Canadian Consumers A Nation of Grazers

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Canadian Consumers A Nation of Grazers

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Is there such a thing as Mass Media any more?
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Bye-Bye Mass Media???

• TV tuning down 8 in the US in Fall 2003
• Newspaper readership in decline
• Wizard of Ads says radio is history
• Environmentalists waging war on Outdoor

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Weapons of Mass Medias Destruction

• Home entertainment systems
• Home computers
• Playstations and Gameboys
• MP3 players and iPods
• Napster and Kazaa
• MSN and internet relationships

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Time to fold up the tent? or Is it too early to
say goodbye?
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First - A look at the landscape.
First - A look at the landscape.
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Share Of Ad Revenues-Y2002
Based on net revenues of 9.97 billion dollars
Television 25.5 (-.8) Daily Newspapers 16.8
(-7.9) Radio 10.7 (.5) Community Papers
9.1 (5.1) Consumer Magazines 5.4
(.1) Outdoor Transit 3.1 (.6)
Trade Magazine 1.4 (-.4) Internet 1.2
(.3) Other Media 26.8 (7.2)
Direct Mail 14.9 (17.9) Yellow Pages
10.4 (-1.1) Other Print 1.5
(-4.0)
Other print includes religious, school, farm and
weekend supplements
As reported in the 2003/2004 CMDC Digest and
multiple sources
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Canada In 2004

• Population of 31.6 million people
• 12.1 million households
• 5 markets 1 million population (40.5)
• Driving media inflation indices sky-high
• Source Statistics Canada, Financial Post and
  2003/04 CMDC Digest

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So, where can you find those 31.6 million
Canadians???
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Canadians Love their TV
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Canadians Love their TVs

• 65 of Canadian HHs have 2 or more TV sets
• 85 of HHs have cable or satellite
• 68 of HHs have cable (BC Vancouver highest)
  in decline
• 41 watch prime time on average day.
• 24 of total viewing is to non-simulcast US signal

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Canadians Love Their TVs

• Average Canadian watches 23.1 hours per week
  teens watch the least!
• Highest tuning in Prairies and Newfoundland
• 19 satellite penetration nationally with 30 in
  Man/Sask/Alb and BC Interior
• Highest satellite penetration in Canada?

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Rural versus Urban

• Watch as much or more TV than average Canadian,
  especially from Oct-March
• Same viewing preferences in general but more
  likely to watch
• Reality TV
• Anything with a western flavour
• Nature-themed programming
• Country Music
• Movies
• Source Y2003 BBM and Nielsen Media Research
  PMB 2003

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Other Observations

• Higher than average CBC viewers
• CCMA awards
• BBC World News
• Country Canada
• Venture, Witness, Nature of Things
• On Road Again, Coronation Street
• Red Green and Air Farce
• They love HNIC and the CFL

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New Technology

• PPMs or Pocket People Meters
• Works like pager detects imbedded tones
• January 2004 announced as new standard
• Lower-cost audience gathering greater sample
  size and more data
• Question as to passive versus active
  viewing/listening

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Digital Update

• Launched September 2001
• 38 of HHs subscribe to Digital
• Average national audience is 10,000 on top
  channels
• Showcase Action most watched
• Two casualties WTSN Edge
• 90 of revenues are from subscribers
• Cost is still a barrier in non-satellite HHs

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Digital Future Watch

• Subscribers remain key
• Subscribers buy bundles
• Bundles survival
• Advertisers are waiting for 50
• Shaw CanWest well-poised for cross-promotion
• Cool TV, Cool-FM, Cool Records

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On The Radio

• 941 radio stations in Canada 667 FM and 274 AM
• 93 of Canadians listen once a week
• Average weekly listening 21 hours
• Male/female equal nationally, but, men listening
  10 more on the prairies!
• Prime time is 7-9 AM

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2003 A year of change

• AM stations flipped to FM
• AM stations signed off for good
• Low-powered FMs were licensed
• Bob, Jack, Dave and Joe

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Their Favorites

• Adult Contemporary
• News/Talk
• Country
• Adult Rock
• Country Number 1 on the prairies
• Average Canadian listens to 3 different stations
  during the week.

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Rural vs. Urban

• Farmers listen to 6-10 more than the Canadian
  average (varies by province)
• They listen on the hour - news
• They listen early the weather
• They seek out the Ag Reports and know where and
  when to find them.
• They listen to the CBC (non-commercial)
• They listen to country in some cases by
  default.

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Radio is what my dad listens to in the car

• Internet threat or not?
• Kids download songs for free.
• IPOD and MP3 players sans tuners.
• Applications are in for Canadian satellite
  services

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Daily Newspapers

• Measured by NADbank
• 67 (of 105) papers in 45 Canadian markets
• Examines both readership and purchasing habits
• Covers mostly major markets

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Readership Highlights

• 11.6 million weekly readers
• 54 of adults read a daily on any given day
• 60 read a weekend daily
• 81 read at least once a week.
• Spend an average of 46 minutes reading
• All the above are in decline
• Source NADbank 2002

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Not all gloom and doom

• Go where your audience ison-line
• Winnipeg Free Press Fall 2002 moved to
  restricted web access.
• Brunswick News ad-supported on-line division
  formed in February 2002
• CanWest multi-media launch - 2004

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CanWest Multi-Media

• Four-tiered approach
• Breaking news free and from all CanWest sources
• CanWest Subscribers all papers content
  including archives
• Electronic Subscribers PDF electronic version
  at 5 AM
• Multi-media paid audio files, newscasts and
  perhaps some shows.

