Not surprisingly, television ad spending dropped significantly in 2020 (-12.5%), but then increased in 2021 (+6.3%). However, a new study by Insider Intelligence reveals that television ad spending reached its peak before the pandemic and is not expected to ever reach that level again. Ad spend for television in 2022 is expected to fall below 20% of total ad spending for the first time.

Insider Intelligence attributes this trend to the popularity of on-demand content and streaming options. “Given the high cost of traditional pay TV, viewers are shifting to a variety of streaming options that are more affordable and convenient,” states senior analyst Oscar Bruce Jr. As these platforms continue to grow in popularity, television ad spending will continue to decline. This category could account for as little as 14% of marketing budgets by 2026.

(MediaPost, 03.25.22)

Does the decline in television advertising effectiveness have you planning to expand in other forms of advertising? Contact us today about an Advertising Effectiveness Study to ensure your ads cut through the clutter and inspire incremental visitation or purchases.

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