New research from YouGov has found that 55% of 18-24 year olds are now watching television online, compared to just 12% of over-55s. The online research provider’s ‘Media Migration’ study also found that of those already watching TV online, 54% are watching more than they did last year.

The study’s results will come as confirmation rather than shock to those watching the broadcasting industry. The continuing success of BBC’s iPlayer has seen other broadcasters race to replicate its offer, with the likes of Channel 4 and Five introducing on-demand services. MTV’s UK site has full episodes of some of its latest shows, and others available to download on YouTube.

BBC iPlayer goes from strength to strength

So what are the implications for marketers? Those involved in broadcasting will no doubt be knee-deep in research studies, war gaming and strategic visioning as they battle to predict the extent to which the advent of online TV will bring about a long-term shift in viewer habits. Meanwhile, the likes of Saga can rest secure in the knowledge that they’ll have a few more years before Saga On-Demand becomes a business prerequisite.

For those outside the industry - particularly those targeting the all-important ‘youf’ audiences –  the question becomes one of budget allocation. With more than half of young people apparently now choosing to watch TV online, how long can the traditional television advertising model remain preeminent?

For what it’s worth, our feeling here at The Value Engineers is that online TV won’t signal the death of watching ‘on the box’ anytime soon. Instead, I’d predict that we will see a gradual merging of technologies and viewing occasions, as television meets radio meets internet meets on-demand viewing. Expect to see manufacturers introducing easy-use, multi-function sets that will extend the reach of the ‘home media center’ beyond its current audience of early adopters, technological savants and value-conscious high earners.

In the meantime, I’m off to get some quality viewing time in on YouTube…

Keeping abreast of the UK kids market is a real challenge given its natural volatility and the ever strong political and media interest. With this in mind, The Value Engineers Kids has launched a quarterly newsletter that distills all of the pertinent consumer and trade news along with a snapshot of kids favourite lifestyle & media interests.

The information and news features are supplemented with brief commentary and analysis throughout, making it a ‘must read’ for anyone with an ongoing interest in what is happening in the world of children. Anyone who is interested in receiving a copy should contact Dave Lawrence at dave.lawrence@thevalueengineers.com

If you were to sit down and & examine a list of consumer insights on the subject of energy, sports and nutritional beverages it would be both long and contradictory. UK markets have evolved in these categories far faster than consumer understanding of the product and associated benefits within. This has lead to a consumer beverage landscape for such categories best described as a wilderness where, due to low levels of understanding from consumers, insight can at times be misleading and should therefore be handled with a great deal of care.

Having recently commented in The Grocer on Neuro:

http://www.thegrocer.co.uk/articles.aspx?page=articles&ID=208231

a functional beverage from the United States which soft-launched in Waitrose in the UK in January I was interested in a similar functional proposition from Crystal Light Pure Fitness by Kraft:

This represents a first journey into the fitness territory for Crystal Light who have added a fitness proposition to their long list of functional variants which includes energy, hydration, enhancement, fortification & skin essentials. The dry-mix format itself is not a familiar one outside of the ‘performance’ area of the category however the brand has credence here through the heritage of the core range. The hydration focused strap line of “water you body” highlights the necessity to educate the consumer target on the benefit however fails to communicate any benefit above and beyond drinking only water – a huge rival to the fitness beverage market.

One aspect of their strategy I find interesting is in retail where they are avoiding the crowded aisles now dominated by Zero Ranges from Powerade and Vitamin Water and other functional drinks brands in favor of alternative shelf space.

If the goal of such a launch is to increase penetration then putting any mythologies over the ingredients/reasons to believe aside (Truvia in this case) I would suggest that the in-store position might have the effect of cannibalizing their existing range rather than attracting new customers to the product. This is especially true if the US market has a similarly low level of consumer understanding as the one I’ve seen in the UK where ingredient are often misunderstood or serve simply as a check-list / safety net. That said penetration may not necessarily be the strategy supporting such a launch which could easily be focused on re-energizing a range in order to win back lapsed female consumers lost to a glut of new competition.