A year of living with COVID resulted in a drop in advertising spending, but streaming added viewership and created a new avenue for markers to reach consumers, Nielsen said in its new Total Audience Report.

In 2020, ad spending in major media fell 15% to $132 billion. TV spending shrunk, but its share of ad dollars increased to 68% from 64%. 

Also Read: Time Spent Watching Video Fell in Third Quarter: Nielsen

The pandemic had the largest impact in the second quarter, when advertising spending dropped 28% from the previous year Spending was down 25% in the third quarter and only decreased 5% in the fourth quarter. Some categories rebounded, including online retail and insurance, which were up in the fourth quarter from a year ago. Travel, financial, traditional retail and automotive were still down by double digits.

While most of the headlines were about the growth of ad-free SVOD services like Netflix and Disney Plus, Nielsen found that ad supported streaming accounted for 34% of all streaming in January of 2021, compared to 28% in January 2020. 

But marketers were even able to find a way to reach consumers on commercial-free services via product placement and branded content. Among viewers 35 to 49, 68% said they noticed specific products or brands being used by the characters within the content on a streaming video service.

The marketing messages had a positive impact with 42% of 35 to 49 year olds saying they were very likely or somewhat likely to be influenced or to purchase a brand they see within streaming content. Only 17% said the were somewhat unlikely or very unlikely.

During the pandemic TV commercials referring to the pandemic aired as companies adjusted their marketing and their messaging. In the second quarter, 18% of commercials dealt with COVID. That fell to 12% in the third quarter and 11% in the fourth quarter.

Most consumers---58%--had very favorable or somewhat favorable reactions to ads displaying masks, social distancing and other post-COVID behaviors. Just 16% said they had an unfavorable reaction.

Consumers also reacted to COVID by shopping at local businesses, the Nielsen survey found.

Things may be getting back to something closer to normal for consumers as well. According to a special advertising survey Nielsen did in February, 55% of people said they are very optimistic or optimistic that they could get back to their normal routine in 2021. Adult men were more optimistic than women, according to the survey.

People were particularly looking forward to attending religious services in person, going to hair salons, barber shops and nail salons, booking vacations and dining out within three months of COVID restrictions being lifted.

Most postponed put off making major purchases during the pandemic. Nielsen’s survey found that 40% of adults said they planned to purchase or lease a new or used car in the next 12 months and 20% said they intend to buy a house in the next year.

“With many people still spending more time at home, the TV remains a media diet mainstay and key opportunity for advertisers to present in a visual medium. 2020 was a year of widespread streaming adoption, which has fueled an array of new services and platforms—both subscription and ad-supported,” said Peter Katsingris, senior VP, audience insights at Nielsen. 

“But that doesn’t mean brands can’t tap into subscription platforms, as we’re seeing growing interest in branded integrations in programming that isn’t ad supported, and some of those integrations are driving key storylines,” Katsingris added. 

The decline in live TV viewing slowed in the third quarter, according to a new report by Nielsen, which also showed the number of TV households dropping as more people add streaming services.

The amount of time people spent watching live TV per day dropped by one minute to 4 hours and 6 minutes in the third quarter from Q3 2015, according to Nielsen’s third-quarter Total Audience Report. The amount of time spent with DVRs and time-shifted TV, rose by that same amount to 29 minutes from 28 minutes.

In the second quarter, live viewing dropped two minutes. A year ago in the third quarter, there was a bigger drop of 6 minutes to 4 hours and 13 minutes.

Time spent using an app on a smartphone rose to 2:10 from 1:14 a year ago. Some of the growth was the result of a change Nielsen made to the way it credits mobile use.

The number of TV households with subscription video-on-demand services, such as Netflix, rose to 54% in the third quarter of 2016 from 46% a year earlier. But SVOD had only a small rise from 53% in the second quarter.

Read more at B&C.

With the breadth and depth of media options available to consumers, it’s not surprising that U.S. households are increasing their overall daily media consumption. Multicultural viewers — and African-American viewers in particular — are at the forefront of that consumption, according to Nielsen’s most recent Total Audience Report.

Between first-quarter 2015 and Q1 of this year, TV households increased their total daily media consumption (via smartphones, Internet on PCs, terrestrial radio and live TV) by one hour, to 10 hours and 39 minutes. As a group, African-Americans were the most voracious media consumers, increasing their total consumption of such media by one hour and 13 minutes during the period to more than 13 hours a day, according to Nielsen.

Much has been made of the consistent drop in live TV viewing hours over the past few years, and while overall live viewing hours dropped by three minutes across all viewers year-to-year, African-American viewing actually increased by one minute on a year-to-year basis, according to the report. Live TV viewing also represents more than half of all daily media consumption by African-Americans, according to Nielsen.

Why is this relevant? It would behoove content creators and distributors looking to create the next big TV hit to consider creating more programming targeting the audience that’s most likely to seek out content on various distribution platforms. A good portion of those viewers and users would most likely be young and multicultural consumers who like to see their images and stories reflected on the screens they’re spending a lot of time with.

As the Horowitz Associates State of Cable and Digital Media Multicultural 2016 report confirmed, 64% of African- American viewers, 57% of Hispanic viewers and 50% of Asian-American viewers said content that keeps diverse audiences connected to their respective cultures drives their overall viewing decisions.

