Media Landscape and the Rise of Digital Media

08/04/23

Media landscape

Media Expenditure, 1987-2007 (£m)

Source: Advertising Association Note: Internet spend consists of display, paid search and classified

Media Expenditure, 1960-2007 (£m)

Source: Advertising Association Note: Internet spend consists of display, paid search and classified

Media Expenditure at current prices, 1960-2007

Source: Advertising Association

Media Expenditure at constant prices, 1960-2007

Source: Advertising Association

Number of Commercial TV channels

Number of radio stations, 1973-2007

Source: RAB Note: Analogue radio stations

Cinema Admissions, 1992-2008

Source: CAA/Nielsen EDI

Media Fragmentation

Source: BRAD

Unique Visitors to Leading Social Media Sites

Source: Comscore

All social networks have grown in recent years

There is cross pollination with Social NetworksMany people have a Myspace, Bebo and Facebook account But YouTube’s unique position as a social and video site has meant that YouTube has become the default platform for sharing and viewing videos

Social Network Unique Visitors

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Jul-0

6

Aug

-06

Sep

-06

Oct

-06

Nov

-06

Dec

-06

Jan-

07

Feb-

07

Mar

-07

Apr

-07

May

-07

Jun-

07

Jul-0

7

Aug

-07

Sep

-07

Oct

-07

Nov

-07

Dec

-07

Jan-

08

Feb-

08

Mar

-08

Apr

-08

May

-08

Jun-

08

Jul-0

8

Aug

-08

Sep

-08

Uniq

ue U

sers

'000

Bebo

Facebook

Myspace.com

YouTube

Future Consumer will be Digital Focused

Ave. hours/week % media consumption

PrintInternet

Analogue TV

Digital TVAnalogue radio

Cinema

OutdoorWireless

Games

010

2030

40

50

60

70

80

90100

1900 1920 1940 1960 1980 2000 2020

2006

50% of all media by 2007

66% of all media by 2010

80% of all media by 2020

Source: OFCOM

08/04/23

Digital landscape

Online usage has become part of everyday life

32m people online in the UK

6.8m are 15 to 24yrs 21% of online population

4.7m 15 to 24yrs ABC1Average 31 minutes online

2m 15 to 24yrs C2DEAverage 35 minutes online

Source; ComScore Sept 2008

1st internet adAT&T in their "you will" campaign from 1994

Netscape was the first internet browser, launched in 1994

2002 UK internet access reached 50%

2007 UK broadband penetration surpassed 50% due to triple play services (mobile, broadband & phone)

Currently 21 million digital TV householdsAudience watching TV across broadcasting platforms

0

5000

10000

15000

20000

25000

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3

2001 2002 2003 2004 2005 2006 2007 2008

Aud

ienc

e '0

00

Total digital TV households

Satellite households

Cable

Freeview

PVR

VOD

2006 mobile phone penetration reached 90%

USB mobile broadband is still relatively low at 6.9% but set to grow with mobile operators offering free laptops with mobile broadband contracts

2004 Halo 2 made more money on its first weekend of release than Titanic

World of Warcraft was first released in 1994 and is the largest Massively Multiplayer Online Role Playing Game with over 11 million registered players worldwideOnline gamers on average spend 15 hours gaming per week2008 Grand Theft Auto IV broke industry records with sales of around 3.6 million units on its first day of release and grossing more than $500 million in revenue in the first week, from an estimated 6 million units sold worldwide

Internet TV

IPTV Web TV

“Click n’ watch”Pre-downloadsTV screen To PC screen

BBC iPlayer largest audience 17million

Catch up TV is breaking the barrier between video entertainment & the internet as a communications or shopping tool

The Beijing Olympics was the tipping point for BBC iPlayer with a broader demographic profile using the online service

Consumers are responding to this increased supply

27% of those aged 15-24 claim to use the internet for ‘watching TV programmes’ in 2008, up by 17 percentage points in 12 months

45% used it for ‘watching video clips/webcasts’, also up by 18 percentage points over the same period.

Source; Ofcom

Breakdown of UK YouTube traffic UK users are re-directed to a sub-domain of YouTube.com US users are able to search UK content within the main YouTube.com domain UK YouTube content viewed by US users varies case by caseBut the average is 30%

Campaign Reach670,977 users reached30% viewed by US users 469,683 UK users9.8% of 15 to 20 year olds reached

Source: Hitwise, July/August 2007

Cost of targeting young people through traditional online media

Targeted media on YouTubeTargeting UK 16 to 24yrs year oldsCPM of £4 CPM on YouTubeImpressions required 19,125,0002.45% interaction rate*469,683 users interactionMedia Cost - £76,500

Standard targeted display mediaTargeting UK 15 to 21yrs year oldsCPM of £5 CPM on Hotmail, FacebookImpressions required 19,200,0002.45% interaction rate*470,000 users interactionMedia Cost - £96,000

*Source: DoubleClick Creative Insight on Rich Media Sept 2008