CTV advertising investment is accelerating as streaming viewership surpasses 60% and major streamers fully embrace programmatic, precision-targeted ad models. According to updated market forecasts, CTV advertising spending will reach $32.57 billion in 2026, representing significant growth as streaming now commands roughly half of U.S. TV viewing time. As per Emarketer projections, CTV ad sales are on track to surpass traditional TV ad sales by 2028, marking a historic milestone in the industry transformation. Marketers are increasingly treating CTV like performance media, demanding accountable reporting, incrementality, and integrations with CRM, POS, and retail systems. 70% of CTV advertisers plan to increase streaming budgets by reallocating spend from linear TV and other digital channels. Measurement is finally moving from "what ran" to "what happened after," revealing clear business outcomes instead of proxy metrics. The frictionless buying experience is pulling in thousands of SMBs who once viewed TV as out of reach, marking 2026 as the decisive turning point when TV finally admits it wants to be performance media.
The television advertising landscape is undergoing a fundamental shift as global linear TV ad spend is forecast to fall to $139.1 billion in 2026, its lowest total since 2005. According to WARC Media analysis, between 2014 and 2024, linear TV ad spend worldwide declined by 27.5% in absolute terms – extending to a 50.8% drop when adjusting for inflation. While linear TV still commands more than three-quarters of all TV investment, CTV now accounts for nearly half of all TV usage in the US, as per Nielsen data. The subscription revenue landscape reflects this transformation, with Emarketer analysis showing that by 2026, live TV (including vMVPDs) will account for just half of US video subscription revenues, down from more than three-fourths in 2020. Live events like the Olympics, World Cup, and US elections still drive significant linear viewership and ad spending bumps, but outside these tentpole moments, the long-term trajectory points downward. This transition has prompted industry debate about what constitutes television in 2026, with consumers moving seamlessly between video formats and advertisers challenged to redefine TV planning, buying, and measurement strategies.
The most significant shift identified by agencies is YouTube's accelerating role as a core component of CTV campaigns. According to the Pixability survey findings, nearly seven in ten US agencies (69%) and four in five UK agencies (80%) predict that YouTube on TV screens will be used in more CTV campaigns than ever before in 2026. The shift is particularly pronounced in the UK, where just 23% of UK agencies reported plans to use YouTube on TV screens last year, jumping to 85% heading into 2026. This growth aligns with broader CTV market expansion and YouTube's streaming watch time leadership in the U.S. for more than two years. The platform's dominance is further evidenced by YouTube earning $36 billion in ad sales in the US, rivalling legacy TV. Recent platform updates have enhanced YouTube's advertising capabilities, including direct website links in Shorts descriptions, enhanced creator comment pinning with link support, improved call-to-action overlays, and integration with Google Analytics for better attribution.
The competitive landscape among streaming platforms is intensifying as major players vie for advertising dominance. According to Emarketer analysis, integrating with Hulu will put Disney+'s ad revenues ahead of Netflix, positioning Disney as a formidable competitor in the streaming advertising space. This strategic consolidation reflects the broader industry trend where CTV ad sales are projected to surpass traditional TV spending by 2028, fundamentally reshaping how advertisers allocate their television budgets. The convergence of streaming platforms and advertising technology is creating new opportunities for marketers to reach audiences across fragmented viewing environments while maintaining campaign effectiveness and measurement capabilities.
The integration of retail data with TV promises to redefine how brands approach campaigns, as broadcasters recognize that reach and frequency are no longer sufficient metrics. According to WARC Media, global retail media spend is forecast to exceed the total TV market by next year, positioning retailers as senior partners with TV services functioning as an upper-funnel component within full-funnel propositions. WARC analysis reveals that retail data can help TV to prove outcomes, not just exposures, addressing the industry's measurement bottleneck. As linear TV buyers and digital specialists often operate in separate silos with different methodologies, the industry requires more standardized and robust measurement across all TV formats. In this evolving landscape where Big Tech speaks directly to CFOs in growth language, TV ad sellers must demonstrate tangible business outcomes rather than mere exposure metrics.
Local advertisers are rapidly expanding into CTV thanks to self-serve platforms, improved attribution, and the ability to buy district-, ZIP-, and neighborhood-level audiences with ease. As streaming captures sports, news, and live events, national and local budgets are starting to converge in the same inventory pools. Political spending in 2026 intensifies this shift by driving up prices, bumping local linear buys, and pushing more dollars toward flexible, transparent CTV advertising deals. According to industry analysis, agencies identified CTV and YouTube as the clear spending winners in 2025, with more than half reporting year-over-year budget increases across both channels. The "local thing" is no longer a niche as it becomes the center of competitive advantage in the evolving video landscape.
