The advent of streaming services and other digital channels has spotlighted the TV industry for advertisers. Many wonder what the future holds for the longstanding channel to consumers, looking to market sages to provide some insight.
In this four-part series, we intend to provide an overview of the current state of TV advertising. This series is for broadcasters and local TV networks looking to learn more about TV advertising trends and how artificial intelligence (AI) is changing attribution in the space.
In this first installment, we’ll cover:
- Is TV advertising dead?
- The rise of connected TV and streaming platforms
- A look at the TV advertising market
- Measurement, attribution, and data-driven insights
- Cross-platform advertising in a fragmented media landscape
- The future of tv advertising
- What we’ll cover in this TV advertising blog series
Is TV advertising dead?
The simple answer is no. TV advertising is not dead. However, while there are plenty of articles backed by that data touting the doom of TV, focusing primarily on cord-cutting, these articles tend to take too narrow of a focus on what’s going on in the space. TV is just another form of video content. And the boundaries between TV, streaming, and digital have become increasingly integrated and blurred.
TV advertising data tells another story as well. Despite all the talk of a digital conquest, TV still ranks as the second most profitable advertising medium in the leading advertising market in the world, the United States. It accounts for a quarter of all US media ad revenue. But as we cover in future blogs, we’ll see that the blurring of these lines across video channels has resulted in demand for unified of data insights no matter the prescribed video channel.
The rise of connected TV and streaming platforms
While traditional TV continues to play a major role in the advertising industry, the rapid growth of connected TV (CTV) and streaming platforms is reshaping how advertisers reach audiences. As consumer behavior shifts toward on-demand content, more viewers are choosing streaming services over linear TV, accelerating the rise of new advertising opportunities.
Connected TV advertising allows brands to deliver television ads through internet-enabled devices such as smart TVs, gaming consoles, and other OTT devices. This shift enables advertisers to combine the broad reach of traditional TV with the targeting capabilities of digital platforms.
As a result, many brands are rethinking their marketing mix, balancing traditional TV ads with CTV advertising to stay ahead of changing viewing habits and maximize overall campaign effectiveness.
Addressable advertising and smarter targeting
As the TV advertising market evolves, addressable advertising has become a key driver of innovation. Unlike traditional broadcast approaches, addressable technology enables advertisers to deliver ads to specific households or audience segments based on demographics, interests, and viewing behavior.
This level of precision allows brands to reduce wasted spend and improve campaign performance by ensuring that television ads reach their intended audience more effectively. It also supports more data-driven insights, helping advertisers refine messaging and optimize campaigns in real time.
For many advertisers, this shift represents a significant step forward, transforming TV from a broad awareness channel into a more measurable and performance-oriented medium.
A look at the TV advertising market
TV Advertising across the board took a hard hit due to the pandemic. Many pulled back ad spending as uncertainties around the economy mounted. At the time, many organizations were trying to protect their business and avoid layoffs, which is understandable. But advertising is not something that you can turn on and off easily, which hurts brand awareness, among other things. We discussed creating an advertising strategy to better prepare for future disruptions on the Veritone One blog.
However, the outlook for TV advertising in global and local markets is very different.
What’s the state of the global broadcast TV advertising market?
Worldwide TV advertising growth is up by 11.9 percent, growing by 17 billion between 2020 and 2021, then finding a consistent, projected spend of about $131B from 2023 to 2028.
And despite data discussing linear TV in decline, smart and connected TVs are still the centerpiece of households. In fact, two in five consumers now have a next-generation TV with 75 percent of all streamed video coming through a TV set. Naturally, this impacts TV advertising strategies, becoming more hybrid-focused by capitalizing on the vast reach of TV and targeting digital to ensure the message reaches the intended audience.
What’s the state of local broadcast TV advertising markets?
Local markets traditionally have a stronger ebb and flow when compared to global markets. Of all the different video segments, local TV was the only channel to decline in 2021, dropping 13 percent to 16.2. But that’s to be expected in a non-political year. During an election year, local TV advertising always boosts as people turn to local news, increasing ad spending in this space as a result.
The BIA estimated the US’s local advertising spend reached $173.7 billion for 2024, and is expecting an estimated $171 billion in 2025, with the 1.3% decline due to political ads in the election year.
Measurement, attribution, and data-driven insights
One of the biggest challenges, and opportunities, in modern television advertising is measurement. As campaigns span multiple channels and devices, advertisers need a clearer understanding of how their investments contribute to results.
Advances in performance data, data clean rooms, and identity solutions such as hashed emails are helping brands connect exposure to outcomes across platforms. These tools enable more accurate tracking of campaign performance, giving marketers the ability to optimize campaigns while they are still running.
With better access to data-driven insights, advertisers can make more informed decisions, improve return on ad spend, and reduce inefficiencies across their campaigns.
Cross-platform advertising in a fragmented media landscape
Today’s media landscape is more fragmented than ever, with audiences consuming content across broadcast TV, streaming TV, and a wide range of digital streaming platforms. As a result, effective TV advertising is no longer confined to a single channel.
Advertisers are increasingly adopting cross-platform strategies that unify campaigns across linear TV, CTV, and other digital channels. This approach helps ensure consistent messages are delivered wherever audiences are watching, whether on a traditional television screen or a mobile device.
By aligning campaigns across platforms, brands can better reflect modern viewing habits, reach a wider audience, and improve overall campaign effectiveness.
The future of TV advertising
The future of TV advertising will be defined by convergence. As the lines between traditional TV, streaming services, and digital platforms continue to blur, advertisers will need to adopt more flexible and integrated approaches.
Emerging formats such as shoppable ads and interactive experiences are turning TV into a more performance-driven channel, allowing viewers to engage directly with brands and even buy without leaving the screen.
At the same time, advances in targeting, measurement, and automation are helping advertisers deliver more relevant messages to their audiences. For brands willing to adapt, the future of TV represents not a decline, but a significant opportunity to evolve alongside changing technology and consumer expectations.
What we’ll cover in this TV advertising blog series
4 TV Advertising Trends Changing the Game
We’ll look at the top four trends in the TV advertising space to help you best leverage the channel.
How Broadcasters Can Justify TV Ad Costs to Advertisers
In this blog, we’ll dive into why broadcasters need to provide metrics of success and how this is achieved to ultimately help them win and retain more business.
Everything You Need to Know About TV Attribution
We’ll explore ad attribution and how this is typically done in linear channels such as TV with new tools that are changing the game for broadcasters.
