Curators, Not Consumers: The Changing Nature Of Video Consumption

November 17, 2017

TV shows are now viewed via any one of the seemingly endless digital platforms at our disposal. The phrase “cutting the cord” is working its way into everyone’s vocabulary, regardless of age or perceived hipness. Though there are many ways to watch, the most prevalent are now mobile platforms. It is becoming increasingly clear that digital TV and video are the future. As an advertiser, you need to stay ahead of the curve, making sure your media buys and distribution strategies take these developments into account. Your competitors, all of them also looking to target the right people in the right place at the right time, are taking note.


Trends in Digital Advertising

In 2016, IPG’s Magna Global invested $250 million in digital video. That entire amount was reallocated from their television budget. More recently, Adidas announced that it’s ditching traditional television advertising spending in favor of digital. By 2020, the sportswear leader anticipates that this shift will quadruple revenue (from $1 billion to $4 billion). It’s also important to note the rise in popularity of standalone streaming services, which allow viewers to watch quality, traditional TV programming without any of the associated hassle and bills, such as HBO Now. Clearly, the industry is moving away from traditional media. But is this faith in digital warranted?

Overall trends indicate the answer is yes. 2016 was the first (but almost certainly not the last) year in which digital ad revenue bested television. Digital ad sales are projected to continue their increase even as traditional television ad spending stagnates and then enters decline.


The Demography of Digital Video

The convenience of watching what you want, when you want and with limited commercial breaks is just too attractive to consumers. A generation of Americans — Generation Z, a cohort that will eventually dwarf both the Boomers (the first generation to spend its childhood in front of a screen) and the Millennials — is now accustomed to interacting with content in this way. For them, the limited, targeted ads that have defined television advertising for more than 50 years are a strange and unsettling phenomenon. These consumers view themselves as curators and are accustomed to exercising their personal preferences in ways traditional media does not support. They have no patience for seemingly endless, unskippable advertisements for products that couldn’t be further removed from their interests and habits.

Digital advertisements that use specific data to target individual interests have a much better chance of achieving activation on their call to actions (CTAs). The ROI is undoubtedly higher when people are shown ads that pertain to their interests and lifestyles. According to research conducted by Adobe, consumers want messaging that is more personalized and relevant than what most brands are presently supplying. Digital marketers who understand mobile streaming platforms are in a prime position to seize on this opportunity.


How Traditional Media Companies are Making the Move to Digital

For news organizations that have long thrived in traditional media — print as well as televised — the challenges are real. Here at Nucleus, we are uniquely positioned to research and forecast the climate of news consumption. Digital videos served on Nucleus’ own platform, for example, garner over 155 million unique views monthly. And most video units that viewers engage with expose them to both pre-roll and outstream advertising. Still, as the Pew Research Center points out, the broad trend still favors television over digital platforms — but only just barely; and that may be changing fast. What’s more, mobile platforms have already staked out a significantly higher market share among those who receive their news online.

Nucleus understands that journalism is a public good, and that news organizations can lay claim to a great history of forming lasting, unique relationships with their audiences. These relationships are built on trust and delivering practical, engaging and interactive content before consumers even know they need that information. News educates, influences and inspires. Coupled with a smart, sophisticated and responsive digital marketing initiative that goes with rather than against the grain of your target demographic’s habits and desires, news can be an even more powerful channel than the entertainment that we all admit to binge watching.


The Nucleus Video Platform








To learn more about Nucleus’ massive video inventory, contact us.

Nucleus. Real People. Real Results.

Follow us: