New Media Digest: Technology Changing Consumer Habits

Three recent surveys highlight new technology's effect on consumer habits and the challenge facing advertisers. Newspapers' web sites are boosting their offline circulation; broadband video is bringing new and more lucrative advertising opportunities; and the days of the standalone DVR may be numbered.

Local newspapers are extending their reach online, according to The Media Audit from International Demographics. The firm found that ten US newspapers are reaching up to 80% more of their markets by using a combination of print and website media. The New Orleans Times-Picayune leads the table, with approximately 593,800 residents saying they read the newspaper in the last month, and 287,500 saying they visited the newspaper's website during the same period. When duplications between the two groups were eliminated, the net gain was 87.3%.

International Demographics' President, Bob Jordan, commented: 'As recently as 2003, just 30 daily newspapers attracted more than 20% of local adults to their websites. Our current numbers show 49 dailies have attracted more than 25% of adults and 30 dailies have attracted 30% or more.'

Analysing broadband video use, Nielsen Analytics' latest report shows that advertisers are discovering its potential as a profitable source of revenue. The study verified that the use of broadband video extends the reach of traditional TV, with broadband consumers identified as young, affluent, highly educated and with high-speed web access 24/7.

The study, entitled Whatever, Whenever, Wherever: How Broadband is Redefining the Economics of Television, was authored by Nielsen Analytics General Manager and Senior VP, Larry Gerbrandt, and completed in partnership with Scarborough Research.

During 2005-2006, TV usage in the US was at a record high at 8 hours, 14 minutes a day. While only 9% of US adults reported spending 20 hours or more a week on the Internet, this number nearly doubled, to 17%, among those with broadband access at home.

Gerbrandt surmises that 'advertisers and programmers using broadband have a unique advantage in the increasingly competitive advertising world.'

Finally, if the Yankee Group's predictions are correct, it looks like curtains for the standalone digital video recorder (DVR), and the TiVo service. Yankee says TiVo will struggle to remain relevant in the market as service providers capitalize on emerging technologies to up-sell subscribers to new services – but notes that the TiVo brand is a valuable one and should be ripe for acquisition.

According to the Yankee Group Report, Technology on Fast Forward: 2006 to 2011 US DVR Forecast, the demise of TiVo will herald the way for Advertising 2.0 opportunities such as time and location relevant advertising, ad telescoping, product placement and interactive advertisements. This will allow service providers to grab a share of the advertising revenue they have failed to capture in the past.

Details about the three surveys are on the web at: www.themediaaudit.com, www.nielsenmedia.com / www.scarborough.com, and www.yankeegroup.com .

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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