The world of television advertising is undergoing a seismic shift, as outlined in the latest Global Ad Trends report from the World Advertising Research Center (WARC), titled “Global Ad Trends: The Changing Shape of TV.” The report, which draws on a decade of advertising spend data, paints a clear picture of linear TV’s decline and the rapid rise of connected TV (CTV). As viewers increasingly turn to streaming platforms, advertisers are reevaluating how they define and engage with “TV” in a fragmented media landscape. This transformation is reshaping not only where ad dollars are spent but also how campaigns are planned, executed, and measured.
The Decline of Linear TV
Linear TV—traditional broadcast and cable television—has seen a significant drop in its share of global advertising budgets. According to WARC, global linear TV ad spend fell to $143.9 billion in 2025, representing just 12.4% of total ad spend, a stark contrast to its 41.3% share in 2013. Over the past decade (2014–2024), linear TV ad spend has declined by 27.5% in absolute terms, and when adjusted for inflation, the drop is even more pronounced at 50.8%. This decline reflects a broader shift in consumer behavior, as audiences move away from scheduled programming toward on-demand streaming services.
Despite this downturn, linear TV still accounts for more than three-quarters of total TV investment. However, its dominance is waning, and WARC forecasts that its share will shrink further to 11.3% ($139.1 billion) in 2026—the lowest since 2005. Sector-specific trends highlight the uneven impact of this shift: for instance, ad spend on linear TV for tech and electronics has plummeted by 42%, while household and domestic products have seen a 12% increase, indicating that some industries still find value in traditional TV’s broad reach.
The Rise of Connected TV (CTV)
As linear TV loses ground, connected TV—streaming services accessed via internet-connected devices like smart TVs, gaming consoles, and streaming sticks—is experiencing explosive growth. In the U.S., CTV now accounts for nearly half of all TV usage, according to Nielsen, signaling a fundamental change in how people consume video content. Globally, CTV ad spend is projected to reach $39.9 billion in 2025, representing 3.4% of total ad spend, and is expected to grow to $44.7 billion (3.6% of total share) by 2026.
Marketers are responding to this trend with enthusiasm. Nielsen’s 2025 Annual Marketer report indicates that 56% of marketers plan to increase their budgets for over-the-top (OTT) and CTV platforms, up from 53% in 2024. This growth is particularly strong in the Americas, though adoption is slower in regions like Asia-Pacific (APAC) and Europe. The appeal of CTV lies in its ability to offer targeted, data-driven advertising opportunities, which align with the evolving expectations of modern advertisers.
A Fragmented Definition of “TV”
The rapid rise of CTV has blurred the lines of what constitutes “TV.” As Alex Brownsell, Head of Content at WARC Media, notes, “Consumers move seamlessly from one form of video to the next, [but] advertisers are being challenged to reappraise how they define TV—be it a specific type of video ad format, a media owner, or simply the largest screen in the home.” This fragmentation is creating significant implications for campaign planning, frequency management, and measurement.
For advertisers, the challenge is twofold: not only must they navigate a growing array of platforms and devices, but they also need to rethink traditional metrics and buying models. The once-standard 30-second TV spot is losing its status as the default ad format, with brands experimenting with interactive elements like QR codes, shoppable overlays, and gaming integrations. Meanwhile, platforms like YouTube are making a strong play for TV ad dollars, capitalizing on their growing presence on CTV screens. Traditional TV companies are also adapting, distributing content on YouTube to boost monetization and reach audiences where they are.
The Role of Data, Devices, and Creativity
The future of TV advertising will be shaped by several key forces: data convergence, device gatekeepers, platform-specific creative, and new buying models. The shift to programmatic advertising in CTV is opening the medium to smaller brands, which have historically allocated just 9% of their ad budgets to TV, compared to 38% for the world’s largest brands. Programmatic selling allows for greater flexibility and accessibility, enabling smaller advertisers to tap into the power of TV-like advertising without the high costs traditionally associated with linear TV.
Data is also playing a pivotal role. With CTV, advertisers can leverage granular audience insights to deliver more relevant and personalized ads. However, the lack of standardization in non-broadcast ad formats is pushing brands to rethink creative strategies. For instance, AI-driven tools are emerging as disruptors, enabling dynamic ad content that adapts to viewer preferences in real time. As smart TV manufacturers create their own ad-funded channels and retail media sellers vie for brand dollars, the competitive landscape is becoming increasingly complex.
The Generational Divide
The shift from linear to streaming is particularly pronounced among younger viewers, who are leading the charge toward on-demand content. This generational divide underscores the need for advertisers to adapt their strategies to meet the preferences of digital-native audiences. While older viewers may still engage with linear TV, younger consumers are more likely to consume video content across multiple platforms and devices, from smartphones to smart TVs. This fluid consumption pattern is forcing advertisers to adopt a more holistic approach to video advertising, one that transcends traditional boundaries and embraces cross-platform integration.
Looking Ahead
As the TV advertising landscape continues to evolve, the next decade will likely be defined by greater integration of data, technology, and creativity. The rise of CTV, coupled with advancements in AI and programmatic buying, is creating new opportunities for advertisers to connect with audiences in meaningful ways. However, the challenges of fragmentation, measurement, and standardization remain significant hurdles.
For now, linear TV retains a sizable share of ad budgets, but its influence is undeniably waning. As streaming continues to dominate and new players enter the fray, advertisers must stay agile, redefining what TV means in a world where the lines between traditional and digital media are increasingly blurred. The WARC report serves as a timely reminder that the future of TV advertising is not about clinging to the past but about embracing the possibilities of a dynamic, viewer-driven ecosystem.