A new report from consumer data company Experian suggests that online video content services like Netflix are pulling people away from cable television.
After surveying more than 24,000 U.S. adults, Experian found that households with a Netflix or Hulu subscription were nearly three times as likely not to have a cable subscription than the average household. In total, 6.5% of Experian’s surveyed households did not subscribe to cable in 2013, up from 4.5% in 2010.
But cord-cutters became 18.1% of Netflix subscribers, up from 12.7%. Cord-cutters are three times as likely to be Netflix subscribers than the average consumer, in other words.
“We had looked at cord-cutting as a trend in years past, but we hadn’t really seen significant movement in the space because it was more a small group of people who were actually cutting the cord,” Experian senior marketing manager John Fetto said. “It’s become something people are actually doing from something that was just being talked about in New York Times trend pieces.”
Traditional television companies like NBC and CBS receive licensing fees from Netflix and Hulu for their content, and Hulu is a joint venture owned by three of the major broadcast networks.
However, the licensing fees and advertising revenues made online still pale in comparison to the money the networks take in from the distribution fees paid by cable operators, to say nothing of the $60+ billion U.S. television advertising market.
Experian found that while a surprising 42% of adults watched video content on their smartphones during a typical week, the real backbreaker for cable companies was when would-be subscribers were able to stream vid! eo conte nt to their televisions.
According to the report, people who watched streaming video on the big screens of their televisions were more than three times as likely not to subscribe to cable. People who said they stream video to their smartphones and tablets were only 1.5 times as likely not to have cable.
“We would have thought that you can basically watch video on any device, but it really appears that the tipping point is whether they’re actually streaming content to their televisions,” Fetto said. “Having access to on-demand video when they want it without sacrificing screen size seems to be the real thing that makes a difference for them.”
House numbers on Google Street View can turn up as blobby, blurry things, so its engineers built a pretty crazy neural network to decipher them. Except this algorithm also turns out to be very very good at deciphering other blobby, blurry texts—like CAPTCHAs, which it cracks with 99 percent accuracy. Take that, human.
Now, Pinterest's Place Pins aren't going to replace Google Maps anytime soon—or ever. But for users that would rather graze than pinpoint one exact spot, Place Pins are great for browsing various locales around the globe.
Place Pins are enhanced Pinterest images, better known as “pins,” with the addition of location metadata. Powered by Foursquare, you can use Place Pins to give a pin a physical address that you and other users can find on a map. Pinboards can collect arbitrary travel hotspots, like this board of world beaches, along with their physical locations recorded on a map.
There was also increased demand (but not prices) on the display side:
Connected TVs are on pace to take over the television viewing experience. There will be more than 759 million televisions connected to the Internet worldwide by 2018, more than double 2013′s number, according to Digital TV Research.
Three factors explain growth in the connected TV market: almost ubiquitous access to fast home Internet broadband across developed economies, the proliferation of extremely popular over-the-top (OTT) video streaming services like Netflix, and rapidly falling hardware prices.
In a recent report from BI Intelligence, we dissect the connected TV landscape, analyzing the factors, trends, and key players that are shaping the market. We explore the explosive growth of streaming devices, such as Google’s Chromecast and Apple TV, and compare it to the growth of smart TVs from manufactures like Samsung and Vizio. We also examine the relationship between connected TVs and the pay TV industry.
Here are some of the key takeaways from the report:
- Streaming devices currently comprise the majority of connected TVs. But we believe distribution will shift to smart TVs, as prices decrease and the television upgrade cycle shortens.
- Apple TV and Roku hold the largest market share for streaming devices, but Chromecast, which Google released last summer, has also achieved stellar sales numbers. Market research data shows that 8 million Apple TVs and 4.5 million Rokus shipped in 2013 in the U.S.
- Smart TVs will account for the majority of television shipments by 2014. By 2015, smart TVs will overtake streaming devices as the primary type of connected TV.
- On both streaming devices and smart TVs there is a division between open and closed platforms. Chromecast, LG, and Roku have embraced open platforms that allow developers a great deal of freedom to develop apps for their devices. Samsung, Apple, and others are betting on closed ecosystems, which follow a more careful curatorial approach.
- Despite platform fragmentation, HTML5 offers at least a faint hope for increased unification between connected TVs, just as it does on mobile. LG and Chromecast have integrated it into their connected TV development environments.
- How will developers and operating system operators monetize smart TV apps? Media downloads, subscriptions and — to a much lesser degree — advertisements will drive the dollars. Smart TV platform operators have begun experimenting with ads.
