’s “ with us wherever we go. We wake with it, we sleep with it. We PERSONAL

thought it was important to continue to track how consumers RELATIONSHIPS 23 % are interacting with their mobile devices. We were curious if Renee Cassard ARE DIFFERENT they would continue to capture an increased share of attention, Audience Officer PEOPLE SPEND LESS or, if the pendulum would swing back in the other direction. HEARTS & SCIENCE TIME WITH FRIENDS AND FAMILY

1 OMG Research, 2018. 11 6.0 The majority of people said Daily 5.5 this was becoming a problem. Usage (Hours) 5.0 4.5

4.0

April May June July April May August October March JanuaryFebruary 2 out of 3 September NovemberDecember And these Conscious Disconnectors come in two types: People report being addicted to Intermittent Fasters and Slow and Steady Dieters. their phone (65%)

Consider the time they spend using 14% INTERMITTENT SLOW AND STEADY 50% apps to be a problem (64%) FASTERS DIETERS

May 2018: 5.2 hours May 2018: 5.6 hours August 2018: 4.9 hours December 2018: 4.9 hours November 2019: 5.5 hours March 2019: 4.5 hours And then something happened this year... March 2019: 3.8 hours

OVER THE COURSE OF A YEAR

64% of people decreased their app usage: THE BINGERS 36% of people increased their app usage over the same period, from 4 hours to 6 hours. The vast majority of them (78%) have never tried to cut back and are armed with rationalizations like: From 5 hours 59% 37% 33% 30% 24% 17% Have control Don’t use their To stay connected Benefits Don’t believe Need to stay over their own phone that much with family and outweigh the this is even a connected time to begin with friends negatives real issue for work to 4 hours Even so, 45% of these Bingers say they are likely to cut back in the future.

OMG Research, 2019. 13 People are taking ownership of their mobile And are remarkably accurate about what app usage... apps they spend time with:

Social Travel & Food & Texting Games Shopping Video Audio Financial Utility News Health Sports Career Dating Media Transport Dining ACCEPT ON AVERAGE, PEOPLE 52 26 41 9 33 8* 3 20 4 12 3 2 2 2 2 ACTUALLY SPEND min min min min min min min min min min min min min min min RESPONSIBILITY WHAT PEOPLE SAY 75% 70% 51% 42% 39% 37% 35% 28% 24% 22% 18% 13% 11% 7% 3% 62% THEY USE HEAVILY for their own heavy app usage

Consumers were accurate in estimating what apps they used heavily, with the exception of Shopping, Financial and News apps CHOOSE TO CUT BACK on their own 75% These Conscious Disconnectors decided to go on a “media diet” because they were wasting too much time.

Me, myself I DECIDED TO CUT BACK BECAUSE... and I When thinking about who could I was wasting my time help them cut back, almost all Put the 54% say “myself” (88%). Only one blame on me in three say that people in their Virtually no one places I wanted to spend more time life (38%) could help the blame on social media with people in my life 32% developers (8%), friends or family (7%) or app I didn’t have enough developers (7%) time in my day 31%

OMG Research, 2019. 15 WHAT DO THEY CUT? And while 31% went “cold turkey,” the majority (69%) 31% When looking at the self-regulated, taking a QUIT APPS break from certain apps or 69% COLD TURKEY cutting back. SELF-REGULATE 1 hour APP USAGE that people cut most of the time, the cut came from these genres: 8% 7%* 5% 5% Games Social Browsers Media

22% Voice HOW DO PEOPLE CUT BACK? 26% Travel 4% Messaging & Other 13% Video 6% Utilities

10% total:

Shopping – 2% Health & Fitness – 1% Food and Dining – 2% Email – 1% Books – 1% News & Weather – 0.1% CHECKING APPS LESS Dating – 1% Sports – 0.1% 66% FREQUENTLY Audio – 1% Career & Education – 0.1% Finance – 0%

51% SIMPLY STOPPING APP USE

People tend to cut out the apps where they spend the most 40% DISABLING NOTIFICATIONS time—mobile browsers, gaming and social media. But these categories dominate time spent even after the reduction!

