Table of Contents
Executive Summary
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- Top Takeaways
- Market Overview
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- Figure 1: Total US television advertising revenues and forecast, at current prices, 2015-25
- Impact of COVID-19 on Advertising
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- Figure 2: Short-, medium- and long-term impact of COVID-19 on advertising, August 2020
- Opportunities and Challenges
- While cord cutting is accelerating, TV still delivers audiences at scale
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- Figure 3: Cable and satellite TV subscriptions and cancellation, 2012-19
- Younger people turn toward digital, and increased streaming use poses a risk
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- Figure 4: Media consumed in an average month, by 18-34s, June 2020
- Sports in a real slump, significantly impacting revenue
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- Figure 5: Sports viewership before and after COVID-19, by male age groups, June 2020
- New viewers for news should attract political advertising
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- Figure 6: News viewership before and after COVID-19, by gender and age, June 2020
- Not all categories are making cuts, creating some opportunities
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- Figure 7: Annual change in national TV advertising investment by category, by broadcast week, 2020 vs 2019
- The best of both worlds: TV’s scale and digital’s efficiency?
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- Figure 8: Attitudes toward commercials, by key demographics, June 2020
The Market – What You Need to Know
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- TV advertising sales hit by digital competition, COVID-19
- Mixed impact on sector players
- Competitors strengthen
- Tough economy encourages cord cutting
Market Size and Forecast
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- Major impact from COVID-19
- Content issues contribute to sales slump
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- Figure 9: Total US television advertising revenues and forecast, at current prices, 2015-25
Market Breakdown
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- An increasingly complex marketplace
Market Perspective
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- Many competitors for viewer attention
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- Figure 10: Video entertainment services used in an average month, May 2020
- Networks embrace streaming services
- Taking the show on the road?
Market Factors
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- TV ownership is near-universal – for now
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- Figure 11: TV ownership and smart TVs, by age and household income, July 2020
- A dismal economic outlook drives cost cutting
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- Figure 12: GDP Q1 2007-Q2 2020; Consumer Confidence January 2007-June 2020; Unemployment January 2007-June 2020
- Cable/satellite subscriptions continue to drop
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- Figure 13: Cable and satellite TV subscriptions and cancellation, 2012-19
Key Players – What You Need to Know
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- Profit in politics
- Creating feelings, not just sales
- Advertisers make cutbacks
- Sport revenues take a K-O
- A new upfront season?
- A new digital future
What’s Working
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- Political advertising one bright spot
- Local news garners more ad revenue despite lower viewership
- Lead with entertainment and emotion
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- Figure 14: @Nike weekly mentions and mentions by “joy”, January-July 2020
What’s Struggling
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- Advertisers in key categories pump the brakes due to COVID-19
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- Figure 15: Annual change in national TV advertising investment by category, by broadcast week, 2020 vs 2019
- Sport cancellations deal major blow
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- Figure 16: Advertising revenue from major sporting events, 2019
What’s Next
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- What’s up with the upfronts?
- Merging linear and digital
The Consumer – What You Need to Know
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- Young like to stream, seniors stick with linear
- Viewing time spikes after COVID-19
- News climbs while sports stall
- Ad skipping, time shifting main reasons to DVR
- Some consumers do enjoy ads
Media Consumed and Frequency
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- Significant difference in media consumption by age
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- Figure 17: Media consumed in an average month – linear TV vs streaming services, by age, June 2020
- Subscription streaming more popular for the affluent
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- Figure 18: Media consumed in an average month – linear TV vs streaming services, by household income, June 2020
- Linear TV still the most watched
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- Figure 19: Media consumption frequency, June 2020
- Media consumption increases due to COVID-19
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- Figure 20: Changes in media consumption due to COVID-19, June 2020
Time Spent on Video Content – Pre/Post COVID-19
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- Significant increases in video consumption
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- Figure 21: Time spent watching video content before COVID-19 and currently, June 2020
- Female viewership increases to match more with men
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- Figure 22: Time spent watching video content before COVID-19 and currently, by gender, June 2020
- Singles watch the most
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- Figure 23: Time spent watching video content before and after COVID-19, by marital/parent status, June 2020
- Black consumers spend more time with video content
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- Figure 24: Time spent watching video content before and after COVID-19, by race/Hispanic origin, June 2020
Type of TV Programs Viewed Pre/Post COVID-19
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- News up, sports way down
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- Figure 25: Type of TV programs viewed before COVID-19 and currently, June 2020
- Younger women watching far more news, older men much less sports
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- Figure 26: Type of TV programs viewed before COVID-19 and currently, by gender and age, June 2020
- Black consumers watching more drama, White consumers more news
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- Figure 27: Type of TV programs viewed before COVID-19 and currently, by race and Hispanic origin, June 2020
Reasons for Viewing Recorded Cable/Satellite TV
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- Ad skipping remains a factor
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- Figure 28: Reasons for viewing recorded TV, June 2020
- Women time shift, men rewatch
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- Figure 29: Reasons for viewing recorded TV, by gender, June 2020
- Older consumers value skipping ads more
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- Figure 30: Reasons for viewing recorded TV, by age, June 2020
- Parents least likely to skip commercials
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- Figure 31: Reasons for viewing recorded TV, by marital/parent status, June 2020
Attitudes toward Commercials
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- Consumers are less positive on ads but don’t take action to avoid them
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- Figure 32: Behaviors toward commercials, 2011-19
- Humor helps
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- Figure 33: Attitudes toward commercials, June 2020
- Viewers aged 25-44 more engaged with advertising
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- Figure 34: Attitudes toward commercials, by age, June 2020
- Strong interest in COVID-19 activities and ads
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- Figure 35: Attitudes toward COVID-19 ads and activities, June 2020
- White consumers most skeptical about COVID-19 ads
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- Figure 36: Attitudes toward COVID-19 ads and activities, by race and Hispanic origin, June 2020
Consumer Segments – Attitudes toward Advertising
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- Four segments with varying attitudes on advertising
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- Figure 37: Consumer segments of attitudes toward advertising, June 2020
- Ad Acceptors (19%)
- Characteristics
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- Figure 38: Characteristics of Ad Acceptors, June 2020
- Opportunities
- Ad Apathetics (31%)
- Characteristics
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- Figure 39: Characteristics of Ad Apathetics, June 2020
- Opportunities
- Ad Adversaries (24%)
- Characteristics
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- Figure 40: Characteristics of Ad Adversaries, June 2020
- Opportunities
- Ad Apprehensives (26%)
- Characteristics
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- Figure 41: Characteristics of Ad Apprehensives, June 2020
- Opportunities
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 42: Total US television advertising revenues and forecast, at current prices, 2015-25
- Figure 43: Total US television advertising revenues and forecast, at inflation-adjusted prices, 2015-25
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Appendix – Mintel Trend Drivers
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- Figure 44: Mintel Trend Drivers and Pillars
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