As coverage of the cantankerous and unpredictable 2016 political election season draws big TV ratings for traditional cable-news networks, upstart channels targeting young millennials with political-themed content are campaigning online to reach one of the largest voting blocks in U.S. history.

Networks like Fusion, Revolt TV, Pivot and Fuse are looking to secure the votes of a politically engaged group of 18-to-34-year-olds looking for content that speaks to issues important to them — topics that aren’t always addressed by the cable news channels.

From online voter registration campaigns to millennial-focused reports from the major political party conventions to social-media initiatives on key issues such as immigration, police brutality and LGBT rights, network executives said it’s critical to provide content to millennials when and where they want it.

“We have seen from our audience that they are an active, socially relevant group, and they care about issues that can affect not only them but society at large, from Black Lives Matter to [the drinking-water crisis in] Flint to immigration issues and LGBT issues — this audience is vocal and they care about these issues,” Revolt TV CEO Keith Clinkscales said. “We wanted to make sure that we were uniquely positioned to impact the political conversation, and give the young people who consume our media an opportunity to amplify their voices.”

CROSSING PLATFORMS

To accomplish that, networks are taking a multiplatform approach to disseminating political news to an audience that watches less TV and spends more time online, executives said.

Millennials aged 18-34 may watch less live TV than any other demographic group, but they’re the most likely to use a connected-TV device such as Apple TV or Roku, according to a new Nielsen Total Audience Report for fourth-quarter 2015.

That age group also spent more than 11 hours per week using smartphones to access the Web and apps during fourth-quarter 2015, up from eight hours during the same period in 2014, according to Nielsen.

Millennials have followed the 2016 presidential campaign closely because the candidates have been so active on social media, David Quinn, senior brand lead for digital marketing firm Beamly, said.

“All the candidates are active on Twitter and using video on YouTube and have remained active in the political conversation with millennials,” Quinn said.

That leaves an opening for millennial-targeted networks to provide political content to an already engaged audience.

For Fuse, that means teaming with Hispanic-targeted, non-profit political organization Voto Latino to create a multiplatform initiative dubbed “Crash the Parties,” Fuse Media CEO Michael Schwimmer said. Millennial Latinos can vie for a chance to become Fuse reporters at the Republican National Convention in Cleveland and the Democratic convention in Philadelphia.

Would-be reporters can submit a video to Fuse.tv for network viewers to vote on. Two winners will be chosen to represent the network at the conventions, providing frequent video updates both online and on he linear channel.

The network (then called Sí TV) ran a similar campaign with Voto Latino in 2008. “With the social media tools that are available in 2016 that were not available in 2008, it’s going to be even easier and more effective in getting out the word and getting people engaged in the process,” Schwimmer said.

Revolt’s “Revolt 2 Vote” initiative will include a weekly digital series on the revolt.tv website, featuring interviews with political leaders and insights from millennial thought leaders and influencers, Clinkscales said.

The music channel’s primarily digital political content will be headed by millennial journalist Amrit Singh as well as a “kitchen cabinet” of young political voices who will discuss the campaign on Revolt.tv and social-media outlets such as Twitter, Facebook and Instagram.

“The main thing is we have digital coverage because that’s where millennials are aggregating political content, and then we’ll do some linear programming as well,” he said.

As some 93 million millennials will be of voting age going into this year’s election, Clinkscales said it’s imperative to provide them information to make informed decisions.

“More than 30 million young people stayed home in 2012,” he said. “[Turnout] was very low — one of the lowest numbers on record. The frustration that young people have with the American political system is an opportunity to make sure we provide them with the engagement they need.”

The emerging networks are also hoping to reach millennial viewers in a way the bigger, more mainstream news networks haven’t so far. While both Fox News Channel and CNN ranked among the top 10 most-watched cable networks among total viewers during the first quarter 2016 among total viewers, neither is among the top 15 networks within the 18-49 demo, according to Nielsen.

“Millennials are not turning on the TV and watching the cable news networks,” Quinn said. “The shows that are speaking to the group are from external video Web shows.”

“They have their hands full,” Clinkscales said. “We have the luxury of going after one of America’s largest generations ever — 93 million strong and 40% from communities of color. This is the time to understand what’s going on with this 18-to-34-year-old audience.”

GOING TO THE MOVIES

Pivot will take a different tack to inform millennials about the political process, relying on politically-themed movies throughout the summer to keep politics on the minds of its younger viewers, Pivot general manager Kent Rees said.

The network will feature such films as All the President’s Men, Wag the Dog and The Fog of War.

“We’re more contextualizing the political process through these films that we’ve identified,” Rees said. “Millennials crave context and they crave it in all different directions, and having them sit down and watch a fi lm that comments on the process in general as well as documentaries like Caucus that touch on how the process works.”

The network will feature around the #justvote public-awareness campaign, which encourages young people to register and vote. Rees said there often isn’t a lot of information in the marketplace as to how to vote, so the eff ort will explain the process to help get millennials to the voting booth.

“Their involvement is clear, and it’s a great way to galvanize them,” Rees said. “It’s the largest generation in American history, and they’ve only just begun to understand their power and the opportunities to affect change in the country at large.”