When it comes to preferred platforms for content consumption among teens…the times, they are a changin’ (a reference Gen Z probably won’t get but could Google faster than anyone). Industry insiders would have been able to tell you a change was coming years ago, but they didn’t have the data to back it until now.
In general people have become used to the concept of watching or listening to an advertisement in order to view content. We’ve been doing this for years with cable, watching 8 minutes of ad spots and 22 minutes of programming.
Teens are moving away from traditional platforms to watch video. Go ahead, ask a 15-year-old what time The Big Bang Theory airs and if they were even aware it was still running, they won’t know the time or day of the week.
Taking Stock with Teens
For the first time the biannual survey Taking Stock with Teens, which started in 2011, shows that YouTube has surpassed Cable Television in its “Teen Video Consumption” Category. This time around, 26% of teens surveyed named YouTube as their top choice for video consumption, narrowly edging Cable Television which received 25% of the votes. Netflix leads the Category with 11% more of the vote than YouTube which I wouldn’t exactly call a landslide (especially since this survey was conducted during the height of the popular show Stranger Things). It’s also noteworthy that YouTube and Netflix aren’t in direct competition in the fight for a slice of a brands annual media budget.
Be Sure to Bet the Right Horse
A Magna Global study from late 2015 predicts that digital advertising revenue will beat out traditional television advertising revenue globally by the year 2017; as it should given the new data from Taking Stock with Teens. They support their prediction saying total ad revenue in the U.S. grew 2.1% in 2015 hitting $167 billion. They also suggest that in 2016, the industry will more than double in growth at 5.2%, with digital leading the way at $68 billion in revenue compared to TV’s $66 billion. However, other publications have suggested that the growth of ad revenue will increase as well but still favor TV over digital media. It’s my feeling that we should look to the facts that are telling us TV as we knew it is no longer as relevant.
For years companies have been developing tech to support live streaming capabilities. Its importance has grown significantly thanks to substantial investments by social platforms such as Facebook, YouTube, Snapchat, and Twitter to build and enhance their live-streaming platforms. In fact, brands are increasingly using live streams to reach their target audience and advertising dollars have followed along with that. The Live Nation Video Network has used YouTube and other services to bring the live experience to the consumer through live streams. These are interactive sessions that allow fans of live music to engage with others even though they are not physically present. The opportunities and growth for this type of content appear endless. The best moments happen live, and brands continually want to be attached to those moments, as they should. Expect brands to support and sponsor this content in the future as the popularity increases.
Cable TV is not dying…not yet anyway. But, trends show that kids these days just don’t consume content the way we did. The breadth of on-demand content YouTube has available can’t be matched, and teens are telling us that’s where they prefer to watch. Now, 87% of teens aged 13-17 claiming YouTube as their top site for music video consumption and only 7% of people overall saying they use MTV. Live Nation is a major player when it comes to producing content to support the live music experience. Advertisers should see this as an opportunity and start allocating larger budgets towards digital platforms like YouTube to sponsor live music content.
– Dan Sheridan