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US traditional TV ad spending will total $59 billion this year, falling to $45.32 billion by 2028, per our forecast.

鈥淭here鈥檚 a group of advertisers that didn鈥檛 advertise on traditional TV, but do advertise on connected TV,鈥� said Verna. The election is also shining a spotlight on CTV, because of the demographics it can reach, he added. 鈥淭he median age of traditional TV viewers continues to rise, and CTV reaches the sweet spot of millennials. So it's a very different audience.鈥�.

Our latest forecasts for TV and CTV ad spending, as well as those for time spent with each medium, point to CTV鈥檚 inevitable eclipse of its linear counterpart.

The changing landscape: Previous attempts at a DirecTV-Dish Network merger were shut down by regulators to prevent the formation of a too-powerful TV entity. This time, the merger was something of a last-ditch effort to regain some footing in the video landscape.

These include short-video clips in social media feeds and more traditional commercial spots in long-form content delivered digitally. Growing consumption of ad-supported video-on-demand (AVOD)鈥攐n platforms like Netflix and Crave and free ad-supported streaming TV channels like PlutoTV, Roku, and Tubi鈥攈as also increased video ad spend.

Roku posts strong Q3 revenues growth, attributes to content, ads, and new TVs: ARPU drops as losses mount, but the company remains optimistic amid streaming challenges.

Time spent with media across digital and traditional formats peaked last year. The 2024 GMI results showed a plateauing of consumption in the 11 media formats measured.

Total media time in Germany is increasing, bucking a Western European trend. Digital growth is fueling much of this, but traditional media鈥檚 enduring appeal is helping, too.

And since the CTV ecosystem is most likely to inherit traditional TV time, it鈥檚 a great fit for banks that have long relied on TV campaigns. Prioritize effective targeting鈥攂ut beware of risks. Banks that clarify and understand their target consumers can best allocate resources to reach them. But strict regulatory supervision has always meant extra scrutiny on the sector鈥檚 fair marketing practices.

This is the first installment of our quarterly 鈥淎d Spending Benchmarks鈥� series, which helps ad buyers and sellers calibrate their spending and revenue mix against the market.

It signals a pivotal shift in streaming, blending premium content and live sports with targeted advertising, marrying the appeal of traditional TV with the precision of digital marketing.

Gen Z adults are less likely than adults overall to watch traditional TV or listen to the radio. A greater share of US adult Gen Zers (ages 18 to 26) cited streaming video, streaming music, and playing video games as daily activities compared with the general adult population, while the opposite is true for watching traditional TV and listening to AM/FM radio, according to the Morning Consult survey.

Advertisers are fleeing traditional TV far more quickly than viewers are. TV will claim just 17.3% of all US ad spending this year, despite US adults still spending almost a quarter of their daily media time with old-fashioned cable, satellite, and broadcast TV services.

YouTube dominates US TV viewership, beating out Netflix, according to latest Nielsen data. US adults are spending more time with digital video and less time with traditional TV. TikTok leads time spent on social for most US adults.

Ad-supported video gains viewership, time spent on digital video surpasses TV, and streaming services pivot from audience growth to profitability.

Share of viewing time between cable and broadcast TV in the US fell to a combined 49.6% last month, according to Nielsen.

Last year, for the first time, US adults spent more time watching digital video than traditional TV. The time spent gap between digital video and traditional TV will widen in the next few years, from 28 minutes in 2023 to more than an hour in 2025, according to our forecast. US adults will spend 3:23 per day watching digital video in 2023. YouTube will claim 34 of those daily minutes.

This transition toward CTV points to a broader shift in consumer behavior, as traditional TV consumption patterns are disrupted by the rise of on-demand content and streaming services. Why it's growing: CTV ad growth can be attributed to a few factors:.

Why it matters: Prime Video's ad model positions Amazon as a strong competitor to traditional TV networks and streaming services like Netflix. In context:. Amazon has entered an increasingly competitive ad-supported streaming market, facing rivalry from Netflix, Disney+, and others. Its entry forced Netflix to lower CPMs to $29-$35 from last summer鈥檚 $39-$45.