As streaming subscriptions continue to rise, dataxu has found, through proprietary research, that the average connected household watches 6.7 apps on CTV. This means that reaching hard to find audiences is made possible on CTV but requires access to multiple publishers and applications. At dataxu, targeting audiences across a wide array of contextually relevant, carefully curated content, is a reality.
The changing TV landscape
Watching TV no longer means sitting down at a specified time to watch a specific program. There are a variety of ways for viewers to tune into the programs they want, whenever they want. Because of this, viewers across all demographics are ditching traditional TV programming for the flexibility of streaming services. Millennials and Gen X-ers are leading the pack when it comes to tuning out traditional TV and cutting the cord. In fact, over the last 6 years, there has been a 30% drop in time Millennials spend with traditional TV and a whopping 73% of Millennials use streaming services.
At the heart of this change are over-the-top (OTT) devices. And in an era where audiences have become more fragmented than ever before, the desire to reach the right audiences has forced media agencies and advertisers to incorporate streaming TV into their media buys. In fact, a recent Advertising Perceptions report states that 41% of advertisers are increasing spend on ‘sight-sound-motion’ video advertising to achieve greater audience targeting with CTV.
Reaching elusive viewers with CTV
Historically, 18-24-year-olds have been a difficult age group to reach on traditional TV. The fragmented viewing pattern of today’s consumers has made this highly sought after demographic even more elusive. Nearly half of 18-24-year-olds have shifted from traditional TV to other platforms. In fact, in 2017, this group’s monthly linear TV viewership dropped from 76 hours and 55 minutes to 64 hours and 21 minutes. That’s a 16% decrease.
This rapid decline is proof that marketing professionals wanting to reach 18-24-year-olds need to target beyond typical broadcasting buys, cable buys, and Full Episode Players (FEPs). The reality is that every age group in the US (except for 65+) is spending less time watching traditional TV—including live, VOD, DVR, and TVE (source Media Redef, Mathew Ball). Yet, Americans are watching more video content than ever—consider that every second, a million minutes (17,000 hours) of video content will cross global IP networks by 2021.
Consumer adoption of new technologies for content consumption has historically paced ahead of changes in marketing budgets (just take a look at ad spending against mobile devices vs. time spent on mobile devices if you have any doubt). Marketing professionals that adapt in lockstep to the changing consumption habits of their consumers reap the benefits.