Internet Usage Eroding TV Ad Effectiveness
New research from mediaedge:cia indicates that the traditional power of television advertising is being eroded by the increased use of the internet by consumers, with a direct transfer in consumption evident from television to the internet.
Mediaedge:cia’s research also found that TV campaigns deliver 14% less pressure amongst internet users when compared with their non-surfing counterparts. Delivered in a presentation to The 2004 European Television Symposium in Berlin, the research explained that while television has been the medium “par excellence” for the last century, the internet is wielding increasing power over consumers.
Explaining that, in the same way as people began spending less time on other activities due to TV in the 1950s, the internet is causing users to spend less time watching TV now, and the trend looks set to continue with data from Jupiter Research predicting an online penetration of 54% across Europe by 2008.
According to research by AIMC, presented by mediaedge:cia, 68% of internet users watch less television as a result of their online activities. While analysis of data from AIMC’s previous surveys shows a 25% increase in those users who have reduced their TV consumption over the past four years.
However, it is not just TV viewing that is being cannibalised by internet usage, with AIMC research revealing that 16% of internet users now listen to less radio as a result and 10% visit the cinema less often.
AIMC data also reveals users spending longer online than ever before, with 71% surfing for 10 hours or longer per week, compared with 23% in 1996.
Using data from TNS Sofres, mediaedge:cia showed that internet users receive 14% less weight in TV ratings, can lose up to 5 points of reach during the first weeks of a campaign and, on average, lose 9 points of effective reach. In some specific campaigns, mediaedge:cia reported that internet users can lose up to 14 reach points.
To minimise the effect of reduced impact for TV campaigns, mediaedge:cia recommended advertisers look for new connection points with the consumer, develop new ways of communicating and investigate new communication channels.
Advertisers are already switching to internet advertising in their droves, with research from UK online marketing solutions group, TradeDoubler, indicating that internet advertising is quickly overtaking television, with half of the study’s respondents admitting that they prefer to avoid television advertisements (see Internet Advertising Set To Overtake Intrusive TV Ads).
Recent figures from the European Internet Advertising Association showed that the internet accounts for 20% of total media consumption in Europe, as the amount of time people spend online continues to increase rapidly (see Internet Now Accounts For 20% Of Media Consumption).
Mediaedge:cia: 01822 618 628 www.asi.eu.com Mediaedge:cia: 020 7803 2000 www.mediaedgecia.com
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