OMG Research, 2019. 17 And they are glad they disconnected: 3 out of 4 told us that cutting back on app usage was one of the best decisions they have made (77%)

They’re getting valuable time back—time they are spending with their family and friends or on wellness.

HAVE MORE TIME ARE MORE 48% IN THE DAY 45% PRODUCTIVE

CAN FOCUS FEEL LESS 34% MORE 28% STRESSED

19 OMG Research, 2019. RECLAIMED TIME IS SPENT: Because they are highly sensitive to any potential negative effects on their child’s physical or mental well-being: WITH FAMILY & FRIENDS 44% THEIR CHILD’S Physical SLEEPING HOBBIES THEIR CHILD’S REASONS TO Health 31% 30% REGULATE: I want them to be active (80%) Mental I want them to get a good night’s sleep (50%) Health I’m worried about their brain I don’t want them to get addicted (61%) development (43%) I don’t want them seeing inappropriate things (57%) I want them to focus on schoolwork (48%) READING WATCHING TV I’m worried about their social skills (39%) 32% 28% PARENTS REGULATE BY:

Parents, in particular, are keenly aware of the role apps are playing ALLOWING KIDS in their lives—and the lives of their children. Their concerns about 66% TO USE ONLY screen time run deep when it comes to their kids. CERTAIN TYPES OF APPS

Regarding their child’s generation ALLOWING and app usage, parents are: 52% USAGE ONLY AT CERTAIN TIMES EXTREMELY 34% CONCERNED 68% 39% TAKING THEIR 34% CONCERNED PHONE AWAY 3/5 ALTOGETHER NEITHER CONCERNED 22% NOR UNCONCERNED regulate their child’s 10% EXTREMELY UNCONCERNED OR UNCONCERNED screen time (60%)

20 OMG Research, 2019 15 TO SUCCESS Forces of Change 4 Steps IN THE AGE OF CONSCIOUS Issue 4 • November 2019 DISCONNECTING 23

Q & A

Be dynamic. Add value. Consumer behaviors are The #1 reason people stopped using continually shifting; your media apps was “wasted time.” Help your allocation should, too. audience with useful tools, content and information that gets them back to their daily lives. AUTHENTICITY & TRUST

In this dynamic environment of “Conscious Disconnecting,” Rethink Grant choice. authenticity and trust have never been more important. We sat your mix. People understand the content down with Alysia Borsa, Chief Marketing and Data Officer of value exchange and that their time As people pull back from ad-supported and data are being monetized. Put Meredith Corporation, to discuss how she views the publisher’s app models, consider branded content, them in control with models that product placement and influencer role in building trust and transparency with consumers and the let consumers select their preferred marketing as alternative ways to reach experience, from micropayments to your audience. best ways to incorporate marketing partners authentically into subscription models. content experiences.

