As most of us know, the landscape of traditional cable TV is changing drastically. The driver of this change, like many industries, is a major increase in competition. With great content available on platforms like Netflix, Amazon and Youtube, many consumers are leaving cable behind.
According to eMarketer, 22 million Americans are expected to “cut the cord” this year, an increase of 33.2% over 2016. The number of “cord nevers” (those who never had cable TV in the first place) is expected to grow 5.8% to 34.4 million U.S. adults.
By 2021, the number of cord cutters will almost equal the number of those who never paid for TV at all.
So, what does this mean for direct response, an industry built on cable TV infomercials? For now, marketers still need an intense focus on traditional TV ad placement because TV ad spending will likely continue to grow during the next several years. However, savvy marketers are integrating additional strategies that take future trends into account and target cord-cutting consumers on a variety of platforms.
For example, video streaming on mobile and smart TVs has revolutionized the way video and TV is consumed—and opened up a world of opportunities for marketers. According to eMarketer, digital video consumption is expected to rise 9.3% to one-hour and 17 minutes a day. In addition, a new report says over-the-top (OTT) video services have finally overtaken TV set-top boxes as the primary place where consumers watch their favorite programming.
With adults watching less and less traditional TV, direct response marketers must adjust their media mix accordingly by integrating new technologies, like programmatic and addressable TV, to capture audiences. Further, a multi-screen strategy where impressions are spread out across traditional TV, online streaming platforms, and even social media, is critical to a successful direct response marketing effort. What’s great about these new options is that the technology provides significantly enhanced ways to target audiences in real-time by household and across device.
With 30 years of success in evolving direct response methods, Diray has successfully adapted to tech trends by bringing in experienced individuals and creating an in-house digital team. With a combination of human experience and artificial intelligence, we are building direct response marketing strategies that drive ROI for our clients across traditional and non-traditional media platforms.
For more information on how Diray can take your direct response marketing strategy to the next level, contact us today.
During our 30th anniversary year, Diray will feature blogs that look at where we have been, where we are, and where we think the industry is going.