Americans’ Streaming Habits According to Nielsen
Who is the most popular streaming service in the United States? Netflix, perhaps? Disney+? Wrong on both counts. For the 12th consecutive month, YouTube is the top streaming platform according to Nielsen data. Only Netflix comes anywhere near YouTube’s share of the streaming market.
The Evolution of YouTube
YouTube has come a long way from being a go-to platform for user-generated content. YouTube (free and premium) is a powerhouse for search (the second most popular behind Google Search), connected TV advertising, and content ranging from educational tutorials to NFL games to music events such as Coachella. YouTube also offers a variety of viewing options for different devices and CTV ad formats based on audience preferences. For example, on smart TVs, viewers can find details about a video they are watching in a new vertical menu that enables quicker access to features such as the video description, comments, the subscribe button, as well as video chapters. On YouTube TV, sports fans can access a Key Plays feature for live or recorded games from the NFL, MLB, NBA, NCAA Football, NCAA Basketball, or NHL.
The data also revealed some other interesting takeaways:
The Fragmentation of Television Viewing
Television viewing is increasingly fragmented. In January 2023, streaming accounted for 32.8% of TV viewership. That number increased to 36% in January 2024. Linear TV is not dead, contrary to popular perception: cable and broadcast still account for 52% of viewership. But linear TV is losing ground, however gradually. Also of note: “Other” accounts for 11.8%. “Other” primarily includes all other tuning (unmeasured sources), unmeasured video on demand (VOD), audio streaming, gaming, and other device (DVD playback) use. This shows how fragmented the landscape is for advertisers managing multi-platform experiences across devices and formats. For more insight into audience fragmentation, read my recently published blog post
Live Sports Rules the Roost
The January 13 NFL wildcard matchup featuring the Miami Dolphins and Kansas City Chiefs, streamed on Peacock, amassed nearly 3.9 billion minutes of viewership. This viewership contributed to January 13, 2024, becoming the day with the highest streaming volume ever recorded. This is but one sign that live sports (especially the NFL) presents a massive advertising opportunity for brands that can afford to pay up.
Live sports has traditionally been the province of linear TV. Indeed, linear TV easily accounted for the majority of viewers watching the 2024 Super Bowl, which was the most-watched telecast of all time. But things are changing: in the United States, connected TV is catching up to linear TV as the preferred method for watching live sports especially among younger demographics.
Virtually every streaming service is striking deals with sports leagues, and streaming platforms offer a variety of advertising formats including Amazon Prime’s audience-based creative that presents advertisers with an opportunity to categorize NFL viewers into distinct groups, enhancing ad relevance. Advertisers can customize their messaging for each group, using geographic, demographic, and behavioral data.
The Connected TV Landscape Is Exploding
Connected TV is exploding. CTV ad spend in the United States is estimated to be $30.1 billion in 2024 and will reach $42.4 billion in 2027. But it’s a complicated landscape. Advertisers will increasingly need help tracking audience data in an increasingly privacy-centric world, as evidenced by Google Chrome phasing out third-party cookies in 2024. My team here at IDX can help you succeed.