Millennials and Gen Z surf the net.
Addressable TV is set to shake up the TV advertising industry significantly over the next few years as commercial TV channels gain the ability to target advertising at finely segmented audiences.
Demographic data from Roy Morgan research showed that commercial TV channels looking to maximise their advertising revenues need to understand what their audiences want to watch and then providing the correct content to engage with their audiences.
There is a large degree of crossover in these audiences although there are those who only watch one or the other, according to the data. Analysing attitudes towards TV viewed through the prisms of different generations shows some substantial differences between younger and older Australians when it comes to TV.
In recent years the rise of the internet at the expense of more traditional advertising mediums has often been accepted as a fait accompli, according to Roy Morgan CEO, Michele Levine. However, new technologies such as addressable TV give traditional media the ability to fight back and retain, and even grow, their shares of the advertising pie, she said.
“By harnessing the power of in-depth interviews with thousands of Australians, businesses can delve into the habits and preferences that drive the consumer choices of over 18.5 million Australians that watch TV whether free-to-air or Pay TV/SVOD,” she said. “Contrasting attitudes towards TV news are a prime example. TV news has been a staple of TV channels for decades, however the very different views younger and older generations have towards TV news mean the early evening news bulletins could soon be a thing of the past.”
While large majorities of Baby Boomers (75.3%) and Pre-Boomers (88.4%) always watch the news on TV to keep up-to-date only a third of Millennials (33.5%) and just over a quarter of Gen Z (27.2%) are avid consumers of TV news.
The different priorities younger and older generations have when watching the TV are highlighted when further research reveals nearly two-thirds of Gen Z (65.2%) and two-fifths of Millennials (60.1%) surf the net while watching TV.’ This is in stark contrast to the older generations as only 18.4% of Baby Boomers and 8% of Pre-Boomers surf while watching TV.
“Clearly the priority and attention older Australians give to the TV when watching isn’t shared by their younger peers who are content to have the TV on in the background while consuming content via the internet whether on their laptop, their smartphone, or both. These choices clearly have a significant impact on the effectiveness of advertising and underline the importance for content providers of understanding consumer preferences in a world undergoing rapid change,” Levine said.
Over 90% of Australians aged 14+ watch TV in an average week equivalent to over 18.5 million potential consumers. Of this audience over 16.5 million (81.8%) watch Commercial TV on an average day while a further 6.4 million (31.8%) watch Pay TV/SVOD in an average week.