3 myths of the modern media

PRESENTS

TELEVISION IS DEAD

NOTHING DELIVERS AN AD MESSAGE LIKE TV

○ Increasing DVR penetration now at 49% of TVHHs

○ “Cord-cutting” of Pay TV sources

○ Growth of online and mobile video, which grew 62% among adults 25–54 in 2014

DETRACTORS OF TELEVISION POINT TO SEVERAL ISSUES

MYTH 1 TELEVISION IS DEAD

ONLY 5–6% OF TELEVISION VIEWING IS ACTUALLY COMMERCIAL-FREE

◦ Time-shifted viewing represents less than 10% of total viewing time

◦ Half of time-shifted viewing includes commercials

◦ DVR in 49% of TV households

›  Average home has more than three TVs

›  Not all have DVRs and not all viewing is in playback mode

Monthly Time Spent

Source: Nielsen’s “The Total Audience Report,” December 2014.


CABLE OPERATORS LOST 3.1MM SUBSCRIBERS OVER THE LAST YEAR

Only 6.5% of TVHHs are broadcast/broadband or broadband only



ONLY 10% OF PEOPLE ACCOUNT FOR 87% OF TIME SPENT STREAMING VIDEO



ONLINE AND MOBILE VIDEO USE IS MORE PREVALENT IN YOUNGER ADULT AUDIENCES



TRADITIONAL TV IS SLOWLY LOSING VIEWERS


NO SINGLE MEDIUM WILL REPLACE TELEVISION BY ITSELF

◦ TV makes stars of people and brands; it will remain a core component for most major advertisers’ marketing plans

◦ Television is not what it once was ›  Cable shows like Walking Dead surpass most broadcast

counterparts in ratings and cultural “esteem”

›  National cable and broadcast networks represent “traditional TV viewing,” at least as measured by Nielsen

◦ Online and mobile video can augment TV viewing, but can’t replicate its reach

›  Audiences are delivered one impression at a time

›  The majority of those impressions are consumed by a small portion of the population, reaching the same group of people more often


WHAT WILL TELEVISION LOOK LIKE FIVE YEARS FROM NOW?

◦ Pretty much the same as it does now ›  Interactive/addressable TV will still be five more years

away, but it’s been five years away since 1995

›  Still waiting for the “one-channel” model

◦ Pictures will be sharper while the content will be duller ›  3D, Ultra HD, curved screens and smart plug-ins

›  Smaller audiences drive producers to reduce the cost of content creation

◦ Audience aging will plateau ›  Young adults will discover value in TV

as an entertainment investment

›  As their life-stage changes, the value equation for pay TV will begin to make sense, and many will subscribe

◦ TV will continue to be key to marketing plans


SOCIAL MEDIA IS FREE

○ Social monitoring requires ongoing attention

○ Creating content requires a consistent investment

○ Delivering that content to an audience requires paid support

SOCIAL MEDIA IS A SIGNIFICANT INVESTMENT

MYTH 2 SOCIAL MEDIA IS FREE

ORIGINAL PROMISE: FREE PIPELINE OF CONTENT FOR AN ENGAGED AUDIENCE

◦ Consumers are less interested in our “content” and more interested in access and influence over our brands

◦ Branded content actually competes with consumers’ content

◦ Branded content must strike a fine balance ›  Informative (our goal)

›  Entertaining (their desire)

◦ Advertisers represent revenue to social platforms – often their only source

◦  If a brand is to be “social,” consumers expect real-time response


MEDIA: IT’S ALL ABOUT MAKING AN IMPRESSION

◦ Being there is only half the battle

◦ Your impact is what’s important

◦ Number of spots, hits, downloads or sessions are irrelevant number; “reach” is even suspect

◦ What matters is how many of the right people see your spot, whether you run one or one hundred


SOCIAL MEDIA IS NO DIFFERENT

◦ Unpromoted Facebook posts now reach <3% of the people who liked your page

◦ Two ways to grow each 1.  Grow your fans – those people raising their hands to see your content

2.  Promote your posts – often beyond your fan base

◦ Likewise on Twitter, you can promote specific (targeted) tweets, #hashtags (as trends) and accounts (to grow followers)

›  Unprompted brand tweets get into followers’ feeds, while promoted tweets are anchored near the top of the page

◦ LinkedIn, Google+, Instagram, Snapchat and Pinterest are all introducing ad models


○ Your content, posts, photos, videos: those are your ads

○ Would you create a TV or radio spot and then not air it? Why do that in social media?

