US TIME SPENT WITH MEDIA 2020 - Gains in Consumer Usage During the Year of COVID-19 and Beyond - Ciceron
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US TIME SPENT WITH MEDIA 2020 Gains in Consumer Usage During the Year of COVID-19 and Beyond APRIL 2020 Mark Dolliver Contributors: Oscar Orozco
US TIME SPENT WITH MEDIA 2020: GAINS IN CONSUMER USAGE DURING THE YEAR OF COVID-19 AND BEYOND Driven by a combination of the effects of the coronavirus crisis and pre-pandemic trends, the average time US consumers spend with media will rise by more than 1 hour per day this year, to 13 hours, 35 minutes. While receding somewhat in the next two years, the total will remain well above 2019’s level. Has the coronavirus pandemic affected patterns of time spent with media? Affected, yes. Transformed, no. Some trends have accelerated, while others have slowed. But patterns of media usage are mostly moving in the directions they were pre-COVID, with traditional TV’s temporary reversal of decline a notable exception. What will be the big winners this year in time spent? Time spent with social media, whose gains had stalled in recent years, is getting a boost. Smartphone time and digital video time are still rising, and with an extra-large bump in 2020. However, less commuting to work amid stay-at-home orders and the coming recession means an interruption to digital audio’s growth. Will changes in 2020 outlive the pandemic and its economic aftershocks? Partly. We think some categories (like social) will mostly hold onto the increase they’re seeing this year. KEY STAT: Largely, though not wholly, due to the Subscription video and smartphone time will continue to coronavirus and the coming recession, we’ve significantly grow (albeit less briskly) from 2020’s elevated level. But raised our forecast of how much daily time consumers traditional TV will give up most of its 2020 windfall. will spend with media. WHAT’S IN THIS REPORT? This report delves into our latest forecast on time spent with media by US consumers, highlighting the COVID-19 effect on our numbers while examining trends that pre-date and will persist beyond the CONTENTS current crisis. 2 US Time Spent with Media 2020: Gains in Consumer Usage During the Year of COVID-19 and Beyond 3 Crisis Time—and Beyond Crisis Time 4 Summing Up the Main Time Spent Numbers 5 More and More Video Viewing 6 Mobile Usage in Not-So-Mobile Times 7 Trying to Stay Social 8 Key Takeaways 8 Editorial and Production Contributors US TIME SPENT WITH MEDIA 2020: GAINS IN CONSUMER USAGE DURING THE YEAR OF COVID-19 AND BEYOND ©2020 EMARKETER INC. ALL RIGHTS RESERVED 2
An important note on how we account for multitasking in our estimates of time spent with media: If someone spends an hour watching TV (for example) and uses a smartphone to surf the web during the same hour, we count this as an hour of usage for each medium, and hence as 2 hours of total media time. CRISIS TIME—AND BEYOND CRISIS TIME With time on their hands and no place to go, US consumers have been spending lots of time using media. But that’s also what they were doing before anyone had heard of COVID-19. Our new forecasts on time spent with media help illuminate what’s resulting from the current crisis and what stems from ongoing trends. Our complete estimates for US time spent with media can be found in this report’s accompanying spreadsheet. During a crisis, there’s a natural tendency to think Stay-at-home orders have added some twists to everything is changing forever. Some aspects of consumers’ media usage, as will the coming recession. consumer media behavior (like growth in usage of The weeks and perhaps months of physical social subscription video) are indeed changing in durable ways, distancing have restarted growth in time spent with and our forecast shines a spotlight on them. Seen in online social networking, which had plateaued in recent the whole, though, our forecast also makes it clear years—but will then plateau again at 2020’s higher level. that trends in time spent we saw before the crisis are Some long-term trends in media usage have so much largely continuing, even if at a different velocity. Thus, our momentum that a major pandemic does not deflect forecast will help marketers broaden their gaze to include them. Thus, we see consumers continuing to increase an understanding of the environment they’ll be dealing their time spent with mobile even while essentially with over the longer haul, as well as grasping consumer immobilized at home. More broadly, the long migration behavior in the current moment. of time spent to digital media continues, pandemic or no pandemic. US TIME SPENT WITH MEDIA 2020: GAINS IN CONSUMER USAGE DURING THE YEAR OF COVID-19 AND BEYOND ©2020 EMARKETER INC. ALL RIGHTS RESERVED 3
