TV ads once ruled. A new statistic could change the thinking on that.
A recent Nielsen ratings survey finds TV ownership is on the decline for the first time in 20 years.
The ratings giant, which takes television ownership rates into account when producing the statistics that drive advertising rates, recently announced the amount of households that own a television has decreased from 98.9% to 96.7%, the result of high poverty and more consumers opting to watch their favorite television programs online.
Regardless, Deloitte’s fifth edition “State of the Media” survey found 71% of Americans still rate television as their favorite medium for viewing (as compared to other tech gadgets and options). Eighty-six percent of those polled also claimed television advertising has the most impact on their buying decisions, as compared with other marketing channels.
The Nielsen study proves that for the first time since the mass rise of television, some consumers are learning to live without TV. If the decline continues, companies that rely on television advertising will need to monitor their ROI very closely.
Meanwhile, it may be worth considering online advertising and social media as low-cost alternatives to traditional advertising. Facebook currently charges approximately $.10 per page view, and online ad spending has increased $40 million over the past five years, with most analysts predicting an even greater increase over the next five years.
Source: “Ownership of TV Sets Falls in U.S.” by Brian Stelter, New York Times, 5/3/11.