Today we are going to talk about cable television. There are some great things happening in the world of Cable TV right now and we want to make sure you aware of them because they can have a positive impact on your business.
Today, cable TV reaches 89 percent of the television households. That’s impressive. When we think back to what Cable was in the 1980s, it’s come a long way. It is now a household staple.
Cable TV also generates more than $26 billion dollars in revenues.
So Cable TV takes a large piece of the TV audience. How has that affected broadcast viewing? In 1990, the big three networks held 53 percent of the TV viewing audience during the day, while cable had 19% Well the growth in these last two decades has been staggering. In 2008, Cable’s share stood at 50.1% Half of all TV viewing, while the broadcast network’s share dropped to 20.5 percent. This is amazing. It ‘s close to a complete role reversal in viewership.
Because of this, broadcast isn’t getting the ratings they once got. For example, during the 2007-2008 season, American Idol, one of the most successful programs of the year, was on top with a rating of 15.2. Well, in 1981, that same rating would have ranked 71st. There was a time when shows like “Dallas” and “MASH” were pulling in ratings of 30 and above but that’s in the past.
So Cable TV is a major player, taking a lot of the viewers broadcast networks used to call their own. But we aren’t buying nation-wide spots here, we are concerned with Lexington, and locally, we are seeing the same trends.
Cable TV is a pay service, it’s not free. So a lot of people are going to ask how many eyeballs are they missing? Well here in Lexington, not many. Nielsen has the Cable penetration of Fayette County at 80%. 4 out of 5 homes are Insight cable subscribers. That’s phenomenal. 80% of the Lexington community has Cable TV.
Almost half of all the ratings in a total day go to cable programming. If you advertise on any one of these local broadcast networks, your missing all these people. This really is a significant amount of the audience not watching the local broadcast networks. Now some people are going to say that cable TV is fragmented because you have more than 60 networks dividing up that 48%. Well, they are right. But even when you narrow it down to our top five cable networks, we still have a very competitive share. So the bottom line is this, half of Lexington TV viewers are over here. The days of one mass media are over. What we have to do now is analyze the people you want to reach, and put them on the networks and programming that best speak to them. Cable TV is a great outlet for that. You have to reach somebody, not anybody.
So how did this happen? How did networks lose all of their ratings and viewers?
Because viewers were given a choice. With more networks and channels to watch, viewers were able to find networks and programming they actually wanted to watch! With programming that fit their lifestyle. Consumers love choice.
And at the end of the day it’s really all about content. Great TV shows. In today’s media world, people don’t choose which networks they want to watch, they choose which TV shows they want to watch, and over the last few years, Cable’s quality of original programming has gotten better and better.
But in the last few years, not only is it great, but it’s now award winning. For the past two years, basic cable has had a strong presence in the Emmy awards.
And just this month, ESPN’s October 5th airing of Monday Night Football was the biggest audience in the history of Cable TV, reaching 21.8 million viewers. ESPN’s highest rating ever.
So we know that cable TV is as popular as it’s ever been with shares that continue to grow every year, delivering awesome original content. So how do we use it to deliver your message? Well cable is un-matched in it’s ability to specifically reach your customers. The technology and research cable systems provide cannot be matched by any other media.
First, You have the freedom to choose where your message runs. This is truly unique, allowing you ability to stretch your advertising dollar to the max. If your car dealership is located in Lexington, KY and 85% your business comes from within 30 miles. You can funnel all your advertising to Fayette County. Other forms of advertising force your message across the vast market which results in wasted advertising. With Cable you can deliver your message to the people that matter. Isn’t that great?
It’s all about people. Once you know the location your customers are coming from, you need to find out what your customers are watching. What networks and programming are your future customers watching most. Well, with more 60 insertable networks, no other form of mass media gives you the diversity of Cable TV.
With other forms of media, you are forced onto once station. Not with Cable. With have networks that target specific types of people. It’s not about how many people you reach, it’s WHO you reach. You want to reach teenagers? No problem, we will put your message on networks that deliver directly to them. Families? You got it. Sports fanatics? No problem. Isn’t this great? You have the chance to put your message on the TV networks your ideal customers watch most. This is just a taste of the in-depth research we can do when we are analyzing your business’ needs.
With more than 60 insertable networks, Cable TV has the inventory to make sure your message has a strong presence on screen. We want people to see your spot multiple times, and we have the inventory to get that done.
When you add all of these great components together, you have a product that has unparallel advertising power. 1. Cable holds the largest portion of the viewing audience. Stealing massive market share away from Broadcast networks in the last ten years. Two, great TV shows that people watch. Cable has real destination viewing. Award winning. Three, Choice. Where do you want your message to run. Own your backyard. Eliminate waste. four, Networks that speak to specific people. Put your message on networks that deliver to the types of people you deliver to. And five, High frequency. Cable has the inventory and multiple networks to run your spot A LOT, making sure you get the repeated viewing to build your brand. So cable is a strong product, giving you unparallel efficiency and advertising to speak to the consumers you need to reach in the tough, fragmented world of mass media we have today. THANK YOU.