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Trying to stay on top of the latest trends in media consumption can be tricky – especially when you have volatile market conditions to contend with. So, make yourself a cup of tea, sit back, and rejoice in the fact that by the end of this article, you’ll be firmly in the know when it comes to fine-tuning your brand’s media strategy.
Here are our four key takeaways from Ofcom’s 2024 Media Nations report.
It’s no secret that linear television has been on a downward trend for years. Less in thro to the live schedule, all age groups are now diversifying the ways they consume broadcast TV.
Predictably, the decline in viewing figures is most pronounced in younger age groups; just 48% of 16-34s watch live TV every week now, with even 65-74s consuming 5% less broadcast TV in 2023 than they did in 2022. Across all age groups, live television viewing was down by 6% year-on-year. It should, however be noted that this decline is slower than what we saw in 2022.
The key message here is that broadcast TV remains a key source of reach if you’re targeting viewers aged 65+ and, to a slightly lesser degree, 55-64s. The latter cohort retained a weekly reach of 85% in 2023, though this figure represents a 5% decline on the year before.
Viewing on BVoD platforms like ITVX and Channel 4 grew by 29% YOY in 2023, though BVoD still only accounts for 13% of total broadcaster viewing. This varies depending on the broadcaster, however; viewing on ITVX surged by 57% in 2023, for example, thanks to its rebrand from ITV Hub in late 2022 – bringing with it a raft of exclusive content and an expanded catalogue. Sky and Channel 4 remain the commercial broadcasters with the highest proportion of BVoD viewing, tallying 20% and 16%, respectively.
So, where are the younger viewers at? The answer: SVoD and YouTube. 68% of all UK households now have access to at least one subscription video-on-demand platform; broken down further, Netflix – which accounts for over half of all SVoD viewing – is viewed in 58% of homes, Amazon Prime 48%, Disney+ 26%, Apple TV+ 8%, and NOW 6%.
When UK adults and teens want to watch something new, 39% of them claim to go to an SVoD service first, while 33% go to TV channels; among 16-24s, only 8% opt for a TV channel. Wide ranging appeal, ease of use, and word of mouth are cited as leading reasons for the popularity of SVoD services.
Meanwhile, overall viewing on YouTube grew by 20% in 2023; interestingly, the amount of time watching YouTube content on a TV set was up by 70%, accounting for 34% of all viewing. Shorter videos on YouTube’s free-to-use service remain the most popular type of content.
The key message here is that advertisers must diversify their audiovisual strategy if they want to reach younger audiences. BVoD, YouTube and SVoD – as we’ll go into more detail on in a moment – should all be key pillars of your approach.
The SVoD market is showing signs of a plateau, with growth slowing in 2023. The average household now has access to 2.3 platforms.
Future growth will come from nascent ad-supported services. 13% of all Netflix customers are now on an ad-tier, and this figure is likely to grow as the company continues to incentivise take-up of ad-funded models with lower subscription costs. Its foray into live events – including WWE – is also expected to generate stronger ad sales.
Right now, it’s difficult to predict just how prominent SVoD advertising will become in the media mix. Public Service Broadcasters, meanwhile, should benefit from the new Media Act, which has been introduced to ensure online PSB services are both available on popular TV platforms and capable of being easily found by audiences.
Additionally, the major PSB’s are collaborating on a new service called Freely, which will in effect replace the old Freeview platform. This will allows users to stream live TV channels, as well as access BVoD libraries, on the smart TVs on which it is available. An influx of new content is expected over the coming year.
The key message here is: watch this space. SVoD and PSBs are in a race to scale up their new offerings, with advertisers advised to keep a keen eye on developments.
The picture for commercial radio over the past year is mixed. While achieving overall revenue growth of 2% thanks to on-air competition revenues and commercial sponsorship, local and national spot advertising saw declines of 4% and 3%.
The reality is that, much like with video, audio is digitising and diversifying. Digital audio revenue surged by 12% between 2022 and 2023, with podcast advertising’s growth of 23% particularly influential. Advertising from music streaming services was also up, though the vast majority of income still emanates from premium subscriptions.
Commercial radio does still have a stranglehold when it comes to car journeys; DAB accounts for 57% of listening while driving, with in-home smart speakers (now found in 41% of households) another source of consumption. In total, live radio still reaches two-thirds of UK adults every week.
The key message here is don’t turn your back on the radio set. Though music streaming and podcasts continue to gain ascendancy – particularly among younger listeners – live stations remain an invaluable tool for engaging everyone from full-time workers to stay-at-home parents.
Want to find out more about the latest media trends? Our experts are always happy to help.