Data from a recent Veronis Suhler Stevenson* (VSS) study as reported on MediaPost shows that for the first time since 1997, media usage per person dropped in 2006. The study reported that media usage per person declined 0.5% in 2006 over 2005 to 3,530 hours.

While the number of media outlets continues to grow, it seems that individuals are changing the way they use the media. For example, rather than watching a 30-minute newscast, more people are turning to less time-consuming digital media for news.

The same is true for entertainment, as people move away from advertising-supported media to consumer-supported platforms like cable TV and videogames. The VSS study shows that time spent with consumer-supported media grew at a compound annual growth rate (CAGR) of 19.8% from 2001 to 2006 (on average, 1,631 hours in 2006), while time spent with ad-supported media declined 6.3% in the same time period.

As individuals spend less time viewing media, especially the traditional forms of media, marketers are challenged to step up the quality and efficiency of their efforts.

Brian Miller, partner in MillerWhite Integrated Marketing, points out, “Based on the findings of this study, quality (vs. quantity) marketing is becoming even more important as we move forward. While people aren’t any less interested in media, they are changing the way they use media. For marketers and marketing firms, these figures put the emphasis on creative, strategy, planning and placement.”

Apparently marketers have no intention of abandoning their efforts. The VSS study forecasts increased communications spending, projecting a 6.4% increase to more than $900 billion in 2007.

* Since 1983, Veronis Suhler Stevenson has been an important information source for the media industry and the financial community by facilitating an understanding of the spending patterns and performance trends of the overall industry and its 12 major segments. The Veronis Suhler Stevenson research library interprets the predictability of media company values and articulates the promise that media properties hold for investors and acquirers.