Corey Katir: Internet Advertising, Online Advertising, eMarketing Analysis |
Internet Advertising Analysis Part 3; New Media vs. Old Media
The Coming Cannibalization of Time and Money
Cannibalization of time spent on traditional media will occur ... it’s just a question of when. Time share how consumers allocate their time will lead to market share (how advertisers allocate eir budgets). Currently, Internet usage appears to be incremental it does not seem to be taking time away from TV viewership. Other media have experienced minor declines in usage, but nothing significant... yet.
Cannibalization? If Not Now, Then When? “Online advertising will serve as a catalyst for change in the traditional ad business... Media integration and the inevitable erosion of traditional markets will be more important than the effects of online ad dollar growth.” Patrick Keane, Jupiter Communications
For those in the media business and for advertisers attempting to reach consumers, a critical question is whether the Internet is cannibalizing the use of other media and if it isn’t yet, when will it begin to? Several studies have been conducted on whether consumers’ current Internet usage is affecting their consumption of other media; more often than not, these studies have offered up conflicting results. In the future, however, as broadband makes the Internet more television-like and true convergence occurs, we believe other media will most certainly suffer at the hands of the Internet.
Does Time Spent on the Internet Hurt TV Time? Nielsen Studies Yield No Clear Results
Nielsen Media Research studied its 5,000-household National People Meter Sample in the fall of 1997. The data suggested that Internet homes consumed less television than non-Internet homes. This finding was confirmed in followup studies in April 1998 and October 1998. However, Nielsen released a report in May 1999 stating that Internet homes were lighter-than-average TV viewers even before they received Internet access by about 15%, or eight hours per week. Out of the total difference in TV viewing time, 80% was attributed to pre-existing differences between the two groups. The remaining 20% was time taken away from television by Internet usage. Nielsen’s studies also point to a different media diet for Internet users than for non-Internet users. Internet users consume less weekday daytime television, but their prime-time viewing levels were comparable to those of non-Internet users.
Jupiter Studies Show That Internet Users Are Sacrificing Other Activities for Internet Usage
In a study conducted by Jupiter Communications, Internet users claimed that they used less of all kinds of traditional media due to their Internet usage. However, 30% of users said they used both the Internet and television at the same time. The future of media usage is likely to include more of this multi-tasking. Another Study Reveals that Internet Users are Media Junkies Another usage study, conducted by True North Communications’ TNMedia unit in November 1998, compared Internet users and non-users within the same demographic mix. Internet users were found to consume more of almost all forms of traditional media. This would seem to contradict the Nielsen study, but there was one exception television. Internet users watched less daytime TV, as the Nielsen study indicated, causing their overall television consumption to be lower. This study found that Internet users actually watched more prime-time television than non-users, although not enough to offset their lower daytime usage. While some studies indicate that Internet users reduce their prime-time television usage, the TNMedia report indicates that Internet households watch more prime-time television (including the post-late-fringe slots, from 8 pm to 2 am) and more weekend TV from 11 am to 1 pm. However, Internet households watch less weekday TV from the early morning through prime access (6 am to 8 pm) and less overall weekend TV except for 11 am to 1 pm.
Figure 3 % of Internet Users Who Claim to Use Less of Traditional Media as a Result of Their Web Use
Continue with:
Part 4; Media and Internet Use , Part 5; Impression Measurement, Internet Advertising Metrics,
Part 6 ; Calculating CPM and CPM Pricing , Part 7; Effective CPM is currently the only statistic on which comparisons can realistically be based ,
Part 8; New Vs. Old Media: A Big Market from Which to Gain Share , Part 9; Internet Advertising; Right type of Medium and Targeting ,
Part 10; Broadband brings Rich Media , Part 11, Rich Media Studies , Part 12; What Could K.O. Internet Advertising? , Part 13; Email ,
Part 14; Advertising or Direct Marketing? , Part 15; What Does the Internet Advertising Market Consist of? , Part 16; Rich Media still has some drawbacks ,
Part 17 Inventory and Concentration , Part 18; Market Share and Concentration Data , Part 19; Global Impact, Part 20; Residential and Business Use ,
Part 21; Pageviews , Part 22; Advertising vs. Direct Marketing , Part 23; Investment Conclusion
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