Linear TV Viewership is Dropping Like Flies

Linear TV viewership is truly dropping like flies, with 2022 marking the first year streaming surpassed traditional TV in viewership. 56% of Americans no longer have cable, satellite, or telco TV, and the number of cord cutting households is expected to hit 46.6 million in 2024, up from 24.6 million in 2019.

Why the rapid drop? Americans want to save money and streaming is more affordable (even with recent price hikes). The average cord cutter saves roughly $100 per month by cutting cable and instead watching on streaming apps. Besides being an affordable alternative, Connected TV’s on-demand features also give viewers the freedom to choose what they watch, wherever and whenever they want. This allows viewers more control over their watching options to better mesh with their lifestyles and interests.

It’s anticipated that by 2025, 72% of Americans will have completely abandoned cable TV. CTV will soon monopolize the television ecosystem, so it’s time for cable to change and advertisers to convert.

Popular cable providers are adapting to this changing landscape. Comcast, who was previously resistant to discounting, recently introduced a streaming live TV service, offering access to Peacock for $20 per month. Their shift in approach is obvious from their 2023 Q1 earnings report, which highlighted the drastic impact of streaming on cable companies. Comcast is now striving to align its TV packages with the scale and pricing of streaming channels to retain their diminishing audience.

Even YouTube, traditionally associated with smartphones and desktops, has transitioned toward TV screens. They have modified their CTV ad offering for YouTube Select content, displaying 30-second, non-skippable ads on Connected TV devices. YouTube Select content is now primarily viewed on TV screens, constituting 70% of their audience. This move aligns with the consumer shift toward living-room-focused viewing experiences, plus improves consumer engagement with advertisements.

Connected TV not only offers viewers the flexibility to pay for specific services, but also provides ad-supported content for free or for a reduced monthly fee, giving all households an affordable streaming option. Advertisers are massively benefiting from this surge in CTV viewership, allowing them to unlock CTV’s precise audience targeting, measurement, and attribution technology on the big screen with a growing audience — impossible with linear TV.

Although still lagging behind U.S. viewership, marketers are undoubtably adjusting to CTV’s buzz. CTV is predicted to account for nearly 50% of TV ad spending in 2024, jumping 21% since 2020. Connected TV has revived the allure of living room viewing, enticing viewers away from smaller screens and back to larger, more immersive experiences without the cost of cable and with on-demand’s freedom. As advertisers increasingly flock toward CTV’s solutions, other services are enhancing their offerings to remain competitive.

At EMG, we make Connected TV advertising easy and assessable for retail automotive dealerships. Automotive marketers can easily unlock the full potential of CTV, identifying and reaching highly-predictive auto-intenders on private-access, premium inventory channels they choose to watch. With online and offline deterministic attribution, we further optimize dealership campaigns and give automotive marketers the resources to easily understand their streaming campaign’s impact on performance.

To advertise on the favored (and top performing) TV medium, contact EMG and get a dealership proposal today.