Behind the Numbers Our methodology for US time spent with media forecast is based on an analysis of 3,223 metrics from 158 sources. This analysis involves the collection of third-party data—primarily survey data—from adult respondents, asking them about their media use habits. Data is also sourced from online and mobile activity tracking services, government data and interviews with industry experts. Using a bottom-up analysis, we assess and analyze reported time spent with each device and media activity across various sources. And where definitions differ, the data is normalized and interpreted in terms of our definition (i.e., the US population age 18 and older). The data is then aggregated with the time contributions from each device and media type to arrive at an estimate for average time spent with media per day. In order to arrive at forecasts for growth rates by media and by device, this analysis is followed by extensive assessments of historical and expected future growth patterns with regard to device adoption, multiple and overlapping device usage, population and demographic factors and competitors to existing devices and activities. SUMMING UP THE MAIN TIME SPENT NUMBERS Had the coronavirus pandemic not come along, we would Having edged up just slightly in recent years, our be increasing some of our forecast numbers anyway as forecast figure for average daily time spent with more information has emerged about consumers’ media media by US adults will jump by more than 1 hour time, notably including over-the-top (OTT) subscription this year, to 13 hours, 35 minutes. (For simplicity, video viewing and recent smartphone usage. That our style for presenting such a number in the text would have boosted our daily time spent total by about that follows will be 13:35.) Moreover, we expect 15 to 20 minutes. Thus, while much of the gain in time spent is pandemic-related, a significant portion is not— the total to retain much of this year’s gain during another reason why we see the increase as more than a 2021 and 2022—a post-pandemic period in which temporary blip. unemployment will strand many people at home, as will lingering wariness about the outside world. Amid abrupt changes in time spent in various categories, the share of total time consumers give to each element of The bump in the total reflects strong gains in many usage reveals more continuity of trend lines. For instance, individual categories our forecast covers. Smartphone despite its increase in minutes, TV will gain just one-tenth time, digital video time, social media time—they’re all of a percentage point in share of total time spent in 2020 up significantly. Even time spent with desktops/laptops, (to 28.1%) and then resume its decline in 2021 (to 26.9%). which had been drifting down, gets a temporary boost. So does TV, a medium whose declining numbers in recent Conversely, the smartphone continues to expand its years have largely offset the gains in digital categories. presence, with its share of time spent growing from Then again, print stays on its downward trajectory, 21.8% last year to 22.8% this year, and then on to 24.8% likely worsened by the decline in commuting and an in 2022. A medium’s share of time spent doesn’t always accelerated shift to digital alternatives. match the amount of chatter it elicits. Radio—scarcely a buzzed-about medium—has a much bigger share of time spent than social, 11.7% vs. 7.3%. Print’s share is a bit higher than podcasting’s, 2.1% vs. 1.7%. US TIME SPENT WITH MEDIA 2020: GAINS IN CONSUMER USAGE DURING THE YEAR OF COVID-19 AND BEYOND ©2020 EMARKETER INC. ALL RIGHTS RESERVED 4
Digital video’s growth is coming at an accelerated pace. We expect its daily time spent to surpass the 2-hour mark this year, reaching 2:01—up from 1:42 in 2019. Just as striking, we expect it to hang onto that steep increase and even grow a bit more in 2021 (2:06) and 2022 (2:10). Far from sating consumers’ appetite for digital video, 2020 seems to be whetting it. Much of this usage is via mobile. We expect mobile video to continue its rise this year, gaining 5 minutes per day, to 47 minutes. The catchall “other” category— which includes connected TVs, OTT devices and game consoles—has been growing even more strongly as a pathway to video content, and we expect it to surge past mobile this year, chipping in 50 minutes. In years when our time spent total was growing robustly, media multitasking was a key factor as many consumers shared their attention between the TV and another screen. More recently, the replacement of much linear TV time by on-demand digital video brought a slowdown in such multitasking. So did the fact that much of time spent was coming from