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Accenture report: Broadcast and cable ratings continue to decline by double digits every month

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By Adam Flomenbaum, Co-Executive Editor

June 12, 2015 | 3 min read

Accenture recently released a new report on video advertising, Optimizing Data-Driven Video Advertising – How Analytics Can Help Media Companies Maximize Revenue in a Digital World.

The pace at which the TV industry is changing is up for the debate, but the fact that this change is real is not. Viewers are watching less TV (in favor of other forms of video content), and when they are, they are doing so on their own schedule. According to the report, “[b]roadcast and cable ratings in the U.S. declined by double digits in February 2015 for the fifth consecutive month—with prime-time broadcast network ratings dropping by 12 percent and cable by 11 percent.”

Americans are also turning to other screens outside of traditional TV sets. Only 55% of Americans continue to use TVs as their primary source of TV or movie viewing, and only 40% use it as their primary source for watching sports. These numbers, according to the report, are declining by double digits each year as mobile devices and tablets make it easier for viewers to watch content via whichever medium they want.

While these changes may be concerning to cable providers, they present a massive opportunity to both TV networks and advertisers. With the digital side of the business growing – including online video, over the top, and new cable systems like Google Fiber – the addressable market is growing, and growing more accurate. Targeting and audience extension is becoming easier, as is the ability to reinforce TV messaging with follow-up digital ads.

The report mentions one such way that ESPN accomplished this:

For example, research from ESPN Lab found that combining TV commercials with digital video ads can increase both awareness and purchase intent. According to the research, “a combination of TV commercials, shortform videos and ads on the channel’s app WatchESPN led to a 160 percent increase in purchase intent than if the marketer only ran a TV ad. Awareness increased 36 percent and word of mouth rose 67 percent” [Source: Wall Street Journal].

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