Peak TV is dead, long live Peak TV advertising

Television has never been a static industry. First there was the “Golden Age of Television,” then there was the “Silver Age of Television,” and for the last two decades we have been living in the age of high-end television. The heyday of television set new standards for entertainment, lasted for years, and somehow felt like it went on forever.

But if the last seven decades are any indication, television has a life cycle – and it’s clearly over. This is still not devastating news for advertisers.

The Rise of Peak TV Advertising

There are a number of reasons why the era is over, and EMARKETER explains them in their recent report, “The End of Peak TV.” You should read it because we won’t go into detail about it. What we want to do is to allay fears because while peak television may be over, advertising on peak television is on the rise.

As the cost of ad-free streaming subscriptions has risen over the past year, industry heavyweights like Netflix, Amazon Prime Video and Disney+ have introduced ad-supported tiers. This offers a lower price for those who might not otherwise be able to afford ad-free subscriptions, expanding the pool of audiences advertisers can target.

At the same time, free ad-supported streaming channels (FAST) are becoming increasingly popular. According to a May 2023 report from Hub Research, 57% of viewers will watch FAST content in 2023. And as streaming tier prices continue to rise, interest in completely free options will also grow.

Run up the hill again

What these ad-supported experiences have in common is that they both have libraries of old replay content. In an August 2023 survey, CivicScience asked adults in the U.S. what they would watch if their favorite television shows didn’t return with new episodes in the fall. 45% reported repeats. This means that even when less content is released, audiences will continue to stream, whether they’re catching up on their watchlists or revisiting comfortable classics.

This proves that advertisers always have a wealth of options to target, engage and convert their audiences on TV, even when there is no top content to advertise on. And recent data shows that advertisers have already noticed this and adjusted their budgets accordingly. A 2023 survey by Guideline found that the share of ad spending on repeat content rose to 79%, while spending on new content fell to 21% – the lowest level since 2020.

A new era for television advertising

What the era of TV advertising will prove at its peak is the resilience of connected television (CTV) to withstand all developments in the television landscape.

Data shows that television will always be top of mind, so advertisers should feel able to maintain an “always-on” approach to CTV and allocate budgets to formats that have proven to be engaging, such as FAST channels and ad-supported streaming platforms with extensive legacy libraries of content.

Even as we say goodbye to top-notch TV, don’t shift your budgets away from the living room screen – make it even more important by reaching a modern audience that enjoys classic content.