April 7, 2023

Recent headlines have talked about the decline in cable ratings and people switching over to streaming platforms. However, is traditional TV really declining?

OTA (Over-The-Air)

This year will be the first time ever that linear TV’s viewing is below 50% compared to digital viewing at 52.3%. However, linear TV is far from being dead due to the growth in over-the-air TV. This means that Americans are continuing to gain access to broadcast TV, with 15% of US-households being broadcast-only.

Market Penetration

Growth in OTA is great news for both local and national marketing since advertisers will still be buying TV spots to optimize their audience. This way of reaching a broad audience has been, and will continue to be, a huge success for many brands.

Major Linear TV Challenges

Since there is no foreseeable decline in linear TV, the industry will need to fix some of the challenges that turn viewers away and concern advertisers. The first issue is too much ad frequency for consumers. Many consumers see the same ads over and over causing them to ignore them. This causes advertisers to waste money on ads, which is the second major issue of linear TV.

Solutions To The Challenges

The industry will need to rely on data and analytics to determine the best way for cross-platform advertising. However, this may be difficult due to how much frequency an advertiser would like to have on both linear TV and digital platforms. One way advertisers may generate more income in the future is to change what they measure from Gross Rating Point (GRP) to reach and frequency and use the fewest number of spots and digital impressions. Enough data and analytics exist to fix these issues. However, it comes down to how much effort the industry is willing to put into solving these concerns.

Cate Bender, the author, is Project Coordinator of Marketing Keys

Posted on:

April 7, 2023