10 Statistics Illustrating The Inevitable Decline Of TV Advertising
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The 10 TV Advertising Statistics Marketers Need To Know For 2016 & Beyond
A twenty-second television ad used to be the most coveted product in advertising. Now, TV ads are becoming less relevant to viewers of all ages. In fact, 84% of surveyed viewers admitted that they want to fast forward through TV ads, and 60% of surveyed viewers would make the effort to find and download TV shows to avoid advertisements (The Guardian). In response to audiences moving away from TV, marketers are looking at options in digital and social media marketing (namely ways to advertise on Snapchat, YouTube advertising, and Facebook video marketing), thus leading further to incremental declines in TV advertising.
10 TV Advertising Statistics Forecasting Its Imminent Decline
1. TV advertising spend will be surpassed by the $77 Million of digital ad spend in 2017.
TV advertising spending is estimated to reach $72.01 billion, representing 35.8% of all media ad spending. In contrast, digital marketing, estimated to reach $77.27 billion, is expected to exceed TV advertising spending, representing 38.4% of digital advertising spend in 2017 (eMarketer). Even more, eMarketer is forecasting that TV advertising spend will constitute less than a third of total media spend by 2020. TV’s ad spending can be attributed to the rise of digital marketing and growing options online.
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2. MTV's viewership has declined over 60% since 2011.
In a recent U.S. News & World Report detailing MTV's current management woes, Associated Press shared the latest Nielsen figures from what once was the hottest teen network. At the end of September 2016, MTV averaged 550,000 prime time views down from its 2-11 heyday figures of 1.48M. For its most important demographic (18-to-34-year-olds; millennials), viewership has declined nearly 25% in just the last year.
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3. Since 2011, traditional TV viewing has dropped more than 10 hours per week for 18-24-year-olds.
In just a five-year time span from 2011 to 2016, 18-24-year-olds watched TV one and a half hours less each day, averaging at more than 10 hours weekly and 20 minutes daily (Marketing Charts). By 2020, it is estimated that 18-24-year-olds will be watching just less than two hours of TV a day (Deloitte Global). As TV is taking up less of the youngest adults’ time, marketers should look advertise less on TV and more on media that young adults are gravitating towards.
4. From 2013-2015, U.S. adults nearly 30 minutes less live & traditional TV.
The rest of the adult population in the US is also dropping TV, albeit slower than the young adult generation. The daily TV minutes that the adult population views will continue to drop steadily as it has been for the past 3 years. In 2013, adults watched 24 more minutes of traditional TV than in 2015, and in 2014, adults watched TV 14 minutes more than in 2015 (Deloitte Global). Time of traditional televised content consumed per adult viewer for any age is only expected to drop over time, and marketers should be aware of this trend for future campaigns.
5. TV’s weekly reach declined nearly 15% in 2015 for millennials.
Not only are young adults watching less minutes of TV per view, there are also less young adults watching TV per week. By the end of 2015, TV was only able to reach 75% of 18-34-year-olds as compared to the 86% average including all adults (Marketing Charts). The contrast in reach by young adults shows that TV is in declining by generation. Moreover, as the trendsetting generation, the decline of TV in young adults may also be an early indication of decline in traditional television’s reach to older adults.
6. 60% of people prefer online video platforms to live TV.
Live TV, once consumed exclusively on traditional television, held high appeal for advertisers looking to capitalize on the urgency of new content. Now, these live broadcastings can be streamed online on a variety of social media platforms, most significantly on YouTube and Facebook. This availability contributes to how 6 out of 10 people prefer online video platforms to provide live televised content than traditional TV channels (Think with Google). Marketers have several pathways to advertise alongside live TV now, and should follow how the majority of people are consuming live content to yield the best results.
7. YouTube boosts advertising reach for broadcast TV by almost 60%.
Not only has advertising on broadcast TV been in decline, but it still has to be supplemented with advertising on online video. For instance, businesses that advertised on prime time broadcast TV increased their reach by 59% in 18-49 year olds in 2015 by also advertising on YouTube (Think with Google). YouTube’s reach to a younger, wider audience is unmatched by the reach of TV. In fact, YouTube reaches more 18-49-year-olds on mobile alone than any broadcast or cable TV network (YouTube).
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8. Millennials watch nearly 50% less TV than adults 35+.
Most of today’s social media platforms are pushing to create their own content to rival TV content. The availability of new content on a popular online platform has led to millennials watching 47% less TV than adults over the age of 35 (Think with Google). With a diminishing audience watching TV, advertisers should begin to look to other forms of media and other forms of content to promote their businesses.
9. "Cord-nevers" represent over 1 out of 10 18-34-year-olds.
Pay-TV penetration is expected to fall to 70% by 2020 from 83% in 2015, largely due to both an increase of US household and a movement towards online content (Deloitte Global). Even though the number of households is increasing, the number of people adopting a pay-TV subscription is declining. Astonishingly, more than 1 out of 10 18-34-year-olds are "cord-nevers," or have never had a pay-TV subscription (Deloitte Global). These statistics show that the newest households are not paying for subscriptions, ultimately leading to a decline in traditional TV penetration and TV advertising.
10. By 2025, 50% of viewers 32 and younger will not subscribe to a paid TV service.
The relevance of pay-TV is diminishing amidst online video viewing options. The majority of millennials will not subscribe to a pay-TV service within the next 10 years according to a Forrester study of 32,000 U.S. adults published in Adweek. Additionally, "cord-cutters" (those who once had TV subscriptions and have since forgone the service) have now been surpassed by "cord-nevers" (people who have never paid for a TV subscription).
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October 25, 2016 By Mediakix Team