the smartphone, often when it was the only device a consumer had on hand while out and about. During the pandemic, people have spent day after day at home where they’re surrounded by every device they own. This has likely brought a resurgence in media multitasking and helped push the time spent total higher. On the content side of things, it didn’t take a pandemic to win an avid audience for streaming services. Still, it’s evident that keeping people at home has meant adding to their time spent with Netflix and other subscription MORE AND MORE VIDEO VIEWING services. Our forecast pegs this as the year when daily time spent with OTT subscription video exceeds a full Time spent with digital video and nondigital TV are hour, at 1:02. Netflix alone will account for 30 minutes. In both getting a boost from the coronavirus crisis. But 2020, subscription video will account for more than half of the gains come atop years of growth for digital video, time spent with digital video overall for the first time, and while just temporarily interrupting a long decline we expect it to keep increasing its share—from 51.4% this year to 53.7% in 2022. for traditional TV. Even as TV’s minutes rise in 2020, we expect its share of the TV/digital video total to keep shrinking. US TIME SPENT WITH MEDIA 2020: GAINS IN CONSUMER USAGE DURING THE YEAR OF COVID-19 AND BEYOND ©2020 EMARKETER INC. ALL RIGHTS RESERVED 5
If any institution can be called a beneficiary of the There are vast differences among age groups, though, in COVID-19 crisis, nondigital TV fits the bill—temporarily. how big a presence TV is. Our estimate for 2020 shows We expect time spent with TV to gain 19 minutes in 2020, baby boomers averaging more than twice as much TV to a daily average of 3:49. That’s a dramatic turnaround time per day as millennials, at 5:35 vs. 2:15. Gen Xers from a period in which TV lost bunches of minutes each fall in between, at 3:49. Tellingly, Gen Z (ages 8 to 23 year—for instance, declining by 12 minutes in 2019. The this year, by our definition) is the one age cohort in our gains are coming largely during daytime hours—i.e., hours forecast that barely gets a bump in TV time amid the when many people would normally be at work. pandemic. We estimate their figure this year at 1:36, vs. 1:33 last year. Though cord-cutting may have paused But the increase won’t last. Although 2021 will benefit amid hunger for news, it is likely to resume among from the shift of the Summer Olympics and other big younger consumers and further widen the age gap in TV events, TV will nonetheless give up most of its 2020 time spent. gains next year. And by 2022, we predict that its time spent total (3:24) will be back below where it was in 2019. That said, TV’s total will still be well above that of digital video throughout our forecast period. Years of decline MOBILE USAGE IN notwithstanding, it remains a large part of the media mix NOT-SO-MOBILE TIMES for a large majority of adults. Since becoming a common household item, the smartphone has been the pre-eminent force driving increases in consumer time spent with media. And while the device’s enablement of anytime/anywhere media usage typically means less time with users at home, it continues to play that role. We expect time spent with smartphones in 2020 to average 3:06 per day as calculated across the whole adult population. That’s a big jump from our 2019 figure of 2:43, which was itself a sizable increase from 2018 (2:25). And we expect more (albeit smaller) gains through the rest of the forecast period. US TIME SPENT WITH MEDIA 2020: GAINS IN CONSUMER USAGE DURING THE YEAR OF COVID-19 AND BEYOND ©2020 EMARKETER INC. ALL RIGHTS RESERVED 6
Smartphone time among adults keeps rising in part It’s not as though non-users of social networks have been because gains in penetration haven’t entirely stopped. joining in droves. We expect social penetration to tick up We expect penetration to have risen by 5 full percentage from 70.9% in 2019 to 72.2% this year, consistent with points—from 78.9% to 83.9%—between 2018 and 2022. its pre-pandemic pace of increase. Rather, the gain comes That’s about double the growth rate for tablet penetration, from an increase in usage among people who already are which has nearly leveled off around 54%. Tablet time users. Daily time spent among social users (rather than among adults has also plateaued, and at a much lower as calculated across total adults) is expected to climb by 7 plateau than smartphone time. We expect daily tablet minutes this year, to 1:22. time to average 1:10 this year—1 minute above 2018’s figure and 2 minutes above 2019’s—before subsiding Though the pandemic has kept many people confined in to 1:08 the next two years. The