Today lets talk about the accelerated rise of Connected TV. Now to be clear, it feels weird to call this an accelerated rise when Connected TV’s popularity among marketers and brands was already growing at a crazy rate.
Unfortunately, due to COVID-19’s impact on the economy, there are a lot of people who are having to decide on how to cut back. One way that they’re doing that is cutting the cord with cable.
According to the Wall Street Journal just about a week ago, TV cord-cutting has hit a record as the largest Cable and satellite TV companies lost more than 2 million customers in the first 3 months of the year.
This is due to there being a limit on new content that is available. It’s a tough choice for consumers to justify continuing to pay traditional TV prices for recycled content. Especially considering you can have quality, on-demand content for a fraction of the price from some of the big streaming platforms (Hulu, Netflix, etc.)
As a result, streaming services like Disney + have seen a huge surge in paid subscriptions since this pandemic started. They’ve jumped up from 33.5 million paid subscribers to 50.4 million. This isn’t surprising when you look at the data from Nielsen about streaming behaviors during times like these.
According to Nielsen, viewers stream 61% more Connected TV during a crisis. When you think about what is happening during a crisis, whether it be COVID-19 or a major snowstorm, consumers stay inside and binge content.
One thing that I found interesting is that the sentiment behind ad-supported streaming is on the rise. According to a recent survey on streaming trends from the IAS, consumers are now more willing to watch ads with their content to control subscription costs. This could be due to subscription fatigue or it could be because of the current economic state, people are trying to find ways to cut back. It lines up with what we’ve seen from the cord-cutting records that the tv industry has suffered.
Connected TV isn’t new to marketers. The demand and popularity have always been growing year over year but the current state of affairs has just increased it in numbers we never expected. It’s time for brands to pivot and start incorporating Connected TV as a supplement to their marketing strategy. People aren’t going out as often as they were in the past and they’re staying home to stream content.
The data that we have been able to accumulate in the industry due to more users operating/purchasing things online is helping fuel not only Connected TV, but Digital Marketing as an industry. Using the data on online behaviors currently being gathered, we can help ensure your ads are getting to the right people at the right time – when they’re in the market for your product or service.
It’ll be interesting to see how the Connected TV market continues to develop and transform as the world’s behaviors continue to evolve.