BY Denise Gibson
U.S. consumers are changing their TV-viewing habits. Some of your accounts may be asking whether it’s time to adjust their TV advertising. The latest research shows that while CTV viewing time is increasing, linear TV ads can still deliver for advertisers.
An Analysis of Consumer TV-viewing Time
How did U.S. consumers watch TV in March 2025? Nielsen has some answers. They report that consumer viewing time was distributed across multiple platforms:
- Streaming 43.8%
- Broadcast 20.5%
- Cable 24%
- Other 11.7%
The figures above include time spent with ad-free and ad-supported TV. And they show that linear TV has only a slight edge over streaming programming.
Ad-Supported TV-viewing Breakout
Nielsen also tracked what was happening with just ad-supported TV and consumer media time. In the first quarter, 72.4% of viewing time was ad supported. This data point is great news for advertisers. They have plenty of opportunity to get in front of their targeted audience. When ad-supported TV-viewing time is considered, here’s where consumers are tuning in:
- Streaming 42.4%
- Cable 28.9%
- Broadcast 28.7%
Linear TV ROI Questions
What should your accounts do about recent reports that linear TV advertising has a lower return on investment (ROI) than other media formats? This data point comes from Big Chalk, a marketing analytics firm. In Chalk’s most recent review of media costs and returns, analysts measured outcomes for 11 media formats.
They report that the $43.99 per CPM on linear TV contributes to a poor ROI of $.62 for every dollar invested. Several industry analysts pointed out the Big Chalk’s data per CPM on linear TV was too high. Advertisers are only likely to encounter that high price when they are buying a 30-second national spot. It’s more likely that your accounts are encountering $20 CPM pricing for local and regional TV spots. That price point would deliver a much higher ROI.
Beyond ROI
Return on investment remains a key data point for your accounts. But they also need to consider other factors, especially with respect to TV advertising. Big Chalk analysts emphasize that, “Not everything is about ROI — in a lot of instances, and with linear TV specifically — the brand building power through that channel is still very strong.” When your accounts’ target audiences see ads on the local news, they will remember the brand of their local auto service center or the gourmet food store.
The Value of Return on Average Sales (ROAS)
Big Chalk explains that of the 11 media formats it measures, the average ROI is $2.07. They also point out that the average return on sales (ROAS) is higher for some formats in their sample data, which includes 200 campaigns run by their clients.
Your accounts should be focused on good ROAS. They expect to see leads and sales coming in as a result of their advertising investment. While upfront cost is a factor for formats like CTV advertising, the return is strong. Meanwhile linear TV remains a driver of consumer consideration and purchase.
Your accounts will also want to know that lower cost formats like out-of-home deliver an ROAS that is second only to streaming audio. With an ROAS of $10.73 and ROI of $3.22, your accounts might want to consider adding streaming audio to their media mix. Big Chalk analysts point out that ad skipping is more challenging in the streaming audio environment. Therefore, the target audiences are exposed to more ads.
Prospect by Advertising Response
As you put together your prospecting list, consider which audiences make the best prospects for the media you’re offering. You should also review the audience characteristics for the products and services your prospective accounts sell. For the best answers, check out the Prospect by Advertising Response Tool in AdMall.
With this tool, you can let accounts know that windshield repair/replacement customers are among the top audiences for out-of-home advertising. For pizza-loving customers, streaming TV ads score very well in terms of driving action, such as ordering dinner from the advertiser. When it comes to linear TV, driving schools and their core audience, parents of teens, can count on seeing an increase in demand when ads appear during live programming.
Summary
If you’re selling linear TV ads, remind your accounts that they can still reach their target audiences. And encourage them to engage in branding messages to connect with consumers who tune into live programming.
