IAA & Nielsen Interview – COVID 19
In times of global crisis such as this, the importance of independent facts to help guide us through uncertain times is critical. This is as much true for the media industry as it is for other sectors, as advertisers determine the best way to share their message and identify ways to survive amidst the most challenging of times. Maintaining the consumer connection when finances are uncertain and brick and mortar stores remain shuttered is key to the long term viability of many businesses. But how does one know for sure how and when to reach these consumers? Have they been fundamentally changed as a result of this pandemic experience?
What better company to offer insight into consumer behavior than Nielsen, the company that’s been dedicated to measuring audiences around the world regardless of platform for nearly 100 years. As an independent source of media consumption across screens, Nielsen provides valuable information that can help the advertising community make sound decisions during these unprecedented times. To that end, the IAA sat down with Scott N. Brown, Nielsen’s General Manager of its Television and Audio businesses in the US, to discuss the latest insights into the state of media consumption and viewing trends around the world.
IAA: Given stay-at-home orders in place to varying degrees across the United States and the world, what can you tell us about how media consumption has changed in recent weeks?
Brown
In March 2020, most states across the U.S. implemented stay-at-home orders. With this came a substantial rise in television media consumption, particularly for streaming content. Streaming usage is up about 120% year-over-year, and while this has been a growing medium for some time, during COVID we’ve seen usage increasing at exponential rates. Just within the month of March, streaming usage has risen 45%.
Similarly, television usage is trending at higher levels compared to previous years in the U.S. and global markets. In March 2020, total tv consumption grew by 13% in the US, which equates to over six billion hours. Not only does this include increases in TV connected device usage, but also increases in Live TV viewing as more people are at home and indulge in content in real-time, with local news in particular seeing sizable gains. In markets such as San Francisco, which was among the states to first enact stay-at-home orders, Local News viewing rose about 38% among Persons 25-54.
In South Korea, for example, there was an increase in television viewing in the weeks after the first reports of COVID-19 in early February. By the fourth week in February, there was a 17% increase ( in TV viewing, approximately 1.2 million more viewers. During the same time last year the increase was just 1%. Other countries where we have measurement show similar trends.
IAA: Television usage is increasing, which intuitively makes sense, but on the flip side advertising spend is decreasing. As advertisers struggle to make the right financial decisions during these times, how should they think about the impact of reducing or stopping advertising?
Brown:
IAA: While no one has a crystal ball to know when things will start to return to a new ‘normal’, what are some of the things our members should think about as they look toward a more stable future state?
Brown:
It’s also important to “listen” to the data and allow facts to drive decisions over emotion. For example, one would have expected sports enthusiast viewing to virtually disappear during this time but what we’ve seen instead is heavy sports viewers have
This is also the time to explore new business models. Looking at the response to theater closings, content distributors got creative and began releasing movies directly to consumers via streaming services. This was an ingenious idea and a way to bring that content to market, providing a new outlet that will surely be leveraged post COVID.
IAA: Like so many companies, I’m sure Nielsen has had to make changes to its operating model due to COVID-19. Can you comment on how COVID-19 has impacted Nielsen and what you’ve learned thus far from this experience?
Brown:
When it comes to our clients we’ve seen first hand how this global pandemic has impacted their businesses and operations. Over the past few months we have leaned in and deepened our relationship with our clients to help them navigate these unprecedented times. I’m amazed at their resilience, and commitment to doing the right thing for their employees, communities and business.
IAA: If you could give our members some advice as the events of COVID-19 continue to unfold, what would it be?
Brown: