Cord-Cutting Hits Ads

Cord-cutting is hurting US TV advertising.

eMarketer has revised downward its estimate for US TV ad spending thanks to faster-than-expected growth in cord-cutting.

In 2017, spending on US TV ads will grow by just 0.5% to $71.65 billion, less than the $72.72 billion the media industry research firm predicted earlier this year. As a result, eMarketer said, TV’s share of total US ad spending will drop to 34.9%, and could fall below 30% by 2021.

“Traditional TV advertising is slowing even more than expected, as viewers switch their time and attention to the growing list of live streaming and over-the-top platforms,” said Monica Peart, eMarketer’s senior forecasting director.

This year, there will be 22.2 million cord-cutters ages 18 and older, up 33.2% over 2016, and significantly higher than the 15.4 million eMarketer previously predicted.  Also, the number of adults who have never had a pay TV subscription – the so-called “cord-nevers” –  will grow 5.8% this year to 34.4 million.

Overall, the firm predicts 196.3 million US adults will watch pay TV (cable, satellite or telco) in 2017, down 2.4% from 2016. By 2021, that total will have fallen nearly 10% compared to 2016.

You can read more at eMarketer.

About Larry Greenberg

A former local beat reporter and film critic, co-founder Lawrence Greenberg has more than 25 years’ experience as a writer and public relations executive.

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