23 We need to understand our consumers from a are typically six to 800 terms. Our taxonomy is over Q: OUR RESEARCH FOUND THAT Q: MEREDITH HAS DIVERSIFIED persistent perspective (e.g., their life stage or 10,000 terms. The deeper your taxonomy, the deeper AWAY FROM JUST 64% OF AMERICANS HAVE CUT interests) as well as from a real-time perspective. your data and insights and the better able you will BACK ON THEIR MOBILE APP For example, I’m a mother who is interested in be to predict trends and provide more impactful and ADVERTISING INCLUDING USAGE OVER THE PAST YEAR, gardening, but today, I need to figure out what to personalized content and offers to your consumers. LICENSING, SUBSCRIPTION FROM FIVE HOURS TO FOUR cook for dinner. Therefore, we need to make sure SERVICES, NEWSLETTERS, we understand our consumers in multiple ways to REAL LIFE EXPERIENCES HOURS PER DAY ON AVERAGE. Q: YOU’VE BEEN ON THE IAB’S provide them with the right answers and solutions in AND VIDEO ON DEMAND. AS ONE OF THE WORLD’S their moment of need. LEADERSHIP COUNCIL FOR LARGEST PUBLISHERS, DOES DATA AND A STRONG VOICE WHAT IS THE ROLE OF THE THAT SURPRISE YOU? SUPPORTING GREATER DATA CONSUMER CHOICE IN THESE EXPERIENCES? DO THEY DRIVE Q: HOW CAN MARKETERS TRANSPARENCY. HOW SHOULD BETTER OUTCOMES FOR A: It’s both surprising and not surprising. It’s BE INCORPORATED INTO MARKETERS THINK ABOUT surprising because, in our industry, we constantly THIS VALUE EXCHANGE ENGAGING PEOPLE ON MOBILE MARKETERS? hear that consumers are increasing their digital media EFFECTIVELY? DEVICES AND ON APPS? consumption. They may be utilizing it in different ways and across different platforms, but, overall, we A: We are very focused on diversification. From a continue to see increased consumption. On a personal business perspective, our revenues are roughly split A: I’ll give you a couple of examples of what A: Data’s one of the stated core pillars of our entire level, though, it doesn’t surprise me. As a working 50/50 between advertising revenue and consumer we’re doing at Meredith to demonstrate how we business and is critical to our industry. It has been, mother, I am constantly trying to find enough time in revenues, which include over 42 million print and can provide solutions to consumers and involve and it will continue to be. That said, in order to the day to do everything. I see myself cutting back on digital subscriptions. We reach 150 million digital marketers in an authentic way. For example, we have drive truly meaningful and long-term engagements digital media consumption and being more conscious consumers each month, and we send 6 billion emails a capability where a consumer comes to us to view a with consumers, particularly in mobile, brands and of where I’m spending my time and how I’m spending per year. We’re the second-largest licenser after recipe. In that recipe, we can show which ingredients marketers need to ensure that we have established my time. Disney and have driven over 1 billion dollars in retail are on sale at their local grocery store, and then from trust and transparency with our consumers. If we sales from our content-to-commerce experiences. We there, they can click to add the items to their cart haven’t, we won’t be able to continue to use and At Meredith, we focus on women. We reach 90% of are very focused on diversifying our business but also and easily get those ingredients delivered to them at leverage that data to predict trends, build the right all American women every single month across our on diversifying our experiences for consumers. home. That’s an example of a value exchange where content, personalize experiences and provide more platforms. For women, we have seen the trend of we can incorporate marketers in an authentic way effective offers and advertising. That’s one of the cutting back mobile usage through our own thought- We give consumers choice with where, how and while providing value back to the consumer. reasons why I take a leadership role in many IAB leadership research we just released with the Harris initiatives, especially around privacy, to make sure the on what platform to engage with our brands. This Poll, through our proprietary data and through consumer choice allows us to partner with marketers Another example involves InStyle. From InStyle elements of trust and transparency are in place. feedback from our editors. Women across the country in a way that is much more impactful and diverse. A magazine, a consumer can scan a QR code to are experiencing a burnout epidemic and are trying great example of this is PEOPLE and how it handles try on makeup that the editor of InStyle has to take back control of their lives. One of the ways red carpet events. We work with marketers leading recommended and click to purchase it directly from they are doing that is by cutting back on their digital up to the event through our over-the-top (OTT) their phone. Being able to provide simple, easy media consumption, particularly their social media PEOPLE TV experiences. We then integrate the OTT content-to-commerce experiences is truly valuable consumption. We’ve seen this trend and are adapting with digital executions. On the day of the event, we to the consumer, valuable to us and valuable to our to it as we try to anticipate her needs and give her the have livestreaming and social executions and then, marketing partners. content she wants in real time. afterward, we summarize the event’s highlights through our magazines. Through various platforms Q: WHAT IS THE VALUE Q: MEREDITH HAS BUILT A DEEP and experiences, in an authentic way, we reinforce EXCHANGE THAT NEEDS TO TAXONOMY TO UNDERSTAND the value that we bring to our consumers and allow marketers to be integrated into that experience OCCUR WITH CONSUMERS? CONSUMER NEEDS. WHY IS as well. HOW DO YOU THINK ABOUT THAT IMPORTANT IN A WORLD HELPING THEM MAKE THE MOST WHERE MANY MAY BE GOING OF THEIR TIME? ON A “MOBILE MEDIA DIET?”

