24 APR 2020

CORD-CUTTING TO ACCELERATE AMONG U.S. CONSUMERS

64% of US households have either cut the cord with cable TV, are planning to, or have never used it at all. The longer live sports events are cancelled, the more consumers will cut ties with cable TV, with 11% planning to end their services by the end of 2020. Individuals between 18-34-years old are the trend-setters for the new digital model of TV consumption.

24 APR 2020
Imagen El primer trimestre marcó un record de cord-cutters en Estados Unidos

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According to a recent survey conducted by advertising technology specialist The Trade Desk, consisting of 2,600 U.S consumers, 64% of US households have either cut the cord with cable tv, are planning to, or have never used it at all. The survey also indicated major differences in cord-cutting behavior by age group. Specifically, in terms of age group, 74 of 18-34-year-olds don’t have involvement with cable TV or are considering canceling, along with 64% of 35-54-year-olds, and 56% of people ages 55+. The 18-34-year-olds are considered “trend-setters” among decisions regarding cable TV, moving toward a new model of TV consumption with other age groups following their choice to cut off ties with cable. TV broadcaster and advertisers are developing new strategies that will accommodate consumers’ choices.

60% of Americans purchased TV subscriptions mainly to watch live sports events. The longer these events remain suspended, the more cord-cutting is expected to accelerate soon, with 11% of households planning to end their services by the end of the year. The figure was higher by 7% within the 18-34 age group.With only a quarter of young adults having any long-term interest in traditional cable TV, in a few years, we won’t be talking about linear or cable TV at all. It will all be online and streaming,predicts Brian Stempeck, Chief Strategy Officer, The Trade Desk.For broadcasters and advertisers, it’s now all about how quickly they can pivot to where the eyeballs are moving and many of them are already investing heavily in order to succeed in a world of connected TV.”

The survey indicates that 35% of American TV consumers favor ad-supported streaming over subscription-based streaming to lower the service cost, mainly due to Americans watching TV content via connected devices such as smart TVs. 31% who would prefer to pay for a subscription with no ads. This trend also began with 18-34-year-olds. The number decreases to 55 percent for the 35-54 age group and 47 percent for the 55+ age group. Younger age groups also have a ratio of 3-2, the largest of all age groups, of interest for ads that are tailored to their interests.

Stempeck believes that with CTV, advertisers can work with an ad tech partner to understand who was exposed to an ad across all devices, which as a result can reduce ad frequency. In addition, with CTV, advertisers can apply more data science to their advertising, making it more relevant to the consumer without compromising their privacy. This increases the value of the ads, which means lower ad volume, over time.“As more consumers shift to connected TV, broadcasters and advertisers can more easily address issues of ad frequency and ad volume, in ways that are not possible in a traditional TV environment,” Stempeck said.

With only a quarter of young adults having any long-term interest in traditional cable TV, in a few years, we won’t be talking about linear or cable TV at all. It will all be online and streaming. For broadcasters and advertisers, it’s now all about how quickly they can pivot to where the eyeballs are moving and many of them are already investing heavily in order to succeed in a world of connected TV.” Brian Stempeck Chief Strategy Officer, The Trade Desk