Transcript Builders and Home Improvement Contractors

A Journey to Find Maximum ROI
and Profitability
► Today’s Media Map is as complex and dynamic
as anyplace on Earth. Unpredictable forces can
suddenly and dramatically alter the landscape.
► For businesses and brands of all sizes, but
especially local retailers, charting a course
across the Media Map is not an easy task, but
this MEDIACENTER Special Report should help
make it easier.
► Television, radio, print and direct mail occupy
familiar positions, but some continue to shrink,
some are relatively stagnant and others are
growing. The most striking change is the vast
ocean of the Internet and its strong currents,
social media and mobile marketing.
Television’s Peaks Soar Above the Clouds
► Television has withstood all the forces that
batter and buffet its supremacy on the Media
Map. Its strength is undiminished; and it still
has the largest veins of treasured consumers
running deep into its core.
► According to Nielsen’s Q1 2014 CrossPlatform Report, the average time spent per
adult, 18+ watching TV per day has remained
essentially unchanged since Q1 2012, at just
more than 5 hours.
► “Listening to AM/FM radio” has decreased
from 2 hours, 53 minutes to 2 hours, 46
minutes while “using the Internet on a
computer” and “using a smartphone” have
increased significantly.
The Dynamics of Television Demographics
► Nielsen data clearly indicate that traditional TV
viewership among young adults, 18–24, has
eroded significantly since Q1 2011, declining
by 18%, during the three-year period ending
Q1 2014.
► A 2014 Harris Interactive study concluded that,
although online video was more popular
among young adults, “these emerging online
services are being used in addition to, rather
than instead of, traditional television
programming.”
► At the opposite end of the age spectrum, older
adults continue to increase their weekly
television viewership, with adults, 50–64,
reaching 45 hours, 18 minutes and adults, 65+
watching 52 hours, 3 minutes.
Unstable Ground Under Print Media
► The total circulation of 541 US newspapers of
various sizes increased 3.0% for the period
ending September 2013; however, all of the
increase was attributable to more digital
circulation at the largest newspapers.
► The 2013 Association of Audited Media (AAM)
data also showed that daily print circulation
decreased from 85% of total circulation at the
end of September 2012 to 71.2% at the end of
September 2013.
► Total estimated spending in major media and
for marketing services during 2014 is $390
billion, a 3.2% increase. Television will increase
2.9%; radio, 2.1%; and the Internet, 18.2%;
while newspapers will decrease 8.0% and
magazines, 2.4%.
The Internet Radio Inundation
► According to February 2014 data from Nielsen,
broadcast radio reached 91.7% of listeners, 12+
every week – and this rate is rather consistent
across all age groups.
► The Nielsen data also showed that Average
Quarter Hour (AQH) ratings, which are often
more revealing, have been decreasing since the
fall of 2010 among teens and young and
middle-aged adults.
► Digital, or Internet, radio is inundating the quiet
waters of broadcast radio. There will be 159.8
million Internet listeners during 2014, and a
projected 183.4 million by 2018. By the same
year, digital radio ad spending will increase
173% and broadcast radio will decrease 15.3%.
Direct Mail:
All Trails May Lead to a Dead End
► According to 2013 BIA/Kelsey research, the
highest percentage of local ad dollars will still be
spent in direct mail during 2017, or 25.0%;
however, that will be a 2-percentage-point
decrease from 2012’s 27.0%.
► The first major challenge to direct mail is the
“paperless” society. All Social Security checks are
paid via direct deposit. As of February 2014,
approximately 75% of all employed consumers
were receiving their wages via direct deposit.
► During 2013, 74% of online households paid their
bills online on the biller or their financial
institutions’ Websites and 62% paid via just the
billers’ sites compared to 53% paying with a
check.
Post Office Peril
► The US Postal Service had been able to
reduce the billions of dollars of red ink it
accumulated during the past few years;
however, its losses spiked again during Q2
2014, with a net loss of $2 billion as
compared to $740 million for Q2 2013.
► A 2012 study of 2.8 million checking account
holders found that 46% of Baby Boomers and
27% of seniors were using online banking.
► During Q2 2014, first-class mail volume
decreased 1.4% and totaled $21.5 billion in
revenues. Standard mail, which is more
commonly known as junk mail, generated
more revenue, $4.2 billion, than shipping,
$3.1 billion.
The Waters of the Internet Extend Beyond
the Horizon
► During 2013, there were 122.5 million US
households. The TV penetration rate was 94%,
or 115.6 million households, according to
Nielsen.
► According to IHS Technology research, Internet
penetration of US households reached 80% at
the end of 2013, or 98 million, with 71.3%
having high-speed service.
► August 2013 research from eMarketer found
that 2013 was the first year Americans spent
more time with digital media (online, mobile and
other) than watching TV, 5 hours, 9 minutes and
4 hours, 31 minutes, respectively.
Smooth Sailing on the Open
Waters of Mobile
► Mobile accounted for most of the increase in
the daily use of digital media from 2010 to
2013, having exploded 487.5% during this fouryear period.
► According to the Nielsen Digital Consumer
Report Q1 2014, Americans spent 34 hours
monthly on their smartphones compared to 27
hours monthly on their computers.
► A summer 2013 survey showed how the growth
of mobile actually benefits, or complements,
TV. Of all smartphone owners, 25% said they
had a local news app, which was the second
most-popular channel to obtain local news after
local TV news broadcasts.
Social Media is Big Water
► During 2014, Facebook is used three times as
much as the next closest social media
platforms, LinkedIn and Instagram, among
persons, 12+. Facebook usage, however, hasn’t
increased even one percentage point from 2013
to 2014 while Instagram has increased 58.3%.
► Snapchat usage increased 333% from 2013 to
2014. Teens and adults, 18–24, have driven the
growth of Snapchat and Instagram, as they are
the dominant age group using these sites.
► According to a 2013 Ipsos study, Americans,
18–64, spent an average of 3.2 hours on social
media networks. The average was higher
among adults, 18–34, at 3.8 hours, but even
50–64 year olds were spending 2.4 hours per
day using social media.
Reading Today’s Media Map Correctly
► Television and the Internet (and all its
components: social media, mobile marketing, ecommerce, etc.) will be the dominant features on
the map – and their supremacy is likely to grow.
► All media that depends on printed paper may
retain much of their effectiveness during the near
term, but their strength and usefulness will only
diminish or disappear entirely during the next 10
to 20 years, and beyond, because of too many
technological revolutions on the horizon.
► Radio is sure to be a viable medium for decades
into the future, but Internet radio may supersede
over-the-air broadcasting. It’s likely that radio and
the Internet won’t be as complementary as TV
and the Internet.
Charting Your Course
► The future Media Map is likely to have fewer
choices – certainly effective choices – which
is a benefit to large and small advertisers.
► The complementary nature of TV and digital
media will only increase and advertisers
should find the combination is all they’ll need
to engage fully with tomorrow’s consumers.
► Retail customers will naturally migrate to
these prominent features on the map, which
will make it easier for you to target the
highest qualified consumers and generate
maximum ROI and profitability.