Digital Media Trends Survey, 12th Edition Kevin Westcott, Principal, Deloitte Consulting LLP www.deloitte.com/insights/digitalmediatrends #TMTtrends About Deloitte’s US Digital Media Trends Survey
This is the twelfth edition of research commissioned by Deloitte’s Technology, Media and Telecommunications (TMT) practice.
The global survey was fielded by an independent research firm across November and December, 2017, in the US and six other countries, and employed an online methodology among 8,287 consumers.
All data is weighted back to the most recent census data to give a representative view of what consumers and other respondents are doing.
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 2 The US survey focuses on five generations: The survey focuses on five generations:
Gen Z Age 14-20 Born 2002-1997 29M
Millennials Age 21-34 Born 1996-1983 62M
Gen X Age 35-51 Born 1982-1966 69M
Boomers Age 52-70 Born 1965-1947 74M
Matures Age 71+ 23M Born 1946 and prior
*2017 US Census Bureau — Population Division US Interim Projections 2000-2050
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 3 MilleXZials: The convergence of consumption behaviors
Copyright © 2018 Deloitte Development LLC. All rights reserved. Presentation title 4 [To edit, click View > Slide Master > Slide master1] MilleXZials – 50 is the new 20!
Streaming Video Subscription % time watching movies on smartphone
Stream Movies Weekly Average # of episodes binged per session
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 5 It’s all going mobile
Copyright © 2018 Deloitte Development LLC. All rights reserved. Digital Media Trends Survey 6 Smartphone penetration for MilleXZials outstripped TVs, and is higher in value
Ownership Among Total US Consumers (%)
Value Among Owners(%)
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 7 Smartphones command consumer attention as well
Millennials and GenX look Collectively we look at their phone more than at our smartphones times 70 in a day 12 billion of consumers look times per day! 26% at their phone 50 times in a day
Source: USA edition, Deloitte Global Mobile Consumer Survey, July 2017 # of Smartphones Source: Statista, 2017
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 8 What are MilleXZials doing with their smartphones?
Nearly 30% of the time Gen Z and Millennials Similarly, nearly 30% of the time Gen Z and are watching movies on mobile devices Millennials are watching TV shows on mobile devices
10% 12% 13% 12% 11% 10% 18% 18% 15% 13% 15% 12%
Gen Z Millennials Gen X Gen Z Millennials Gen X
Even for sports, over 25% of the time Gen Z and Over 50% of the time Gen Z and Millennials are Millennials are watching on mobile devices watching short-form content on mobile devices
9% 11% 20% 15% 13% 11%
16% 16% 34% 35% 34% 12%
Gen Z Millennials Gen X Gen Z Millennials Gen X
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 9 An insatiable appetite for video content
Copyright © 2018 Deloitte Development LLC. All rights reserved. 10 Consumers are spending 38 hours a week consuming video content!
Hours spent consuming video content each week
Total Gen Z Millennials Gen X Boomers Matures
23 hr 16 hr 15 hr 21 hr 31 hr 30 hr Broadcast TV
15 hr 22 hr 19 hr 18 hr 9 hr 4 hr
Streaming video Q. During an average week, how many hours of video content do you consume per week?
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 11 Streaming services and original content are fueling the appetite
Consumers in US now have unprecedented choice with of US Millennials have SVOD 59% subscribed to access over 200 options specific original content
Average number of paid streaming service subscriptions by generation
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 12 The mobile video content viewed weekly by consumers increased significantly
Watch video news Stream films Watch live TV stories on news apps and/or TV series
2016 2017
Source: USA edition, Deloitte Global Mobile Consumer Survey, Aug 2016, July 2017 Base: All smartphone owners aged 18-75 years, USA, 2016: 1530, 2017: 1634 Note1: In 2016, the question was ‘Please state which, if any, you ever use your phone to do, which you use at once a week and which you use at least once a day.” Note2: The percentage for 2016 “Watch short videos” is obtained by adding “Watch short videos” and “Watch videos that play automatically on my social network” Deloitte Global Mobile Consumer Survey, 2017
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 13 Binge watching continues to grow, led by Millennials
In a single binge sitting, Millennials watch an 86% 42% average of:
7episodes of US Millennials binge-watch of US Millennials binge-watch video content every week 6 hours
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 14 It’s a social engagement
Copyright © 2018 Deloitte Development LLC. All rights reserved. Digital Media Trends Survey 15 Gen Z and Millennials are nearly fully represented on social media, and most are highly active
And over More than 95% 75% of Gen Z and Millennials of Gen Z and are on social media. Millennials Check their social media daily.
