2020
9
US Television Advertising Market Report 2020
2020-08-27T15:46:47+01:00
OX987288
3695
123118
[{"name":"Advertising and Marketing","url":"https:\/\/store.mintel.com\/industries\/media-marketing\/marketing"}]
Report
en_GB
“Television advertising has struggled as COVID-19 takes a significant toll on a sector that is already struggling from consumer and advertiser defections to digital. However, it does offer a strong…

US Television Advertising Market Report 2020

£ 3,695 (Excl.Tax)

Report Summary

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Television Advertising: Incl Impact of COVID-19 – US market, and the behaviours, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

98% of consumers own a television, and 64% watched live or recorded cable TV over the past month, making television a powerful channel brands can use to forge connections with consumers. Video ads provide a far more compelling vehicle for communicating brand messages than static ads, and television advertising continues to account for the largest share of ad spending. In this Report, Mintel discusses how television advertising has fared during this turbulent time, projects when the industry might hope to rebound and suggests strategies for future success.

Expert analysis from a specialist in the field

Written by Buddy Lo, a leading analyst in the Technology sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Television advertising has struggled as COVID-19 takes a significant toll on a sector that is already struggling from consumer and advertiser defections to digital. However, it does offer a strong consumer experience that few other platforms can match, and even in the near term there are some bright spots like local news and political advertising. If TV advertising can become more nimble and more targeted, it could return to more robust growth despite the current difficult outlook Buddy Lo
Senior Technology Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
        • Definition
          • Economic and other assumptions
          • Executive Summary

              • Top Takeaways
                • Market Overview
                  • Figure 1: Total US television advertising revenues and forecast, at current prices, 2015-25
                • Impact of COVID-19 on Advertising
                  • Figure 2: Short-, medium- and long-term impact of COVID-19 on advertising, August 2020
                • Opportunities and Challenges
                  • While cord cutting is accelerating, TV still delivers audiences at scale
                    • Figure 3: Cable and satellite TV subscriptions and cancellation, 2012-19
                  • Younger people turn toward digital, and increased streaming use poses a risk
                    • Figure 4: Media consumed in an average month, by 18-34s, June 2020
                  • Sports in a real slump, significantly impacting revenue
                    • Figure 5: Sports viewership before and after COVID-19, by male age groups, June 2020
                  • New viewers for news should attract political advertising
                    • Figure 6: News viewership before and after COVID-19, by gender and age, June 2020
                  • Not all categories are making cuts, creating some opportunities
                    • Figure 7: Annual change in national TV advertising investment by category, by broadcast week, 2020 vs 2019
                  • The best of both worlds: TV’s scale and digital’s efficiency?
                      • Figure 8: Attitudes toward commercials, by key demographics, June 2020
                  • The Market – What You Need to Know

                    • TV advertising sales hit by digital competition, COVID-19
                      • Mixed impact on sector players
                        • Competitors strengthen
                          • Tough economy encourages cord cutting
                          • Market Size and Forecast

                              • Major impact from COVID-19
                                • Content issues contribute to sales slump
                                  • Figure 9: Total US television advertising revenues and forecast, at current prices, 2015-25
                              • Market Breakdown

                                • An increasingly complex marketplace
                                • Market Perspective

                                  • Many competitors for viewer attention
                                    • Figure 10: Video entertainment services used in an average month, May 2020
                                  • Networks embrace streaming services
                                    • Taking the show on the road?
                                    • Market Factors

                                      • TV ownership is near-universal – for now
                                        • Figure 11: TV ownership and smart TVs, by age and household income, July 2020
                                      • A dismal economic outlook drives cost cutting
                                        • Figure 12: GDP Q1 2007-Q2 2020; Consumer Confidence January 2007-June 2020; Unemployment January 2007-June 2020
                                      • Cable/satellite subscriptions continue to drop
                                        • Figure 13: Cable and satellite TV subscriptions and cancellation, 2012-19
                                    • Key Players – What You Need to Know

                                      • Profit in politics
                                        • Creating feelings, not just sales
                                          • Advertisers make cutbacks
                                            • Sport revenues take a K-O
                                              • A new upfront season?
                                                • A new digital future
                                                • What’s Working

                                                  • Political advertising one bright spot
                                                    • Local news garners more ad revenue despite lower viewership
                                                      • Lead with entertainment and emotion
                                                        • Figure 14: @Nike weekly mentions and mentions by “joy”, January-July 2020
                                                    • What’s Struggling

                                                      • Advertisers in key categories pump the brakes due to COVID-19
                                                          • Figure 15: Annual change in national TV advertising investment by category, by broadcast week, 2020 vs 2019
                                                        • Sport cancellations deal major blow
                                                          • Figure 16: Advertising revenue from major sporting events, 2019
                                                      • What’s Next

                                                        • What’s up with the upfronts?
                                                          • Merging linear and digital
                                                          • The Consumer – What You Need to Know

