CTV Is Aging
Octillion (acquired by Tegna/Premion Jan 2024)
Smart, Transparent and, Fraud-Free Connected Television/OTT, Video, Digital Audio and Display for brands of all sizes.
Based on a recent research study from Ampere Analysis , older demo's are not switching over to CTV as COVID continues and they look for more entertainment options that do not carry a premium to watch.
Interestingly, the research indicates that the FAST AVOD platforms like Tubi, Roku and Pluto are the largest benefactors of this new group of viewers. TV is no longer the only place to capture older adults aged 55-64 at scale. In the study, older users (age 55-64 years old) were the fastest growing age bracket of AVOD viewers, with a 7-percentage point increase in AVOD uptake among the group in the last year alone.?This may be yet another nail in the linear TV coffin.
Will this older audience erode value in the AVOD platforms and focus marketers interest on SVOD instead? The jury is out - but it is unlikely. It merely means that you can now buy all audiences at scale on CTV.
This is not to say that SVOD did not also see an uptick from this older demo. 55-64 year olds represented the fastest growing age bracket for SVOD as well. Due to the greater maturity of the SVOD market, the channel saw just a 3.5 percentage point growth in the last year alone.
If anyone says COVID was bad for the media industry, they must be living under a rock. While we all saw some early paused campaigns, money flowed back into the market quickly. In fact some may have seen their best years in 2020 (especially those working with CTV and streaming Audio). There are of course categories like Travel that took a massive hit.
Nearly 60% of US homes now stream only. As this older demo and their older counterparts follow the CTV herd, one can expect to see drop-off in TV viewing and increase in CTV viewing.
Marketers need to be more selective on where they place their CTV budgets and should challenge their partners to provide attribution tools that measure sales, web and foot traffic visits. This should be tied back to publisher level insights so that optimizations may be made.
Our clients experience a significant difference in value and performance from different media types and it aligns with this research that the FAST AVOD platforms reach a less affluent audience who do not spend the same way SVOD do.
President at Media Dynamics Inc.
3 年The statement that 60% of U.S. TV homes now view TV only via streaming is completely wrong and it's "factdoids" of this nature that cause readers to question the credibility of the entire piece---except it is true that older adults have been increasing their streaming activity as more and more acquire that capability and as the TV networks provide more of the content that they are interested in via their new SVOD/AVOD services.