Dive Brief:
- Nielsen research made available to Mobile Marketing Watch on global broadcast and VOD video programming showed that traditional TV remains in the lead ahead of cord cutting.
- A majority (72%) of respondents reported paying to watch via a traditional connection compared to 26% who reported paying to watch via an online service provider.
- What might be most telling from a marketers’ standpoint is even though this research shows traditional TV remains strong, according to eMarketer digital ad spending is expected to surpass TV next year for the first time and quickly leave TV spending in the rear view mirror through 2020 projections.
Dive Insight:
"Today’s media landscape is complex, but the growth of video-on-demand programming services can create opportunities for all players in the media ecosystem," Megan Clarken, president of Nielsen Product Leadership, told Mobile Marketing Watch. "For audiences, advertisers and content providers alike, advantage will be gained with an in-depth and keen understanding of not just how consumer viewing dynamics are changing, but why they are changing."
Breaking it down by region, North America at 35% and Asia-Pacific at 32% were most likely to report cutting the cord and paying to watch TV via online providers. The research wasn’t broken down by demographic, but previous research has indicated that younger viewers are more likely to be abandoning paying for traditional TV.
Clarken explained that what will set providers apart and give them an advantage is pushing out strong content and providing customers with custom viewing experiences.
Nielsen's findings indicate marketers shouldn't be so quick to write off TV as an advertising channel, despite forecasts that paint a less fruitful picture for the medium. This month eMarketer predicted that digital ad spend will finally surpass TV ad spend in 2017. However, what advertisers can do to get the most out of their TV budgets is to improve their understanding of their target audiences. Through data, advertisers can pinpoint where their target consumers can be found before committing advertising budgets to campaigns.