Have you noticed the convenient shortcuts to Netflix, Amazon Prime or Disney+ which now appear on modern TV remotes? What seemed to be a quick click to the latest streaming craze has now accelerated a fundamental shift in how we consume entertainment. A surge of TV watchers are now ‘cutting the cable’, that is, canceling cable TV, and it is predicted that there will be 80 million cord-cutting US households by 2026.
As cable bows out, streaming capabilities of connected TVs (CTVs), i.e. televisions that have access to the internet and have the capability of streaming video content, are becoming more comprehensive than ever. This could be through a video game system, like an Xbox or Playstation, or directly through the TV with wifi capabilities itself. In 2022, an estimated 87% of US households had at least one connected TV.
Why does this matter to marketers? Well, platforms like Netflix, Hulu, Disney+ and others are introducing advertising-supported video-on-demand (AVOD) models. Now, users can pay less for their subscription but agree to be delivered ads as the trade-off. This is the nexus where the glamor of TV ads meets the precision of digital marketing.
CTV advertising is past the tipping point, with a recent report suggesting that 95% of marketers plan to increase or maintain their CTV advertising spend in 2024. With AVOD subscriptions growing across all platforms, university marketers now have the opportunity to capitalize on the new battleground for student’s attention.