NIELSEN: DIGITAL MEDIA USAGE CONTINUES TO GROW AT THE EXPENSE OF TRADITIONAL MEDIA

KEN'S ANALYSIS:

Last week Nielsen released the newest edition of their Total Audience Report. The report compares media consumption on various platforms measured by Nielsen.  Nielsen’s goal is establish common metrics for all platforms.  The chart below shows the trend from the Third Quarter of 2014 to the Third Quarter of 2014.

“Watching/Listening to Media on a Smartphone” is by far the fastest growing platform but it still trails traditional TV and AM/FM Radio. “Old School” TV and Radio are dominant but their shares of the consumer’s day continue to erode.

AVERAGE DAILY TIME SPENT CONSUMING MEDIA ON VARIOUS DEVICES (Persons 18+)

ACTIVITY	2014 Q3 Hours/Minutes	2012 Q3 Hours/Minutes	TREND Hours/Minutes
Watching/Listening to Media on a Smartphone	1:33	0:53	+ 0:40
Watching Time-Shifted TV	0:30	0:24	+ 0:06
Watching/Listening to Media via a Game Council	0:12	0:09	+ 0:03
Watching/Listening to Media on Internet on Computer	1:06	1:04	+ 0:02
Watching Traditional TV	4:32	4:50	- 0:18
Listening to AM/FM Radio	2:44	2:51	- 0:07
Watching a DVD/Blu-Ray Device	0:09	0:09	0

DEFINITIONS

“Watching/Listening to Media on a Smartphone” refers to consuming mobile media content through a web browser or via a mobile app. It does not include other types of activity such as making/ receiving phone calls, sending SMS/MMS messages etc,

“Watching Time-Shifted TV” is playback primarily on a DVR but includes playback from video on demand, DVD recorders, server based DVR’s and services.

Watching a DVD/Blu-Ray Device” and “Watching/Listening to Media via a Game Council” are based on when these devices are in use for any purpose, not just for accessing media content.

“Watching Traditional TV” includes real-time usage plus any playback viewing within the measurement period.

“Listening to AM/FM Radio” are audience estimates for 48 large markets are based on a panel of people who carry a portable device called a Personal People Meter (PPM) that passively detects exposure to content that contains inaudible codes embedded within the program content.

WHAT DOES THIS MEAN FOR RADIO?

My friend media guru Mark Ramsey http://www.markramseymedia.com/ says traditional radio folks should:

• Recognize that [we are] in the content business, not only the distribution business

• Consumers are in control: Give them what they want, when they want it, where they want it

• Invest in unique and compelling content you can own


• Satisfy the desires of consumers and spark their passions


• Leverage your content across multiple platforms in forms which fit the platforms


• Partner with other media platforms to leverage their strengths against your weaknesses

• Recognize that the market for audio entertainment and information is growing even as the market for traditional FM and AM is declining


• Plan for a future which leverages the attention your brand enjoys with audiences and the relationships you have audiences and advertisers

• [Remember] you’re not really in the “radio” business, after all. You’re in the business of connecting consumers and clients via your megaphone across all platforms