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BizReport : Advertising archives : March 10, 2009

In-Stat: Which spending will drop, which will grow

From job cuts to the stock market crisis, Americans continue to face tough economic times and cutting back seems to be the answer most are turning to. Online market intelligence firm In-Stat estimates that the first spending cuts will be seen in mobile and broadband services.

by Kristina Knight

Researchers with In-Stat forecast that consumer spending in mobile, broadband and pay television services will face cut backs from as much as 15% of the consumer population; those cut backs could reach as much as $5 billion through the three segments, however, all is not bleak, because this is only an estimated 15% decrease.

Also, online video is expected to skip the decrease as more consumers tune in to watch favorite shows, catch up on past episodes or look for interesting consumer-generated content. This is one category which should continue to see marketers researching and buying time.

"Some male age groups had 40% to 50% of respondents using a PC while watching TV, and about 30% of females under the age of 40 are also using a PC while watching TV," says Gerry Kaufhold, In-Stat analyst. "New approaches using online web portals synchronized to a TV program will continue to develop, because they present no new costs. Cable TV operators also face increasing competition from lightweight services that deliver popular Cable programming, supplemented by content delivered via broadband."

Other interesting findings in the report include:
• Households with incomes below $35,000/year will be the first to cut back
• Consumers across demographics are tuning in to television while surfing online
• Netbook PC opportunities are expected to reach $2.4 billion

Tags: broadband consumers, mobile consumers, online forecast, online marketing, pay television

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