In today’s world, it is common to hear conversations surrounding favorite shows and sports being watched, cutting the cord and cord stacking, or for many, streaming without ever having a cable or satellite subscription. Streaming audiences are increasing rapidly, and advertisers today should consider a streaming strategy if a video asset is available, and it makes sense for their budget and target audience. Viewers now have the flexibility to watch whatever they want, at any time, on any device, and advertisers are challenged to get in front of these consumers.
According to Nielsen in their Local Audience Insights Report, in 2014, only 2% of U.S. TV households were homes who have internet access and a television set, but do not have an over-the-air antenna or a traditional cable/satellite subscription (known as Broadband Only, or BBO.) In Q3 2022, that number increased to 33% of U.S. homes, with a 40% increase in the last year. Although many people assume it is young people doing most of the streaming, the Nielsen data tells another story. In Q3 2022, 60% of all streaming usage was among adults 35+, and adults 55+ saw year over year growth. Though the U.S. is facing challenging economic conditions, this growth proves that consumer demand for streaming is strong. Stacking also grew in 2022 based on Kantar data, with the average household now having five subscriptions.
As mentioned in Forbes, while streaming subscriptions have grown, and streaming viewership outpaced broadcast at times in 2022 for the first time, many ad dollars from brands haven’t made their way to streaming from broadcast. This is largely due to the fact that some of the larger players like Netflix and Disney+ did not have ad platforms. Now that there are ad-supported tiers, large advertisers that have remained faithful to linear TV are likely to move some ad dollars to test these new streaming options currently available to national advertisers. According to Kantar data, in 2022, consumers were willing to reduce their streaming costs to those that include ads, which provides more inventory opportunities for advertisers to reach their audience.
Streaming is an important consideration when planning television advertising. It is also important to remember that Nielsen data shows us that Linear TV is still a force, as local news and sports programming still have high viewership nationwide. This year we will continue to see streaming rapidly grow and change, and it will be important to see if inflation or other economic pitfalls impact the TV landscape in 2023.
Written by Account Manager, Rachel Greene