Nielsen redefines the definition of TV

TV is rapidly moving from a 100 million household world to a billion+ screen world. This was officially validated last week when Nielsen decided to change the way it defines television to include non-traditional sources of TV viewing such as Internet-connected devices in its TV ratings sample households, and will make those changes effective with the start of the 2013-14 television season in September. The two most significant implications of those changes are that Nielsen will begin including Internet-only TV households in its sample, and will also start measuring viewing on Internet-connected TVs in its existing sample households.
While Nielsen will also modify its official TV universe estimates as a result of the changes, executives said the impact will only be about six-tenths of a percentage point. The material impact on actual TV ratings and usage levels is expected to be small when the changes are made, but Nielsen executive said they need to make the changes now because the role of Internet-connected TV is likely to grow and become more of a factor in the future.
One of the most interesting aspects of the change is the fact that Nielsen will be including so-called “zero TV profile” households in its samples — homes that don’t receive any traditional TV signals via terrestrial, satellite or cable TV. While they represent a small percentage of total viewing, and typically are either younger (college or post-college) or economically challenged households, their demographics and behaviors will be new to television audience measurement, and could represent valuable insights for the future as more homes become Internet-only connected.
Nielsen has been weighing both sides, but made the decision to redefine television now, because the changes manifesting in the way consumers actually watch television are moving so fast.
A second phase of the redefinition of television that would include viewing on wireless connected devices including smartphones, tablets and even TVs connected to wireless gadgets is planned for the near future, but a firm date has not yet been set.

Multi-screen marketing requires a new marketing approach

Now more than ever, consumers want content at their fingertips and they can obtain it across multiple screen platforms whether it’s by a television, computer, tablet or mobile phone.

The use of non-screen media has declined by 22% since 2008 while television, computer internet and mobile have increased by one hour and twenty minutes during the same time frame.

Consumers have also become more efficient in multitasking since they can retrieve information various ways. About 40% of consumers use their smart phones or tablets while watching TV.

Video advertisers in the past had only one screen to target: the television. However, the rise of computers and mobile devices has boosted video viewing consumption across devices.

Yet, while the TV is no longer the sole video option for consumers, no single alternative has replaced television as the clear top choice for media consumption. According to a new report from ad network YuMe, 49 percent of all media consumption still comes from a television, 16 percent from the internet.

In addition, the report found that the average American owns close to four devices, and total figures show that there are more than 37 million tablets, more than 86 million PCs and close to 287 million TV sets owned in the United States.

So while the television is still the dominant media consumption option for many Americans, the proliferation of internet-enabled devices has cut into TV’s lead. As a result, consumers see video ads more than ever, which can make one spot appearing on only a TV or a computer less effective. YuMe’s report found that TV ads were only recalled about 27 percent of the time. In comparison internet video ads were remembered 43 percent of the time and mobile video ads had a 35 percent recall rate.

While the proliferation of smartphones, tablets and PCs may seem like it would hurt brands, but the key, is to think outside of traditional siloed efforts and focus on a new approach that reaches consumers across screens.

While TV is still the dominant platform for video, we are rapidly moving from a 100m+ household TV market to a billion+ screen based market. Now is the time for marketers to start thinking differently.

Connected TV usage growing in US

In Q4 2012, 40% of connected TV owners in the US watched Netflix content, according to the Connected Intelligence, Application & Convergence Report from The NPD Group.

When breaking it down by different age groups, NPD finds that 51% of 18- to 34-year-olds who have a TV connected to the web watched Netflix content on TV during Q4 2012. These include those who own TVs directly connected to the internet as well as those who have another device hooked up to the TV in order to access Netflix content.

What’s more, NPD says it appears Netflix users are migrating to the TV set. 21% of connected TV owners surveyed said they have shifted from using OTT video services on the computer to now accessing them via the TV instead.

Following the TV screen, The NPD Group findings show that among those surveyed, 14% watched Netflix content through laptop/desktop computers in Q4, while 13% did so on tablets, and 8% via smartphones.

Nielsen broadening TV household definition

If a viewer watches a TV show on a tablet, should that be reflected in its Nielsen rating?

That’s a question at the heart of a complicated decision Nielsen hopes to make by the end of the first quarter regarding a new definition for what constitutes a TV household.