Alysia Borsa Chief Marketing and Data Officer of Meredith Corporation A: To engage and connect with consumers in a A: Taxonomy is critical to us and to our industry. meaningful way, we need to provide value to them. “Taxonomy” is just the fancy term for how you classify That’s the value exchange. We need to help them content and experiences. We have built out a deep, answer a question, to entertain them, to solve a need. proprietary taxonomy that leverages our editors’ We can only solve those needs and provide value to expertise, and then uses machine learning to apply those consumers if we understand who they truly are this taxonomy to all of our content. To give you some and what they want. perspective, standard taxonomies in the industry

24 25 Every new medium brings with it calls of concern that it will be destructive to our relationships or our physical Forces of Change and mental well-being. What are your thoughts about the introduction of smartphones versus, for example, the Issue 4 • November 2019 introduction of television?

Many people say to me, ‘People said that TV was going to ruin society and that kids were spending too much time watching TV and it was going to have negative effects.’ Well, guess what? They were right. I think that something to keep in mind is that just because someone has made an argument before about technology, it doesn’t mean that it’s wrong.

24 TV isn’t great, either, but it’s very similar to digital media in that it’s very useful in limited doses. We don’t need to give up our phones; we don’t need Dr. Jean Twenge Author and Professor, San Diego State University Q & A to even give up all social media or all digital media. We just need to limit how much we use it. We need to limit the use of smartphones enough such that it doesn’t interfere with our doing other things, like seeing people in Food and digital media have some similarities. You could person without having that phone in front of us. argue that we need a little technology and a little digital media and that a little bit might be good for us. The same is true of App addiction has been documented as a real condition with food. We need food to survive, but we need a limited amount. social consequences. What behavior have you seen in your We shouldn’t be overeating, just like we shouldn’t be over- research around the effects of app addiction? consuming digital media.

“iGen” is defined as the generation born in 1995 or later. This is the first As a parent, what advice would you give other generation to spend its entire adolescence with smartphones. Around 2011 parents about limiting their children’s time on or 2012, I started to notice unusual trends in yearly national surveys of teens with sudden spikes in loneliness and symptoms of depression. The suicide smartphones? rate among teens suddenly shot upward, and measures of anxiety have I have three kids myself, and I have learned over the years one of suddenly increased. There are all these troubling trends for teen mental your biggest roles as a parent is to set limits. You tell your kids health that began in 2011 or 2012, which is the year that the number of when to go to bed and you make them healthy meals and say Americans owning a smartphone surpassed 50%. That was the year where that they have to eat dinner before they get dessert, and that, smartphones went from something a minority of people had to something no, they can have two cookies, but they can’t have three cookies the majority of people had. The big picture is that the more time teens and they definitely can’t have six cookies! spend on digital media, the less time they spend with their friends, face-to- face, and the less time they spend sleeping. This is not a formula for good It’s the same thing with screens. Parents have a responsibility mental health and happiness. to make sure that their kids are using devices in a responsible SUPERCONNECTED way. For a high school student, they might have their own Do you think there is potential for people to recognize the smartphone, but you can put an app on it to make sure that they negative impact on increased smartphone use and change are not on it eight hours a day. You can limit their use to about their behavior? two hours a day or less, which is what the research suggests is UNPREPARED a healthy limit. The same thing would apply if you have a child & I actually am pretty optimistic that we can see change around smartphone who really wants to play video games. Sure, you can play, but use. If both teens and adults think about how they are using their time and not so much that it’s interfering with other things in your life. decide to try to use their time in more productive and fulfilling ways, then Dr. Jean Twenge is the groundbreaking author Her research on the use of apps and smartphone they could decide to use that phone for what it’s good for. It can help you How do you think advertising will change if of the book, “iGen: Why today’s Super- technology provides the undeniable conclusion find your way around, it can look up a little information and it’s useful for people continue to cut down on the time they Connected Teens are Growing up Less Rebellious, that increased use of smartphones in adolescents sending a text to a friend about when it would be best to get together. spend on apps? More Tolerant, Less Happy – and Completely results in less social interaction, increased rates Otherwise, put that phone down and go and live your life. Unprepared for Adulthood – and What That of depression and a higher likelihood of being Ads have migrated online because that’s where people are. If Means for the Rest of Us.” Dr. Twenge initially unhappy. But is this enough to cause people to 64% of Americans are now spending an hour less per we do have a movement toward people not spending as much time on their phones, then ads might migrate back to wherever sounded the alarm regarding the increased use adapt more moderate behavior and decrease their day on apps than they were a year ago. The majority are “dieting,” or self-regulating, which means they are making people are. I don’t think the platform necessarily has to matter of smartphones and the rise in depression and use of apps? We spoke with Dr. Twenge to get a conscious effort to check apps less frequently, to turn off that much. It’s more that you go where the eyeballs are, and general discontent among adolescents in her her views. Below are edited excerpts from our push notifications or to simply stop app use. About one-third currently the eyeballs are on online. September 2017 article in The Atlantic, “Have conversation. are going “cold turkey” by deleting certain apps from their Smartphones Destroyed a Generation?” phones. What is your view on how much smartphone use we need to cut?

