Westwood One's Bouvard: How Radio Can Enhance Your TV Advertising
March 17, 2016 at 12:22 PM (PT)
WESTWOOD ONE Chief Marketing Office PIERRE BOUVARD's latest blog, "Why It's Harder To Reach Consumers With TV Ads And How Radio Can Make Your TV Better," explores how much harder it is to attract eyeballs with TV advertising.
Among his findings:
• Total TV audiences are down. Primetime ratings were down 7% JANUARY 2015 versus JANUARY 2016, according to media analysts MOFFETT NATHANSON.
• Millennial TV viewing is seeing an even sharper drop. Only 73% of 18- to 34-year-olds are reached by TV in a week, according to NIELSEN.
• Nearly half of primetime viewing is time shifted. According to NIELSEN, only 56% of primetime viewing is live.
• NETFLIX is responsible for 50% of TV viewing erosion. MOFFETT NATHANSON recently calculated that half of U.S. TV’s viewing drop is due to NETFLIX.
• According to NIELSEN, heavy streaming usage among young demographics explains the drop in TV viewing.
In addition, half of U.S. homes have either NETFLIX, HULU or AMAZON INSTANT VIDEO. Among upscale homes with $75,000+ incomes, streaming subscriptions soar to nearly two-thirds. 74% of homes headed by Millennials 35 and younger subscribe to one of the video streaming services.
One in five AMERICAN homes have a smart TV, according to NIELSEN. Prevalence is even higher in upscale homes.
Commented BOUVARD: “Despite these six challenges, TV is still an excellent ad medium. There is a way to improve TV impact: adding radio to the media plan boosts exposure among consumers who are only lightly exposed to a TV campaign.”
He cites a recent NIELSEN case study that found radio doubles campaign frequency among the 40% of AMERICANS who were lightly exposed to the TV campaign.
BOUVARD concluded: “TV time spent and reach are down. Younger and upscale consumers are spending more time with streaming services like NETFLIX, AMAZON PRIME and HULU. Radio can compensate for the loss of TV tuning and reach by amplifying impact among light and medium TV viewers.”