The new definition is almost certain, according to sources, to include for the first time viewing on TV sets that show video via broadband connections, whether from a device like Apple TV or directly into the set itself. In addition, that viewing would not have to come in the form of linear channels, which would open up measurement to on-demand options like episodes posted on a broadcaster’s website.

But what is currently being debated is whether homes that restrict their viewing to smartphones or tablets will also be considered TV households. Those devices may have to wait until their measurement can be integrated into the TV ratings system.

A proposal from Nielsen is currently being reviewed by a special committee comprised of representatives across its client base. Nielsen is said to favor an approach staggered in stages, say sources, the first of which would be ready for the 2013-14 TV season incorporating broadband-connected TV sets — but not include measurement of video consumption on wireless devices.

While the TV industry is in general agreement on the long-term goal — one measurement of all viewing regardless of platform — the dilemma is how best to proceed in the short term.

Either all viewing — regardless of the separate measurements being made on other platforms — gets counted into the TV household total, or only once Nielsen is ready to integrate any one of the separate measurements with the TV data should it be counted into that total.

Nielsen will huddle with the committee before the quarter is over to get input on the proposal before rendering a decision that will give the TV industry time to strategize how best to sell programming at upfronts and for Nielsen itself to make the necessary changes to its reporting software.

Nielsen isn’t leaning in either direction, according to Pat McDonough, senior VP insights, analysis and policy at Nielsen, who indicated there’s no chance the status quo will remain.

“The question we have with our clients is do we do that in stages or do we do that all at once?” she said. “Committee members are in process of discussing with their various companies and we expect to come back after the new year with the direction for the industry that we’re going to take.”

Given criticism the company has long endured over both its current TV measurement and the pace at which new platforms are being tracked, it’s a decision not being taken lightly at Nielsen, where the new policy will likely represent as fundamental a shift, if not more so, as the adoption of people meters or C3 currency.

The current definition of a TV household is a home with both a TV set and video delivered via over-the-air broadcast or a multichannel package supplied by either cable, satellite or telco sevices. Watching on PC, smartphone or tablet isn’t included.

What’s known internally as the “What Nielsen Measures” committee was convened in mid-2012 to reckon with back-to-back declines in the annual number of TV households, which fell from 115.9 million in 2010-11 to 114.7 million the following season — the first such drop in 20 years. An additional 500,000 households disappeared before 2012-13, leaving a total of 114.2 million.

There are various theories as to what accounts for the decline, chief among them that a new generation of viewers are doing without TVs as they embrace digital alternatives.

But while broadening the definition of what constitutes a TV household could shore up that shortfall, advocates for waiting until measurement of viewing on devices can be integrated warn that increasing the number of total homes prematurely runs the risk of diminishing ratings. If the number of screens is increased without a corresponding increase in the measurement of the viewing on those screens, that can inflate the base number against which the number of viewers is calculated — potentially skewing the rating downward.

And yet there are others that are willing to see some destabilization of measurement from year to year in the short term for the greater good of getting a truer reflection of the range of screen across what’s being watched.

At the very least, Nielsen is likely to extend measurement to broadband-connected TV sets. That is good news for companies weighing virtual MSO plays like Intel, Sony and Dish who want to convince programmers that viewing is being measured across their systems. However, in the event they also provide content

Source: Variety

Smart TV Usage Increased 25% in 2012

eMarketer reports that U.S. households using TVs connected to the Internet rose nearly 25% in 2012, notes MarketWatch. That figure should climb to almost 30% this year.

In 2012, there were about 26.8 million U.S. homes using a so-called smart TV, eMarketer said, up from 21.6 million at the end of 2011. By the end of 2013, the firm expects to see 35.1 million American homes equipped with an Internet-ready set.

YouTube’s Plan for TV Domination

Quick: Think of watching a YouTube video. What kind of screen pops into your head? Chances are you thought of your laptop, desktop, smartphone or tablet before you imagined flopping down in front of a YouTube video on your widescreen TV in the den.

But that’s an attitude YouTube is desparate to change — and TV makers are eager to help them out. A number of sets launching at CES 2013 this week in Las Vegas — including sets from Bang & Olufsen, LG, Panasonic and Sony — offer the video service’s recently launched “send to TV” feature.

