Advertising has come a long way from the days when a basic ad in the local newspaper was enough to generate awareness and attract key audiences. In today’s digital age, technological advancements, such as the widespread availability of high-speed internet connections and the proliferation of digital devices capable of accessing online content, have revolutionized the advertising landscape. These developments have opened up new possibilities and created new challenges for businesses seeking to reach and engage their target audiences.
To effectively target audiences in the digital age, businesses and organizations must ensure they are present on all screens, including TV, streaming, desktop and mobile devices. While it is crucial to have a broad digital presence, many businesses underestimate the power of Connected TV (CTV) and Over-The-Top (OTT) streaming. As cable and broadcast TV decline in both advertising and consumption, more people are turning to streaming services as their primary source of entertainment. To stay competitive and reach these audiences effectively, businesses must adapt their advertising strategies to the changing landscape of TV and streaming.
Decline of Cable and Broadcast
Cable and broadcast TV have been the primary way people have consumed media for decades. However, in recent years, there has been a decline in cable and broadcast TV.
There are several reasons for this, including:
- The Rise of Streaming: Streaming services like Netflix, Hulu, and Amazon Prime continue to rise in popularity and offer a convenient way for people to watch TV and movies without having to deal with the hassle of cable or broadcast.
- Cutting the Cord: Many people are cutting the cord and canceling their cable or satellite subscriptions in favor of streaming services. This has led to a decline in cable and broadcast TV viewership. According to Screen Media, the number of linear TV subscribers fell by 6.6 million versus 5.6 million in the same period last year. Penetration of the 128.7 million occupied homes in the US declined to 53.2%. Just nine years ago, the penetration of US homes was over 88%. This is a staggering descent of what was once the way to watch programs, news, sporting events, etc.
- Limited Options: While cable and broadcast TV remain essential components of any advertising campaign, they offer a limited number of channels and options for viewers compared to streaming services. Streaming platforms provide a much wider range of content choices, including original programming, and this has contributed to their growing popularity among audiences.
It’s important to have a comprehensive advertising strategy that includes both traditional TV and streaming services. At Sinclair PA, we have the expertise to help businesses evaluate their target audience and determine the most effective advertising channels, including broadcast TV, cable, streaming, and digital. Through planning and media buying strategies, Sinclair PA has observed digital and streaming options becoming increasingly popular among most audiences. As a result, businesses must adapt their advertising strategies to effectively reach their target audience in this changing landscape.
Stay tuned for the next installment in our Digital Advertising Blog Series, where we’ll discuss why streaming has taken over, what your business should do to stay on the forefront of technological changes, and the potential challenges this change may create in the advertising industry.