27 Forces of Change Does it surprise you that the Streaming is one of the major Issue 4 • November 2019 majority of Americans have ways consumers spend time cut back on their mobile app on mobile devices. When usage over the past year, they “cut back” app usage, from five hours to four hours they tend to cut back on on average? social media first, followed by reducing time spent with There has been so much movement away 28 from fixed screens to mobile screens that content sites, gaming and Q & A I’m surprised consumption is decreasing. streaming. Does that concern That said, I’m not surprised that people you as a content publisher are becoming more mindful of how they’re engaging with media. Personally, I am and marketer? more mindful of my app usage around my two kids, as they comment on my phone It doesn’t concern me as much as it would usage, which makes me feel horrible. Yet, if it were on other platforms. To sell movies, even when I try to cut back, I feel that the most important thing is to have a unconscious tug that draws me to my consumer sample our video content. Social ADVERTISING mobile screen. is an incredibly personal and powerful experience for users, but it’s not a great platform to engage with video content.

As consumers spend less time on their devices, marketers will be challenged to IN A CHANGING find ways to deliver more targeted, more relevant, less “ad-like” advertising to people. If a decrease in mobile impressions puts the pressure back on marketers to sharpen our targeting skills and our As consumers creative skills to make sure we’re giving DIGITAL ENVIRONMENT spend less time the right content, I think that’s actually a better route to go in the long run, both for on their devices, marketers and consumers. marketers will be An interview with Andrew Hotz You came from Google challenged to find to Warner Bros. How has ways to deliver your view of the consumer We sat down with Andrew Hotz, EVP of digital marketing and chief data strategist at more targeted, changed now that you Warner Bros., to get his thoughts on the most effective methods of advertising in this more relevant, less are running a global media “ad-like” advertising brand? Any lessons changing digital environment. Below are edited excerpts from our conversation. you’ve learned? to people. At Google, everything is built around the user experience, and I gained an understanding of how consumers are engaging with content on various digital

29 platforms. Traditionally, on the marketing Our next evolution will be to target by side, we decide what we want audiences consumer mindset. Consumer mindset is to do and then expect them to do it. where mobile becomes a key player, as it Today, it is imperative to create content will enable us to know where a consumer that is congruous with the consumer is in their purchase process. If they are experience and to provide the consumers standing outside a theater and searching with what they want, even if it is not for movies to see, we can take that signal necessarily what we want as marketers. and send them a targeted message.

