VIDEO ADVERTISING BUREAU - REPORT 2018 ...... Left To Your Own Devices Understanding Consumption In Today’s Connected World Q1 2018 Contents
Summary 3
The Impact of Connected Devices 4-18
Media Consumption Overview 19-23
Device Segmentation 24-36
Ad-Supported Multiscreen TV Brands 37-42
Contact Information 43
Appendix I – Time-Shifted TV 44-46
Appendix II – Major Ethnicities’ Device Usage 47-50
LEFT TO YOUR OWN DEVICES
2 Summary
In our latest quarterly report surveying the video landscape, Left To Your Own Devices, we take an expanded look at the impact of connected devices on the overall ecosystem and put “time spent” with streaming in proper perspective.
Consumers are living in a video-fueled world – it accounts for over 50% of the 11 hours that people spend with media per day - but it’s important to note that Television continues to be the leader of this world with “live TV” representing 70% of total video viewing.
However, we certainly understand that different demographics and people in different life stages may consume media differently than others. In recognition of these differences, we’ve developed a comprehensive segmentation analysis that highlights the who, what, where, when and how by device to provide a deeper education on the nuances that exist within the video ecosystem.
Although overall time spent with Television (the device) has decreased as video viewing continues to grow on alternative devices such as connected devices and smartphones, ad-supported multiscreen TV brands are well-positioned to continue capturing audiences across all demos and across any screen.
Consider these stats: • In any given minute…there are 10x more Adults 18+ watching multiscreen TV brands than are on YouTube and there are 5x more Millennials watching multiscreen TV brands than are on Facebook
• Ad-Supported TV brands’ collective unduplicated monthly reach on their owned digital platforms is nearly ubiquitous, reaching 86% of P18+, 97% of P18-34, 94% of P35-49, 90% of P50-64
• Multiple ad-supported TV brands rank in the top 5 most popular digital platforms across major content genres
• In fact, ad-supported TV brands’ digital platforms collectively account for a large majority share of total “time spent” among some of the top content genres in digital: sports (P18-34: 81%), news (P35-49: 80%), TV-type entertainment (P18-34: 74%)
LEFT TO YOUR OWN DEVICES
3 The Impact Of Connected Devices
4 The Average U.S. Internet Household Now Owns 11 Connected Devices
The number of connected devices has increased from 10 in 1Q ‘17
AVERAGE # OF CONNECTED DEVICES BY INTERNET HH (Q1 2018)
Smartphones = 1.95 Personal Computers = 2.08 Smart Watches = 0.24
eReaders = 0.29 Tablets = 1.27
Fitness Trackers = 0.35
Home Automation/Security = 0.55
Video Game Consoles = 1.11 Streaming Media Players = 0.75
Smart TV / 4K TV = 0.88 DVR / Blu-Ray Players = 1.07
LEFT TO YOUR OWN DEVICES
Source: SNL Kagan, Consumer Insights U.S. Survey Summary Report, Q1 2018 & Q3 2016: Q: In total, how many of the following types of internet-connected devices are used in your household? Base: 2,523. 5 Almost 85% Of U.S. HHs Now Have A High-Speed Data Subscription, A Basic Necessity For Streaming Video Content On Devices
Estimated U.S. Residential High-Speed Data Subscribers (in millions) 103.6 97.9 101.1 100 94.7 91.1 90 87.9 81.3 84.8 80 76.0 72.0 67.3 70
60
50
40 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018e
Penetration 59% 62% 65% 69% 72% 74% 76% 78% 80% 82% 84% % of HHs
LEFT TO YOUR OWN DEVICES
Source: SNL Kagan 2018. Includes residential subscribers for cable, telco, wireless-only and satellite service. HHs represents occupied housing units derived from Nielsen UEs reports including occupied, temporarily occupied and occasional use housing units. 6 In The U.S., 228 Million People Stream Or Download Video Content Over The Internet; A Universe That Is Projected To Grow Another 20 Million By 2022
