TV Isn’t Dead
By Christi Anderson, VP CPA LF Media Strategies
We love seeing the occasional headline that dramatically proclaims that TV is dead. While streaming platforms continue to grow and expand, almost 20 years later, TV is still holding strong. In fact, according to data from Nielsen, cable and broadcast viewing accounted for 61% of all viewing, while all streaming platforms accounted for just over 28% of all TV viewing time.
With more options than ever, it was anticipated that viewers would shift to more flexible, on-demand platforms. The data says otherwise. Consumers are widening their choices instead of committing to one platform. Comscore reports that 65% of households that use streaming services such as Netflix, Hulu, or Amazon Prime, also maintain their TV subscriptions.
5 Reasons Why TV Isn’t Dead
With mass viewership, stable connections, and high-quality programs, TV remains one of the most popular platforms for building and maintaining brand awareness. Including TV advertising in your brand’s marketing strategy is vital to reaching a broad audience while maintaining efficient ad spending. New technologies also allow for a targeted approach and measured campaigns, offering clear insight into performance.
⦁ Large-Scale Reach
While streaming platforms continue to grow, most Americans still spend their time watching network and cable TV. Nielsen recently reported that while 28% of audience time was spent watching streaming services like Netflix or Hulu, 61% was spent watching traditional broadcast or cable TV.
⦁ Audiences with Substantial Buying Power
It’s well known that traditional television attracts an older audience than other platforms, with 50+-year-olds spending the most time in front of their TV sets (more than 5 hours per day). According to research compiled by the Video Advertising Bureau, this older audience holds massive buying power, accounting for 40% of spending across top consumer categories such as vehicles (37%), food away from home (36%), households furnishings, and equipment (43%), entertainment (35%) and alcohol (41%). Harvard Business Journal reports that people over 50 are responsible for over half the consumer spending in the US, yet only 5%-10% of marketing budgets are allotted to gain their attention.
Older adults are working later in life, accounting for 34% of the US workforce, and they hold more spending power than any other age group, including Millennials. They enjoy active lifestyles reflected in their purchasing habits, creating a valuable opportunity for advertisers who can craft compelling TV advertisements.
⦁ Efficient Media Spending
TV advertising is no longer an expensive, out-of-reach, and immeasurable option for marketers. With targeting and retargeting options, media spending is now more efficient than ever, allowing advertisers to place their messaging in front of people who are most likely to convert. Sophisticated analytics provide detailed insight into an ad’s performance that can guide future decisions if the campaign should be continued or replaced.
⦁ Brand Awareness & Recall
TV ads leave a lasting impression on viewers – MarTech has found that ad recall on TV is 32% better than the next closest device, which is a significant advantage in today’s marketplace. Furthermore, the ads cannot be skipped like on YouTube, providing advertisers with a high completion rate of 97% and a low cost per view. For most, linear TV is still the preferred source of up-to-date information such as news, sports, and live shows. This kind of content induces strong awareness and engagement in the viewers, offering an irreplaceable medium for brands working on establishing their identity.
The New Era of Television Has Already Started
Through CTV, TV advertising has transformed into a targeted, measurable, and effective marketing tool. Advertisers can precisely target their audience based on location, demographic, income, intent, and much more, ensuring that your brand’s message is being shown to the right audience at the right time. Your ads’ performance can be assessed through tangible metrics such as cost per action, site visits, conversions, etc.
After a couple of decades of speculation, it is now clear: TV is here to stay. Even though it is no longer the only option neither for the viewers nor the advertisers, it remains a powerful channel through which brands can reach their desired audience.