May 15, 2017

Live TV Declines Bigly For 3rd Month

Here at The Ad Contrarian Worldwide Headquarters, we try to be fact-driven rather than ideology-driven. And it's time to say that the recent declines in live TV viewing are a becoming a worry.

For years we have argued against the ignorant hysterics who said TV was dead. While TV remains by far the most popular form of video viewing and by far the most popular entertainment medium, the past three months have not been pretty.

Here are some data from the Pivotal Research Group...
  • In April, total daily TV use was down 5.3% for adults and 2.1% for households versus 2016.
  • Among adults 18-49 day time and prime time viewing of traditional TV programming fell by double digits for the third month in a row.
  • A bright spot for video in general was internet delivered viewing which rose by more than 50% versus 2016, but which is mainly not advertising supported.
As Pivotal suggests, the recent declines are likely to invigorate "efforts to explore and encourage the use of alternative media vehicles" by marketers. 

One of the problems for TV is that for decades they have used "time spent" with the medium as a proxy for the effectiveness of the medium. But these are two different things.

Time spent with a medium may be an interesting sociological point, but it is not a measure of advertising effectiveness. Here in The Ad Contrarian Executive Board Room, we spend a lot of time with vodka bottles. That doesn't make them a good vehicle for advertising.

There is little doubt in our minds that overall TV remains the most effective form of advertising. Or as Pivotal says, "television is the worst form of advertising except all those others..."

But if the declines in viewing time keep increasing, TV is going to have a tough time convincing advertisers that the "time spent" narrative they touted for years wasn't really important.

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