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Is The Trusty TV Set Dying? What Does This Mean For Advertisers?

August 2, 2017

I am a household of exactly 1 (not including my fur baby) and I have a 60 inch in my living room, a 40 inch in my master bedroom and a 27 inch in my guest bedroom. All three televisions are capable of viewing cable content; however, all three also have Netflix, Hulu, etc. Not to mention I have a jailbroken AppleTV in my master bedroom that allows me to watch pretty much ANYTHING for free as long as I have an internet connection.

 

According to the most recent data collected by the U.S. Energy Information Administration, the average number of TVs per household dropped to 2.3 in 2015—down from 2.6 in 2009.

While it might not seem like much of a decline, the TV industry previously saw an increase in the average amount of TVs per household for years until the 2009 downtick.

 

 

Although it's difficult to pin the blame on any single factor, it's reasonable to assume that the advent of streaming platforms made dent in the case for TV sets as the household's primary media center. After all, why bother saving up for a new TV if you can catch up on a laptop, tablet, or smartphone, especially since those devices offer more degrees of functionality?

 

Additionally, with on-demand platforms like Netflix, Amazon, and Hulu offering some of the most popular programming around, the days of needing a TV set to tune in to your favorite shows already feel like ancient history.

 

Now, all eyes are on cable companies, who need to adapt to a new generation of cord-cutters who aren't exactly huddling around televisions for daily viewings. We've already seen built-in smart platforms become standardized in a short amount of time to accommodate the change in American viewing habits, but can the trusty TV set survive another decade of sagging TV sales?

 

So what does this mean for advertisers? You’ve got to think outside of “traditional advertising” as commercials are now less likely to be viewed (because DVRs allow us to skip the commercials). With on-demand platforms, businesses need to make sure that they are purchasing streaming ads if they feel that they MUST have a “television” presence.

 

While I am capable of not having to EVER watch a commercial EVER (thanks to Kodi) I do still have access to; however, more and more consumers are grabbing devices such as AppleTV and Amazon Firestick, Google Chromcast etc. that allow them to stream content.

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