New Survey Finds Nearly Half of American TV Viewers Already Cordless
June 29 2021 - 09:00AM
Business Wire
44 percent of subscribers plan to cut or pull
back cable service in the coming year
Advertisers shift budgets toward Connected TV
at accelerated rate
Cordless TV consumers are on track to become the predominant TV
consumer in the next year, according to the fourth Future of TV
survey of more than 4,000 U.S. adults by The Trade Desk (Nasdaq:
TTD). The data shows that nearly half of American TV viewers are
already cordless (47 percent), while 44 percent of Americans with
cable TV anticipate pulling back or cutting service in the coming
year.
Cord-cutting accelerated as television programming such as live
sports became unpredictable through the COVID-19 pandemic and as
consumers’ hunger for on-demand content grew. The shift to CTV
appears to be solidifying with the majority of TV viewers aged 18
to 34 and 35 to 54 (60 percent and 53 percent respectively) already
without cable. These age groups are among the most coveted by
advertisers.
Streaming skyrocketed in popularity even for sports viewing,
which has traditionally been a driver for linear TV viewing.
According to the survey, only 19 percent of TV viewers are
returning to their pre-pandemic sports viewing habits. Meanwhile
nearly half of viewers (44 percent) who watch sports are choosing a
primary viewing source outside of linear TV. That number increases
to 65 percent among sports viewers aged 18 to 34.
“We are entering a new TV normal, where new streaming viewing
models sit side by side with traditional TV formats,” said Tim
Sims, Chief Revenue Officer, The Trade Desk. “From an advertiser’s
perspective, this shift presents a tremendous opportunity. They can
reach those streaming TV viewers with more precision and accuracy
than ever because they can apply data to those TV campaigns in a
way that’s not possible with linear. So, it provides incremental
reach that’s an important element of a comprehensive TV ad
campaign.”
The research also indicates the current TV content arms race
cannot be financially sustained for providers or consumers without
relevant ads, and consumers are becoming more receptive to
advertising even on CTV. According to the study, more U.S. TV
viewers report watching streaming content with ads (44 percent)
than without ads (33 percent). Indeed, nearly two-thirds of U.S. TV
viewers (64 percent) don’t want to spend more than $30 in total per
month on streaming services, making free or lower-cost ad-supported
services more attractive to consumers.
Advertisers Embrace the Power of Data-Driven Targeting on
CTV
Just as consumers have doubled down on streaming TV, advertisers
are also embracing CTV for its data-driven advantages and
incremental reach. A separate survey of 150 advertisers conducted
with Advertiser Perceptions found that 92 percent of advertisers
believe that CTV is as good as, or outperforms, linear TV
advertising, compared to the eight percent who say it’s not as
effective. Their advertising budgets support this view, with 45
percent of advertising professionals increasing their CTV budgets
over the last year. What’s more, among those who shifted budgets to
CTV, 91 percent said they will maintain those shifts or increase
investments in CTV.
Among the reasons most often cited for this shift, advertisers
called out the following benefits of CTV:
- Audience quality (young consumers, cord-cutters, etc.)
- Incremental reach to linear TV
- Ability to target consumers more precisely
- CTV measurement tools
These benefits are particularly apparent for marketers when
thinking about TV event advertising. In fact, 74 percent said that
buying CTV ads in conjunction with live sports events can be more
cost effective and impactful than classic sports sponsorships.
“Today's marketers are under a lot of pressure to prove the ROI
of every advertising dollar, and that has encouraged marketers to
think about how CTV can provide incremental value as part of a TV
ad campaign,” said Sims. “Advertisers want better cross channel
measurement and the ability to tie that measurement to actual
business outcomes. That means CTV is becoming an increasingly
important component of most contemporary marketing plans.”
Methodology for YouGov survey
The fourth Future of TV consumer survey was conducted for The
Trade Desk by YouGov. Fieldwork for this survey was conducted from
April 27 to May 5, 2021. It’s a representative survey with a total
sample size of 4,019 adults in the U.S. The survey was carried out
online. The figures have been weighted and are representative of
all U.S. adults (aged 18+).
Methodology for Advertiser Perceptions survey
Advertiser Perceptions conducted an online survey of 150 TV
advertising planning and buying decisionmakers with an annual TV ad
budget of $5+ million. Fieldwork for this survey was conducted from
April 22 to May 5, 2021.
About The Trade Desk
The Trade Desk™ is a technology company that empowers buyers of
advertising. Through its self-service, cloud-based platform, ad
buyers can create, manage, and optimize digital advertising
campaigns across ad formats and devices. Integrations with major
data, inventory, and publisher partners ensure maximum reach and
decisioning capabilities, and enterprise APIs enable custom
development on top of the platform. Headquartered in Ventura, CA,
The Trade Desk has offices across North America, Europe, and Asia
Pacific. To learn more, visit thetradedesk.com or follow us on
Facebook, Twitter, LinkedIn and YouTube.
About Advertiser Perceptions
Advertiser Perceptions is the global leader in research-based
business intelligence for the advertising, marketing, and ad
technology industries. Our expert staff delivers an unbiased,
research-based view of the advertising market with analysis and
solutions tailored to your specific KPIs and business objectives.
These insights provide you with the confidence to make the very
best organizational, sales, and / or marketing decisions, driving
greater revenue and increased client satisfaction. Contact us today
to check the status / health of your brand and find out how our
data-driven insights can help you achieve greater business success.
212-626-6683 or info@AdvertiserPerceptions.com.
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Patrick Wentling Communications The Trade Desk
pr@thetradedesk.com
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