Digital Media Accounts for Largest Share of Overall Time Spent Among All Three Post-Boomer Generations
STAMFORD, CT — Consumer digital media usage worldwide is on pace to grow 11.8% in 2013, driven by double-digit gains in time spent with 14 of the 21 online, mobile and other digital media channels analyzed in a new report by PQ Media. Surging global demand from iGens, Millennials and GenXers for online and mobile video, social media and games, as well as over-the-top (OTT) video will boost consumer digital media usage this year to an average of 6.0 hours per week, according to PQ Media’s Global Consumer Usage of Digital Media Forecast 2013-17.
PQ Media’s report is the second in a three-part research series examining the global transition of consumers, media operators and brand marketers to digital media by country, medium and generation in the 2007-17 period. PQ Media segmented consumer digital media usage by three overall platforms (internet, mobile, other digital media) and 21 specific channels, such as online video, mobile social media, OTT video and digital out-of-home (DOOH) media.
Consumer internet media usage is trending up 10.7% in 2013 to a weekly average of 2.8 hours worldwide, accounting for 46.7% of all time spent with digital media. Key growth drivers are technology and network upgrades in emerging BRIC markets providing end users with faster access to dynamic content. Mobile media consumption worldwide is pacing for 17.9% growth to an average of 1.3 hours, a 21.7% share of digital media usage. Consumers in several of the world’s 15 leading markets are accelerating the transition to smartphones, while US demand for computer tablets is growing. Consumer time spent with other digital media, including OTT video, DOOH media and console video games, is on track for a 9.4% increase to 1.8 hours this year.
While global digital media usage continues to rise at double-digit rates, traditional media consumption is pacing for decelerated 1.3% growth in 2013, due to live TV trending flat. Accordingly, consumer media usage trends are mirroring those of global media operator revenue. Digital media revenues are on track for 13.6% growth worldwide this year compared with only a 2.2% increase in traditional media revenues, according to PQ Media’s first report in series. PQ Media found that global digital media revenues surpassed TV revenues for the first time in 2010, snaring $3 billion more in revenues. By year-end 2012, digital media revenues exceeded TV by $33 billion, and PQ Media expects digital media revenues to grow at double-digit rates through 2017.
Traditional media garnered the vast majority of overall time spent on media in 2012, averaging 37.9 hours per week, or 87.6% of total media consumption. Nevertheless, the consumer transition to digital media, particularly among younger generations, is gaining momentum. Consumer digital media usage accounted for 12.4% of global time spent with media in 2012, nearly double its share in 2007, while digital media’s share of total media revenues almost doubled to 22.9%.
“The ability of digital media to effectively target and engage on-the-go consumers is the key driver behind the gains in share of total media usage and revenues,” said Patrick Quinn, CEO, PQ Media. “While traditional media still accounts for the lion’s share of media consumption, the amount of time post-Boomer generations spend on digital media is increasing at double-digit rates, hastening the shift of advertising and marketing dollars.”
PQ Media found that GenX led all other age groups with a global average of 6.6 hours of digital media consumption in 2012, followed by Baby Boomers at 5.9 hours. However, the ranking is skewed by BRIC countries, where older, wealthier consumers are more able to afford expensive digital devices. Even so, digital media accounts for the largest share of overall time spent with media among all three post-Boomer generations in developed markets. GenX or Millennials rank first or second in digital media consumption in the US, the UK, Australia and South Korea. iGen, the youngest group, leads the world with the highest digital media share of total media usage at 19.1%.
Consumers in four of the world’s 15 largest media economies averaged more than 15 hours per week using digital media in 2012, led by Australia at 15.8 hours, South Korea (15.7 hours), the UK (15.2 hours) and Japan (15.0 hours), according to PQ Media Global Consumer Usage of Digital Media Forecast 2013-17. US digital media usage increased 6.6% to an average of 13.8 hours weekly, placing it fifth globally. Several commonalities exist among these markets, including high broadband and smartphone penetration; growing demand for tablets; young men who are avid videogamers; and various choices of OTT video services.
But low penetration rates in emerging markets have resulted in their governments and telecommunications operators investing to improve technology and systems, driving the world’s highest growth rates for digital media usage, led by Russia at 19.4% in 2012, India (16.4%), Brazil (16.3%) and China (15.5%). South Korea leads the world in digital media share of total media usage at 28.0%, followed by Australia (25.5%), the UK (22.8%) and the US (21.7%), according to PQ Media.
Consumer digital media usage is forecast to grow at a 10.7% CAGR worldwide in the 2012-17 period, reaching 8.9 hours per week in 2017. Digital media is projected to account for 18.1% of all media consumption worldwide in 2017, a three-fold share increase since 2007. Emerging markets skew this figure down, as developed countries, such as the UK, Australia and South Korea, will achieve digital media shares of 30% or greater. While GenX will remain the largest users of digital media in 2017, iGens will use digital media more than live TV and all traditional media combined in five countries.
The DOOH Ad Network Locator is a free online resource designed to help media buyers, planner and brand strategists identify place-based digital out-of-home advertising networks by location, venue type, demographics and reach. There are more than 160 advertising-based networks organized by country that include Australia, Canada, United States and the UK. The United States is organized by venue type as it has the broadest range of venue categories, with the greatest number of ad-based networks operating within each category.
Digital Out-of-Home (DOOH) advertising, also known as Digital Place Based (DPB) media, utilizes strategically placed, networked digital signage displays to reach on-the-go consumers while they are outside of their home with highly targeted messages. Digital place-based screens can be found in locations that include transportation hubs such as airports, railway and bus terminals; executive networks in office-building lobbies and elevators. Other venues include shopping malls, gas stations, fast-casual restaurants, fitness centers, hotels and more.