Since cable’s formation in 1948 and satellite TV in 1978, American consumers are constantly on the lookout for new avenues for entertainment, information on current events, and connecting with others.

Nowadays there are hundreds, if not thousands, of choices for an internet, TV, and phone plan. Factors like location, budget, age, home type, and lifestyle will determine which subscription package is suitable for each unique cable or satellite customer.

With so many variables to consider for the industry, the marketing landscape is much more complex than when it initially began. Marketers must carefully consider the best targeting strategy and outperform competitors for their customers’ attention.  

Streaming Services as a Major Competitor 

The rise of streaming services – such as Netflix – transformed the telecommunications industry. Now, instead of buying a standard cable package, anyone with internet had access to thousands of hours of popular video content.

Companies like Disney+, Hulu, Apple TV, and Amazon Prime offer multiple shows on-demand for an average price of $10/month.

With password sharing among households, these companies have captured so much of the entertainment market that many households are choosing to drop their paid TV subscriptions altogether.

One survey by the National Telecommunications and Information Administration discovered that the proportion of users that watch videos online has grown from 45 percent in 2013 to 70 percent in 2017.

The popularity of streaming services is only growing, with more disparity across each generation. Millennials and Gen Z appear especially partial to streaming services due to their lower costs, wide video variety, and lack of commercials.

And as an even bigger hit to Cable and Satellite TV, many companies like ESPN plan to shift their content onto their own streaming platform.

With so many generational trends and competitors, cable and satellite TV are feeling the pinch in the market. As of 2023, 75.5 million American households pay for a cable subscription or similar packages.

While that is still a significant audience, the market is decreasing 7 percent annually, and the 58.5% market size is at its lowest since the early 1990s.  

How to Reach New Audiences for Cable and Satellite TV? 

The generational difference between Baby Boomers and Gen Z reveal the types of audiences that still subscribe to cable and satellite TV. Baby Boomers remain a strong market in the US for bundled TV services, as 57 percent of survey respondents still subscribe.

In contrast, Gen X (43%), Millennials (42%), and Gen Z (35%) show less demand for paid TV subscriptions than their predecessors.

What is the takeaway from this information? Unless cable and satellite TV can reach its core audience with custom offers and personal relevance, they risk losing even more customers to streaming services – especially among the younger generations.  

Direct Mail for Cable and Satellite TV 

Direct mail has a unique advantage over other marketing mediums when creating and leaving a memorable impression. For companies that require precise audience targeting, this marketing medium offers several more proficiencies than its digital counterparts.  

• Know Your Customer (Before Your Campaign)

In a world filled with digital marketing, there is more of a focus on your customer’s online habits rather than who they are as people. This targeting strategy creates a lot of fat for companies to cut through before finding viable internet leads.

Anyone can present themselves differently online, and because users have no obligation to disclose their personal information to websites, you truly get what you paid for with free user-generated data.

For the user, there are no consequences for imputing false info besides poorly targeted ads. But for cable and satellite companies, where information like location and house type determine viable prospects, inaccurate audience targeting could waste a significant portion of the marketing budget.

However, direct mail at its core is a physical medium that ties to a current address. And as every address connects to a real person, their information is much harder to fake.

Using this data for marketing campaigns is much more reliable, as household info is much more accurate and up to date without user input.  

• Prioritize Better Customers

Not only does the address play a significant role in determining feasible prospects, but data modeling can also help determine other factors like a prospect’s lifestyle and potential interest in different TV packages.

(And with a data-backed system like TargetList, your campaigns can identify new customers based on matching characteristics and buying habits of current customers).

It is no secret that companies would prefer to target prospects more likely to become high-paying customers with a long lifetime value to their brand. For cable and satellite companies, these customers are the ones that purchase TV, internet, and phone bundle subscriptions.

With direct mail, your company can easily identify these prospects through careful data analysis of your current best-serving customers.

By building an accurate customer profile prior to launching a campaign, your marketing targets the households most likely to increase your ROI with more lucrative purchases.  

• Avoid HOAs, Rentals, and Other Ill-Suited Home – Types

Not every household is a viable lead – even if they show an interest in your services. Because cable and satellite require a physical installment at the place of residence, the home type can be a limiting factor when it comes to filtering out interested prospects.

Direct mail streamlines this filtering process by removing unsuitable house types from its address list. HOAs, rentals, and even some condo regulations prevent these individuals from using cable and satellite services even if they desire them.

In this regard, single-family homes are the best target; since they do not possess the same restrictions as rentals or community housing.

Thanks to direct mail’s relationship to each address, your campaigns will automatically remove those home types from your list of prospects. This action helps your marketing focus ONLY on those that match your ideal customer profile.  

 Finding the right audience through direct mail requires careful consideration due to the complexity of factors that determine the ideal customer profile.

That is why at DK Solutions, our campaigns utilize our TargetList methodology.

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