The television advertising landscape is in structural transition. Linear TV (traditional broadcast and cable) viewership has declined 5-8% per year since 2018, but it remains the largest single-channel advertising market. Streaming advertising (Connected TV / CTV) is growing 25% per year but from a much smaller base. By 2027, CTV ad spend is projected to surpass traditional TV in the US and approach parity in Germany.
Linear TV strengths that persist: mass simultaneous reach for live events (sports, elections, award shows), reach depth among 55+ demographic where streaming penetration remains lower, and brand-safe premium context in established programming. The best linear TV placements remain premium prime-time slots and live sports.
Connected TV (CTV) and streaming advertising advantages: precise audience targeting (demographics, interests, purchase behavior), household-level attribution (linking ad exposure to online conversions), creative format flexibility (interactive overlays, QR codes, dynamic messaging), and programmatic buying efficiency. Netflix, Disney+, Amazon Prime and Amazon Fire TV, Hulu and Peacock all offer ad-supported tiers with significant scale.
Budget allocation strategy for 2026: established brands targeting 35+ audiences should maintain linear TV presence (50-60% of TV budget) while building CTV capabilities. Brands targeting 18-35s should shift aggressively to CTV (70-80% of TV budget). Both segments should use CTV for precision, linear TV for maximum reach moments. The worst strategy is abandoning TV entirely before CTV has been properly tested and scaled.
