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  • Writer's pictureRobert Eckelman

Advertising & marketing dollars follow eyeballs. They move slower than viewers but eventually move

Over the last few days, I have been posting about:


The rise of CTV & Streaming.


The increase in time spent with digital video. Digital video has surpassed television viewing.


The continued erosion of traditional pay TV (cable and satellite).


The astronomical growth of cord cutters.


It does take time but eventually advertising and marketing dollars follow consumers and consumers have overwhelmingly made the choice to shift to CTV & Streaming.


Take a look at the chart below from insider intelligence. It is easy to see from 2021-2027 advertising dollars are leaving traditional television and cable and moving to CTV. Remember beyond 2022 this is forecasted spending. I am sure the forecast for CTV and Streaming will increase just like the cord-cutting forecast has been increasing year over year.


US TV Spend decreasing. US CTV Spend increasing
US TV Spend decreasing. US CTV Spend increasing

The chart below, from insider intelligence, is TV & Cable spending for 2021-2027. There are two things to notice.


1st- Spending is decreasing. That is because viewers are leaving broadcast and cable and moving over to CTV where the spending is increasing.


2nd- Another important add revenue data point that should be very obvious is the odd year even year relationship. You can see in the odd years when there are no political elections spending drops.


Television and cable have become addicted to huge sums of political advertising dollars. With the ability to target specific groups lifestyles interests and political parties, you can bet that CTV & Streaming will be taking those dollars away very soon. Just like the first chart above I would expect this forecast to change over the next couple of years.

Broadcast and Cable ad spend faling while CTV Ad spend increase. Eventually Ad budgets follow eyeballs.a
Broadcast and Cable ad spend faling while CTV Ad spend increase. Eventually Ad budgets follow eyeballs.ars reai

#CTV | #Streaming | #OTT always getting better for marketers, advertisers, and viewers.

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