Streaming Gains Traction While Linear TV Fights to Maintain Audiences Amidst AI Innovations and Shifting Viewer Habits

Samba TV, a leader in omniscreen advertising and analytics, has released its State of Viewership Report for the first half of 2024. The report provides a comprehensive analysis of television consumption, revealing key trends that are shaping the advertising and television landscapes. With approximately 45 billion hours of linear and streaming TV analyzed, the report uncovers the growing role of AI in brand sponsorships, strategies for releasing new shows on streaming services, and the importance of optimizing cross-screen advertising campaigns. As the 2024 election season heats up, political and non-political advertisers alike must adapt to the shifting dynamics of viewership and ad strategies.

Key Trends in Television Viewership

• Surge in OTT Consumption: U.S. households saw a 40% increase in over-the-top (OTT) content consumption in the first half of 2024, while linear TV experienced a 1% decline as more live events move to streaming platforms.
• Rise of Ad-Supported Streaming: Ad-supported tiers of Subscription Video on Demand (SVOD) and Free Ad-Supported Streaming TV (FAST) are becoming crucial for advertisers to reach audiences who are shifting away from traditional cable and broadcast.
• Streaming's Ubiquity and Challenges: With 99 million U.S. households watching OTT content, streaming has become widespread. However, preventing churn remains a challenge as many viewers subscribe to watch specific content and then leave.

Impact of Sports, Politics, and Original Content

• Linear TV's Reliance on Live Events: The 2024 Super Bowl was the most-watched linear event, demonstrating the enduring appeal of live sports. However, the shift of sports to streaming platforms threatens linear TV's ability to retain viewers.
• Political Events Drive Viewership: The first presidential debate of 2024 between Trump and Biden was the most-watched non-sports program, underscoring the importance of political events in maintaining linear TV audiences.
• Streaming Originals Dominate: Streaming platforms are thriving on original content based on existing intellectual property (IP), with shows like Netflix’s "Fool Me Once" and Max’s "House of the Dragon" leading viewership.

Advertising Landscape Shifts

• Entertainment Leads Ad Impressions: Entertainment remains the top vertical for ad impressions, accounting for 18% across linear and OTT platforms.
• Growth in Niche Sectors: The Pharmaceutical & Medical, Health & Beauty, and Pet industries have all increased their share of ad impressions, reflecting the dynamic nature of the advertising landscape.

The State of Viewership Report highlights the ongoing transformation in how audiences consume content, with a clear shift toward OTT and ad-supported streaming platforms. Advertisers must adapt to these changes by employing cross-channel strategies and leveraging advanced targeting capabilities to effectively engage audiences across multiple screens. As the 2024 election season intensifies, the ability to reach and resonate with diverse voter segments will be critical for political advertisers, while non-political advertisers must prepare for rising CPM rates in the highly competitive advertising environment.