obvious caveat is that proximity to desktop/laptop computers, smartphones are the tablet is often more a family device than a personal driving the gain in social time. We expect smartphone device, and kids (whose usage is not reflected in our social time to rise from 41 minutes in 2019 to 47 minutes numbers) are often the ones racking up time with it. in 2020, before gaining another minute in 2022. Desktop/ laptop social time has declined steadily from its 2011 These days, smartphone time mostly means app time peak (21 minutes) as the smartphone has taken over as rather than browser time. Smartphone app time passed consumers’ social networking device of choice. We see 90% in 2018 as a proportion of total smartphone internet the figure pausing at 6 minutes per day in 2020 and 2021 time, and we expect the figure to reach 93.1% in 2022. before resuming its decline with a 1-minute loss in 2022. The pandemic has affected the mix of consumers’ time Going into 2020, Facebook was on a three-year losing with mobile apps. Predictably, there has been less streak for time spent as calculated just among Facebook attention to apps for travel, weather and shopping. Other users. After peaking at 40 minutes per day in 2016, the categories have benefited from the surge in overall digital figure had drifted down to 33 minutes in 2019. We expect time spent. Mobile social apps are a big gainer, rising a slight uptick in 2020 to 34 minutes, as online social time from 41 minutes last year to 52 minutes this year. We partly compensates for the loss of in-person interaction. expect mobile gaming apps to grow from 23 minutes But we expect the decline to resume in 2022 with a last year to 26 minutes this year. Mobile audio app time 1-minute loss. is also expected to rise (to 59 minutes, vs. 57 minutes in 2019), but more slowly than in previous years as the Still, with Facebook’s immense reach—we estimate decline in commuting has worked against digital audio that 63.4% of US adults will be users this year—it racks time in general. up more time spent across the adult population than Instagram and Snapchat combined. The latter two have been growing, but from a smaller base. Elsewhere in the socialsphere, LinkedIn is likely to see a gain in time spent TRYING TO STAY SOCIAL as people who have lost jobs turn to the platform in their efforts to find new ones. In a year when “social distancing” has joined the everyday vocabulary, online social networking is less a plaything and more a necessity. And that’s reflected in time spent with social. We forecast that time spent with social will jump 10.8% to 59 minutes in 2020. The rise is especially noteworthy since it follows a span of three years in which social time had plateaued, at 53 minutes. And we expect social to mostly retain 2020’s gains the next two years, holding at 59 minutes in 2021 and losing just 1 minute in 2022. US TIME SPENT WITH MEDIA 2020: GAINS IN CONSUMER USAGE DURING THE YEAR OF COVID-19 AND BEYOND ©2020 EMARKETER INC. ALL RIGHTS RESERVED 7
EDITORIAL AND PRODUCTION CONTRIBUTORS Anam Baig Senior Editor Joanne DiCamillo Senior Production Artist Donte Gibson Chart Editor Katie Hamblin Chart Editorial Manager Dana Hill Director of Production Erika Huber Copy Editor Ann Marie Kerwin Executive Editor, Content Strategy Stephanie Meyer Senior Production Artist Heather Price Deputy Editor Magenta Ranero Senior Chart Editor Amanda Silvestri Senior Copy Editor As is true of social networks, mobile messaging apps are getting more usage from consumers eager to keep in touch with people they can’t see face-to-face. We forecast a 19.8% jump in time spent with mobile messaging apps in 2020, to 24 minutes. And the category will hold at 24 minutes the following two years. Mobile messaging apps benefit from a shift from mere texting as consumers gravitate toward video calling via those platforms. KEY TAKEAWAYS ■■ The boost in media time spent partly reflects more simultaneous usage by people stuck at home with multiple devices—hence, probably less-than-rapt attention to a marketer’s messaging via any one platform. ■■ The increase in subscription video means consumers are less available to marketers’ messaging. But traditional TV’s boost in 2020 creates (temporarily) more of an audience for that ad-supported medium. ■■ Don’t expect time spent to snap back to where it was in 2019. Patterns of usage were evolving in any case. And economic fallout from the coronavirus pandemic will inevitably influence consumers’ behavior beyond 2020, including their time spent with media. US TIME SPENT WITH MEDIA 2020: GAINS IN CONSUMER USAGE DURING THE YEAR OF COVID-19 AND BEYOND ©2020 EMARKETER INC. ALL RIGHTS RESERVED 8
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