The State of the Media Democracy: Are You Ready for the Future of Media?

To shed light on how different generations are “consuming” media — and what their future media preferences are likely to be — Deloitte & Touche USA LLP’s Technology, Media and Telecommunications (TMT) practice commissioned an extensive survey on the evolving role of media in America. This State of the Media Democracy survey offers a generational reality check on the usage of current media platforms/devices and what the future may hold.

Fielded by Harrison Group (an independent research services firm) from February 23 through March 6, 2007, the survey used an online methodology to collect information from 2,200 U.S. consumers between the ages of 13 and 75.

The survey results provide keen insights into the different generations and their media consumption habits. The summary below is a small sampling of the numerous trends and data points the survey revealed. Firms of Deloitte & Touche USA are meeting with clients to share these insights and strategize on how they can help their businesses. If you are interested in additional information, please contact us.

EXECUTIVE SUMMARY

Millennials are leading the way, embracing new technologies, games, entertainment platforms, user-generated content and communication tools — creating a “trickle up” effect where the older generations are learning from them. The survey found that despite their eagerness to embrace new media, Millennials have an affinity for “traditional” media, such as print publications and television. Almost 6 in 10 survey respondents (58 percent) say they use magazines to find out about what’s “cool and hip,” such as clothes, cars and music. Perhaps more important, almost three-quarters (71 percent) enjoy reading print magazines even though they know they could find most of the same information online.

When Millennials find something they like, they broadcast it, and the power of their amplification is extensive. The Millennials surveyed maintain large instant messaging (IM) and texting lists that average 37 people, compared with just 17 for the entire sample. And when they find a particular television show or Web site they enjoy, they tell an average of 18 people, compared with only 10 people for all age groups. According to the survey, word of mouth is the most common reason for Millennials to visit a Web site, followed by an ad on television. Almost half (48 percent) visit television Web sites in a typical week.

Generations Xers enjoyed the explosion of new entertainment in their youth and continue to embrace entertainment today. They are the most interested in general lifestyle/personal interest information, including celebrity and entertainment news. They are also most likely to be visiting television show Internet sites.

Baby Boomers are in their peak earning years and are entering their empty nesting life stage — retirement is still a few years away but certainly on their radar screens. Boomers are still very dependent on newspapers and spend the most time with local news and weather content. They do spend a lot of time on the Internet, but do not match the younger generations as far as embracing the new media platforms. Across many measures, Boomers seem to split the attitudinal and behavioral differences between Xers and the Matures.

The Matures spend the most time with national and world news content, as well as financial information. Not surprisingly, Matures are the most likely to embrace print media. However, there is a significant percentage of Matures embracing electronic media, as well as participating in electronic forms of communication and user-generated content. A significant minority of Matures also participate in:

– Gaming and user-generated content
– IM and texting
– Meeting new friends over the Internet

SURVEY HIGHLIGHTS:

High Demand for User-Generated Content

– 40 percent of all survey respondents are making their own entertainment (editing movies, music and photos)

– 25 percent of Matures

– 56 percent of all Millennials; leading Millennials (18–24) participate more

More than one in 10 Millennials are actively uploading their own videos on the Internet

– 51 percent of all survey respondents are watching/reading content created by others
– 71 percent of Millennials watch/read content created by others; 56 percent of Xers do; Boomers/Matures participate less, but participation is noteworthy
– 53 percent of Millennials would download more videos if connection speeds were faster
– One-third of online content viewing is done on user-generated sites

Almost 1⁄4 for Matures, 1⁄2 for Millennials

Long Live Traditional Media!

– Favorite and promising new television shows beat the Web as the most frequent media conversation topics for all generations
– Extensive amplification with the Millennials as they tell the most people about what they like
– 52 percent of Xers are visiting television show Internet sites
– Printed magazines are an integral part of every generation’s life
– 72 percent enjoy reading magazines over finding the same information online
– 58 percent of Millennials agree magazines help them learn about what’s “in”
– Compared with online activities like surfing the Web and downloading music, all generations aspire to reading a book in the coming year

Advertising Insights

– 64 percent tend to pay greater attention to print ads in magazines or newspapers than advertising on the Internet
– More than one-in-four would pay for online content vs. being exposed to ads
– Search engines and word of mouth are the most effective means for driving Web site traffic — 85 percent of Xers are influenced by someone’s recommendation
– Generation Xers are a little more responsive to advertising

Future Products

Millennials are leading the way as far as embracing new technologies, games, entertainment platforms, user-generated content and communication tools:

– 64 percent want to easily connect their television to the Internet for viewing videos and downloading content to their television
– 60 percent want the ability to move their content to any device they own without any problems
– 57 percent want an entertainment and communication device that lets them do everything
– 49 percent want a computer or similar device that will be the center of their household media experience