In what could be considered a strong contrarian view, CBS Corp. Chief Research Officer David Poltrack advised attendees at the Future Television 2007 conference to first focus on marketing by technology – instead of by age group – to most effectively provide content and functionality.
“We found from segmentation analysis, which we base our efforts on, that age is not the effective parameter for which to segment markets,” said Poltrack in his keynote speech. “We instead use technology and access to it,” added the industry executive, who oversees all domestic and international research for the media kingpin.
“We have found no significant separation between the 18-to-34-year-old segment and the 34 to 55 segment,” said Poltrack. “In fact, those in the second group are more likely to be in the fully connected group (having broadband and a digital TV connection) than the younger group.”
Those are powerful words when you consider the source, which is also considered by many to be one of the most aggressive, and effective, in extending its TV assets – such as the “CSI” franchise – to other platforms including the Internet and wireless.
While it has and can be argued that media consumption trends track by age group, the senior CBS executive would have none of it, and shared additional supporting findings in an effort to offer attendees a better approach.
Poltrack added that the 55-64 age group boasts significant representation in the fully connected group, which may raise eyebrows among executives that seem to be first focused on increasingly targeting younger markets, perhaps by their widespread adoption of iPods and cell phones with advanced capabilities.
Poltrack said the fully connected group has grown from 22 percent of viewers to about 32 percent in just one year and represents the fastest growing segment of the population.
“These folks are the largest group of our top 10 network show viewers and the biggest purchaser of new technology,” said Poltrack. “That’s whom we are focused on. They’re leading us into the future.”
CBS has, and continues to, put its money, efforts and content where its mouth is.
The media colossus has expanded the audience and engagement time of “CSI” by adding Web and wireless components. It’s been aggressive in providing its network shows for video-on-demand viewing, already striking a landmark deal with cable giant Comcast Corp.
And at the Consumer Electronics Show earlier this month, CBS announced a partnership with Verizon Wireless Inc. where it will provide a full-time channel for the operator’s new mobile video service, enabled by Qualcomm Inc.’s MediaFLO network subsidiary.
CBS has learned from its VoD activities and related research, with Poltrack saying viewers “overwhelmingly prefer” ad-supported programming to ad-free, pay-per-program offerings. “I expect the ad supported model to win out.”
While 6 percent of CBS program viewers watch new shows first on VoD, those who first watch a program’s second season and beyond on VoD is in the mid-teens percentage-wise, according to Poltrack.
CBS Corp. www.cbs.com
