| MUMBAI:
In a year, dramatically impacted by the economic recession, US consumers have
returned to in-home entertainment, showing an increased interest in watching television
over other forms of entertainment. Deloitte's
2009 'State of the Media Democracy' survey reveals a 26 per cent increase in the
number of Americans choosing television as their favourite media platform as compared
to the previous year.
Deloitte's
fourth edition, State of the Media Democracy survey assesses media consumption
preferences of 2,046 consumers, aged 14 to 75 in the United States, revealing
significant trends including a surge in television viewing, the ascension of the
game console as a stand-alone media platform, the mobile phone's rapid decoupling
of the internet from the desktop and the rise of tribal marketing. More
than 70 per cent of survey respondents rank watching TV in their top three favourite
media activities. And, when ranked alongside activities such as surfing the web,
listening to music or reading, 34 per cent of consumers place it at the top of
the list. This is a substantial increase from last year and more than double the
per cent selecting the number two choice, the internet, which came in at 14 per
cent. When
watching their favourite TV programming, 86 per cent of survey respondents prefer
watching on their television set, enjoying the programming either live, via their
DVR/TiVo, or using an 'On Demand' feature. While less than 10 per cent of Americans
say they prefer watching the same content online, a growing number of consumers
are using online platforms to watch their favorite TV shows. At
the same time, 72 per cent of Americans report that they have been forced to reduce
their purchases of other entertainment products like movies, concerts, sporting
events, DVDs, CDs and videogames. According
to the survey, consumers are watching close to 18 hours of television programming
on their home TV in a typical seven day week - up notably from less than 16 hours
last year. Millennials (aged 14-26) had the largest increase, to almost 15 hours
from 10.5 hours. Potentially
foreshadowing an increasingly central role for the television, 65 per cent of
respondents would like to be able to easily connect their home TV to the internet
so that they can view videos or downloaded content. This is a significant trend
that has gained strength over the last three years. Deloitte
director of insights and innovation Ed Moran says, "Television content continues
to fascinate Americans. Recession has increased demand for in-home entertainment,
with consumers choosing to invest in the enhancement of their TV experience. This
dynamic, combined with new flat panel models that access content from the internet,
will further blur the lines between TV and the Internet." Video
Game Consoles Emerge as "Shadow" Distribution Channel : In 2009,
gaming surged on every major platform, notably the console. Nearly 60 per cent
of US homes now own a video game console, a dramatic increase from 44 per cent
three years ago. This growth is being driven primarily by Generation X (Xers)
(ages 27-43) and Baby Boomers (Boomers) (ages 44-62), with almost 70 per cent
(53 per cent three years ago) of Xers and 44 per cent (31 per cent three years
ago) of Boomers owning a Wii, Xbox, Playstation or other system. Increased
console ownership by Xers and Boomers has also driven increased game playing.
31 per cent of surveyed Boomers played a newly released videogame via a game console
over the past six months, up significantly from 12 per cent in 2008. The number
of Xers playing these games increased to 54 per cent from 37 per cent over the
last year. Millennials jumped to 74 per cent from 59 per cent in 2008 and Matures
(ages 63-75) went to eight per cent this year from three per cent in 2008. Deloitte
US Technology, media and telecommunications leader Phil Asmundson says, "The
last year has posed serious financial challenges for American families and their
media consumption habits have changed as a result. "The
dramatically increased appeal of the gaming console is noteworthy on two levels.
It is further proof of the renewed focus on the television as the home entertainment
hub, and it also raises the possibility of the console becoming a significant
content distribution channel into the home." Mobile
Phones Decoupling the internet from the Desktop: The mobile phone is a critical
link for the connected American consumer and continues its popularity as an entertainment
device. One-third of surveyed consumers use their mobile phone as an entertainment
device and 47 per cent of smart phone owners identify the device as one of their
three most valuable media and entertainment products - a significant increase
from 20 per cent last year. Survey
findings also indicate that mobile phone use is rapidly decoupling the internet
experience from the desktop for almost half of the population. 48 per cent of
those surveyed have data plans for their mobile phones and 42 per cent are using
their phones to access the internet. This decoupling is expected to facilitate
new consumer behavior including mobile search, social networking and purchasing.
The
online shopping experience is already beginning to translate to the mobile device,
with 15 per cent of consumers already purchasing products on their phone. Some
of the most popular mobile activities, according to the survey include: text messaging
(72 per cent), accessing the Internet (42 per cent), online search (30 per cent),
downloading applications (27 per cent) and using GPS (26 per cent). Online
recommendations more influential than online advertising...time for tribal marketing?
Television continues to reign as the most influential ad medium, with 83 per
cent of consumers identifying TV advertising as one of the top three media with
the most impact on their buying decisions. Online advertising ranks much lower
in impact than television. Less than half of those surveyed identify online advertising,
which includes banner and video ads, search engine result ads and pop-ups, amongst
the top three. The
ability of ads on websites to move traffic to other sites has dropped from 72
per cent to 59 per cent over the past three surveys. Moreover, respondents articulate
a decreased inclination to click on more Internet ads, even if the ads are targeted
to their needs. Those who say they would click on more internet ads if they were
targeted to their needs fell from 66 per cent in the 2007 edition of the survey
to 50 per cent in the current edition. While
current online advertising is still effective, survey findings point to a significant
opportunity for advertisers to take advantage of social tools and engage the consumer
in a more impactful new way. Over
half of all US consumers and 69 per cent of Millennials believe that online customer
reviews and ratings influence their buying decisions more than any other type
of online advertising, and 51 per cent have purchased products based on an online
recommendation. In fact, 24 per cent of US consumers would like to have an online
service that recommends a product based on other consumers' preferences. According
to the survey, one-quarter of US consumers are socialising online almost every
day and nearly 60 per cent currently maintain a social networking site, up from
48 per cent last year. The connections maintained over social networks provide
powerful sources for trusted recommendations. Moran
adds, "Consumers prefer recommendations from a trusted group, not a corporation.
Businesses need to evolve beyond the comfort zone of applying traditional ad techniques
online. Success will involve engaging tribes of individuals sharing a common passion.
Working with consumers to take hold of a company's message, and then to manage,
amplify, and spread it to their own network of trusted contacts will generate
new levels of brand loyalty." | 
