TV is not dying, but viewing habits are changing more quickly than ever. Television content is now being consumed in more places. The digital habits of millennials are influencing the industry, which is responding by creating more individualized experiences that reflect the consumer’s expectation for a personalized on demand viewing.
Online video is quickly overtaking TV as a more targeted and cost effective way to reach your target audience. Group C is helping our clients publish video campaigns that utilize the latest online video formats and show measurable ROI.
Consumers are increasingly watching online videos across multiple devices. The most effective TV campaigns now need to include traditional and non-traditional insertion, or you will risk losing up to 30% of your local audience by 2019, according to a September 2017 eMarketer report.
IAB released a study titled: "The Changing TV Experience" in May of 2017 which found that Streaming Enabled TV ownership, including both smart TVs and video streaming devices, has reached the majority of US online adults (56%) in 2017, up 56% from 2015. In comparison, regular TV ownership dropped from 92% to 85%.
Streaming Enabled TV ownership, has grown to 56% of US online adults in 2017. - IAB, May 2017
Meanwhile, eMarketer has reduced its estimate for US TV ad spending due to faster-than-expected growth in cord-cutting.
"This year, US TV ad investment will expand just 0.5% to $71.65 billion, a figure down from the $72.72 billion predicted in our Q1 forecast for 2017. As a result, TV’s share of total media ad spending in the US will drop to 34.9%, and is expected to fall below 30% by 2021." according to the report released in September.
And digital video consumption is on the rise. US adults will consume 1 hour 17 minutes of digital video this year, up 9.3% over 2016 according to the same eMarketer study.
Placing ads on streaming services like Hulu and across multiple screens is easier than you think. Best practice is to diversify at least 15% of your TV budget to digital video in order to ensure you are making the best use of your budget. Click here to view our pricing guide.