Friday, September 15, 2017

Deceleration of TV Ad Sales

As television ad sales slow, terms such as “cord-cutters” and “cord-nevers” are being used more and more frequently. According to eMarketer, viewers are moving to alternative platforms quicker than expected.

The rise of subscription services allow users to access channels such as HBO and ESPN without ever having to pay for cable.  On top of this, digital platforms now offer live TV channels, including sports, and the amount of time viewers consume digital video has increased 9.3% this year.

In 2017, an estimated 196.3 million adults in the United States will watch pay TV. eMarketer predicts that by 2021, this number will drop 10 percent to 181.7 million.

Although television ad spending in the U.S. is up from 2016, the share of total media ad spend is decreasing.

Many broadcast networks utilize digital platforms to reach delayed viewers. Despite this strategy, “the bulk of ad revenue continues to come from linear viewing”. 

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