Are you thinking about moving your advertising to streaming services instead of broadcast or cable television? If not, you could be left in the dust. Now’s the time to readjust your marketing budget and explore streaming advertising for your company. While the specific reason for the change is debatable, many experts are pegging for new habits created during the COVID-19 pandemic for sweeping changes regarding how consumers watch television.
How the Pandemic Shifted Television Viewing Habits
Beginning in March 2020, people dramatically shifted their routines as they began to work from home and reduce the amount of time spent in stores, restaurants, and social gatherings. With all this time at home, many people spent considerably more time watching television. However, instead of channel surfing, those with adequate internet connectivity started watching (and binge-watching) their favorite shows and movies from streaming services. Streaming service providers such as Netflix, Hulu, and Disney responded by introducing more “straight-to-streaming” movies and series. For example, DisneyPlus made the original broadway production of Hamilton available to subscribers to enjoy from the comfort of their couches. Netflix added 25 million new subscribers during the first half of 2020.
Since then, businesses throughout the United States have largely resumed normal operations. Theaters, cinemas, concert venues, and other entertainment are open to ticket-goers. Yet, streaming services remain in high demand. While the amount of time people spend watching television hasn’t changed much recently, the way they watch it has.
Streaming Services Surpass Cable TV Viewing in 2022
In August 2022, Nielsen reported that for the first time, streaming viewership surpassed cable television in July. It likely would have happened sooner had it not been for a few cable network exclusives, such as the 2022 Olympics and the NBA playoffs. Streaming viewership in July 2022 was a whopping 23% higher than it was a year previously, partially thanks to the viral release of Stranger Things Season 4. However, with new noteworthy releases consistently coming out from several streaming platforms, we’ll likely see repeat excitement in the coming months.
Overall, Nielsen broke out the methods people use for watching television during July 2022 into four categories:
- Streaming services (34.8%)
- Cable television (34.4%)
- Broadcast television (21.6%)
- Other (9.2%)
Within the category of streaming services, the breakdown included:
- Other (10.2%)
- Netflix (8.0%
- YouTube (7.3%)
- Hulu (3.6%)
- Amazon Prime Video (3.0%)
- DisneyPlus (1.8%)
- HBO Max (1.0%)
Another interesting detail is the number of viewers that choose less expensive ad-supported options for their streaming services. In 2021, The Streamable reported that twice as many consumers preferred tiered subscription surfaces with a paid ad-free option and a free or less expensive ad-supported option:
- Pay with a subscription to avoid ads: 33%
- Pay with a subscription for limited ads: 19%
- Watch for free with ads during the shows: 48%.
It will be interesting to see what happens with Netflix as they work to adjust their subscription fees. In January, they increased monthly subscriptions by $1.00 to $2.00 per month depending on the package and are evaluating fee options to add additional non-household users to plans. As consumers balked at the price increases and subscribers began dropping their plans, Netflix came up with another option. Netflix announced it is considering a new ad-supported subscription for about half the price at between $7 and $9 per month. Based on consumer trends, many viewers will likely take the leap, save some money, and watch the ads along with their shows.
Interested in exploring streaming advertising for your company?
It’s clear from these statistics that streaming viewers are willing to watch advertising during their current shows, and that is the place to be if you want your company seen. Our team can help you develop the perfect ads for an online presence and get in front of the consumers you’re seeking to attract.
At Paradux Media Group, we help organizations make the best use of their marketing budgets–from developing effective marketing campaigns to implementing new forms of advertising on YouTube. We help companies make smart decisions to get the results they want. Contact us today and learn more about the benefits of joining our flock!