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The Opportunities

• Extend relationship with readers
• Attract new consumers
• Value-added to current advertisers
• New revenue streams subscriptions and
  advertising

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Community Papers

• Hot off the press..ComBase
• Largest piece of media research in Canada
  24,000 interviews
• First-ever in the world!
• Release date November 5th, 2003

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ComBase Measures

• 400 markets and sub-markets
• 700 publications including dailies, alternatives,
  ethnic, shoppers and farm
• Title and market-specific
• Measures all of Saskatchewan and Alberta and
  significant coverage of balance of Canada

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ComBase Measures

• Manitoba, and French-speaking Quebec missing
  Manitoba in for phase two
• Also measures 900 radio stations
• Demographics and readership data
• Some limited shopping preference data

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Top-Line Results

• 69 of Adults read last issue delivered
• 47 read yesterdays daily
• 25 of readers are exclusive (vs. dailies)
• Paid vs. controlled circulation is no longer an
  issue

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More Highlights

• BC highest readership in country 79 (63 read
  any daily)
• Alberta 78 vs. 58 for dailies and 29
  exclusive readers
• Saskatchewan 78 vs. 37 for dailies and 46
  exclusive readers

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Estevan, Saskatchewan
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Coronation, Alberta
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Consumer Magazines

• Approximately 550 Canadian titles.
• 93 measured in PMB 2003
• Quantitative Qualitative data
• Rolling sample of 28,000
• Also measures media habits
• Rural audiences read Magazines (PMB 2003)

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Rural Saskatchewan is Reading

• Readers Digest
• Macleans
• Canadian Geographic
• Canadian Living
• Harrowsmith Country Life
• Todays Parent
• Chatelaine

• Canadian Gardening
• Canadian Business
• Outdoor Canada
• Healthwatch
• Profit
• Westworld

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Canadians Read U.S. Magazines

• National Geographic 390.5
• Cosmopolitan 225.6
• Maxim 203.2
• People 186.5
• Prevention 186.4
• Martha Stewart 170.5
• Old Farmers Almanac 169.9
• National Enquirer 148.9
• (numbers are in thousands of readers)

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The On-Line Story

• Now referred to as the Digital Universe
• 17.2 million Canadians on-line March 03
• Projected to grow another 13.9 by end of 2004
• 75 of all Adults 18 on-line at least once a
  week (63 from home)
• Source Ipsos-Reid, eMarketer, IAABC

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The On-Line Story

• Male-Female equal
• Quebec Prairies highest users
• High-speed users 42 hrs/month
• Dial-up users 27 hrs/month
• Source Ipsos-Reid, eMarketer, IAABC

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Multi-Tasking

• 31 of females go on-line while watching TV, as
  compared to 24.2 of men
• Nielsen study says people using the Net to plan
  their TV viewing.
• Heavy traffic to program web-sites
• Polling is driving the content

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On-Line Activities

• Shopping
• 43 of Canadian Internet users have made on-line
  purchase in last 12 months (doubled since 2001)
• Security no longer an issue
• Source Ipsos-Reid

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On-Line Activities

• Jobs
• 50 of Canadian Internet users have looked at job
  postings in the last 6 months
• 62 have researched prospective employers
• 66 have sent their resume by email
• 39 have job-searched while at work!
• Source Ipsos-NPD eMarketer

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On-Line Activities

• Health Wellness
• 75 of Canadian Internet users have used the
  Net to search for health-related information
• 39 have sought out nutritional information
• Primary use is to be better informed of options
  before visiting a physician
• Some limited on-line pharmaceutical activity
• Source Forrester

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On-Line Activities

• On-Line Banking
• 16 of Canadian Internet users primarily bank
  on-line
• 33 perform some banking functions on-line
• Expected to rise to 60 by end of 2004
• Source Canadian Bankers Association

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Forecast for 2004

• Flat ad budgets in the face of media inflation of
  5-8.
• TV nationally will see advertiser backlash over
  fall 2003 rate increases.
• Specialty TV revenues will go up to offset media
  inflation in top 6 markets

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Forecast for 2004

• More format flipping as the name-game continues
  in radio.
• More summer TV program launches
• Radio and Outdoor beneficiaries in top 6 markets.

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Fuel for Thought

• Reaching tomorrows adults
• Not reading newspapers.
• Not married to the TV set.
• Radio is old technology.
• Magazines arent even on their radars!

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Pumped for more?

• Visit us at octanemedia.ca
• Call us at 751.5302 or at 1.888.7.OCTANE