The media investment company, Veronis Suhler Stevenson is out with a new report and forecast which, among other things says that the aggregate time people spend with media of all types dropped 0.5% in 2006 for the first time in a decade to an annual total of 3,530 hours (by comparison, the average person's work year is just over 2,000 hours). From the press release:
... The drop in consumer media usage was driven by the continued migration of consumers to digital alternatives for news, information and entertainment, which require less time investment than their traditional media counterparts. For example, consumers typically watch broadcast or cable television at least 30 minutes per session while they spend as little as five to seven minutes viewing consumer-generated video clips online. VSS expects consumer media usage to stabilize in 2007 and increase slightly through 2011, as out-of-home media and videogames will be the only major segments to achieve accelerating growth in the forecast period compared with the 2001-2006 timeframe. Overall consumer time spent with media will increase at a CAGR of 0.5% from 2006 to 2011, compared with 0.8% in the previous five-year period. ...
The forecast also notes:
... consumers are also migrating away from advertising-supported media, such as broadcast TV and newspapers, to consumer-supported platforms, such as cable TV and videogames. Time spent with consumer-supported media grew at a CAGR of 19.8 percent from 2001 to 2006, while time spent with ad-supported media declined 6.3 percent in the period. ...
And spending patterns are shifting dramatically:
... The alternative advertising and marketing segments produced the strongest gains in the 2001-2006 period, as intensified competition for consumers’ time and attention amid a dizzying array of media choices prompted major brands to ratchet up their use of alternative media strategies. Spending on alternative advertising – including Internet, mobile, videogames and digital out-of-home, among others – grew 36.6 percent to $26.53 billion in 2006 and posted a CAGR of 23.9 percent from 2001 to 2006. Traditional advertising spending, however, grew only 2.4 percent to $183.21 billion in 2006 while producing a CAGR of 2.8 percent in the five-year period, hindered by slow growth in print-based newspapers, yellow pages and consumer magazines. Meanwhile, spending on alternative marketing – including branded entertainment, interactive marketing and e-custom publishing – increased 17.3 percent to $61.67 billion in 2006, and experienced a CAGR of 15.3 percent from 2001 to 2006. In contrast, spending on traditional marketing, such as direct mail and promotions, grew only 5.0 percent to $192.34 billion in 2006 and climbed at a CAGR of 4.5 percent from 2001 to 2006, according to the VSS Forecast. ...
Link Veronis Suhler Stevenson press release.
Seth Sutel has the story on this forecast for the Associated Press. See Study: More Time Spent With Paid Media. Link: Washington Post.
What did you do with your three minutes? --Dennis