US Digital Video Viewers (Millions) 248.9 244.3 239.4 234.5
228.8
2018 2019 2020 2021 2022
LEFT TO YOUR OWN DEVICES
Source: eMarketer Feb 2018, internet users of any age who watch streaming or download video content via any device at least once per month 7 Consumers Can Stream Video Through A Myriad Of Devices, Both At Home And “On The Go”
LEFT TO YOUR OWN DEVICES
8 Connected Platforms Like Multimedia Devices, SVOD & Smart TVs Continue To See Mid-Single Digit Penetration Growth As Connectivity Expands & Improves
90% Devices & Service Penetration In TV HHs Q1 2018
67% 64% 64% 55%
43% 38% 37%
YOY Diff % +3% -8% +2% +10% +2% 0% +27% +16% Smartphone DVD Tablet SVOD DVR Game Console Enabled Smart TV Internet Connected Device
LEFT TO YOUR OWN DEVICES
Source: VAB analysis of Nielsen Total Audience Report 1Q 2018, Devices in TV Households. “YOY Diff %” reflects the YOY percentage point difference; i.e. High Definition TV has decreased two percentage points from 94% to 96%.” Internet Connected Device = devices connected to the TV that are used to stream content such as Apple TV, Roku, Google Chromecast, Amazon Fire TV, Smartphone, Computer/Laptops, etc. 9 In Total, Two-Thirds Of Households Now Have Access To An Internet Enabled TV-Connected Device
Internet Enabled TV-Connected Devices Household Access % 84% 79% 74% 67% 65% 67% 61% 56%
Total Black Hispanic Asian American March 2017 March 2018
LEFT TO YOUR OWN DEVICES
Source: The Nielsen Total Audience Report, Q1 2018. Internet enabled TV-Connected Device = enabled game consoles, internet connected devices (Apple TV, Roku, Google Chromecast, Amazon Fire TV), or enabled smart TVs. 10 Almost Two-Thirds Of Homes Have Access To A Subscription Video On Demand Service
Essentially, households with access to an internet enabled TV-connected device are very likely to also have access to an SVOD service Subscription Video On Demand Household Access % 76% 70% 67% 64% 59% 58% 56% 49%
Total Black Hispanic Asian American
March 2017 March 2018
LEFT TO YOUR OWN DEVICES
Source: The Nielsen Total Audience Report, Q1 2018. SVOD = Netflix, Hulu, Amazon Prime. 11 However, It Should Be Noted That When It Comes To Overall Video Viewing Devices, Television Continues To Be Most Popular In The Household
Average TV sets per U.S. household has increased from 2.3 in 2008
Average # of TV Sets Per U.S. HH vs. Average # of Connected Devices In Internet HHs 2.6 2.6
2.07 2.10 1.89 1.95
1.27 1.20 1.05 1.11 1.09 1.07
0.75 0.62
0.20 0.24
TV Personal Computers Smartphones Tablets Video Game Consoles DVR / Blu-Ray Players Streaming Media Players Smart Watches
Q1 2017 Q1 2018
LEFT TO YOUR OWN DEVICES
Source: TV set data from SNL Kagan 2018, U.S. TV set projections; Includes Smart TVs and HD TVs. Connected device data from SNL Kagan, U.S. Survey Summary Report, Q1 2018; Q: In total, how many of the following types of internet-connected devices are used in your household? Base: 2,523 12 Because Of TV’s Continued Popularity, Ad-Supported TV Reach Has Increased Slightly Even With The Proliferation Of Internet-Connected Devices & Streaming Services… Average P2+ Quarterly Reach (000)
297,847 299,442 284,501 288,217 290,199 292,682 287,856 287,472 291,398 291,408 292,924
1Q '08 1Q '09 1Q '10 1Q '11 1Q '12 1Q '13 1Q '14 1Q '15 1Q '16 1Q '17 1Q '18 Major Device & Service Launches by Year
Red line represents the 10-year average reach (291.3MM) LEFT TO YOUR OWN DEVICES
Source: VAB analysis of Nielsen R&F Time Period Report, Live +7, P2+, broadcast calendar comparison (1Q ‘08-1Q’18); “TV” reflects all ad-supported broadcast & cable TV. 13 …And Average Daily “Time Spent” With Ad-Supported Television Is Only