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 16 Social Media drives purchases and content discovery for Millennials and Gen Z
Online reviews Buying decision influence are top influence for Gen Z and among Total U.S. Consumers Millennials buying decisions Top 3 Ranking (%) Total Gen Z Millennials
Television ads 62 66 61
Online review or recommendation from someone 60 74 78 within social media circle
How viewers learn about new
TV shows Total Gen Z Milleninals Total Gen Z Milleninals movies 65 70 58 Friends or family 67 59 55
64 55 48 Television commercials 61 65 55
41 52 58 Social media 40 54 56
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 17 MilleXZials are most willing to engage with ads on their smartphone rather than TV
Devices to engage ads Gen Z Millennials Gen X Among U.S. Consumers TV 30 20 31 of MilleXZials say Smartphone 39 37 38 they would respond 60% to targeted ads
Short and skippable ads are key to MilleXZial attention
Among Total U.S. Consumers (%) Gen Z Millennials Gen X Summary of Agree Strongly/Somewhat More than of MilleXZials say I pay more attention to short ads (under 10 the mobile ads they 72 74 70 seconds) than longer ads (30 seconds or above) 70% receive are not I pay more attention to an ad I can skip than an relevant to them 56 56 52 ad I cannot skip
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 18 Brand perception can be driven by social media influence, especially among MilleXZials
Among Total U.S. Consumers (%) of Millexzials Summary of Agree Strongly/Somewhat If someone I follow 52% recommends a brand, Total Gen Z Millennials Gen X it improves my perception 46 54 55 48 of the brand
of Millexzials 46% Think the number of followers a Total Gen Z Millennials Gen X brand has on social media is a good measure of the value of the brand 38 48 53 40
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 19 Consumer personas
Copyright © 2018 Deloitte Development LLC. All rights reserved. Digital Media Trends Survey 20 Key personas to differentiate behaviors across generations
Mobile-first innovators Highly subscribed • Do not prefer appointment watching. • The largest subscriber of paid Want to consume content anywhere, anytime. subscription services with an • Significant proportion of media consumption average of 8. and interaction on smartphones. • Show the maximum willingness among Watch around 26 hours of streaming video all to pay for premium video services. and 16 hours of live TV per week. Watch around 17 hours of streaming ACCOUNT FOR: 25% of the streaming video and video and 23 hours of live TV per week. 12% of Pay TV market by value. ACCOUNT FOR: 32% of the streaming video and 30% of Pay TV market by value.
Late arrivals Lean-back streamers • Most prolific linear-TV watchers. • Most likely to cancel pay TV in the next 12 months. • Gradually moving towards digital-savvy groups backed by their mobile behavior. • Prolific streamers, but on flat-panel TV. This group is ad-lergic. The highest Watch around 12 hours of users of ad-blocking software and prefer streaming video and 30 to engage ads on the TV. hours of live TV per week. Watch around 22 hours of streaming video ACCOUNT FOR: 14% of the streaming video and and 16 hours of live TV per week. 16% of Pay TV market by value. ACCOUNT FOR: 25% of the streaming video and 13% of Pay TV market by value.
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 21 Personas based on consumer streaming and smartphone video viewing behaviors
By looking at the average ages of consumers in the Personas, we can see that Gen Z and Millennials behaviors exist across generations.
Average ages within Personas:
Mobile First Innovators – 33 years old Highly Subscribed – 42 years old Lean-back Streamers – 41 years old Late Arrivals – 43 years old Traditional TV – 57 years old
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 22 For more information
Contacts
Kevin Westcott Vice Chairman US Telco, Media & Entertainment Leader Deloitte Consulting LLP +1 213 553 1714 [email protected]
CopyrightCopyright © © 2018 2018 Deloitte Deloitte Development Development LLC. LLC. All All rights rights reserved. reserved. Digital Media Trends Survey 23 This presentation contains general information only and Deloitte is not, by means of this presentation, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This presentation is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you should consult a qualified professional advisor. Deloitte shall not be responsible for any loss sustained by any person who relies on this presentation.
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