Although streaming has been gaining steam in recent years, linear TV continues to be the most popular medium for marketers. This type of television allows marketers to reach a specialized audience and measure the results of their campaigns. In fact, in 2018, more than 80% of marketing decision makers in the US plan to dedicate a similar or smaller amount of budget to linear TV advertising.
As consumers fragment their attention across different channels, it is becoming more difficult for brands to reach their target audiences with traditional media. However, OTT/CTV viewership is on the rise. Brands can extend their reach by targeting traditional TV viewers and OTT streamers with a single advertising campaign.
As a result of the changing landscape, TV networks are reducing the amount of money they spend on linear inventory. The result is that a $10 million linear ad deal may only yield $7 million. In this case, the network would still be considered a winner. Other agency executives agree, saying that linear TV ad budgets no longer carry the same weight as they used to. As a result, television networks are prized for ad deals that allow them to shift money between platforms.
Despite these trends, the linear TV ad market has been resilient. According to eMarketer, spending on linear TV ads in the US has remained flat or increased from the previous year. Since 2014, spending on linear TV has varied between $69 billion and $71 billion.