For example, to address the myriad Another implication of platforms, we have reformatted our creative. Our traditional trailer is a 2:30 the research is that giving creative that we put into movie theaters consumers a choice for how before other films. We also put it on their time is valued and YouTube, where people are going, to afford us longer viewing time. On other monetized is going to be platforms, our trailer may be 30 seconds, more important than ever. or 10 seconds, or perhaps simply a still As a global brand leader, graphic that says the trailer is out now. how do you think about What do advertisers need to consumer choice? keep in mind when marketing Consumer choice dictates everything and to consumers on mobile web should be at the core of everything that and in mobile apps? Any you’re doing. As creative marketers, our job is to design content in a way such best practices of tactics that that consumers will want to engage. Now work—or don’t? that the consumer can control how they uniquely engage with media, they are in Marketers are realizing that mobile is the driver’s seat. crucial, but they haven’t examined their entire process to ensure it’s focused on the mobile consumer. Are they approving content on mobile devices? Are they effectively planning to make sure a certain media allocation goes toward mobile devices? Do they understand how users engage with content across different platforms on mobile devices?

About 70% of movie tickets in the U.S. are sold within three hours of the showtime. This presents an opportunity on a mobile device to reach that consumer and influence them to pick our movie. To take Andrew Hotz advantage of that opportunity, we shifted EVP of digital marketing and chief data strategist at Warner Bros. to dynamic, real-time ad spending. If we know where you are based on your mobile device, we can personalize the advertising and tell you the name of the closest theater and the showtimes.

31 You’ve been doing Across the board, we it more than I do”). Have a “Tech Shabbat” found that “stop wasting you seen that behavior in Forces of Change with your family time” was the top reason your own life? What do you for a decade now. people cited for decreasing make of the denial? What does that mean, and their usage. Tell us about Issue 4 • November 2019 A smartphone is an alluring has it gotten harder or people’s perception of device. Thousands of engineers easier over time? “time.” What does it really and behavioral scientists spend mean when people say they every day working on keeping Ten years ago my cut back “because of time?” our eyes glued on the screen. family decided to Are we living in a society Everyone is at a different “unplug” one day a 32 that feels “time poor?” stage of addiction. There are week. Now we look some people who believe the forward to it every week. My Technology speeds up our pendulum has swung too far Q & A husband and I have a 16-year- perception of time. We all and want to do something old and a 10-year-old and we know that feeling when we about it. They might decide view it as our one day of rest intend to “check one thing” to turn off notifications on Tiffany Shlain which, in our modern day, and then suddenly we’re their phone or practice a Tech Filmmaker, Author, and means no screens. Afterward, sucked into the feed and have Founder, The Webby Awards Shabbat like my family does. I feel much more productive, wasted a lot of time. When Then there are other people more creative and more you turn off the device, you who have not yet reached their connected to myself, my family, get your time back. The most breaking point. we are constantly bombarded to nature and to the world. valuable thing in our 24/7 with; the way Facebook times time-starved society is being You’ve been pretty critical the news on your newsfeed— present, and by turning off our We found that 64% of of tech folks who created how it drips out the likes to devices, we are then able to be the “attention economy” keep you coming back or the Americans have cut back present in the moment. on their mobile app usage and now claim to have the news in general, which plays on way to fix it. What do you our fears. The more stressful over the past 14 months. How do you think people’s Does this surprise you? think is behind that? the news is, the more you want value of time will change to click on it. over the next 10 years? It’s going to take everyone to It doesn’t surprise me because try to solve this. It is imperative What advice would you the pendulum had swung so Every ancient wisdom practice that we have a diversity give to marketers trying far one way. The invention from every religion and culture of perspectives to help to to reach consumers on of the iPhone in 2007 was a values time for reflection find the solution. Currently, mobile devices? distinguishing moment and and time to be present. a monochromatic group then everyone got addicted. Technology has blurred the influences the direction of our Marketers have an ethical Now research has started to boundaries between work communication technology and responsibility to have a come out, which confirms and leisure. We have created we need to invite many more serious conversation within what we instinctively knew, a society where there’s no voices—including women and the industry on what they’re which says it’s not good to room for reflection or solitary people of color—to help find doing to people. They need to be constantly staring at these contemplation. We need to a solution. There are a lot of ask themselves, “When does FINDING screens. There was a period go back to living a good life ways technology improves our screen time make life better of realization and recognition, of meaning and purpose and lives, but the question of our and when does it make life and now people want to create time for reflection. time is, “When is it better to worse?” Ultimately, everybody LOST TIME do something about it and turn it off?” wants their brand to be they’re starting to change A full 34% of people associated with something their habits. It’s comparable Tiffany Shlain is both a filmmaker and an internet pioneer. She founded the increased their app usage What are some examples of that makes people feel better. to any addiction—first you over the past 14 months, Marketers should consider Webby Awards and recently authored the book “24/6: The Power of Unplugging acknowledge that there is a marketing tactics that are other strategies that could problem, then you have to with no signs of slowing feeding the problem of lack One Day a Week.” We sat down with Tiffany to discuss smartphone addiction, achieve the same goals without want to do something about down. These audiences of time? resulting in people’s eyes glued the role of marketers in this ecosystem and how a weekly “Technology Shabbat” it and then you actually do also tend to use language of Examples of marketing to the screen. something about it. an addict (e.g., “I don’t have helps her “find time” she had lost. techniques that contribute to a problem” “Others use the problem of “lack of time” include notifications, which

