PQ Media

More than ever before, consumers are paying for media—and spending less time with ad-supported options.

That’s according to PQ Media’s Global Consumer Media Usage & Exposure Forecast 2019-23—which explores media consumption by country, platform, channel and generation. It finds that our collective share of time spent with advertising-based media continues to decline, now falling to a 45% share of 2020 U.S. media revenues.

PQ Media says advertising still comprises the largest slice of media revenues vs. consumer spending globally, but it will fall to 65.9% in 2020.

The outlook says global consumer media usage and exposure, which entails all digital and traditional media combined, increased at a decelerated 1.3% to 51.6 hours per week (HPW) last year. That’s the slowest growth in a decade.

The research also finds that while consumer time spent with media is expected to grow at a faster rate in 2020, strong headwinds suggest a steady deceleration in media consumption growth through 2023.

While time spent with traditional media was down slightly (0.9%) last year to 37.8 HPW—the third straight year-to-year decline—the outlook isn’t all doom and gloom for radio.

According to PQ Media, the decline was “due primarily to the absence of even-year boosts from global sporting and political events in most markets. Additional factors that impacted the decline were plummeting sales of home entertainment content, such as DVDs and CDs, as consumers shift to streaming subscription services for movies and music. These services are also impacting live TV viewership and terrestrial radio listenership to some extent, though terrestrial radio tied with print books for fastest-growing traditional media, as both increased 1.7% in 2019.”

Consumers used television more than any other media silo at 25.9 hours per week in 2018, with total radio second with about 14 HPW. Nothing else is even close. Global consumers also used live TV (55.6% share) the most out of a dozen traditional media platforms in 2018, with radio again leading the rest of the pack by a substantial margin.

The forecast sees worldwide consumer media usage and exposure increasing at an accelerated 2.1% this year. But the overall picture is expected to see a progressive deceleration in the next three years. PQ Media expects global usage will grow by only 1.4% on a compound annual basis from 2019-23. That’s compared with 2.4% during the 2014-18 timeframe.

“This is an historically significant slowdown attributable to several key factors, including the decelerating mobile media juggernaut, younger demographics’ aversion to traditional media, and the lack of dynamic new media on the horizon,” PQ Media President Patrick Quinn, one of the report’s co-authors, said in a statement. “Our pacing data indicates OTT video will grow at an accelerated rate in 2020 due to the surge in subscriptions to new streaming video services… but overall media consumption growth in many of the top 20 global markets is either nearing or dipping below 1% going forward as the growth of various online, mobile and social media usage continues to slow or decline.”