As more people “cut the cord” from cable TV, ad spending for traditional TV is expected to decline to less than one-fourth of total ad spend by 2022. At the same time, ad spend for digital video is increasing and will continue to do so.
According to eMarketer, there are 86.5 million pay TV subscribers currently in the US, but that number is expected to decrease to 72.7 million by 2023, including a decrease of 22 million subscribers in this year alone. In addition to the decrease in pay TV subscribers, consumers of all ages are spending less time watching TV, especially those 17 years and younger.
So, what are the take-aways from this data?
- TV has managed to avoid disruption longer than other media, but times are catching up.
- With decreasing TV audiences and ad spend, TV ad rates will decline, which is good news as TV ads remain very effective.
- Many brands are not happy with the cost of digital media and have decided to earmark more of their ad budgets to traditional media such as TV.
Has your organization made changes in its amount of TV advertising?