Streaming Video ‘Killed’ The Television Star
By Gary J. Nix
U.S. advertisers are estimated to spend $36B advertising on digital video
74% of Black TV viewers report streaming TV content, compared to 68% of total market consumers
This year will mark the first time in U.S. history that the average daily time spent watching content on mobile devices will surpass that of television, with the lion’s share of it on smartphones. Since African-Americans over-index on smartphones when it comes to streaming video content, it would behoove advertisers to do a better job of connecting with this market that consistently sets buying trends, in part via content consumption.
Why This Matters: Excluding voice time, the average time on mobile devices are slated to experience an eight-minute increase from 2018 to three hours and 43 minutes, while television time will drop nine minutes from last year to just three hours and 35 minutes. With the increase in mobile viewing, marketers must consider the $1.3 trillion buying power of African Americans and this number is estimated to rise to $1.54 trillion by 2022.
Netflix’s (NFLX -0.21%) Strong Black Lead initiative has already shown us how content delivery services can gain success by serving important market segments. Thus, the increase of devices and time on which consumption occurs will likely continue to introduce new video formats. As a result, content creators are poised to gain even more access to audiences providing watchers access to new and interesting content. Taking all of this into account, it is likely that other video content providers are in the midst of creating similar programs.
What’s Next: Be on the lookout for nimble, small business marketers to also take advantage of this access, by either creating branded content or being first to market with advertisements as new channels are opened.
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