A new report says that a tipping point is approaching in the next five years when linear TV advertising will not provide a good enough return on investment for brands.
The report by consultancy Ebiquity, “TV at the Tipping Point,” evaluates key trends in linear TV and considers the implications for the future of TV advertising.
Ebiquity’s analysis suggests that the market is soon approaching an “inflection” point where by 2022 there will be a 15% to 20% decline in TV ad viewing across adults, with even steeper declines of between 30% and 45% for key audiences ‘Housewives with Children’ and 16-34 year olds, respectively.
Ebiquity says these changes will put pressure on ROI. “In a world where linear TV audiences are shrinking, rising costs will threaten the ROI primacy of live linear TV within the next five years.”
Christian Polman, Chief Strategy Officer at Ebiquity said: “Netflix, Amazon Prime and other streaming services are changing TV, with far reaching implications for advertisers and broadcasters. Our evidence suggests that as of today no other single media line is ready to ‘take the crown’ from broadcast TV, however advertisers should continue to review the evidence and adjust their marketing strategy when necessary.”
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