Linear TV, the traditional broadcast method of scheduled programming, is seeing a decline in audience numbers as more consumers shift to streaming platforms. However, linear TV is not entirely on its way out. It still retains value, particularly in live sports, news, and major events, where these broadcasts drive significant viewership.
According to Ocean Media, despite the decline in linear TV usage overall, it maintains a valuable place in the media landscape, especially for older generations and those who prefer traditional TV experiences. Many viewers still find comfort in scheduled programming, and channels are finding ways to retain their audiences through event-based content such as live sports, special events, and news.
Streaming’s Rise and AVOD Models
Streaming platforms, particularly those supported by advertising (AVOD), have dramatically shifted how consumers watch TV. Platforms like Netflix and Disney+ have embraced hybrid models that include both ad-free subscription tiers and ad-supported tiers, blending flexibility with broader accessibility.
Streaming platforms are increasingly adopting addressable advertising solutions that allow brands to target specific users based on viewing preferences and data. This is becoming a significant driver in digital ad revenue growth, with more advertisers favoring streaming over traditional linear TV.
Addressable TV and Its Competitive Edge
One of the major innovations keeping linear TV relevant is addressable TV. Unlike traditional broad-based advertising on linear TV, addressable TV allows advertisers to target specific households, combining the reach of linear TV with the precision of digital advertising.
According to Mountain’s blog, addressable TV enables advertisers to send personalized ads to households that fit their target audience. It gives linear TV a chance to compete with streaming in offering precision.
Many broadcasters are embracing programmatic buying, which offers real-time bidding and allows advertisers to dynamically buy ad spots based on audience behavior. This makes linear TV more competitive in the ad market.
Advertising Trends and Revenue Shifts
Linear TV ad spending has steadily declined, with digital ad spending surpassing linear TV for the first time in several markets. PwC’s future of linear TV report emphasizes that this trend will continue, but certain genres (like sports) will still attract significant ad dollars.
Platforms like Hulu, Peacock, and YouTube TV have proven attractive for advertisers due to their addressable ad capabilities. Advertisers are increasingly turning away from linear TV, with digital ad formats like CTV (Connected TV) capturing more attention due to their flexibility and targeting options.
Challenges for Linear TV
Several reports highlight that linear TV is struggling to retain younger audiences, with Gen Z accelerating the decline. For younger viewers, on-demand content, shorter viewing sessions, and the ability to binge-watch have more appeal than scheduled programming.
As more content moves to streaming platforms, linear TV’s ability to offer exclusive programming is diminished. Popular shows and syndicated content are being siphoned off to streaming services, making it harder for linear TV to compete.
The Future: Hybrid Models and Integration
To stay competitive, linear TV networks increasingly integrate hybrid models, blending linear TV with digital services. This allows broadcasters to offer live programming while pushing content on-demand, attracting both older and younger audiences.
Disney’s and NBC Universal’s streaming strategies show how hybrid approaches can complement traditional TV models. Disney+, for example, uses its linear content to feed into its streaming catalog, maintaining relevance across both segments.
According to Nielsen, personalizing linear TV via hybrid services and including targeted advertising could prolong its life.
Advertiser’s Perspective on Linear TV
A Digiday report highlights that linear TV still captures significant attention despite its decline, particularly during major live events and sports.
While streaming ads are more precise, linear TV ads tend to have more impact due to larger screens and less distraction compared to digital platforms. As advertisers move to digital, linear TV continues to command attention during prime-time programming. AdWorld’s research shows that TV advertising still captures the largest share of attention compared to other ad formats, particularly when live sports or special broadcasts are involved.
In Conclusion
The future of linear TV lies in hybrid models that blend scheduled programming with on-demand viewing, making it more flexible for modern viewers. Addressable TV and programmatic advertising on linear TV will remain essential in retaining advertisers, as they offer the precision of digital ads within the larger reach of TV.
Live sports, news, and events remain crucial in keeping linear TV relevant, providing advertisers with high-impact moments to capture viewer attention. Advertisers are moving more ad dollars into CTV and AVOD platforms, but linear TV still holds value for those aiming to reach older demographics or larger audiences simultaneously.
ADvendio has a wealth of experience in TV advertising. We can help with campaigns on linear TV and connected TV. We have a partnership with Op2mise to enable linear and connected TV convergence.
Originally posted on ADvendio.com on the 31st of October 2024.