- Changes to the pay TV industry, namely cable and satellite providers, will also have a huge impact on the future of connected TV. It’s now an open question as to how — and how effectively — cable providers will use their power to shape the future of connected TV.
drag2share: Now That Facebook Is Making Right-Rail Ads A Lot More Compelling, FBX Is Going To Get Way More Attention
Facebook just announced that it’s desktop right-rail ads will soon be relevant once again.
The social network is going to make the ads much bigger, but it will also surface fewer of them. The benefit to advertisers is that the ads will be the same size as those in the News Feed, meaning only one kind of creative will be required. The company reports that the ads garner “three times” more engagement — likes, clicks, or shares — than traditional News Feed ads.
But the other key outcome of this change will be a lot more attention heaped on Facebook Exchange, or FBX, the real-time bidding platform that powers those right-rail ads — as well as some News Feed ads — and allows advertisers to retarget consumers on the social network.
In a recent report from BI Intelligence, we explore how advertisers purchase ads through FBX and why the Exchange offers such a unique opportunity to marketers. The report also puts FBX in context in terms of its size and performance so far. We deconstruct how the Exchange really works, which players are partners, and where they each fit in the ad-buying chain. We also include three case studies outlining how FBX advertising has performed so far.
Here are some of the key details surrounding FBX:
- FBX is becoming a huge player in the real-time bidding space: Millions of ads are sold and purchased on FBX every second with the help of demand-side platforms that plug advertisers into FBX, and billions of impressions are served every day. Facebook already accounts for about half of the retargeted ad clicks on the Web.
- The real-time aspect of FBX is crucial. It’s impossible to target a user who is interested in living room furniture with personalized ads when they open their Facebook page unless he or she can be identified and served a relevant ad in milliseconds.
- FBX fills a certain niche, a very specific marketing objective known as “demand fulfillment,” nudging shoppers to complete a purchase they’ve already shown interest in.
- The platform was fast out of the gate: FBX produced stellar early results for advertisers, both in terms of cost and performance. Eventually, the price and performance bar will be set higher. That’s already starting to happen for better-performing News Feed placements.
- Despite FBX’s huge weight in the retargeting space, it still constitutes a small share of overall Facebook revenues. FBX is not yet available on mobile, though this may be coming soon. Additionally, Sponsored Story social-native ads, which are at the heart of Facebook’s ad ecosystem, aren’t accessible via FBX. The FBX News Feed ads are still limited in terms of their social features.
So this user thing is basically the No.1 problem that Costolo is working to solve right now.
Here’s how bad that problem is, according to Twopcharts, a company that tracks Twitter metrics:
- There are 982 million registered accounts.
- But there are only 241 million monthly active users, the most meaningful metric for users.
- That suggests 741 accounts have been abandoned.
- Only 83.4 million tweet more than once per day.
- At least 419 million users’ most recent tweet was more than a month ago.
The slightly scary takeaway here is that after you put that altogether, you’re left with the conclusion that most people who have opened accounts on Twitter don’t use Twitter.
They don’t even tweet.
Listening, of course, is a thing. A lot of people use Twitter as a news feed and simply watch the tweets go by without engaging. But that kind of passive behavior is no good when you’re a company whose business model is dependent on user engagement.
Twitter is experimenting with a bunch of new stuff to make it easier for new users to get started, and to make it easier to use Twitter for everyone else. Even experienced users often find the user architecture at Twitter confusing (what’s the difference between “mentions” and “notifications”)? So Twitter has experimented with getting rid of its clunky nomenclature, such as “retweet,” and the @ symbol.
Here’s Twopcharts’ latest set of stats:
Ecommerce and mobile sales to steadily gain share of overall retail market
Total retail sales in the US topped $4.53 trillion in 2013, and ecommerce accounted for a significant portion of that growth, up 16.9% in 2013—or nearly $40 billion—according to new figures from eMarketer.
Consumer goods companies are increasing investments in the digital video space
Even as consumer packaged goods (CPG) brand managers talk about the need to rein in marketing budgets, they are increasing spending on the digital video channel. Media buyers and agencies, too, are pointing to increased efforts by CPG brands to put more digital video online, according to a new eMarketer report, “CPG and Digital Video: Beyond Repurposing the Television Campaign.”
Because of younger consumers’ focus on price, 43% of students in the survey had showroomed—that is, looked at an item in-store, but then searched for a better price online and bought there. This was most common for DVDs, books, electronics and video games.
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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