Maintaining campaign reach in a fragmented media market is a growing challenge. WARC Media released a report on the rising cost of incremental reach.

Key findings include:

  • Linear TV represented 37.9% of daily media consumption in North America; by 2022, that percentage is forecast to drop to 24.5%.
  • In the US, TV CPMs are forecast to reach $73.14 in 2022, an increase of 40.0% on pre-COVID levels in 2019.
  • Channels like BVOD provide an alternative source of incremental reach; however, OTT ad costs are rising, too.
  • Attention research suggests that not all incremental reach is equally effective; channels with higher CPMs may deliver better-quality attention.

What This Means For Brands:

Mass reach via linear TV may become harder to achieve as media consumption fragments. In 2013, linear TV represented 37.9% of daily media consumption in North America; by 2022, that percentage is forecast to drop to 24.5%. Meanwhile, linear TV ad costs have spiked since the pandemic.

This trend of declining linear television viewership and rising TV media costs is encouraging advertisers to pursue incremental reach elsewhere, especially online where channels with higher CPMs may deliver better-quality attention. In paid social, for example, CPMs increased by 33% between 2019 and 2021.

As media consumption behaviors change, cross-channel measurement is vital to optimizing reach strategies. Brands need to be able to pivot quickly to meet shifts in consumer trends.

If you need assistance understanding where and how your audience is consuming media, contact us today. We’re here to help.

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