○ Support the channels you wish to succeed in

SOCIAL SUCCESS REQUIRES PAID SUPPORT


WHAT WILL SOCIAL MEDIA LOOK LIKE FIVE YEARS FROM NOW?

◦ Social platforms live on the razor’s edge ›  Caught between popularity and commercial viability

›  People seem resistant to ad intrusion in this space

◦ Social platforms continue to evolve rapidly ›  With even more new players we’ve yet to hear about

◦ Advertising will be accepted but never welcomed


MAGAZINES ARE BEING DIGITIZED

DIGITAL MAGAZINES

HAVE NOT TAKEN OFF FOR PUBLISHERS

21ST-CENTURY PUBLISHING CRISIS ○ Printing, paper, distribution and

circulation costs continue to rise

○ Consumers are unwilling to pay higher prices

○ Advertising revenues range from flat to declining

○ Publishing is a difficult business model

MYTH 3 MAGAZINES ARE BEING DIGITIZED

IN 2010 APPLE LAUNCHED THE FIRST TABLET “COMPUTER”

◦ Time, Wired, USA Today all rushed to create iPad versions

◦ From Apr ’10 to Apr ’11, iPad editions grew from 36 to 485

◦ Apple eventually created its own newsstand app for digital subs

◦ Tablets marked a new era in magazine publishing



TABLETS ENCOURAGE AN INCREDIBLY IMMERSIVE READER EXPERIENCE

◦ Storytelling doesn’t have to follow a linear arc

◦  Incorporate multimedia: photography, audio, animation and video

◦ Bookmarks make leaving and returning to your place easy and convenient

◦ Encourage immediate delivery and consumption



TABLET (AND MOBILE) USE HAS BEEN DIFFERENT THAN ORIGINALLY EXPECTED

◦ Viewed as media devices with the potential to replace the magazine rack, bookshelf and TV

›  Successful with most of these applications … and so much more

◦ Personal productivity devices ›  Keeping calendars, email, photographs

◦ PC replacements ›  Social media devices, music/photo libraries,

running presentations and spreadsheets

◦  Its role as a digital magazine reader is ancillary at best

◦ And as phones get larger and tablets get smaller, they appear to be on a collision course

›  Both are usurping the place previously held by PCs


CONTENT AGGREGATORS THRIVE ○ Rather than subscribing to

several digital magazines, users are opting for one or two content aggregators

○ Apps like Flipboard and Bleacher Report pull users’ stories together based on their preselected interests


MEANWHILE, DIGITAL READERSHIP IS STAGNANT

◦ Print publishers are now shooting for 10% digital readership ›  Wired Magazine (digital edition pioneer) has just over 10%

digital circulation

›  GQ remains just shy of that percentage with slowing growth

◦ Several digital-only magazines are contemplating their future

›  The Magazine dropped from 35,000 subscribers at its launch to 7,000–8,000 in 2014

◦ Special-interest magazines continue to see modest growth; print still thrives


WHAT WILL MAGAZINES (PRINT/DIGITAL) LOOK LIKE FIVE YEARS FROM NOW?

◦ We’ll continue to see shake-ups in publishing ›  Magazines get more vertically aligned by specific interests and lifestyles

›  Readership in general interest and news magazines will continue to decline

◦ Copyright battles loom as creators and aggregators fight to see who has the right to monetize content

◦  Print will continue to represent the majority of the distribution ›  Digital editions require better technology support for subscription delivery

›  Hybrid subscriptions: combining the print and digital versions provides readers with a better experience and advertisers a better environment

◦ Web-based “walled gardens” with parallax design deliver mobile-first content

›  Allow publications greater use of video and other storytelling tools

›  Web products are device-independent and can reformat for each screen


COMMON AMONG MYTHS:

EMERGING MEDIA IS REPLACING TRADITIONAL

MEDIA FROM THE LANDSCAPE

ESTABLISHED MEDIA WILL NEVER BECOME EXTINCT

○  Media use consistently changes, just more rapidly today

○  Each medium has enjoyed a period of prominence before settling into its selected circumstances

○  Embrace change as an opportunity to learn new consumer behavior and future-proof your investment

○  Accept the fact that you are not in absolute control of your brand and find constructive touchpoints to be a part of the conversation

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3 myths of the modern media

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