While no wires are actually harmed in the process of wire cutting, cable and satellite TV providers are getting a big hit as millions of Americans say “thank you, but no thank you” to excess cable channels and high monthly payments – this new generation of media consumers are called “cord cutters”.
What are cord cutters? Cable cutters are TV viewers who have often dropped their traditional cable TV provider in favor of relying on TV streaming services. And they are growing in number. In fact, a Forbes report from 2021 shares that the total number of cord cutters has (drums, thank you) tripled in just seven short years.
With an estimated 50.4 million1 rope mowers making waves across the country, it raises the question of why. This blog will dive deep into the motivating factors behind this decision, as well as what this means for marketers who suddenly need to innovate the way they reach their audience.
Cable cutting: The cable alternative
While wire cutters certainly dismantle the TV industry as we know it, they are not the only ones to have a finger in the pie. There are a few other categories of people who opt out in their own way, causing cable and satellite subscriptions to drop even more.
Does the cord cut the comrades? Cord trimmers and cord never.
Cord Trimmers – Instead of breaking the ties completely, wire trimmers go in to minimize their cable or satellite costs each month by turning down channels and services they do not need or want. Cord trimmers can simply opt for a reduced channel list or cut down on expenses while also adding a streaming service along with their reduced cable subscription.
Cord nevers – This anti-cable community accounts for as many as 31 million Americans who have never had a cable or satellite subscription before.2 Not surprisingly, this trend can be observed primarily among younger generations. 90% of Americans between the ages of 25 and 34 use a digital streaming service instead of a traditional cable TV package.
Whether they patch the hole in their purse or enjoy the convenience of streaming their favorite TV shows 24/7, there are a number of benefits associated with cord clipping that the American TV viewers take advantage of. Read on to catch the details.
Benefits of cord cutting
What is the root cause of the cable boycott? It is difficult to put a finger on just one particular benefit as there are many reasons why cord cutters, cord cutters and cord wrenches move away from traditional TV viewing.
Here is an overview of what could be some of the primary factors contributing to this trend:
Cost-effectiveness – One of the most appealing factors that motivates cord cutters to say goodbye to their cable or satellite subscription is perhaps the financial savings that come with it. Depending on the provider and the number of channels, the average cable bill can range from $ 45 to $ 130 each month.3
The price per. per month for a streaming TV service will also vary depending on the package chosen, but can cost as little as $ 4.99 per month. month (Apple TV +) or as much as $ 15.99 per month. month for the premium level at Netflix.4 Whether you are a math whiz or not, it’s obvious to see how much money you can potentially put back in your pocket by choosing a streaming service instead. Multi-way streaming – Another benefit of multi-household streaming services is the ability to access shows and movies from a variety of devices. This allows everyone in your home to tune in to their favorite channels without having to fight over who gets control of the remote at a particular time. Plus, downloadable series and movies allow for on-the-go entertainment when you’re away from home or unable to connect to WiFi. Different range of services – For cord cutters, having access to hundreds of channels via cable is not as enticing as having access to only favorite programs at the touch of a button. This is why they are likely to find the diverse range of streaming services as an ideal replacement for broadcast television. Instead of paying too much for channels they almost never use, wire mowers can hand-pick their favorites from a variety of options, including Netflix, Hulu, Disney +, to name a few.
In addition, the algorithms behind several streaming services offer a degree of customization that some users may find attractive. By tailoring the menu to match viewing behaviors and trends, users can spend less time browsing and more time connecting with shows and movies recommended for a particular taste. Local access – There may be some hesitation among TV viewers to drop cable and satellite subscriptions solely because they are concerned about losing access to local channels and live sports. Fortunately for wire mowers, some services such as Hulu + Live TV offer a bundle, including channels like ABC, CBS, ESPN and FOX, making it easier to switch without sacrificing access to the TV you love.
What wire cutting means for marketing
In addition to offering TV viewers lower monthly bills and more convenient binge-watching, cord cutting is also responsible for some major changes in the world of marketing and advertising.
With fewer people tuning in to cable and satellite TV, advertisers need to find new and more effective ways to reach their target audience via streaming services instead.
