Sweeps

As November sweeps arrive, perhaps more than ever before, all will be anxiously awaiting the ratings numbers for those hawking television-advertising slots. Such anxiety is well founded, as the size of television's guaranteed audience continues to shrink. With little competition as a mass medium since its inception, television had long been seen as the form of entertainment and information for consumers. Traditionally, advertisers were able to connect with a guaranteed audience, glued to their television sets in search of news, views of the world, drama, and laughter. However, a combination of technological advances and behavioral changes has eroded or obliterated that "guarantee." Technical advancements and scorching adoption rates within digital cable, digital satellite, the internet, digital music, gaming consoles, and mobile devices have given the consumer innumerable options to acquire much of the same content offered on television. This has made it increasingly difficult for television content creators to acquire and retain viewers for a sustained period of time before losing them to competitive entertainment media. As the fall season progresses, once again television executives' attention will be focused on who's watching, what are they watching, and what are their viewing habits?

Over the past 15 years the music industry has seen dramatic shifts in consumer purchasing behavior of digital music. First, there was the digitization of music on CDs. CDs were originally priced high, with increased demand fueling promotional pricing. P2P enabling technology matured on the internet and the MP3 standard took off, with consumers illegally sharing music, sending shock waves throughout the music industry. Now as music companies and the RIAA file suits against consumers for illegal copying, consumers are rushing in droves to purchase digital music from companies such as RealNetworks, Apple, and Napster.

Research indicates that television still dominates as the largest channel for entertainment consumption (Figure 1). However, a closer look reveals that television viewing among young adult and teenage males is dropping significantly due to the impact of video games (Figure 2). Nielsen Media's 2003 fall sweeps research clearly showed that males between the ages of 18 and 34 were watching less television, particularly fewer prime-time shows. Additionally, research in 2000 by the Interactive Digital Software Association indicates that 50 percent of all video games, consoles, and accessories were purchased by 18 to 34 year-olds. These trends are putting tremendous pressure on programmers to "stanch the bleeding" and win back advertisers' most coveted demographic.

Furthermore, Digital Video Recorders (DVR), ever faithful to their forefather, the VCR, have continued to diminish the effectiveness of the prized 30-second ad spot. The ability to record dozens of television programs and then skip through the commercials during playback has prompted programmers to explore innovative strategies to keep viewers tuned-in, in real time.Clearly, based on the availability, popularity, and feature sets of today's various entertainment devices, coupled with improved broadband and wireless capabilities, there is a need for content merchants to change strategy in order to acquire and retain maximum patronage. As content creators utilize diverse entertainment delivery outlets, no single media device, not even almighty television, will be sufficient to provide the ultimate consumer experience or optimum revenue model.

Impact Programming with Interactive Elements

Among the techniques being used by programmers to increase the timeliness and value of their content are a number of interactive elements. To provide the optimum consumer experience, content creators should integrate these creative and interactive elements into the entertainment content, thus creating Impact Programming. Impact Programming is the delivery of content utilizing an interactive multi-channel, multi-device strategy to capture and retain an audience in real time. As a show is being developed and key demographic targets are identified, producers should develop a comprehensive strategy that incorporates appropriate interactive elements. The content must ultimately reach its intended core audience. The use of the interactive elements gives the audience a reason to tune in on the programmers' schedule, rather than the viewer's schedule. These elements may include the use of interactive games, mobile devices, and interactive television (iTV).

The use of interactive elements has been proven successful for Fox Sports with its "Race The Pros" online game. Not only has the game successfully transformed the viewing experience of NASCAR on television, but it has also provided interactivity, allowing viewers to be a part of the sports action at the racetrack for the current week. Each week, game players load information about the current week's racetrack and have a chance to race before the pros do on the weekend. After each race, the players are ranked with a grand prizewinner at the end of the season, providing an interactive experience that can change weekly. Players have an opportunity to win such prizes as the Richard Petty Driving Experience and other Fox/Dodge/NASCAR gear. The interactive element has provided an opportunity for Fox Sports to execute an integrated campaign that allows them to reach consumers in multiple interactive media. The measured success among Internet users who had played the new branded online game included increases of over 20 percent in Dodge brand awareness, purchase intent, and overall brand awareness for DaimlerChrysler brands.

Mobile interactivity with television programs is another element by which producers are trying to connect with viewers. Programmers need to utilize a multi-channel programming effort rather than a single channel, television-only, approach. A successful application of this convergence is seen with the standout international "Idol" franchise, such as "American Idol" and the UK's "Pop Idol." "Idol" fans are able to use their mobile phones to vote for their favorite singer and ultimately decide the winner of the contest. Programmers see the benefits of incorporating mobile interactivity with their shows as a way to make the audience feel they are a part of the program and keep them tuned-in, in real time. The use of SMS (Short Messaging Services) has proven to be hugely profitable internationally. While not profitable for show producers in the United States SMS is highly critical in creating the interactive elements needed for Impact Programming. This model is a particularly good fit for reality television.

Finally, iTV is changing the television paradigm. Viewers are interacting with their favorite shows through the use of the remote, enhancing their viewing experience. Cable giant Discovery is among the iTV pioneers in the U.S. with its various interactive ventures. One such venture is the Learning Channel's mega-hit home redecorating show Trading Spaces. The show became the highest rated hour in TLC's history primarily due to the use of interactive elements. The show's content is enhanced through interactivity with the delivery of quizzes to the viewers' television screen and the ability to capture the viewers' responses via his/her remote control. The quizzes were accessed by an amazing half of the show's audience during the broadcast and included advertiser-embedded content. Discovery utilizes interactivity to reinforce their brand with viewers. Internationally, such as in the U.K., viewers are switching to digital and iTV at more than twice the speed they bought videos or home computers - with nearly half of all homes now signed up to digital with extensive programming content being developed with iTV elements.

For producers, it is no longer a matter of just airing a television show in a single medium world. Rather, to achieve maximum promotion and exploitation of the entertainment property, they must plan and execute a vision for the program franchise that incorporates multiple channels. Interactive elements have proven to be one highly effective method for acquiring and retaining viewers. However, these techniques are but one strategy among many that producers need to utilize in order to maintain and further the value of their content. In future Digital Media Advisor publications, we will explore some of the other techniques at their disposal. Coming soon!