Key TakeawaysThe rapid evolution of television consumption habits has seen streaming TV surpass traditional broadcast and cable TV, both in terms of audience size and engagement. In May 2025, streaming services officially overtook broadcast and cable television in the U.S. for the first time, capturing 44.8% of total TV usage according to Nielsen’s report, The Gauge.
This milestone marks a significant shift in media consumption, driven by the increasing popularity of platforms like YouTube and Netflix. YouTube led the streaming market, accounting for a 12.5% share of all television viewing. Free ad-supported services, including Pluto TV, The Roku Channel, and Tubi, also saw increased engagement, collectively accounting for 5.7% of viewership.
In contrast, traditional broadcast and cable TV garnered 20% and 24% of viewership, respectively. Societal shifts during the COVID-19 pandemic have accelerated the dominance of streaming and signify a transformation in the entertainment industry, with significant implications for content creation and advertising strategies.
This transition doesn’t simply represent a technology change—it also introduces new levels of data-driven sophistication. Advertisers can now target audiences on connected TV with programmatic buying, enabling campaigns that are both highly personalized and scalable. The ability to reach viewers across devices and platforms allows for strategic messaging that adapts to the modern consumer’s viewing habits.
Precision Targeting: The Game Changer in Streaming TV Ads
One of the defining advantages of streaming TV advertising is its sophisticated targeting capabilities. Unlike the broad demographic approaches of classic TV, streaming services utilize advanced analytics to segment audiences by interests, browsing behaviors, household demographics, and even geographic location. Brands can deliver tailored messages to viewers most likely to engage, creating more meaningful and efficient advertising experiences.
With programmatic buying, advertisers optimize their campaigns in real-time, dynamically allocating budget to inventory with the most significant performance potential. The resulting campaigns are both relevant to audiences and efficient for advertisers, driving higher ROI. According to industry leaders, these capabilities are a key factor in the growing shift of ad dollars to streaming environments.
Ad-Supported Platforms: Expanding Reach and Engagement
The surge in ad-supported streaming services is transforming how brands engage with their audiences. Free, ad-supported options have collectively captured over 5.7% of total viewership, according to Reuters. These platforms attract users with high engagement, as viewers are more receptive to ads that fund their access to premium content.
This shift opens new advertising opportunities, with ad-supported offerings often providing detailed viewer data that further enhances targeting. As subscription fatigue grows, adoption of these platforms is expected to accelerate, further diversifying available inventory for brands.
Advertisers are increasingly tailoring their messages to viewers’ habits and preferences, creating more personalized ad experiences. Additionally, the rise of connected TVs has enhanced measurement capabilities, enabling marketers to track performance in real-time. As competition intensifies, innovative ad formats—such as interactive and shoppable ads—are expected to drive even deeper engagement across audiences.
The Impact of Live Events on Streaming Advertising
Live sporting events, awards shows, and news broadcasts remain major drivers of streaming engagement. According to Samsung Ads, over a third of consumers are streaming live events more frequently now than they were just six months ago, illustrating the growing appetite for real-time content online. This presents advertisers with rare moments to connect with large, highly attentive audiences during marquee events.
Advertisers can amplify their brand exposure by aligning messaging with cultural touchpoints, leveraging the excitement and immediacy that only live events can provide. These moments foster high recall and a deeper connection, which are essential for marketers seeking to create a lasting, memorable impact.
AI: Driving Relevance and Maximizing Ad Effectiveness
Artificial intelligence and machine learning are redefining ad placements in the streaming landscape. AI-powered platforms assess viewer behavior and context to serve ads that align with real-time interests and moods. This contextual targeting enhances relevance and personalizes the viewer experience, driving greater engagement and improving campaign performance.
Because AI can dynamically adjust which ads are displayed—and when—it ensures ads are seen by the right people at the right time, all while optimizing spend and reducing waste. As the technology continues to evolve, marketers will gain even more granular control over who sees their messages and how those messages are delivered.
The Future of Streaming TV Advertising
The growth of streaming TV shows no signs of slowing down. As more households switch to streaming, there will be increasing opportunities for targeted, interactive, and measurable advertising. Marketers who utilize streaming TV’s rich data, adaptable purchasing options, and new AI tools will outperform those relying on traditional methods.
Building strategic partnerships, creatively leveraging live event sponsorships, and adopting the latest technologies will be key to staying competitive in this rapidly evolving landscape. Brands that are willing to experiment and innovate can gain significant value from their streaming TV investments.
Conclusion
Streaming TV advertising has fundamentally changed how brands reach and resonate with audiences. From programmatic buying and AI-powered targeting to the unique opportunities presented by live events and ad-supported platforms, this space offers brands the tools to run smarter, more effective campaigns. Advertisers who embrace these advancements will be well-positioned to connect meaningfully with today’s and tomorrow’s audiences.
