In a significant shift within the U.S. advertising industry, broadcast and cable television ad spending is projected to decline sharply in 2025, while connected TV (CTV) advertising continues its rapid ascent. According to a recent report from research firm eMarketer, traditional TV ad spending, encompassing both broadcast and cable, is expected to drop by 15.5% this year, totaling $49.94 billion. This marks a notable contraction for an industry that has long been a cornerstone of media spending. In contrast, connected TV ad spending, which includes platforms like Roku, is forecasted to grow by 13.2%, reaching $31.91 billion. The report further predicts that by 2028, CTV ad spending will surpass traditional TV, signaling a transformative moment for the advertising ecosystem.
The decline in broadcast and cable ad spending reflects broader changes in consumer behavior and media consumption habits. Traditional television, once the dominant medium for reaching mass audiences, has faced increasing competition from digital platforms. Viewers are spending less time with linear TV, opting instead for streaming services that offer on-demand content and greater flexibility. This shift has eroded the audience base for broadcast and cable networks, prompting advertisers to reevaluate their strategies. The 15.5% drop in ad revenue underscores the challenges faced by traditional TV networks as they contend with shrinking viewership and an increasingly fragmented media landscape.
Meanwhile, the rise of connected TV platforms has provided advertisers with a compelling alternative. CTV, which delivers streaming content through internet-connected devices like smart TVs, streaming sticks, and gaming consoles, offers a blend of digital precision and the large-screen experience traditionally associated with television. Platforms like Roku, Amazon Fire TV, and Samsung TV Plus have gained significant traction, attracting both viewers and advertisers. The 13.2% growth in CTV ad spending this year highlights the medium’s appeal, driven by its ability to deliver targeted ads, measurable results, and access to cord-cutters and cord-nevers who have abandoned traditional TV subscriptions.
The projected overtake of traditional TV ad spending by CTV in 2028 marks a pivotal moment for the industry. This shift is driven by several factors, including the growing adoption of smart TVs and streaming devices, which have made CTV accessible to a wide audience. Additionally, CTV platforms offer advanced advertising capabilities, such as programmatic ad buying and data-driven targeting, which allow brands to reach specific demographics with greater efficiency. Unlike traditional TV, where ad buys are often based on broad audience estimates, CTV enables advertisers to leverage viewer data to deliver personalized ads, improving engagement and return on investment.
The divergence in ad spending trends also reflects the broader evolution of the media industry. As streaming services continue to proliferate, traditional TV networks are investing heavily in their own streaming platforms to remain competitive. However, the transition has been challenging, with many networks struggling to balance declining linear TV revenue with the costs of building and maintaining streaming services. Advertisers, meanwhile, are reallocating budgets to platforms that align with changing consumer preferences, further accelerating the growth of CTV.
The implications of this shift extend beyond advertising budgets. For traditional TV networks, the decline in ad revenue could lead to reduced programming budgets, potentially impacting the quality and variety of content available on broadcast and cable. For CTV platforms, the influx of ad dollars is likely to fuel further innovation, including new ad formats and enhanced measurement tools. As the gap between traditional TV and CTV ad spending narrows, the media industry is poised for a period of rapid transformation, with connected TV at the forefront of this change.
By 2028, when CTV ad spending is expected to eclipse traditional TV, the advertising landscape will likely look very different. The continued growth of CTV suggests that advertisers are betting on the future of streaming, prioritizing platforms that offer flexibility, precision, and alignment with modern viewing habits. For now, the $49.94 billion in traditional TV ad spending and $31.91 billion in CTV ad spending represent two sides of a rapidly evolving industry, one grappling with decline and the other embracing growth.
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