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Local Broadcasting's Over-the-Air Blind Spot

Tim Hanlon

@designbytholen/Unsplash

There is no mistaking the impact that internet connectivity has had on how audiences watch TV. According to Nielsen's latest National TV Panel, the number of US households that get their TV content from an internet connection has increased by more than 200% in just the past five years. Yet, despite the fact that more than 70% of homes now utilize smart TVs as their primary on-ramp to "watching television," there is still a surprisingly steady group of American households that rely on (or at least regularly access) free, over-the-air (OTA) television accessed via digital antennas.

Out of a national universe of 125 million TV homes, Nielsen estimates that nearly 23 million households regularly access television directly over-the-air — with over 18 million of them doing so exclusively. That means nearly 15% of US viewers access local (and, by extension, national) broadcast television programming exclusively by means of an OTA digital antenna - rivaling the subscriber base of the top five US pure-play virtual MVPDs (i.e., YouTubeTV, Hulu+LiveTV, Sling, Fubo, Philo) combined.  

Over-the-air viewing is even more pronounced in certain local markets. For example, in Oklahoma City, an astonishing 30% of all TV homes rely primarily on antennas for watching television, according to Nielsen - with 37% of households having at least one OTA-capable set.  Other significant "OTA DMAs" include Albuquerque-Santa Fe (31.7% OTA-only; 35.9% OTA-capable); Milwaukee (25.7% only; 33.9% capable); and Houston (23.9% only; 27.3% capable).

And those numbers only look to grow as legacy pay TV services seek ways to kick broadcast retrans fees out of their bundles, antennas become more user-friendly, and the ATSC 3.0 "NextGen TV" slowly (but surely) attains nationwide availability.  

In an ever-evolving landscape of media consumption, the "over-the-air" television audience occupies an oddly unique position. Unlike viewers who subscribe to traditional MVPD (cable/satellite/telco TV) services, or those who stream content online, the OTA segment remains largely untracked by the pervasive tracking of tech giants and data-mining/-matching algorithms of media researchers. While it may seem like a boon for privacy-conscious individuals, over-the-air viewing is a glaring blind spot for advertisers and media outlets eager to tap into this seemingly anomalous cohort.

By most independent consumer research accounts (the latest being Civic Science's new 120,000-person Over-the-Air Audience Tracker database), US OTA viewers represent a surprisingly diverse and dynamic segment of the population - characterized by youth, multicultural backgrounds, and tech-savviness. They are trendsetters, early adopters, and influencers in their communities, making them highly coveted targets for advertisers. However, without access to granular data on their viewing habits and preferences, advertisers are left guessing when it comes to crafting targeted campaigns that resonate with this audience.

For local broadcasters (and the networks and syndicators that still feed them), traditional metrics of viewership and engagement do not fully capture the impact of their programming on this elusive audience, leaving them and their advertisers grappling with uncertainty as they both strive to stay relevant in an increasingly fragmented media landscape. 

Despite the challenges, there is a sense of untapped potential surrounding OTA audiences. Their unique viewing habits and preferences offer a wealth of opportunities for advertisers and media outlets willing to think outside the box and embrace new approaches to audience engagement. As the digital landscape continues to evolve, those who can crack the code of "missing" over-the-air viewership stand to reap the rewards of connecting with one of the most elusive consumer segments in the modern media ecosystem.  

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