HOLIDAY SPENDING WRAP-UP
It was a Happy Holiday season for retailers, with sales growing by 3.8% and reaching a record $964.4 billion. Hindrances like slowed-but-not-stopped inflation and high-interest rates were offset by a strong labor market and increasing consumer confidence. For the full year, 2023 outspent 2022 by 3.6% for a total of $5.13 trillion (also a new record). All the major retail categories saw increases, except for building materials/garden supplies and furniture/home furnishings, which were both down. This may very well be a return to normalcy after these categories saw major pandemic-related growth. (NRF: Jan 17, 2024)
AD ACCEPTANCE CONTINUES TO GROW
The percentage of consumers who are willing to watch ads keeps increasing—especially if it saves them some money. A December 2023 study shows that 64% of respondents would choose an ad-supported option if it means saving $4-$5; it was 57% the previous year. U.S. households subscribe to an average of four services (7% have six or more), the prices keep rising, and saving a few bucks per month on each can really add up. (Marketing Charts: Jan 23, 2024)
FORGET THE STEREOTYPE: GEN Z WATCHES LONG-FORM VIDEO
The rap on Gen Z has long been that they’re addicted to short-form videos like TikTok and don’t have the attention span for anything longer. However, a report from Horowitz Research says that’s not the case. While they spend more time on social media and short-form entertainment than other cohorts, a large majority—7 in 10—say they watch TV content weekly. How they watch is also interesting: Gen Z subscribes to more streaming services than other groups, averaging six subscriptions (up from 5 in 2020). Their usage of FAST is on the rise, with Roku Channel, Tubi, and PlutoTV the most popular. (tvtech: Jan 18, 2024)
TV REMAINS THE BEST WAY TO REACH VOTERS
Political campaign directors still see Linear TV as the best way to quickly reach a large audience, and their candidates are already saturating the airwaves. It’s not just the presidential election; congressional seats, Senate races, and gubernatorial campaigns are driving media spending to a projected 31% increase versus the 2020 election year. Live sports and News are the biggest draws in Local TV, with a recent study indicating that viewers trust local news more than national news by a 2-to-1 margin. That trust gap hasn’t really hurt Cable News networks, who are also benefiting from national buys as candidates—even state and local ones—seek to increase their visibility and spur campaign contributions. (Los Angeles Times: Jan 16, 2024)
THIS WEEK IN VIDEO HISTORY
January 24, 1964 – Sixty years ago, CBS won the NFL bidding war and agreed to pay $14.1 million per season to broadcast games in 1964 & 1965. Under its current contract, CBS pays the NFL $2.1 billion per year—a moderate increase of about 150x.
To put this into perspective… a dollar in 1964 is worth $9.90 today!