This lets you pair an Android phone with a TV on the same Wi-Fi network, and cue up videos using the YouTube app as your remote. Sony and Samsung apps on some recently-sold TVs already work with the feature, as do TV apps on Xbox 360, PlayStation 3, Wii and Wii U consoles. Google TV not required. (Controls in the iOS YouTube app are coming soon.)

And all of that is just the tip of the iceberg. During interviews at YouTube HQ in San Bruno, Calif., the company tried its best to convince Mashable that a Minority Report-style future — one where the majority of us will simply flick videos off our phone screens and have them appear on our TVs, without a second thought — was just around the corner.

“We’re trying to build this infrastructure that scales everywhere from watching 1080p HD-quality video on your TV all the way down to using a dial-up modem in a developing country,” says Shiva Rajaraman, YouTube director of product management. “We’d like to be all things video, and that means getting video into all places” — with your smartphone replacing your remote or your game controller.

It also means turning YouTube into more of a DVR. The company hopes to persuade you to treat YouTube as a primetime, evening watching experience, rather than something you use for cat videos at work.

In this effort, YouTube has a major ally — its audience. The service already experiences a boom in viewers every evening in every time zone in America. “We see traffic spike on the smartphone, tablet, and TV-connected UIs,” says Rajaraman. “Prime time is prime time everywhere, for YouTube too.”

Uniting the Second Screens
Though YouTube doesn’t offer any numbers, a big chunk of this primetime spike is likely to be second-screen watching. You’ve got the TV on in the background, but you just got reminded of the really cool video that got passed around the office.

So what do you do? Reach for the tablet, grab the laptop, pull the phone out of your pocket. Why? Because they seem like the best screens for the job.

If you’re anything like me, you already have the ability to watch YouTube on your TV, along with Hulu Plus, Netflix and Amazon Prime. But you don’t do it because experience has taught you the result is likely to suffer by comparison with those other services.

The big streaming companies offer a pretty consistent video experience. Load a movie on Netflix streaming, and you know it’s going to seem somewhere between DVD and Blu-Ray quality.

Load a YouTube video on the big screen, and there’s a chance the quality could appear somewhere between an 8-bit video game and a fuzzy LEGO art project. There’s not a whole lot YouTube can do about that; it’s the one truly democratic, worldwide video network. Quality of uploads is bound to be all over the map.

No Verified Videos, Some Nudging
So how to overcome our wariness of using YouTube on the TV? During our conversations, I suggested the service start verifying accounts, Twitter-style — you get a tick next to your name if you consistently post videos that look great on a 42-inch screen, say. (Because as we know from experience, simply saying a video is HD when you upload it doesn’t make it so.) You could also use the verification process to clamp down on one of YouTube’s most terrible scourges: the vertical video.

The YouTube team demurred. They’re leery of encouraging user behavior in that direct a manner. For example, there are plenty of times the service can see there’s a problem with your video playing, and can make an educated guess as to why. There have been discussions behind the scenes about having a dialogue box pop up telling you, for example, that you might want to quit the 10 other programs you have running.

“We don’t want to add to the confusion, or look like we’re pointing fingers,” says Andy Berkheimer, YouTube’s head of engineering. “If you suggest the user take action and say it’s something else’s fault, you have to be sure.” Having said that, he adds, “We’ve definitely identified a few scenarios where we can help people out.”

The Sliced Bread Solution
Still, YouTube’s focus is mostly on fixing its video service on the back end. An ongoing internal project code-named “Sliced Bread” has made the whole service a lot smarter about how it feeds video to you, chopping it up into slices much the same way regular internet content is divided into packets, and making a half-dozen other software and bandwidth adjustments on the fly.

“The goal is to get rid of the spinner,” says Berkheimer, referring to the rotating series of dots that shows when a YouTube video is loading. The server software is “making decisions about next five to 10 seconds, asking: how do I provide highest quality with lowest risk of inducing a spinner?”

Getting a spinner, in fact, is the number one predictor of whether you’re going to abandon your YouTube video and move on to something else. So if you’ve found that your videos have started playing more smoothly with fewer interruptions recently, thank sliced bread.