                                                            • Young like to stream, seniors stick with linear
                                                              • Viewing time spikes after COVID-19
                                                                • News climbs while sports stall
                                                                  • Ad skipping, time shifting main reasons to DVR
                                                                    • Some consumers do enjoy ads
                                                                    • Media Consumed and Frequency

                                                                      • Significant difference in media consumption by age
                                                                        • Figure 17: Media consumed in an average month – linear TV vs streaming services, by age, June 2020
                                                                      • Subscription streaming more popular for the affluent
                                                                        • Figure 18: Media consumed in an average month – linear TV vs streaming services, by household income, June 2020
                                                                      • Linear TV still the most watched
                                                                        • Figure 19: Media consumption frequency, June 2020
                                                                      • Media consumption increases due to COVID-19
                                                                        • Figure 20: Changes in media consumption due to COVID-19, June 2020
                                                                    • Time Spent on Video Content – Pre/Post COVID-19

                                                                      • Significant increases in video consumption
                                                                        • Figure 21: Time spent watching video content before COVID-19 and currently, June 2020
                                                                      • Female viewership increases to match more with men
                                                                        • Figure 22: Time spent watching video content before COVID-19 and currently, by gender, June 2020
                                                                      • Singles watch the most
                                                                        • Figure 23: Time spent watching video content before and after COVID-19, by marital/parent status, June 2020
                                                                      • Black consumers spend more time with video content
                                                                        • Figure 24: Time spent watching video content before and after COVID-19, by race/Hispanic origin, June 2020
                                                                    • Type of TV Programs Viewed Pre/Post COVID-19

                                                                      • News up, sports way down
                                                                        • Figure 25: Type of TV programs viewed before COVID-19 and currently, June 2020
                                                                      • Younger women watching far more news, older men much less sports
                                                                        • Figure 26: Type of TV programs viewed before COVID-19 and currently, by gender and age, June 2020
                                                                      • Black consumers watching more drama, White consumers more news
                                                                        • Figure 27: Type of TV programs viewed before COVID-19 and currently, by race and Hispanic origin, June 2020
                                                                    • Reasons for Viewing Recorded Cable/Satellite TV

                                                                      • Ad skipping remains a factor
                                                                        • Figure 28: Reasons for viewing recorded TV, June 2020
                                                                      • Women time shift, men rewatch
                                                                        • Figure 29: Reasons for viewing recorded TV, by gender, June 2020
                                                                      • Older consumers value skipping ads more
                                                                        • Figure 30: Reasons for viewing recorded TV, by age, June 2020
                                                                      • Parents least likely to skip commercials
                                                                        • Figure 31: Reasons for viewing recorded TV, by marital/parent status, June 2020
                                                                    • Attitudes toward Commercials

                                                                      • Consumers are less positive on ads but don’t take action to avoid them
                                                                        • Figure 32: Behaviors toward commercials, 2011-19
                                                                      • Humor helps
                                                                        • Figure 33: Attitudes toward commercials, June 2020
                                                                      • Viewers aged 25-44 more engaged with advertising
                                                                        • Figure 34: Attitudes toward commercials, by age, June 2020
                                                                      • Strong interest in COVID-19 activities and ads
                                                                        • Figure 35: Attitudes toward COVID-19 ads and activities, June 2020
                                                                      • White consumers most skeptical about COVID-19 ads
                                                                        • Figure 36: Attitudes toward COVID-19 ads and activities, by race and Hispanic origin, June 2020
                                                                    • Consumer Segments – Attitudes toward Advertising

                                                                      • Four segments with varying attitudes on advertising
                                                                          • Figure 37: Consumer segments of attitudes toward advertising, June 2020
                                                                        • Ad Acceptors (19%)
                                                                          • Characteristics
                                                                              • Figure 38: Characteristics of Ad Acceptors, June 2020
                                                                            • Opportunities
                                                                              • Ad Apathetics (31%)
                                                                                • Characteristics
                                                                                  • Figure 39: Characteristics of Ad Apathetics, June 2020
                                                                                • Opportunities
                                                                                  • Ad Adversaries (24%)
                                                                                    • Characteristics
                                                                                        • Figure 40: Characteristics of Ad Adversaries, June 2020
                                                                                      • Opportunities
                                                                                        • Ad Apprehensives (26%)
                                                                                          • Characteristics
                                                                                            • Figure 41: Characteristics of Ad Apprehensives, June 2020
                                                                                          • Opportunities
                                                                                          • Appendix – Data Sources and Abbreviations

                                                                                            • Data sources
                                                                                              • Sales data
                                                                                                • Consumer survey data
                                                                                                  • Abbreviations and terms
                                                                                                    • Abbreviations
                                                                                                      • Terms
                                                                                                      • Appendix – The Market

                                                                                                          • Figure 42: Total US television advertising revenues and forecast, at current prices, 2015-25
                                                                                                          • Figure 43: Total US television advertising revenues and forecast, at inflation-adjusted prices, 2015-25
                                                                                                      • Appendix – Mintel Trend Drivers

                                                                                                          • Figure 44: Mintel Trend Drivers and Pillars

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