Looking At DOOH & More In Canada and Worldwide
Gail Chiasson, North American Editor
We looked at two different studies released yesterday, one from ZenithOptimedia and the other from PwC Canada, each involving media overall and digital out-of-home media specifically, both in Canada and worldwide.
ZenithOptimedia’s ‘Media Consumption Forecasts’ report surveys the changing patterns of media consumption in 65 countries across the world, and assesses how the amount of time people allocate to different media will change between 2014 and 2017. The report looks at the amount of time spent reading newspapers and magazines, watching television, listening to the radio, visiting the cinema, using the internet, and viewing outdoor advertising while out of the home. (We looked only at Canadian and global data, and mainly in terms of out-of-home and digital out-of-home. The complete report can be purchased.)
First: the ZenithOptimedia study shows that Canadians’ total media consumption is growing by 5.9% a year. Canadian media consumption exceeds the global average, with the report pegging consumption to hit 510.7 minutes per day by 2017. That works out to about 8.5 hours per day for Canadians.
Further, people around the world will spend an average of 506 minutes a day consuming media by 2017. (Currently, the figure is 492 minutes a day, up from 485 minutes in 2014.)
Canadians spend almost 30% more time consuming media vs the global average while American consumption is almost 60% higher. (NOTE: Excluding OOH ‘for which there was no adequate source in Canada or the US’, the report says.)
However, one point that particularly interested us in the ZenithOptimedia study is that the amount of time allocated to traditional media has shrunk from 402.2 minutes per day to 375.8 minutes, with every traditional media source except out-of-home experiencing a decline. This is in synch with other studies we’ve been following.
The report notes that exposure to outdoor advertising worldwide is rising, increasing 1.2% between 2010 and 2014, from 106 to 107.2 minutes per day. The report attributes the growth to more displays being built in public spaces, migration to cities in emerging markets, and consumers’ greater willingness to spend their leisure time out of the home as their disposable income recovered after the financial crisis. It says that, between 2014 and 2017, exposure to outdoor advertising is expected to increase by 0.2% a year.
“The average person already spends half their waking life consuming media,” says Jonathan Barnard, ZenithOptimedia’s head of forecasting. “But people around the world are clearly hungry for even more opportunities to discover information, enjoy entertainment and communicate with each other, and new technology is supplying these opportunities. Technology also enables brands to communicate with and learn from consumers in new ways. We expect media consumption to continue to grow for the foreseeable future, multiplying the opportunities for brands to develop relationships with consumers.”
The other study is by PwC Canada, which provides industry-focused assurance, advisory and tax services to public, private and government clients in all markets.
That study, PwC’s ‘Global Entertainment and Media Outlook 2015–2019’, says that Canadian entertainment and media revenues will rise at a compound annual growth rate (CAGR) of 5% over the coming five years, from CDN$47.9 billion in 2014 to CDN$61.2 billion in 2019. The global industry is expected to grow at a rate (CAGR) of 5.1% over the same period.
The PwC study notes that it’s apparent that when consumers around the world become connected, their behaviour becomes more similar, subject to two differentiators. The first is the quality of the available infrastructure for consuming content. The second is consumers’ common desire for content experiences that are relevant to to them personally. So meeting local preferences remains critical.
However, the study states, is that what’s emerging is an environment where consumers regard any distinction between ‘digital’ and ‘non-digital’ as irrelevant, ie. they see no significant divide between digital and traditional media.
It notes: Instead of favouring one or the other, they’ve taken on board the proliferation of content and access options enabled by digital, and are exploiting it to seek more flexibility, freedom and choice in what, when and how they consume. In making these choices, they’re migrating to offerings that combine relevance and convenience – attractive content, easy discovery, social community – with an inspiring, personalized experience, however it’s delivered.
It says that non-digital media will still contribute 88% of Canadian consumer revenue in 2019, indexing higher than the 80% expected globally.
Spending on live music ticket sales and cinema box office will rise by (CAGR) 3.5% and (CAGR) 3.4% in Canada respectively, outpacing overall consumer spending at 1.9%. (That sounds like good news for theatre chains offering advertisers innovative pre-shows.)
Lisa Coulman, partner, Audit and Assurance, PwC, says, “Canadians want choice when it comes to how they consume media and the type of media they consume. The user experience is as important as compelling content – it’s about the ability to personalize and consume content that is relevant to them on their terms.”
In terms of advertising, the study says, Canadian advertising revenues will rise at a CAGR of 3.6% to 2019, compared to a CAGR of 4.7% globally. By 2019, digital advertising as a whole—including digital out-of-home—will account for 44.5% of total Canadian advertising revenue, up from just 19.2% in 2010.
Several other trends will continue to reshape the global advertising landscape. One is the rapid expansion in over-the-top (OTT) video services—which are familiarizing users with a video experience free from advertising, supporting a shift from ad-supported to subscription-based consumption. Further, as viewers migrate from traditional TV networks to digital alternatives, advertisers will follow, driving broadcast TV advertising’s share of Canadian total TV advertising down from 96.4% in 2014 to 94.5% in 2019.
The study says that, in addition to Internet advertising, DOOH advertising will be a high-growth area, with revenues rising at a 10.9% CAGR in Canada. Given the high costs of upgrading OOH to digital formats, the most lucrative markets for DOOH advertising will be major cities. By 2019, Canada will see DOOH advertising account for 45.6% of total OOH advertising revenue. (It mentions that exceptional growth in London will help DOOH’s share in the UK reach 53.7%.)
Looking across all segments and territories to 2019, overall global advertising revenues – rising at a 4.7% CAGR and 3.6% CAGR in Canada – will outpace consumer spending at a 2.9% CAGR, 1.9% CAGR in Canada.
Coulman, says, “As the landscaped continues to shift and evolve, media companies need to continue to focus on the user experience as well as delivering locally relevant content rather than taking a global ‘one-size-fits-all’ approach. And in order to meet the changing needs of consumers, companies need to be focused on innovation when it comes to the user experience, facilitate consumer relationships across distribution channels and increasingly focus on mobile in keeping with the migration of consumers to that platform.”
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