Speaker 1: Hello, good afternoon. Michael Nguyen, Chief Digital Officer of Digital Ops at the Division of R.B. Oppenheim Associates. Thanks for joining me today, guys, on the video podcast. Today we're going to talk about what do the media consumption trends of 2018 reveal? What kind of media are Americans consuming and how are they consuming that? And then how does that impact your marketing dollars and your plan? I think it's an interesting topic. So here are some numbers that I want to go over with you guys as reported by the Nielsen Group, which is typically revered as probably one of the authorities when it comes to media consumption. So here's a breakdown. They break down media consumption really into five groups. So you've got adults who are 18 plus, or adults up to 18. And then the second group is 18 to 34. The third group is 35 to 49. The fourth group is 50 to 64. And the last group is 65 and plus. So what they're reporting is, and I'm going to use the numbers from the third quarter of 2018. I do believe the numbers for Q4 of 2018 have just been released, but I'm going to use these just as a point of reference. So they did a comparison year to date. And what's interesting, I think, about when you look at this, because they really break it down into what they call live plus time shifted TV. So there, when we talk about time shifted, I think we're talking about DVR, where you've recorded your show or your streaming on demand, your content, plus live TV. So the segments of media content that they break down is live, time shifted TV, radio. And then they look at TV connected devices, which have internet connection, internet on a computer, app or web on a phone, and app and web on a tablet. So again, we have these groups of people consuming content on different ways, on different methods, and different means, different devices. So for the majority, if we were to look at this screen, and we were looking to this graph, can you imagine what percentage of TV, radio, TV connected devices, internet on a computer, app or web on a phone, app or web on a tablet, which one do you think we as a society spend more time on than any other? Well, surprisingly enough, live time shifted TV obviously has a pretty significant band. You would expect that. However, that is not the case. So the most popular form of content for the group of folks that are, let's say, up to 18, is represented by 40% live or time shifted TV. So they're watching programming on television, whether that's live TV, previously recorded or streamed content, 40%. However, if you add up TV connected devices, which have access to other programming internet wise, apps on phones, and the internet on a, whether it's a computer, your phone or a tablet, when you add those up, you're actually, let's see, it's 12, 36, 43. So you're actually a greater percentage of content being consumed by just about 3% in that group. Now, when you move into 18 to 25, the numbers get really interesting because here's what happened. TV and time shifted TV went from 27% to 22%. But the amount of time being media consumed on a smart device went from 29% to 34%. Guys, I wish I could show you, share you this graph and I'll take a screenshot of it and put it in our blog as well as in the comments of the Facebook live video and in a link to it on YouTube as well for you guys to see this graph. Guys, what's happening is the way we consume media now, it is all predicated by our absolute obsession with getting what we want, when we want it, the way we want it. And the devices that fit in our pockets are really opening that opportunity for us to consume that content like never before at an incredible rate. And so when you start to look at these trends and you start to think about if you're a business and you have a choice, you can buy a television commercial, you can buy a radio commercial, you can buy a newspaper ad, you can buy a billboard, or you can buy media that is going to be sort of in the realm or in the natural course of consuming media on the most popular segment of that, whether you are in that 18 to 34 or 35 to 49, that group segment is consuming that digital content, social, web, or on an app, on their smart device, on their phone or on a tablet or on a internet connected computer. So if that's the case, then think about what is the value of that inventory? So what is the price? What is the value? Is it overpriced? Is it underpriced? We've talked a lot about that. And that's really when it comes to smart business decisions, A, understanding your audience, what kind of media they're consuming, and then what's the cost to get in front of those people? And am I overpaying or am I underpaying? So I think when we're trying to think about return on investment, when it comes to our, you know, we want to make our marketing pennies spend like dollars at the end of the day, right? That's smart business. But if we flip that, a lot of people, a lot of companies and brands, their marketing dollars are spending like pennies, like they're like, the dollar, you're not getting that return on investment. It's being depreciated, right? Because you're paying over for, you know, media, where people are not consuming that media. Like, you know, I think about if I'm driving in my car today, right? And again, I spent a lot of time in the automotive industry, almost a little over a decade. And I think about when I get in my car, so I have a 2014 Chevy Equinox, it has XM radio, it also has Bluetooth. So when I'm in my car, I'm either listening to XM radio, or I've got a Bluetooth, you know, a podcast that I'm listening to, or sometimes I'll listen to YouTube videos and let them play via a Bluetooth device on through my car. Guys, you know, in 2019, all Acuras are equipped with Apple Play, right? And so they're connecting to iTunes. I mean, what are we listening to