Switchability: Embracing A New Paradigm of Media Usage - Steve Yanovsky - MediaBizBlogger

Switchability describes the way consumers can substitute new behavior solutions for old ones. Problems can be solved by creating new solutions to replace the tried and true. For example, decades ago, Americans discovered that they would rather reach for bottled water than a carbonated soft drink to quench their thirst.

Ask a Millennial what time it is and they are not going to look at their wrist. They are going to reach into their pocket and look at their cell phone or their PDA. And, fewer of them have a land line than prior generations. More to the point, ask them how they view video programming and the chances are increasing that it will be online, not on their TV sets. Because many of them no longer subscribe to cable television. This trend has been increasing dramatically over the past three years (2006-2008), especially with the 18-34 year olds. According to a survey conducted by Knowledge Networks Inc. the percentage of Internet users who access full TV programs online has increased from 12% to 26%. And, the percentage of 35-49 year olds has increased from 8% to 16%.*

So what does Switchability mean to us in the media business? As we are in the midst of an unprecedented Upfront and everyone nervously waits to see if the dire predictions of a 15%-25% spending drop actually come true, we'll be taking a hard look at how we deliver content—and advertising—to our switchable TV audience. Advertisers are looking hard at where the audience really is, and whether broadcast television is the only way to reach them. Cable television networks are being asked to lower their rates from last year as well.

It is anticipated that some of that spending will wind up finding its way to digital video. The medium continues to establish its credentials, and more and more advertisers are becoming comfortable with it as part of their media mix.

As we look at digital video, we see more prime content online. And above all, a greater acknowledgement that this may well be the year we've really reached the tipping point in television. With the increases in on-line video viewing, the consumer really is in charge.

Now that's a switch.

*Source: Knowledge Networks Inc., "How People Use TV's Web Connections" February 12, 2009

Steve Yanovsky is VP Marketing of BBE and can be reached at syanovsky@bbe.com