A Blog by Jonathan Low

 

Mar 31, 2018

How Netflix and Other Streaming Options Are Crushing TV Advertising

Advertisers have been concerned about unverifiable numbers. But the audience is clearly migrating to digital and so the money has to follow. JL


Ashley Rodriguez reports in Quartz:

The return of Roseanne attracted an audience almost unheard of today: 18.1 million viewers. Ten years ago, a primetime audience of that size was considered solid, but standard. TV’s command over the US advertising revenues has given way to digital, which is expected to bring in nearly half of all ad revenue this year. Spending on TV ads fell for the first time in 2017, and will slip another 0.5% this year. Facebook and Google will reap a combined 57% of digital ad spending this year.
The advertising industry has long predicted that TV ad revenues would collapse under the weight of cord-cutting and competition from online platforms like Google and Facebook. It looks like that’s finally happened.
Spending on TV ads fell for the first time in 2017, and will slip another 0.5% this year to $69.87 billion as more Americans ditch standard TV packages, eMarketer estimates. The firm said that TV ad spending would likely rise again in 2020, when the next US presidential race and Summer Olympics take place. But it’s otherwise expected to continue its downward spiral.

Advertisers are spending less on traditional TV because viewership is falling. Even marquee cable TV shows like The Walking Dead are having trouble holding onto viewers. On Tuesday night, the two-episode return of Roseanne attracted an audience that’s almost unheard today outside of major sporting and other live events—18.1 million total viewers. Ten years ago, a primetime audience of that size was considered solid, but standard.

0 comments:

Post a Comment