The pandemic has brought about many changes in our everyday lives, including our TV habits. Since the start of the pandemic, many Americans have switched from traditional television to streaming TV. As of 2020, over 45 million adults in the US have dropped their cable service, with a total of more than 55 million predicted for 2022. Much of this is attributed to the lack of live sports in early 2020, shortened or delayed seasons of popular TV shows, and people staying inside for more hours a day. These factors, brought on by the pandemic, have resulted in a mass wave of cord-cutting.
Though many live sports and network shows have returned in 2021, we are still seeing more and more consumers switching to streaming. Many consumers state that they’ve quit cable because they can find what they want to watch online. Cable television can be seen as too expensive, with the average cable package costing from $35 to $130 per month. Many streaming services like Netflix, Hulu, and Disney + have monthly packages ranging from $10- $15 a month, allowing consumers to subscribe to multiple streaming services while still paying less than cable.
Streaming has become the new go-to for TV entertainment. And while users can stream on nearly any device, some of the largest streaming numbers can be seen on Connected TV. Connected TV is a premium subset of OTT(Over-The-Top)/streaming TV and includes big-screen devices like Roku and Samsung TVs. 73% of total OTT viewing time in 2021 came from Connected TV devices, with tablets, smartphones, and desktops making up the remainder. This time is divided among streaming services like Pluto, Sling TV, and Hulu, to name a few. The multitude of channels and shows offered by these services continue to draw in customers of all demographics to Connected TV and streaming. Of US CTV views in 2020, a study from Emarketer reported that 45.7 million were Gen Z, 56.5 million were Millennials, 48.5 million were Gen X, and 32.8 million were Baby Boomers. Streaming TV isn’t just something for younger consumers anymore, as many older generations are also making the switch.
With over 80% of US households watching on Connected TV in 2021, It’s time we reevaluate where Americans are spending their time watching tv, and for that matter, where we spend our advertising dollars. Often seen as more cost-efficient, Connected TV advertising comes with many benefits over traditional TV advertising. With the option of using audience data to place non-skippable commercials on Connected TV devices, you can reach your target customers with greater precision. Visit our previous blog post here to learn more about if OTT advertising is the right choice for your business and how Awarity can help you get seen on Connected TV.
