It is no secret that TV and entertainment are changing. Rewind time back half a century ago and most TV watchers had access to 20 or fewer channels. Today’s market is saturated with channels including streaming options through the web and more.
This is your inside look at the latest TV viewership trends.
CTV by the Numbers
Connected TV, also referred to as CTV, includes Rokus, video game consoles, and other devices used to stream online video directly into the home. CTV is growing in popularity while cable TV is declining in popularity. In particular, CTV has become especially popular among millennials and Generation Z who continue to cut the cord on cable at an increasingly high frequency.
By this time next year, the number of CTV users in the United States will have surpassed the 63.5 million mark. The benchmark is significant as the number of CTV users in the country was 57 million half a decade ago.
The transition away from cable TV to CTV is largely attributable to increased viewer agency. CTV makes it easier to watch what one wants whenever desired.
Traditional TV by the Numbers
Conventional cable TV is still popular in 2024. Take a close look at the statistics and you’ll find traditional TV is especially popular with baby boomers. Nearly 60% of the baby boomer age cohort spends more than 10 hours per week in front of the TV screen. However, only 26% of millennials spend 10+ hours watching traditional TV. Moreover, merely 17% of Generation Z watches 10+ hours of TV.
On a year-over-year basis, broadcast and cable TV have a mere 3% yearly growth rate. However, cable TV viewership decreased by 5% for those in the 65+ age cohort in recent years. Merely one-third of those between the ages of 18 and 34 in the United States are subscribers to cable TV.
Though cable TV is losing market share to CTV, video games, and other forms of entertainment, it is still a valuable marketing channel as the yearly income of cable TV subscribers is 11% greater than those who do not subscribe to cable TV.
The Rise of FAST TV and Shoppable Platforms
FAST TV is an acronym referring to free ad-supported TV. As time progresses, more consumers are pivoting away from cable TV with commercials to FAST platforms to save money. Around 55% of TV watchers enjoyed content through FAST platforms last year. The rate of FAST viewership will likely continue to increase with each subsequent year.
In addition to FAST TV, shoppable platforms are also on the rise. As an example, shoppable ad formats are popular on Roku and other streaming services. The appeal of shoppable platforms is that they empower viewers to take prompt action in response to video. Look for more TV services to begin supporting such shoppable advertisements in the years ahead to capture more market share from broadcast and cable TV.
Converged TV Advertising Will Continue to Increase
Converged TV ads that encompass digital, CTV, and linear broadcast TV will receive even more funding through 2024 and beyond. In the year ahead, more than 61% of advertisers will boost their spending on converged TV ads.
Such a unified approach spanning digital and linear entertainment channels empowers businesses and advertisers to expand their reach. Converged ads also make it easier to obtain a better understanding of viewing audiences.
Is CTV the Wave of the Future?
CTV soared in popularity throughout the year. If current trends hold, CTV will become even more popular in the year ahead. According to Digiday polling, more than three-quarters of advertisers indicated CTV is a significant aspect of advertising.
Exactly two-thirds of advertisers have redistributed social media money to CTV while competing marketing channels have lagged. At some point later this year, around one-quarter of brands anticipate CTV will constitute upwards of 80% of revenue.
When in doubt, look at the data. The numbers tell the truth of the story. As an example, this past year marks the first in the United States that those cutting the cable cord outnumbered those paying for cable.
The numbers are quite striking:
- Exactly 62.8 million households paid for cable TV in 2023
- 68.7 million households cut the cord on cable in the same year
Moreover, the numbers show cable and broadcast TV dropped below 50% of TV usage for the first time in decades. In contrast, 87% of homeowners have at least one device used for connected streaming TV (CTV). Netflix alone has more than 65 million subscribers in the United States. If the current statistics hold, the rise of CTV will likely continue through 2024 and beyond.
