"We know that the way people access their video content is changing," noted Justin LaPorte (pictured above), vice
president, Local Audience Insights group at Nielsen, who recently announced the latest results of its Local Watch Report.
"Our goal was to get a better understanding of how much people stream
to the TV set, what their profile is, and how their behavior is
different from people that don't stream to the TV set."
LaPorte is a Nielsen veteran who spent several years in local TV
client services before moving into media analytics in various research
roles and assuming an executive role in Nielsen's Thought Leadership and
Research support area. His work in examining local-market consumer
usage data is pivotal to media companies in planning future strategies.
Streaming by Market
While Nielsen measures national and local marketplaces, this
particular study (first launched in 2017), helps focus on individual
market differences and trends. "More than just capturing how much adults
are streaming to the TV set, we wanted to understand how it differs by
market," LaPorte explained. "Just because 56 percent of U.S. adults
streamed to the TV set in May, doesn't mean each local market follows
suit."
In fact, not only are there national versus local differences, but
there are also stark behavioral differences between markets. "It's quite
interesting, actually," LaPorte said. The data shows that the largest
markets (those with local people meters) don't necessarily have the
largest amount of streaming activity. In fact, "markets in the mid-tier
group, such as Austin, Cincinnati, San Diego, and Salt Lake City, range
from 66 percent to 70 percent of adults who stream," which is above
national averages. And, "on the flip side, the larger markets really
stand out when it comes to how much time they spend streaming to the TV
set. In Charlotte, Cleveland, Dallas, and Orlando, adults spent more
than two hours and 20 minutes streaming."
Overall differences between large, midsize, and smaller markets show
that there is generally less streaming in smaller markets. Explanations
might include internet speed or a cost factor in streaming adoption.
Streaming by Types of Homes
Nielsen's report breaks out the types of home streamers live in, from
cable to over-the-air (OTA) to broadband-only (BBO), and by virtual
multichannel video programming distributor (vMVPD). There is a good
reason for doing so. "This is an area where our clients are paying extra
attention," LaPorte explained. Wired cable and satellite used to be the
primary way consumers received video content. "Those are still the
lion's share," LaPorte said, "but we see more people moving to OTA,
broadband-only, and virtual providers. — as their primary source of
video to the TV screen. Streamers tend to over-index in those groups,
which is an important insight for local stations, so they know how
people can receive their content."
Notably, local broadcasters are especially focused on OTA at this
time. "In Minneapolis, Phoenix, and Milwaukee, 23 percent of TV
streamers live in OTA homes," LaPorte noted. "In West Palm Beach,
Baltimore, and New York, however, more than 80 percent of streamers
reside in traditional cable/ satellite homes."
Differences Between Streamers and Non-Streamers
LaPorte is especially bullish on the research comparing the behaviors
of streamers and non-streamers. "Some of it was obvious, but some was
eye-opening," he said. "For instance, as you might expect, TV streaming
adults are younger, with a median age of 50, versus non-streamers at
62."
But one similarity stood out. "Both streamers and non-streamers are
found to be similarly multicultural — Black, Asian, Hispanic, or 'other
race' — at 36 percent versus 33 percent."
Overall, though, there were more differences, often reflecting the
age disparity between streamers and non-streamers. "Streamers are more
likely than non-streamers to have children, be employed, and be college
graduates. They also have a higher income, at $69K versus $45K.
Streamers are clearly a very appealing consumer [demo], especially when
it comes to categories like electronics, high-end retail, and auto," he
noted.
Data Surprises and Confirmations
Local markets provided some surprises when it came to TV streaming.
"I didn't expect to see set-meter markets stand out from a reach
perspective, yet be on the lower end for time spent streaming," LaPorte
said. But on the other hand, "it was fascinating and made sense to see
markets like West Palm Beach, Ft. Myers, Jacksonville, and San Diego be
above-average markets for adult reach for TV streaming, but also be near
the bottom for the amount of time spent." That is because "those are
warm-weather markets where you would expect people to spend a little
less time in front of the TV screen streaming."
Maximizing Client Value
Ultimately, the value in the Local Watch Report rests on its ability
to craft strategy. "The end goal for our local clients should be to
determine whether they can make adjustments to their streaming
strategies," LaPorte explained. "Seventy percent of Austin adults
streamed to the TV set in May 2019, but only 45 percent of adults did in
Pittsburgh. That's a significant difference, and that type of data can
be very useful to local stations, advertisers, and OTT providers."
This article first appeared in www.MediaVillage,com.
No comments:
Post a Comment