Who Watches the Most Television?

Despite the rise of streaming platforms, television remains a dominant force in media consumption. Approximately 5.4 billion people worldwide have a TV in their household. The average US adult spends two hours and 33 minutes per day watching television, highlighting its enduring appeal. The emergence of Connected TV (CTV) offers advertisers new avenues to engage audiences, bypassing the often prohibitive costs of traditional linear television advertising.

Cable TV, while facing challenges from streaming services, still holds a significant audience. Roughly half of Americans maintain cable subscriptions, with older adults, affluent individuals, and sports enthusiasts comprising the core viewership. Forty-nine percent of Baby Boomers have cable, and 59% of them watch it for over 10 hours per week. This contrasts sharply with the younger demographic, where only 34% of individuals aged 18-29 subscribe to cable or satellite TV. The high average cost of cable packages further solidifies its association with an older, wealthier audience.

Sports and news remain primary drivers of cable viewership. Viewership of sporting events on cable increased by 22% in January 2022. However, streaming platforms are rapidly encroaching on this territory, with major players like NBC and Apple securing streaming rights for prominent sporting events. While cable news retains a loyal following, declining trust in mainstream media and decreasing viewership for established networks like FOX and MSNBC indicate a shift in news consumption habits.

Streaming services have undeniably reshaped the television landscape. As of December 2022, 115.6 million American households, representing approximately 89% of all American adults, utilize video streaming services. This widespread adoption signifies that even those with cable subscriptions often supplement their viewing options with streaming platforms. While the streaming industry is projected to generate $40 billion in revenue this year, high churn rates, particularly among younger generations, pose a challenge to maintaining subscriber loyalty. Netflix remains the leading streaming service, with 78% of households subscribing, followed by Amazon Prime at 72% and Hulu at 50%. Disney+ has experienced remarkable growth, increasing its subscriber base from 33.5 million in 2020 to 137.7 million in 2022.

The rise of ad-supported streaming services presents new opportunities for advertisers. Paid, ad-supported streaming is the fastest-growing segment in the industry, expanding by 33% from 2021 to 2022. Platforms like The Roku Channel, Tubi, and Peacock are gaining traction, providing marketers with avenues to reach their target audiences through engaging advertising content.

Connected TV (CTV) has become the dominant method for streaming content in American homes. With 71% of US households owning at least one connected TV, and Gen Z viewership projected to reach 56.1 million by 2025, the future of television appears inextricably linked to streaming. While original content remains a significant draw, access to classic shows and familiar favorites holds particular importance for Millennials and Gen Z, influencing their subscription choices.

Performance marketers recognize the potential of CTV advertising, with 21% shifting budgets from linear TV to CTV ads due to improved targeting and efficiency. Notably, 46% of those who made the switch report enhanced measurement of return on investment (ROI) in ad spending. Viewer receptiveness to CTV ads is also encouraging, with many preferring the shorter ad lengths and relevance to their interests compared to traditional television advertising. This positive response empowers marketers to create compelling, targeted ads for a larger screen format.

CTV advertising spending reached $21.16 billion in 2022, constituting 6.1% of total media ad spending. Projections indicate that 16.5% of all US display ad spend will be allocated to CTV by the end of this year. These figures are expected to rise as targeting capabilities become more refined and personalized, and as marketers gain confidence in purchasing CTV ads directly or programmatically. Early adopters of CTV advertising report compelling results, including high viewer completion rates for pre-roll ads (94%) and a significant correlation between CTV awareness campaigns and increased conversion rates for search and social media campaigns. With 36% of performance marketers citing CTV ads as more effective in driving ROAS compared to linear TV, continued investment in streaming ads across various industries is anticipated.

Over-the-top (OTT) content, delivered via the internet rather than traditional television broadcasting, has become the primary mode of television consumption in the US. The average American’s daily OTT viewing time increased from 44 minutes in 2018 to 70 minutes in 2022, with projected revenue reaching $137.8 billion in the US market alone in 2023. This rapid growth of OTT underscores its increasing dominance over linear TV. Global OTT user adoption is expected to reach 53% by 2027, fueled by the worldwide embrace of digital content. While global OTT revenue continues its upward trajectory, traditional TV revenue is forecast to decline. This trend reinforces the strategic shift towards CTV advertising, enabling marketers to reach broader audiences with data-driven precision previously limited to search and social media campaigns.