As marketers, we follow where the consumers go. And right now, we have questions about how they’re engaging with TV advertising.
Are people still watching linear TV? What about Connected TV? What even counts as ‘TV’ today?
The answers? Yes, yes, and... it’s complicated.
Today, consumers in the U.S. can find content on more than 32,200 linear channels and 89 streaming video sources. But the lines between all these sources are blurring, making it harder to decipher between streaming and traditional TV. To understand the landscape in 2024 and beyond, let's explore why linear and CTV might not be that different after all.
Today, the streaming industry is leaning into the same trends that have defined cable and broadcast TV for decades.
In streaming’s early days, one of the key points of differentiation for platforms like Netflix was that viewers didn’t have to sit through an ad break every eight minutes. But as the industry evolved, it became clear advertising is both necessary for a successful streaming business model—producing Rings of Power or Stranger Things isn’t cheap—and widely accepted by consumers.
In 2024, only 13% of consumers say they’re opposed to ads in streaming, down from 36% in 2022. And 70% of consumers say watching ads on streaming is just part of the typical viewing experience. 69% say they even prefer FASTs over ad-free subscriptions.
However, consumers do expect shorter ad breaks on streaming than linear. In 2023, eMarketer reported that most AVOD viewers believe two to three 30-second ad breaks per hour of TV is ideal.
Another trend reminiscent of cable is bundling. Netflix and Amazon’s Prime Video attended the TV upfronts this year, mingling with the biggest traditional TV players like Fox, Disney, and NBCUniversal at Radio City Music Hall. There, Comcast announced ‘Stream Saver’, a discounted bundle including Peacock, Netflix, and Apple TV+. This announcement follows news of Disney partnering with Warner Bros. Discovery to offer Max, Disney+, and Hulu together. For anyone who had a cable bundle in the 90s or early 2000s, this should sound familiar.
Finally, even the type of content being featured by streaming platforms is now taking its cue from linear. Live events and sports viewing are getting more attention, despite streamers’ ‘prestige’ shows being the focus for years. And some of the most watched shows on streaming right now were originally broadcast winners like Grey’s Anatomy, The Office, and Suits. Plus, lower-cost procedurals and sitcoms are viewed as a possible solution to subscriber churn since they have too much content to binge in a weekend.
According to Nielsen, 74% of TV households watch both streaming and linear programming in a month. Only 13% exclusively watch linear, and just 11% are streaming-only.
Since most households watch both linear and streaming TV, the natural question for advertisers might be around how consumers think of the differences between the two.
The answer? They don’t.
Consumers turn on their TV set for entertaining or informative content. They don’t particularly care about the way that content is delivered. They seamlessly switch between traditional broadcasts and on-demand streaming, often without giving that switch a second thought. They don’t ask if the show they’re watching is shared through a FAST or in which TV category YouTube TV fits. They just enjoy the show.
According to data from MRI-Simmons, the top definition for TV, with 47% of consumers agreeing, is ‘anything I can watch on my TV set, whether it’s via streaming or cable, satellite, or fiber optic provider.’ That beats both linear-biased responses like ‘any shows created by a TV network’ (13%) and ‘any shows available via cable, satellite or fiber optic provider’ (14%) and even streaming-biased responses like ‘anything I can watch on any device’ (27%).
When breaking down results by income, higher-income households are especially likely to think of TV holistically. Households with income above $123,000 chose to define TV as ‘anything I can watch on my TV set’ more than any other option.
So if consumers aren’t making a distinction between linear and streaming, why should advertisers?
The blurring lines between linear and streaming TV aren't just a matter of consumer perception. Even on a technical front, these distinctions are becoming increasingly difficult to make. Increasingly, consumers are watching “linear streaming,” or live linear content through a streaming platform.
Let’s say you’re a basketball fan. But you only subscribe to streaming services. When March Madness comes around, you keep up by tuning into Hulu Live TV. You see the same exact programming—and national ad breaks—as linear viewers. Yes, even the commercials are the same. Which is why even advertisers who buy only linear media can reach streaming viewers. In fact, nearly a third of time spent watching streaming TV is spent with linear content.
And while ad buying and measurement isn’t nearly as unified as advertisers would like, the industry is headed this way. Calls for TV buying solutions that focus on how to get your brand message in front of your ideal audience wherever they’re watching are growing. And cross-channel, deduplicated data is necessary for advertisers to understand their true reach and frequency across all forms of TV.
20 years ago, TV’s definition was clear. TV was cable, broadcast, satellite. You watched it in your living room with your family and waited for your favorite shows to cycle around every week. Now we have streaming, CTV, video you can watch anywhere, anytime.
But it’s all still TV. Alison Gensheimer, SVP Global Marketing at Nielsen, summarizes this theme well: “The once-crisp lines between linear and streaming have blurred… TV isn’t going anywhere, it’s going everywhere.”
It’s time to do away with our restricted definition of TV. To make the most of the channel’s ability to build brands and drive performance, advertisers need a holistic approach that reaches audiences wherever they're watching. Because the future of TV isn't about choosing between linear or streaming—it's about harnessing the power of both to maximize reach, reinforce brand messaging, and gain incremental reach.
Encouragingly, marketers are already starting to get on board. According to a survey of more than 300 marketers, 73% agree that linear and CTV work better together to achieve their marketing goals.
Curious about what an integrated TV strategy looks like? Download our latest report to learn how top brands find success with an inclusive approach to TV advertising.