33 What are consumer attitudes How is Sourcepoint helping and digital content creators to generate about privacy and how their data publishers make choice a reality significant amounts of revenue in an Forces of Change is used? Have you seen attitudes for consumers? alternative way. shift in recent months? Sourcepoint offers a product called Issue 4 • November 2019 I believe very strongly that data rights AltPay that allows publishers the ability are human rights. People are anxious to provide the consumer with the choice Do you see a difference between about data privacy and are cognizant that of making a micropayment in exchange a consent economy and a choice they don’t know how their data has been for content. We also have a product economy? And if so, what’s that harvested and utilized in the past. The called AltAd, which allows users to see a difference? online advertising ecosystem is beginning different kind of advertising experience Consent is on the continuum to to pivot toward transparency so that users than they would get normally in exchange 34 choice. Previously, many users had no can understand the value exchange that’s for content. Finally, we have a product understanding of how the publisher or the occurring when they consume content. that focuses on compliance. This is a digital utility creator was compensated. Q & A As publishers and digital utilities provide consent management platform that Now, through legislation, we’re moving users with transparency and enable publishers can use to obtain consent from toward consent, where users are starting them to make the choice of paying with their user and then communicate that to understand how data and attention their data, with their attention or with a consent downstream. This will ensure are utilized to compensate the publisher. micropayment or macropayment, there that consumer data was collected in a The next stage will be choice, where will be a clear value transaction taking compliant manner. the consumer has the opportunity to place that will improve the THE FUTURE either pay with data and attention or pay common good. through a different means. What are your initial findings with AltAd and AltPay? What are of Choice & Consent Why is consumer choice so people choosing? important in today’s attention- driven environment and what are We’re seeing a lot of interesting results. An Interview with Benjamin Barokas the best practices for offering People are more likely to participate consumers a choice for how their in AltPay, AltAd and the consent time and attention for data is management platform in places that have monetized? longer form video content. In places where As the Founder and CEO of Sourcepoint Technologies, Benjamin Barokas is the content is written and not necessarily Customization and personalization are the ultra-premium, people tend to provide driving the next phase of the internet by providing technology and services gold standard that all digital utilities and their data in exchange for the content. content creators aspire to. The starting There are some ultra-premium platforms that enable the world’s largest media companies to foster a transparent value point of successful customization and where the goal is subscription revenue, personalization is communicating directly but it is very difficult to convince someone with the consumer. Companies that to pull out their credit card and actually Benjamin Barokas exchange with consumers. We sat down with Benjamin to get his unique have clear communication with the user pay money in exchange for those content Founder & CEO Sourcepoint perform better over time. The return on experiences. perspective on the future of choice and consent for consumers. advertising spend is significantly higher when the user raises her hand and says, “I want to pay with my data.” There is much Micropayments have been talked less advertising blindness when there’s We found that 64% of Americans have cut back on their mobile app usage over the past about for years but haven’t had an understanding of the transparent much traction. Why do you think 14 months, from five hours to four hours on average. Does this surprise you? value exchange that occurs. Providing that’s the case? the consumer with a choice will become the standard worldwide for respecting Consumers tend to utilize micropayments data privacy while collecting appropriate when the friction to pay is very low, for It does not surprise me. There’s a point where we reach peak phone usage. How much time do you remuneration for content. example when there is a wallet involved. want to spend looking at your little screen? People are becoming increasingly aware of connecting There will be a day when wallets are with the digital world versus being in real life—and are choosing to spend more time being present created and everyone has one, but that in the moment. day is not here yet. Blockchain technology isn’t yet deployed at scale, so there is currently no mechanism for publishers