YouTube apps on Samsung and Sony sets sold within the last year will start updating themselves with improvements to the service, as they’re now controlled by YouTube rather than the manufacturers. You’ll also find that if you’re watching a lot of videos on TV, the apps will know that and start offering more HD videos to you.

“If you only watch HD on your TV, you shouldn’t have to go and toggle some settings switch in order to do that,” says Rajaraman.

YouTube Can’t Go It Alone
Ultimately, none of this matters unless the content creators start viewing their stuff as TV-ready. Which is why YouTube is encouraging the whole concept of Channels and Subscriptions. On both the user and creator side, the plan is to turn the millions of YouTube Channels — whichever ones float your boat — into must-see TV.

Developers are part of the bigger picture, too. The company is also releasing updates to its API with a mobile embeddable player, allowing more apps to take advantage of YouTube content. Ultimately, YouTube will rise or fall on what creators do with it. It isn’t trying to be Hulu or Netflix; there are no major deals for movies or cable content on the horizon. Whether it can compete with those services for your TV-based attention is up to you.

Source: Mashable

Comcast and Samsung Announce New OTT Deal

Comcast and Samsung have announced a deal to offer a custom Xfinity TV app/experience on Samsung Smart TVs and the Android-powered Galaxy Tab later this year.

Xfinity TV digital customers will be able to browse, discover, and sort video content on their tablet as well as change channels and program DVRs. They will also be able to stream TV shows and movies on-demand directly on the tablet, while also having the ability to access that content on other devices.

This includes the ability to stop watching something on the Galaxy Tab and then picking it back up on a Samsung Smart TV, and vice versa.

Smart TVs Expected to Dominate Market by 2016

Nearly 85% of all flat-panel TVs manufactured in 2016 will be able to connect to the web, according to a new Gartner report.

Worldwide production of “smart TVs” is expected to reach 108 million in 2013. Gartner cautions manufacturers that the ability to connect to the web won’t be enough to spur demand among consumers for smart TVs. “In the end, the choice may be all about the extra content that one TV brand offers over another.

Consumers will be asking questions such as, which internet TV services can the TV access? Are these the sites I think are valuable? Can I use my smartphone or tablet with this TV?” said Paul O’Donovan, Gartner’s Principal Research Analyst.

Gartner defines “a smart TV” as a set that has the ability to search the web for video content and then play that content back. It does not necessarily require an internet browser, but it does need to offer apps via an app store, regardless of whether it’s operated by the manufacturer or a third party.

2012 Social TV and Second-Screen Viewing Results


In 2012, a lot of people are using smartphones, tablets and/or laptops while watching TV. But how many, what are they doing, and what might it mean for the TV industry?

It’s a question being chewed over at pretty much every industry conference, and there is no shortage of research companies conducting surveys to try to help them understand viewer habits, and respond accordingly.

Here is a roundup of some of the latest studies, all from 2012:

Somewhere between 75% and 85% of TV viewers use other devices while watching, although a lot of these people are doing unrelated tasks – it’s startling how many surveys come up with around 60% for the percentage of people who are emailing, which is a telling (and somewhat dispiriting) comment on modern working habits.

Of these multi-screeners, how many are actually using their second device to look for something relating to the show they’re watching? Somewhere between 37% and 52%.

Verizon / Harris Interactive (October 2012)

Verizon commissioned Harris for a poll of 2,319 Americans who were planning to watch the US presidential debates. It found that 65% said they were going to do it with a smartphone, tablet or computer in their hands/laps.

41% said they were at least “somewhat likely” to use the second screen to fact-check statements by Barack Obama and Mitt Romney, while 39% were somewhat likely to follow the reactions of political reporters, and 26% to follow those of comedians (“although it is not clear if this is to track their political punditry or for comic relief”).

This wasn’t a one-way flow of social updates, though. 23% of people planning to watch the debates said they’d post their own reactions on Facebook, and 14% on Twitter.

Google second-screen study
Google’s multi-screen study included a warning

Google / Ipsos / Sterling (August 2012)

This is currently one of the most widely-quoted studies of multi-screen habits, thanks in part to its warning to the TV industry that “Television no longer commands our full attention”: 77% of the times people watch TV, it’s with another device.

