Linear TV is facing a double threat: a shrinking audience and a content exodus. With viewers flocking to streaming platforms and premium shows migrating away from traditional cable, the landscape for linear TV has changed dramatically.

But is linear TV nearing extinction as some media outlets have made it out to be? Not quite.

Linear TV still plays a valuable role in today’s advertising landscape, but it needs to be approached differently.

Here, we dive into the challenges facing linear TV, explore its irreplaceable unique advantages, and offer insights on how advertisers can still leverage this platform and why measurement needs to be planned for differently.

Content and competition headline the challenges of linear TV

Much has been made about linear TV’s shrinking audience, and rightfully so. Cable viewership, particularly among younger demographics, is declining. According to Nielsen, the linear TV (broadcast + cable) share of total TV viewing has hovered around 50% and notably dropped below the mark for the first time in July 2023.

One of the main reasons for the decline in linear TV viewership is the shift of premium content to streaming platforms. Major media companies are heavily investing in their streaming services, often at the expense of their linear channels. Shows that might have anchored a prime-time lineup on network TV are now debuting on streaming platforms like Paramount+, Disney+, and others. This trend, driven by a focus on subscriber growth, impacts the availability of high-quality content on traditional TV.

Competition has never been tougher with not only the emergence of seemingly endless new streaming platforms, but the great bundling of streaming giants that are more or less trying to recreate cable TV to fend off churn and keep their subscriber base growing. FAST TV channels are still experiencing growth through standalone and streaming platforms, and networks already integrated within the TV’s of consumers.

Linear TV still offers unique advantages

Despite these challenges, one segment of linear TV that continues to thrive is sports broadcasting. Along with live events such as award shows, sporting events remain a cornerstone of linear TV. Ratings for sports have remained robust, and in some cases, have even grown. This resilience makes sports broadcasting a prime area for investment. Brands can still reach large, engaged audiences through sports, making it a critical component of any media strategy. For tentpole events like the Super Bowl, linear TV delivers massive, measurable reach.

News is another segment where linear TV maintains its relevance. In an election year, for example, news ratings typically see a significant boost. However, advertisers must navigate the complex landscape of brand safety, especially when it comes to politically charged content on channels like Fox News. Despite these challenges, news programming offers a consistent and reliable audience, making it a viable option for certain advertisers.

While streaming services and digital platforms have gained popularity across various age groups, older adults, particularly those aged 65 and above, continue to rely heavily on traditional cable TV for their entertainment and news needs. Older viewers are more accustomed to the interface and usage of cable TV. The familiarity with channel navigation, remote controls, and the overall experience makes cable a more comfortable option.

Advertisers can target an older demographic effectively, too. According to a forecast from eMarketer, baby boomers were expected to watch TV for an average of 4 hours and 38 minutes per day, the highest among all generations. In contrast, Gen Z is estimated to only spend 1 hour and 2 minutes per day watching TV in 2023.

Many older viewers prefer the programming available on cable TV, such as news channels, classic movies, and network television shows that might not be as readily available on streaming platforms. Streaming services often require a higher level of technological proficiency, including the use of smart TVs, streaming devices, and understanding various subscription models. This can be a barrier for some older adults. There’s also a convenience factor as cable TV is still offered as a bundle with internet and phone services, making it a beneficial option for many households.

The enduring power of brand building

Linear TV continues to hold significant value in its unparalleled ability to quickly build reach. The broad audience base enables advertisers to deliver their messages to millions of viewers simultaneously, creating immediate brand awareness and recognition. Mass reach is particularly beneficial for large-scale brand campaigns that aim to create a widespread impact.

Linear also provides a unique “lean back” viewing environment where audiences are more receptive to advertising. This setting enhances the effectiveness of TV commercials, allowing both 30-second and 15-second creatives to deliver impactful brand messages efficiently. The structured and predictable nature of TV programming also contributes to consistent viewership, further amplifying the reach and frequency of brand messages.

The combination of broad reach, effective creative forms, and a conducive viewing environment makes linear TV a powerful tool for brand building, and it’s also a key aspect as to why advertisers keep it in their media mix.

The future of media buying: Adaptability is key

As we look to the future, it’s clear that linear TV’s role is evolving. Linear TV, streaming services, podcasts, and other digital channels all have a place in the media mix.

The traditional model of cable boxes and prime-time lineups is giving way to a more integrated approach that includes both linear and streaming elements. Advertisers must adapt by reallocating their budgets within the linear space, prioritizing high-engagement areas like sports and news, and leveraging advanced measurement tools to ensure they are reaching their target audiences effectively.

The key is to understand the strengths and weaknesses of each platform, leverage measurement tools effectively, and adapt your media plan accordingly. A data-driven approach ensures you get the most out of your advertising budget, regardless of the platform.

Re-think TV measurement for a new viewing era

While linear TV has historically relied on ratings provided by companies like Nielsen, these methods are increasingly challenged by shifting viewing habits. With the rise of streaming services and on-demand content, audiences are fragmented, making it harder to accurately measure reach and impact.

This changing landscape underscores the importance of a more comprehensive measurement framework for linear TV. The need for a new framework should allow advertisers to:

• Compare performance across channels: Effectively gauge how linear TV advertising performs relative to other channels like digital advertising or streaming services. This will help advertisers optimize their budget allocation based on which channels deliver the most return on investment.
• Measure beyond ratings: Move beyond traditional metrics like Gross Rating Points (GRPs) and delve deeper. New measurement tools can track ad exposure, viewer engagement, and even brand sentiment after exposure to linear TV ads.

By understanding the changing landscape and utilizing the right tools, advertisers can leverage linear TV to reach their target audience. You don’t have to choose a streaming vs. linear strategy in your marketing mix. By combining the strengths of both, you can create a well-rounded media plan that reaches a wider audience and delivers a more impactful message.

At Ocean Media, we understand the nuances of this shifting landscape. Our media planning and buying strategies are tailored to align with the business goals and audience targets of our clients. Whether it’s optimizing spend on linear TV or navigating the diverse world of CTV, podcasts, and digital properties, we ensure a data-driven approach to maximize ROI. To learn more, contact us here.