35 We may have hit peak app usage. 64% of people cut back on the amount of time they spent with apps over the past 14 months, from 5 hours to 4 hours per day. And this change is 36 likely here to stay. IN CLOSING “The single most important reason why people are doing this, why they are cutting back on their screen time, is they’re losing time to do the things that matter most to them. They are conscious of wasting their time, or in essence, living life in a way they find less THE WAY FORWARD meaningful. The shift is internally motivated, not externally motivated. This isn’t somebody telling you that you should cut back. This isn’t a

Renee Cassard result of the social media platforms manipulating you or too much fake Concerns about app addiction Chief Audience Officer HEARTS & SCIENCE news. This is truly something that is felt internally, or what psychologists are real—and mainstream. While call an internal locus. This is what leads to long lasting changes in technology players launch parental behavior, and why we feel marketers need to pay attention.” controls and screen-time monitors, people are taking matters into their own hands, with the majority of people cutting back on the time they spend each day with apps. To “But whether they self-regulated their urge to check apps reach these consumers effectively, or deleted the apps altogether, nearly all (77%) people marketers and publishers must add told us it was one of the best decisions they have made, value to the mobile experience, be and half (56%) plan to continue. They see disconnecting as transparent about the value exchange a path to gaining back lost time for the things that truly do taking place and offer consumers a enhance their lives.” Pamela Marsh, Ph.D. choice for how to engage. Managing Director, Primary Research OMNICOM MEDIA GROUP

37 But it’s going to take effort across the industry and society Publishers are already starting to adapt to this changing at large to solve the problem of app addiction in the long consumer behavior, ensuring they add value to every digital term. 36% of people increased their usage over the research experience. They’re also making the value exchange with time period. consumers more transparent and offering greater choice to people for how to engage.

“To engage and connect with consumers in a meaningful way, we need “It’s going to take everyone to try to solve this. It is imperative that to provide value to them. We need to help them answer a question, to we have a diversity of perspectives to help to find the solution. entertain them, to solve a need. We can only solve those needs and Currently, a monochromatic group influences the direction of our provide value to those consumers if we understand who they truly are. communication technology and we need to invite many more Particularly in mobile, brands and marketers need to ensure that we have voices—including women and people of color—to help find a established trust and transparency with our consumers. If we haven’t, we solution. There are a lot of ways technology improves our lives, but won’t be able to continue to use and leverage that data, which enables us Alysia Borsa Tiffany Shlain the question of our time is, “When is it better to turn it off?” Chief Marketing and Data Officer Filmmaker, Author, to reach and engage our consumers in meaningful ways.” MEREDITH CORPORATION Webby Awards Founder

“Consent is on the continuum to choice. Previously, many users had no understanding of how the publisher or the digital utility creator was compensated. Now, through legislation, we’re moving toward consent, where users are starting to understand how data and “I actually am pretty optimistic that we can see change attention are utilized to compensate the publisher. The next stage around smart phone use. We don’t need to give up our will be choice, where the consumer has the opportunity to either pay phones; we don’t need to even give up all social media or Benjamin Barokas with data and attention or pay through a different means.” all digital media. We just need to limit how much we use it. Founder and CEO SOURCEPOINT TECHNOLOGIES We need to limit the use of smartphones enough such that it doesn’t interfere with our doing other things, like seeing people in person without having that phone in front of us.” Dr. Jean Twenge Author and Professor We hope you have enjoyed this discussion of App Addiction and SAN DIEGO STATE UNIVERSITY Conscious Disconnecting. Share your feedback or join the conversation with #forcesofchange or learn more at hearts-science.com/forcesofchange.

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