today, guys? I think, you know, when we think about it, I made a little list like, okay, so we got, you know, internet connected devices, we've got audiobooks, we've got podcasts, we've got Spotify, Pandora, or iTunes that we can carry around. Like, you remember the days when you had to like pack up all your CDs and like you had them on those window visors, you know, and you had like, it would fall down because you had like 30, you know, CDs, like 15 on one side, 15 on the other side. Remember, like, that was so crazy to think about, you know, we wanted our music and we wanted to take it with us. And we were really, you know, handicapped by, you know, CDs. And I remember when the six CD changers came out, the 12 CD changers, and then you could take like, you know, you'd have like three dozen of your favorite CDs with you when you went on a road trip. Now, it's all cloud based and your vehicle or mobile device has access to the cloud, right? So that like, that puts radio, traditional local radio at a huge disadvantage, right? So I mean, maybe there's still value in drive time local radio, you know, if you're trying to listen for, you know, traffic reports or something like that. But again, look at what, you know, iHeartRadio and some of the streaming radio services are doing, because they recognize, you know, satellite, XM radio, and so on that, you know, the way we're consuming content is really changing. And so, you know, I think that for businesses who really want to stay ahead of the curve and maximize their their dollars, they need to understand that, you know, if I'm trying to put, you know, let's say, for instance, I'm going to, you know, the age group of 35 to 49 year old, right? Like, that's a really large group of folks that have spending power. Only 17% of the time that they consume media is on the radio. That's, that's pretty much the lowest out of all of the different formats of media of how we're consuming when we talk about, you know, TV versus apps versus social versus the web. Radio is really, really, um, you know, a small, small piece. So it's, it's, it's going to be a challenge, I think, for businesses and organization to realize a return on investment for their radio marketing dollars, if they're not leveraging underpriced attention on media platforms like Facebook and Instagram, and YouTube pre roll, where we can get in front of the masses and the majority of people and the kind of content that they're consuming on a contextual on. And again, when I say contextual, I mean, I consume media the way I want to consume media based on my likes and my preferences. Like, again, I have my channel that looks different than your channel. And so I think as a business, you've got to understand that when it comes to media, that the shift is completely changing. And again, go back to Nielsen.com. And I'm going to put a link again in the blog to this report for you guys to look at it and see the consumption rates on the different media outlets and platforms. So you can see the numbers. And you can see how people are consuming this content because your business needs to make sure that you are capitalized. I mean, here's the thing, if you're spending the bulk of your media in radio right now, you are in serious trouble. Because you're, you've got the smallest percentage of media consumption in the most popular segmented group of folks who can buy, you know, whether it's a new car or used car, or whether it's, you know, sport utility, or, you know, power sports, you know, utility vehicles, you know, bikes, motorcycles, like, you know, any of those types of things, like the people who are buying that are in that 35, you know, to 50 year, you know, year old, because they've got the disposable income to make those purchases. So why in the world would you would you put a bulk of your budget in a in a platform in a format, that's the lowest percentage of consumption, right? Unless you're getting an incredible, incredible deal. And I mean, when I say incredible, I mean, like, you know, are you are you paying, you know, $10 an episode or $10 a segment or like something really ridiculous, right? But that's usually not the case, because they're struggling so bad, you know, and they need to make margins like it's serious trouble. So, you know, today, that's, that's what I wanted to kind of bring to your attention is talk about this Nielsen report, talk about media consumption and how it, you know, really is impacts how we consume media. And when you're trying to build your business, when you're trying to grow your business, when you're trying to increase sales year to date from last year, and you're still doing the same thing that you've been doing, but yet the media formats that you're that you're advertising are shrinking, right. So, again, if I go back to and I'm picking on radio today, because it's the purple grid, and it's the smallest one out of all this media. In the third quarter of 2017, it was 18.5%. And now it's 17% for the 35 to 49 year old. So we've got incremental decrease in consumption in a media format, while the prices remain the same. So the attention and the people who are who are wanting to consume media are going away. And yet the price is staying the same, if not, even it's inflated. So as a smart business owner, you've got to be aware of that. And you've got to think about, hey, look, I know we've always done it this way. But but that's not the way Americans are consuming content, you need to understand what's underpriced attention and what's overpriced attention for your business. So guys, that's our tips for today on digital marketing, how to grow your business. Again, my name is Michael Nguyen. And I am the Chief Digital Officer of Digital Ops, a division of RB Oppenheim Associates. Thank you for your time. And we will catch you guys tomorrow. Have a great day.