The television landscape has undergone a radical change in recent years, reshaped by the unstoppable advance of digital technology. In the digital age, it is crucial for marketers to understand the challenges and opportunities ahead.
When you talk about “TV in the digital age” in 2024, there are certain expectations that come with it. Many expect me to defend streaming and connected TV (CTV) and declare traditional TV dead because savvy marketers have moved on without looking back.
But it’s not that simple. My loyalty is not to the latest or “best” technology, but to the technology that delivers the best results at the best price for our agency clients’ individual circumstances.
Both traditional linear TV and streaming/CTV are important components of a comprehensive marketing strategy and it is important to remain flexible as the landscape evolves.
The evolution of viewing habits
First, let me acknowledge the obvious: the way audiences consume television has fundamentally changed. Traditional linear television is no longer the dominant force it once was, as viewers increasingly turn to on-demand streaming services.
This change in users’ consumption habits is not a new event, but one of many that have occurred over the last century or more. If you look all the way back, newspapers replaced handwritten letters and oral histories as the primary sources of “media consumption.” Then radio changed the consumption of newspapers, television changed the consumption of radio, and now mobile devices are changing the consumption of television.
Phones, tablets and laptops have effectively become portable TVs, allowing viewers to access content on the go. This trend underscores the importance of adapting our marketing strategies to reach audiences where they are. While linear TV still captures 61.5% of viewership, especially among older demographics, according to a 2023 Nielson report, the rise of streaming cannot be ignored.
But here’s the simple truth: The increasingly loud mantra that television is dead is simply not true. Is traditional television dying in terms of reach and impact? Certainly. But even a wounded lion can still be dangerous. Just as television has not completely replaced radio, linear television remains present in some form.
Learn more: TV advertising: 6 key trends to keep an eye on
The influence of streaming services
Streaming services like Netflix, Hulu, YouTube TV, FreeVee, etc. have disrupted the traditional TV industry. The phenomenon of cable cancellation has led to many households switching to streaming subscriptions. This shift has necessitated changes in advertising models, with a greater focus on targeted and measurable ad placements.
Comparing Neilsen’s reports from 2022 to 2023, we can see that streaming usage has increased from ~30% to nearly 38% of total TV usage and is likely to grow exponentially in the coming years. This trend highlights the importance of adapting our marketing strategies to reach consumers where they are.
A notable example is the rise of programmatic television advertising, which uses automated technology to deliver ads to specific audiences based on data-driven insights. This method enables greater precision and efficiency, ensuring that marketing budgets are spent more effectively.
Data and personalization
Digital platforms make great use of user data to personalize content recommendations. We use data to tailor our campaigns to specific audience segments and ensure our messages reach the right people at the right time. This data-driven approach allows us to maximize the impact of our advertising efforts while maintaining consumer trust.
Digital advertising has created high expectations for attribution and analytics, which has put pressure on TV advertising – both streaming and linear – to improve. To meet these expectations, we have implemented tracking technologies such as broadcaster-provided pixels, dedicated phone numbers and website URLs, QR codes, and tracking changes in direct and organic traffic within our analytics platforms. This level of attribution is critical to showing the ROI of TV advertising in a digitally dominated world.
Go deeper: 4 tips to get the most out of CTV advertising
Fragmentation of the audience
With the proliferation of streaming services comes audience fragmentation, creating a unique challenge for advertisers who need to reach their target audience across multiple platforms. Traditional broadcasters and advertisers now have to navigate a complex media landscape where audiences are spread across numerous services.
To overcome this challenge, a full-funnel marketing approach is essential. Combining the wide reach of linear TV with the precision of digital tactics helps capture the attention of prospects at the top of the funnel and drive conversions through targeted digital campaigns.
The continued relevance of linear television
Despite the rise of digital platforms, linear TV still has its place in the advertising mix. Linear TV continues to offer unparalleled reach and effectiveness in building brand awareness and legitimacy among a wide audience. For many local businesses, linear TV remains a cornerstone of their advertising strategy.
Local morning and evening news, sports, and long-running shows like “Jeopardy” and “Wheel of Fortune” remain staples of television schedules. These programs are a cost-effective way to reach large (but generally older) audiences.
For example, a prominent New York personal injury law firm continues to rely on linear TV as the cornerstone of its omnichannel advertising campaign. Despite improved targeting, CTV has not been able to match the performance of its predecessor. However, linear TV’s share of total spend has increased from ~80% to ~50%. So maximize linear TV usage, but remain open to trends and embrace new technologies.
Linear TV and digital tactics should be viewed as complementary, not competing channels. TV is an effective top-of-funnel strategy for creating awareness and generating interest, while digital tactics are great for retargeting and converting leads. This omnichannel approach ensures that all marketing efforts work together to produce the best results.
Weighing up current and future strategies
As marketers, our job is to leverage what works best today while also planning ahead for what will work best in the future. In many ways, broadcast/linear TV remains one of the best tools available today due to its wide reach and established audience base. However, streaming/CTV is undoubtedly the tool of the future as it offers better targeting and measurement capabilities. This dual focus allows us to effectively leverage the strengths of both mediums.
Every client is unique and there is no one-size-fits-all approach. What works for one brand may not work for another, even in the same industry. It’s about finding the right mix of traditional and digital strategies that’s tailored to each client’s needs. By applying a balanced, data-driven approach, we can leverage the strengths of linear TV and streaming platforms to create effective marketing strategies.
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