The answer? OTT and CTV advertising.
OTT, or over-the-top streaming, is the digital video content that viewers with Internet access can take advantage of from a variety of devices. You are probably familiar with services like Netflix, Hulu or Amazon Prime Video, but you may not have realized that they fall into the category of OTT media. CTV, or connected TV, is similar to OTT streaming, but often relies on a special device to display video content if your TV does not already have built-in capabilities. Common CTV devices include Roku, Chromecast, Amazon Fire TV, Apple TV and game consoles like Xbox and PlayStation.
Instead of showing ads during a traditional TV show, media buyers need to take advantage of opportunities such as in-stream ads, interactive midstream ads, and home screen placement ads to show their brand message.
How To Take Advantage Of Wire Cutting Trends
Although digital marketing strategists have been forced to adapt a penny to a new advertising channel, they may find it more effective than linear TV advertising.
Here’s how marketers benefit from OTT and CTV advertising.
Targeting a New and More Specific Audience – Brands hoping to leverage OTT and CTV advertising trends can use them as a way to reach a newer, younger audience. As mentioned earlier, the younger generation accounts for the majority of cord cutting trends. Therefore, companies hoping to engage with a younger demographic may be able to make it more effective with this particular advertising channel.
Plus, it allows media buyers to gather valuable information about audience behavior, popular TV viewing times and viewer interests, allowing them to target their ads more accurately. Gain insight into how your ads are performing. – There are a number of metrics marketers can take advantage of with CTV and OTT advertising that allow them to gain a better understanding of how their ads are performing.
Whether it’s seeing how many times your ad has been seen to completion, or how many viewers visited your site after your ad was shown to them, companies can use this data to optimize their marketing campaigns and make adjustments, when it is necessary. Use marketing dollars more effectively. By combining both audience insight and unique CTV and OTT key performance indicators (KPIs), marketing teams can not only make more informed advertising decisions, but can also find ways to spend their marketing dollars more wisely as a result.
When you are able to place your ads in front of an audience that is more likely to be interested in your product or service, there is a greater chance that your campaign will provide a higher return on investment.
How does your brand respond to the changing patterns in TV viewership? If you have not yet considered switching to an OTT and CTV advertising approach, it may be time to do so now. Read our guide on CTV viewership to learn more.
Update your marketing strategy with Marketing-Ideas Marketing
Whether you’ve engaged in cable or are considering switching to streaming video content instead, return to this article anytime you need help guiding your decision. If you are in the marketing industry, take the insight from these cord cutting trends and be sure to add them to your promotional tool belt.
It’s time to cut the ribbon with outdated, ineffective marketing tactics and start building new ties with Marketing-Ideas Marketing instead. Specializing in paid media, affiliate, content marketing and more, the experts at PDM are committed to tailoring strategies that work to each brand’s unique needs and goals.
See why customers like Airbnb, Peloton, and Casper are counting on us to help shape their marketing plans and unleash their full potential. Get your proposal for one of our digital marketing services today.
Forbes. The number of line cutters and line cutters has tripled since 2014. https://www.forbes.com/sites/tonifitzgerald/2021/05/27/the-number-of-cord-cutters-and-cord-nevers-has -tredoblet- since-2014 /? sh = 6b80890e1f12 Business Wire. Over 30 million Americans have never paid for traditional television service – MRI-Simmons. https://www.businesswire.com/news/home/20190409005686/en/30-Million-Americans-Paid-Traditional-TV-Service Nerd Wallet. How much does cable cost per month? https://www.nerdwallet.com/article/finance/how-much-is-cable-per-month Money Geek. Comparing the best video streaming services to your budget https://www.moneygeek.com/financial-planning/resources/best-streaming-services-on-a-budget/ PwC. Consumer Intelligence Series: I stream, you stream. https://www.pwc.com/us/en/advisory-services/publications/consumer-intelligence-series/i-stream-you-stream/pwc-videoquake-i-stream-you-stream.pdf Finances Online. 54 Convincing cord-cutting statistics: 2021 market share analysis and data. https://financesonline.com/cord-cutting-statistics/