No one’s actually cutting any physical cords here but let me tell you, cable and satellite TV providers are definitely feeling the pinch. Millions of people across the U.S. are very much saying “nope” to the piles of extra channels and the steep bills that come with them. This crew of savvy viewers? They’re known as “cord cutters.”
So, who exactly are these cord cutters? They’re folks who’ve decided to drop their traditional cable services, often swapping them out for streaming platforms. And guess what? Their numbers are seriously on the rise. According to a 2021 Forbes report, the cord cutting crowd has actually tripled over the past seven years. Yep, you heard that right—tripled!
Now, with a whopping 50.4 million people choosing to cut the cord, it kind of makes you wonder why, right? Well, that’s what I’m diving into today. I’ll be exploring what’s driving so many to make this switch and what it means for marketers, who now have to rethink their strategies for reaching audiences. Stay tuned, because this shift is shaking things up in a big way!
Cord Cutting: Beyond the Cable Box
Cord cutters are definitely shaking up the traditional TV landscape but they’re not alone in this game. There are also other groups stepping away from traditional TV, each in their own unique way and it’s causing cable and satellite subscriptions to drop even more.
Let’s talk about the allies in this scenario: the cord trimmers and the cord nevers.
Cord trimmers aren’t cutting the cord completely. Instead, they’re trimming the fat off their cable bills. They scale down on unnecessary channels and services to save some cash every month. Many of them keep a slimmer cable package and spice it up with a streaming service to get the best of both worlds.
Then there are the cord nevers—about 31 million Americans, mostly from the younger crowds, who’ve never even signed up for cable or satellite TV. It’s not shocking to see that 90% of folks between 25 and 34 are choosing streaming services over traditional TV packages.
Whether it’s about saving money or just loving the ease of streaming shows anytime, the perks of cutting the cord are grabbing the attention of TV watchers all over the country. Keep reading and I’ll dive into what makes ditching the old-school cable such a popular choice today.
Benefits of Ditching the Cable Box
Why are so many people saying goodbye to cable? Well, it’s tough to pin down just one reason because, honestly, there are a bunch of perks that come with cutting the cord. Whether you’re a full-on cord cutter, a cord trimmer or part of the cord never crowd, there’s something in it for everyone.
Let’s break down some of the main reasons this trend is catching on:
Cost Savings – Let’s start with the biggie: money. Ditching cable can save you a ton. While the average cable bill might set you back anywhere from $45 to $130 monthly, streaming services can be much cheaper. You might pay as little as $4.99 per month for Apple TV+ or up to $15.99 for Netflix’s top tier. The math’s very simple here; swapping cable for streaming can keep a lot more cash in your pocket.
Flexible Streaming – If you’re in a household where everyone’s taste in TV is a battleground, streaming services are like the peace treaty. Everyone can watch what they want, when they want, on whatever device they prefer. No more remote control wars. Plus, you can download shows and movies to keep yourself entertained when you’re out and about, away from WiFi.
A Smorgasbord of Options – For real, having access to hundreds of cable channels doesn’t hold a candle to clicking directly into your favorite shows and movies. Streaming platforms like Netflix, Hulu and Disney+ let you cherry-pick what you really want to watch. And with personalized recommendations based on what you like, you spend less time scrolling and more time enjoying.
Keeping Local Channels – One thing that might hold some folks back from cutting cable is the fear of losing local channels and live sports. But guess what? Some streaming options, like Hulu + Live TV, bundle in those local channels along with giants like ABC, CBS, ESPN and FOX. So, you can jump ship from cable without missing out on the local news or the big game.
In short, cutting the cord isn’t just about getting rid of cable. It’s about making your TV watching cheaper, more personalized and a lot more convenient. And hey, who doesn’t want that?
What Cord Cutting Means for Marketing
So, besides letting TV viewers cut down on their bills and binge-watch with ease, cord cutting is really shaking things up in the marketing and advertising world.
As fewer folks stick with traditional cable and satellite TV, advertisers are having to hustle to connect with their audience in new ways—specifically, through streaming platforms.
Enter OTT and CTV advertising.
OTT stands for over-the-top streaming, which is basically all the video content you can stream over the internet across various devices. You’re probably familiar with platforms like Netflix, Hulu and Amazon Prime Video. These are prime examples of OTT media, where you can jump from one show to another with just a click.
CTV or connected TV, works similarly but often needs a specific device to stream videos if your TV isn’t already smart. Devices like Roku, Chromecast, Amazon Fire TV, Apple TV and even gaming consoles like Xbox and PlayStation fall into this category.
Instead of slotting ads into traditional TV broadcasts, advertisers are now leveraging streaming with tactics like in-stream ads that pop up during your show, interactive ads that might engage you halfway through or ads that sit neatly on the home screen. This way, they can keep their brands visible and engaging, even in a world where traditional TV viewing is fading.
How to Make the Most of Cord-Cutting Trends
Digital marketing strategists have had to quickly adjust to a whole new advertising scene but it turns out, this might just be a more effective way to get their message across compared to traditional TV ads.
Here’s how marketers are leveraging OTT and CTV advertising:
Target a Specific, Younger Audience – With the younger folks leading the charge in cord-cutting, brands looking to catch their attention are turning to OTT and CTV ads. These platforms are prime real estate for connecting with this tech-savvy, younger demographic, allowing companies to engage them more directly and effectively.
What’s more, these platforms offer marketers a goldmine of data, including viewer habits, peak TV-watching times and interests. This info lets advertisers target their ads very precisely, hitting the right viewers at the right times.
Understand Your Ad’s Impact – There’s a slew of metrics available through CTV and OTT that give marketers a clearer picture of how their ads are performing. From tracking how many viewers watched an ad start to finish, to seeing how many people visited a website after an ad aired, this data is crucial. It helps businesses fine-tune their strategies and tweak their campaigns as needed.
Spend Smarter, Not Harder – By harnessing both the detailed insights and specific performance indicators from CTV and OTT platforms, marketing teams can make more educated decisions about where to allocate their budgets. This approach ensures that ads aren’t just thrown out there but are placed where they’re most likely to resonate with potential customers. This strategic placement can significantly boost the return on investment for your campaigns.
So, how is your brand adjusting to these changes in TV viewership? If you haven’t explored OTT and CTV advertising yet, now’s the time to consider it. Dive into our guide on CTV viewership to get the full scoop.
Refresh Your Marketing Game Plan
Whether you’re still hooked on cable or thinking about switching to streaming, feel free to revisit this article whenever you need some guidance on making that decision. And if you’re part of the marketing world, definitely use the insights from these cord-cutting trends to beef up your advertising strategies.
It’s about time to ditch those outdated and inefficient marketing methods and start connecting with Tribal Pearl Media. We’re all about cutting-edge strategies here, including paid media, affiliate marketing, content marketing and more.
Our team at TPM is dedicated to crafting customized strategies that fit each brand’s specific needs and goals. Ready to take your marketing to the next level? Reach out for a proposal from us today on any of our digital marketing services.
