Wherefore art TV advertising is a play on Shakespeare. But the stakes couldn’t be higher for TV firms at any point along the supply chain. Viewing shifts — with the related advertising shifts — are playing havoc with both traditional and cable TV audiences.
So, what is on the horizon?
Looking Ahead: Wherefore Art TV Advertising
As we have seen in recent years, TV ads are declining in importance. Streaming services by Netflix, Amazon, and others contribute to this. That is in addition to the factors noted above.
Even short-term trends do not look bright for TV advertising.
“TV ad spending will continue its decline this year, according to eMarketer’s latest US advertising forecast. With cord-cutting accelerating and over-the-top (OTT) viewing on the rise, outlays on TV ads will slip 0.5% in 2018 to $69.87 billion. Thus, TV’s share of total U.S. media ad expenditures will drop from 33.9% in 2017 to 31.6% this year.”
“TV ad spending will see a slight uptick in 2020 (due to the US presidential election and Summer Olympics in Tokyo), but it will sink back to negative territory in the following years and fall to less than a quarter of total ad spend by 2022. ‘As ratings for TV programming continue to decline, advertiser spending will also continue to fall, especially in years that do not boast major events such as presidential elections and Olympic games,’ said eMarketer senior forecasting director Monica Peart.”
“Consumers who want to cut or shave the cord now have a wealth of options that didn’t exist a couple of years ago. And we expect the offerings to become even more robust as more players enter the market. These advertising trends come as cord-cutting continues to gain momentum in the US. Last July, eMarketer increased its estimates for cord-cutters substantially for 2017 through 2021. This year, the number of TV viewers in the U.S. will drop 0.2% to 297.7 million. Conversely, the number of OTT viewers will grow 2.7% to reach 198.6 million.”