The growing number of apps and streaming services have changed the way the audience consumes visual entertainment, with the Internet now appearing to close in on the monopoly that traditional TV has once enjoyed. Just a generation ago, the likes of Netflix, HBO Go, Spotify and even Sirius XM commercials were unheard of and nobody probably even thought that there could be something beyond what the tube has to offer.
According to Pew Research, young adults (61%) prefer watching shows online compared to 31% who use satellite or cable television and 5% who still use a digital antenna. The statistics are not that high with the 30-49 and 50-64 demographic yet (at 37% and 10&, respectively) but with more modes of viewing and easy-to-use gadgets cropping up, it won’t be long before those who grew up watching traditional TV will make the shift as well.
Why Audiences Prefer Online Streaming Over Classic TV
The main reason audiences prefer watching online is convenience. Video sharing and streaming services can be viewed using any compatible device, be it a smartphone, a tablet, or a laptop. That means people can catch up on their favorite shows while on the go, whether they’re commuting, having coffee at a local cafe, waiting for their turn at the doctor’s office, lining up for something, while in the bathroom, or just about anywhere else.
Accessing the Internet does not require one to be wired to a specific location and allows unlimited levels of mobility. In addition, internet speed has also increased rapidly through the years, making shows, movies, news programs, and others watchable with just one click and minimal to zero waiting time. Unlike traditional TV where one has to sit through minutes’ worth of advertisements, viewers now have a better handle of how they consume entertainment—they skip ads or continue watching if it piques their interests.
Businesses Also Shifting to Streaming Services
This shift toward online media offers a whole new world of opportunities for businesses, which now have to upgrade and evolve as well. Back in the day, people really had no choice but to watch ads on TV, whether or not they are like it. With streaming services and video channels, businesses are adopting more creative and engaging methods to communicate with target customers to get attention. This means better programming quality—a definite win for viewers.
New technologies have made it possible for Netflix, HBO Go, Amazon Prime, Sirius XM, Spotify, Pandora and many other platforms to air commercials in a way that is more palatable to this new but ever-evolving, market. The demand is so high that online advertising spending is expected to rise from $8.2 billion in 2018 to as high as $20.1 billion by the year 2020. As the mode of entertainment consumption shifts, it is the quality of the content (both for viewing and advertising purposes) that will make all the changes worth it.
Finding the right partner in doing this is key to success. Be sure to work with a reputable agency that can plan, create, and/or air your brand’s commercials to ensure maximum reach and return.