My wife and I cut the cord over 10 years ago, canceling our cable subscription and even getting rid of our television. At the time, this was a radical personal decision to reclaim some of our leisure time for other purposes and reduce our monthly expenses. Today, 15% of Americans have cut the cord – dropping their paid cable and television services in favor of content streaming options such as Hulu and Netflix.
Content consumption among younger generations is evolving even more rapidly. “Cord- nevers” now represent about 9% of American adults. They have never subscribed to TV channels offered by a cable, satellite or telecommunications provider.
Cord-cutters and cord-nevers represent the arrival of a new media landscape. The old, traditional content ecosystems are diminishing, replaced by a diverse, on-demand, multi-device landscape of media offerings. The change in interactive ad spending testifies to the multi channel approach marketers must take to reach someone like myself. According to an IAB/PwC report, mobile advertising grew 76% from 2013 to 2014. Even more important for marketers, is that interactive marketing spend is set to outpace television spend in 2016, with social media spend posting an 18% CAGR from 2014 – 2019.
As new media platforms emerge, they present an opportunity for marketers to deliver messages to highly targeted audiences. The consumer chooses what they want to watch, when they want to watch, and on what device. Last night, my wife and I streamed a few clips on YouTube of the Tonight Show with Jimmy Fallon on our tablet. Each clip was preceded by the same Jim Beam commercial. Five clips. Five strong brand interactions. We were a highly engaged and captivated audience. Emerging media allows for one-to-one marketing on a whole new level.
Over the next few weeks I will explore the intersection of consumers, companies, content, technology and media channels in this ever changing interactive space. We’ll take a look at new brand experiences, mobile marketing, the Internet of Things(Iot), the power of content, and other ways consumer behavior is redefining the customer journey and media.