US TV Ad Spend (2023–2027)
US media consumption data currently suggests an inverse correlation between time spent on digital media and traditional media. As consumers spend increasing amounts of time consuming digital media, time spent on traditional media has been on the decline.
On the same note, connected TV ad expenditure is also set to rise this year and in the coming years. But what about traditional TV ad spend? We take a close look at how TV advertising spend is set to evolve between 2023 and 2027.
TV advertising revenue: 2023–2024
A recent market analysis of the advertising market in the US shows that annual TV ad spend is forecast to recover and rise marginally in 2024, following a plunge the previous year. In 2023, TV ad spend totaled $60.4 billion, marking 9.4% annual decrease. This is set to rise fractionally by 0.3% in 2024, to $60.6 billion.
Traditional TV ad spend’s share of total media ad expenditure is projected to fall in 2024, to 15.3% from 16.8% last year. This means that out of every $100 spent on media ads this year, $15.30 will be spent on advertisements on traditional television.
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TV advertising revenue: 2025–2027 forecast
The forecast for the next few years shows falling TV advertising revenues at fluctuating rates. In 2025, it is set to fall by 4.7%, to $57.7 billion. A fractional 1.2% dip is expected the following year, as TV ad spend falls to $57 billion. By 2027, TV advertising spend in the US will have shrunk to $54.7 billion, after a 4% annual fall.
Between 2023 and 2027, total annual TV ad expenditure is expected to decrease by $5.6 billion. This translates to an overall decline of 9.3% and an average annual growth rate of -2.4%.
TV vs. CTV ad revenues
The market data shows that while TV ad spend is set for a general decline, expenditure on connected TV ads is forecast to rise.
But despite the fall in traditional TV ad expenditure, it still exceeds that of connected TV. For instance, the expected advertising spend on traditional TV this year is more than double the expected ad spend on CTV, which is forecast at $30.1 billion. This divide is forecast to narrow over the next few years. By 2027, CTV ad spend is forecast to equal 77.5% of traditional TV ad spend.