Kantar’s Media Trends have outlined key technologies that could completely change how we consume media, and how that will influence the ad and media industries. Three taking particular priority, according to The Drum, are streaming, smart speakers and esports. We’ll take a look at them and what they mean for advertisers.
Streaming fatigue
53% of adults in Northern Ireland said they used an on-demand/streaming service in 2019. Netflix continued its popularity with 41% adults claiming to use it – an increase from 29% in 2018.
Key takeaways:
- Subscription video on demand (SVOD) is becoming increasingly congested. 44% of connected consumers who pay for an online streaming service have at least two subscriptions, 18% pay for at least three, and 7% pay for four or more.
- The market could prove difficult for new subscription-based streaming services, as consumer attention, and wallets, only stretch so far.
- A separate recent UK study found that most Brits won’t pay more than £20 a month for TV streaming. When demand rises but the consumer wallet doesn’t spend, we may see a rise in piracy.
- According to Kantar, the services with the highest quality original content and understanding of their audiences will come out on top.
What does this mean for broadcasters? Broadcasters will have to ramp up their understanding of audiences to remain relevant. ITV has announced it will run Love Island twice a year now, it wants more from its golden goose as it continues to pull younger audiences into TV and the industry is looking to replicate its success. What does this mean for advertisers? The rise of streaming is changing advertising. “There will be strategic opportunities for advertisers such as product placement, branded integrations and co-promotions. But the rise of ad-free subscription platforms will also mean restricted opportunities for advertising.”
Smart Speakers
22% of Northern Ireland households own a smart speaker – up 7% since last year, and in line with the UK average.
What are the key takeaways?
- Newer generations will grow up with audio seamlessly embedded into their lives; they will voice their commands, questions and desires and expect speedy responses from a variety of voice-enabled devices.
- The role of smart speakers has probably been overhyped. Current use is weighted towards basic activities like setting alarms, reminders, streaming music and checking the weather.
- News media sees a future where inquisitive readers can ask questions of the reporting and be fed links and information from the large catalogue of pre-existing content.
What does this mean for advertisers?
63% of marketers say they plan to increase spend in podcast advertising over the next 12 months. The “intimate and highly personal nature of podcasts” offers advertisers a highly receptive audience. Being one of the least cluttered channels, they are also one of the most engaging.
It is also worth noting that it is particularly difficult to skip audio ads in any form perhaps inadvertently provide a solution to the adblocking crisis.
Digital is also allowing for the creation of niche radio stations. In the UK, Bauer Media is branching out its most known radio brands into select decades, a single set of human hosts are setting the scene between eight different playlists on Absolute. One show can provide the reach of eight under these conditions.
Esports is ‘still’ coming
What are the key takeaways?
- More than 1.2 million people from different backgrounds claim to watch esports in the UK alone.
- The growth of Amazon’s social TV platform Twitch illustrates this, usage totalled 292bn minutes in 2016 and is expected to reach 600bn by the end of 2019.
What does this mean for advertisers? Brands are optimising the media opportunities available, both in-game, in-stadia, in-stream, via sponsorship. Esports present a wide array of innovative media opportunities, offering a seamless blend of online and real life. The huge and highly-engaged audience will spot inauthentic attempts to encroach on their community but for those who take time to understand how to fit in to the esports world, there are valuable opportunities for content, advertising and sponsorship.
For more key Northern Ireland media trends, check out the Ofcom Media nations: Northern Ireland 2019 report.
For the full Kantar Media Trends Report click here