Wait, Does Broadcast TV Still Matter?
By Movieguide® Contributor
A new study found that broadcast TV is still a major market for advertisers who want to reach as big of an audience as possible.
While the study found that 86% of all American households subscribe to at least one streaming service, at least half of all subscribers pay extra so they don’t see ads. Sixty-one percent of Netflix subscribers don’t see ads, nor do 53% of Disney+ subscribers or 57% of Max subscribers. As for YouTube, 74% of viewers skip ads as soon as possible — which is typically after five seconds.
In comparison, the study found that 91% of Americans are still reached by broadcast TV, meaning ads run through traditional sources still reach the widest audience.
On the surface this makes a compelling case for why broadcast TV still matters, however, advertisers would likely say differently.
One advantage streaming services offer is the ability to target ads, making ad placements more profitable by only paying to reach viewers who have a reasonable chance to buy what the ad offers. Targeting is what makes a platform like YouTube so successful, and as for the 26% of viewers who don’t skip an ad right away, they are significantly more likely to make a purchase.
READ MORE: YOUTUBE’S ADS ARE SO EFFECTIVE YOUR 2-YEAR-OLD REMEMBERS THEM
Furthermore, it is important to note that advertising on streaming services is a relatively new addition that only became widely popular during the last two or three years. Netflix, for example, launched its ad tier roughly two years ago and has already reached 70 million subscribers who view ads, with 50% of new signups opting for the cheaper, ad-supported tier. Nonetheless, the company does not expect its ads business to be a significant contributor to its profits until at least 2026.
Thus, even if broadcast still has an argument for being an effective distributor of ads, the expansion of streaming chips away at its market share every day. Furthermore, the majority of broadcast’s reach comes through live sports, which has been leaning more towards streaming as of late.
READ MORE: NETFLIX CELEBRATES NFL CHRISTMAS BROADCAST SUCCESS — AND PLANS MORE SPORTS STREAMS
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