This week, we’re delving into the world of young consumers, slightly older consumers, programmatic ad spend and a whole lot of gamers across the board.
Gen Z: Snapchat “Yes,” Ads “No”
Reaching what will be the largest generation of consumers is easier said than done, especially when they’re the most skilled at avoiding ads. A Millward Brown study titled AdReaction found that teenagers in the Gen Z generation (defined in this study as ages 16-to-19) will control or skip ads whenever possible.
Eighty-two percent will skip the ad as fast as they can, if given the option. Sixty-nine percent said they will physically do something to distract themselves for 30-to-60 seconds until the ad runs its course, 51 percent will use some sort of technology to block the ad and 40 percent will just stare at the ad until it goes away.
Meanwhile, a survey conducted by SCG found that over half of US high school and college students reported they are on Snapchat at least 11 times a day. The survey confirmed what many already believe—that Snapchat is a popular hub for young consumers—however, it illustrates just how often it gets picked up. Seventy-one percent said they turn to Snapchat six or more times a day and 78 percent revealed they use Snapchat daily, compared to 76 percent who use Instagram and 66 percent using Facebook on a daily basis.
Millennials: The Movie
Fifty percent of millennials believe their life should be made into a movie, according to a study by Viacom Velocity. This research is the basis of Velocity’s original documentary, The Culture of Proximity, which aired on MTVU Wednesday. As a generation that lives online, appearances matter and intimacy is redefined. Seventy percent of millennials choose activities that will give them items to post on social media and almost a third admitted they post things that make their life look better than it is.
And Now, A Word From Our Sponsor
Which style of video ad is the least disruptive? Pre-roll, according to a study by IPG Media Lab and YuMe. Only 17 percent of mobile device users feel that the ad interrupts the content, compared with 60 percent on outstream and 72 percent on mid-roll. While mid-roll ads are more intrusive to the viewing experience, they ranked higher in message recall for desktop viewers at 27 percent, compared to eight percent for outstream. The study also found that 54 percent of consumers found pre-roll ads on mobile are engaging, compared to outstream (37 percent) and mid-roll (44 percent).
Despite recent concerns about where ads are being run, and whether those sites reflect the views of the brand, programmatic ad spend in the US will total $32.56 billion, according to forecasts by eMarketer. Last year marked the first time in which more than half of all US digital video ad dollars traded via automation, eMarketer reported, adding that it will grow another 42.3 percent this year to $9.13 billion. By 2018, nearly three quarters of all video ad dollars will transact programmatically.
Pepsi’s Going To Be Okay
Morning Consult asked two thousand Americans how their opinion of Pepsi changed after watching the now infamous Kylie Jenner advertisement (that has since been pulled). Despite public outcry and a heavy dose of mockery, 44 percent of people surveyed actually had a more favorable view of the company after watching the ad, while only a quarter had a less favorable view. Meanwhile, 32 percent of Americans said the ad made them more likely to buy Pepsi products, versus 20 percent who were less likely.
Gamers March On
ESA has released its annual sales, demographic and usage data for 2017, revealing that 67 percent of US households own a device that is used to play video games. The average gamer is 35 years old, and 65 percent of US households are home to at least one person who plays video games at least three hours a week. Fifty-four percent of the most frequent gamers say that video games help them connect with friends; 45 percent say it helps families spend time together.
Thanks to successful releases like Nintendo Switch and The Legend of Zelda: Breath of the Wild, video game spending grew by 24 percent compared to last year to over $1.3 billion in March. According to NPD’s March US digital/retail/e-tail video game sales report, the growth in total physical sales for March reversed nine consecutive months of year-on-year declines since last May.
Hardware spending almost doubled compared to a year ago to $485 million, NPD reports.
“March 2017 will go down in history books as the month Nintendo broke records,” said NPD VG industry analyst Sam Naji. “The Nintendo Switch had the biggest hardware launch for a Nintendo platform and the second biggest launch for any video game platform since 1995, the time NPD began tracking this category.”
NPD’s Top 10 Games By Revenue For March 2017:
- Tom Clancy’s Ghost Recon: Wildlands
- For Honor
- The Legend of Zelda: Breath of the Wild
- Resident Evil 7: Biohazard
- Mass Effect: Andromeda
- Grand Theft Auto V
- Horizon Zero Dawn
- Call of Duty: Infinite Warfare
- NBA 2K17
- Battlefield 1