The study, which involved 1,611 US participants, suggested that 81% of people use smartphones while watching TV, while 66% use laptops or PCs while watching TV. Top activities included emailing (60%), internet browsing (44%), social networking (42%) and playing games (25%).

Google suggested that 22% of “simultaneous usage” of more than one device is complementary – one use is related to the other. It also found that 22% of respondents have searched for something on their smartphone because they saw it on TV – a figure that breaks down to 17% because of an ad, and 7% because of a show (obviously, there’s an overlap).

Ericsson (August 2012)

Ericsson’s study of TV and video habits was based on its ConsumerLab research program, which involves interviewing 100,000 people a year in 40 countries.

Its key finding was that 62% of people use social media while watching TV – 18 percentage points more than 2011’s finding. 40% of them are discussing what they’re currently watching on social networks.

The report noted that social TV isn’t just for the young folk: 30% of 45-59 year-olds “engage in social TV behaviour at least weekly”.

Deloitte (August 2012)

Deloitte’s survey of 4,000 people in the UK dug into second-screen habits, claimed that 24% of all respondents use second screens, although nearly half of 16-24 year-olds use messaging, email, Facebook or Twitter to discuss what they’re watching on TV.

It suggested there is a “muted appetite” for interacting with shows from the second screen, with only one tenth of respondents browsing the internet for information about the show they’re watching.

40% said they like being able to send comments in to a live show, but 68% said they wouldn’t want websites for products, people or adverts that they’ve just seen on TV to “automatically appear on their computer, tablet or smartphone”.

Deloitte’s response was that second-screening has much more of an impact on driving “conversations about a programme, as opposed to interaction with it”, with the company’s Paul Lee suggesting it will be similar to eating in front of the TV: “An everyday experience for some; absolutely unthinkable for others. One thing is certain: it is here for good.”

Pew studyThe Pew Internet study examined what multi-screeners do

Pew Research Center (July 2012)

Another US study, this, conducted for the Pew Internet & American Life Project with a sample of 2,254 US adults in late March 2012, although published later in the year.

It found that 52% of mobile phone owners are “connected viewers”, using their phones while watching TV. 38% do it to keep themselves occupied during advertising breaks or other pauses, and 23% send texts to friends watching the same show as them.

22% fact-check what they’ve seen on TV, 20% visit websites mentioned in a show, 11% check what other people are saying online about the show they’re watching, and 11% post their own comments from their phone. Meanwhile, 6% said they use their phones to vote for reality show contestants.

IAB / Ipsos MediaCT (May 2012)

This was a study from the Internet Advertising Bureau which found that 63% of TV viewers had used a connected device the last time they watched live TV, with that rising to 66% for people the last time they watched time-shifted TV.

This research also found that most users are emailing, texting and social networking, which aren’t usually related to what they’re watching. However, it claimed that 45% of smartphone and 30% of tablet “multi-screeners” were doing something relating to the current show.

23% of smartphone multi-screeners were texting, emailing or messaging friends about the TV, while 20% were chatting about it on social networks, and 20% actually talking (as in voice calls) about it to friends.

37% of smartphone multi-screeners use their devices to talk about ads they’ve seen, with some intriguing findings that the more devices people use at once, the better they are able to remember ads – as in associate advertisers with specific TV shows.

Nielsen study
Nielsen compared habits across four countries

Nielsen (April 2012)

Nielsen’s study of multi-screening habits is also regularly quoted at TV and tech industry conferences, not least because it compared the US, UK, Germany and Italy rather than focusing on one market.

In the US, it found that 41% of smartphone owners use their phones at least once a day while watching TV, while 45% of tablet owners do the same. In the UK, those numbers were 40% and 41% respectively.

Across all countries, the most frequent tablet or smartphone activity was checking email, but Nielsen also dug into US (I think) simultaneous TV and tablet usage for some more depth.

It found that 61% of tablet owners check email while watching TV, 47% visit social networks during a show (and 45% during the ad break), 37% look up information relating to the show they’re watching, 34% check sports scores, and 27% look up product information based on a TV ad.

From The Guardian

 

Nielsen’s 2012 Social Media Report: The Rise of Social TV

Nielsen’s 2012 Social Media Report is now available. Among the highlights, the rise of Social TV is evolving how consumers use social media, while also transforming TV-watching into a more immediate and shared experience.
Full report available here