Programmatic CTV opens door for small advertisers, WARC report

Television advertising is undergoing a structural shift as viewers move from traditional linear TV to connected TV (CTV), according to WARC’s Global Ad Trends: The changing shape of TV report. The study explores how ad spend patterns, viewing behaviours and definitions of television are evolving as the medium becomes increasingly fragmented.

Alex Brownsell, Head of Content, WARC Media: "There’s no doubt that Linear TV’s role is slowly waning, both in viewing and ad spend, as audiences shift to the expanding ecosystem of CTV. However, new players such as Big Tech and retail media sellers hope TV can help them win brand dollars, and smart TV makers are creating their own ad-funded TV channels."

Linear TV spend continues to decline

Linear TV now represents 12.4 percent of global ad spend, down from 41.3 percent in 2013. Between 2014 and 2024, worldwide investment in the format fell by 27.5 percent in absolute terms, or 50.8 percent when adjusted for inflation.

While linear TV still attracts more than three-quarters of all television ad investment, brands are increasingly reallocating budgets toward CTV. In the US, CTV accounts for nearly half of all TV usage, according to Nielsen. WARC forecasts that CTV advertising will reach 39.9 billion dollars this year, with 56 percent of marketers globally planning to increase spend on streaming formats.

Younger audiences drive streaming growth

Shifts are particularly visible among younger viewers. In the UK, linear TV’s weekly reach has fallen by 10 percentage points since 2021, standing at 73.8 percent, per Ofcom. In the US, audiences aged 16 to 24 now watch just 81 minutes of linear TV daily, compared with over two hours for older viewers.

At the same time, advertising costs for linear TV are rising, especially in markets such as the US, Germany and the UK. By contrast, CPMs in Brazil and Japan remain lower than they were in 2012.

Defining television in 2025

For consumers, switching between platforms and devices is seamless, but for advertisers the definition of television is increasingly blurred. YouTube has positioned itself as a competitor for TV ad budgets, generating 36 billion dollars in ad sales in 2024 across devices – more than the combined total of the four major US broadcast networks.

Barb, the UK’s TV measurement body, has begun tracking viewing of 200 YouTube channels on TV sets, underlining the platform’s role in the wider ecosystem. However, early results suggest limited reach at a channel level, with children’s content dominating the top rankings.

The forces shaping TV’s future

According to WARC, the next decade in TV will be influenced by the convergence of retail data, the role of device makers, and creative experimentation. Retail data integration is expected to help prove advertising outcomes, while interactive formats such as QR codes and shoppable overlays are challenging the dominance of the 30-second spot.

WARC also highlights opportunities for small advertisers. While the largest global brands allocate around 38 percent of budgets to TV, smaller advertisers commit just 9 percent. Programmatic buying in CTV could make the medium more accessible to these players.

The report is part of WARC Media’s Global Ad Trends series, which provides quarterly analysis of advertising and media intelligence.