The Transformation of TV Advertising: How Connected TV is Redefining the Landscape
The world of television advertising is undergoing a dramatic transformation, thanks to the rise of Connected TV (CTV). As audiences increasingly consume content through streaming platforms, marketers are seizing new opportunities to engage their target demographics. Let’s dive into how CTV is changing the game and why it’s crucial for your media strategy.
The Rise of Streaming and Its Impact
A decade ago, streaming was just a small slice of the TV pie, primarily made up of subscription-based services. Fast forward to today, and streaming now commands an impressive 43.8% of all TV time in the U.S., marking a substantial growth of ten percentage points in just two years. This surge is largely associated with the increasing popularity of ad-supported video-on-demand (AVOD) services.
With subscription fatigue setting in, consumers are actively seeking out platforms that offer free content in exchange for ads. According to Nielsen’s Ad Supported Gauge, a staggering 72.4% of U.S. TV viewing time is ad-supported, and streaming takes the lion’s share at 42.4% of that total.
Marketers Adapt to the New Landscape
In response to these shifts, marketers are re-evaluating their media strategies. As highlighted in Nielsen’s 2025 Annual Marketing Report, 56% of global marketers plan to increase their spending on OTT and CTV in 2025, up from 53% in 2024. This growth places CTV among the few digital channels experiencing consistent investment year-over-year, particularly across the Americas.
Why CTV is So Attractive
The allure of CTV goes beyond sheer audience size. Its precise targeting capabilities enable marketers to reach specific demographic segments based on viewing behavior and interests. This fine-tuned ad delivery not only enhances budget efficiency but also improves returns on investment. Industries showing the highest willingness to increase CTV spending include automotive, travel and tourism, and healthcare, with the retail sector maintaining robust existing commitments.
Bridging the Gap: Linear vs. Streaming
As more advertisers flock to CTV, the divide between linear and streaming television is beginning to blur. Viewers seamlessly transition between broadcast and digital platforms, compelling marketers to treat TV as a converged media environment. However, only 32% of global marketers currently measure their media spending across both linear and digital channels—a decline from last year and a significant challenge, especially in regions like Latin America (29%) and Europe (23%).
Unlocking Insights with Enhanced Transparency
To empower marketers with better insights regarding ad spending, Nielsen has broadened its Ad Intel coverage to encompass 20 individual platforms, capturing a remarkable 95% of the U.S. CTV ad market. This newfound transparency allows brands to analyze competitor strategies, evaluate platform performance, and make more informed investment decisions. Early data from Q1 2025 indicates that several consumer packaged goods and retail categories are already outspending on CTV compared to traditional linear TV.
Embracing Opportunities and Overcoming Challenges
The rapid growth of CTV presents both exciting opportunities and notable challenges. Marketers must transition from isolated platform strategies to an integrated view of their media mix. As CTV solidifies its position as a powerful channel for both reach and performance, it’s crucial to prioritize accurate measurement, integrated planning, and alignment with business objectives.
Conclusion: The Future of TV Advertising
In a world where content consumption is continually evolving, embracing Connected TV is no longer optional—it’s essential. Download Nielsen’s 2025 Annual Marketing Report for more insights on navigating the changing landscape of marketing, and position your brand to thrive in this new era of television advertising.
Embrace the future—your audience awaits!
