US TV Ad Spend (2021–2027)
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 2021 and 2027.
TV advertising revenue: 2021–2023
A recent market analysis of the advertising market in the US shows that annual TV ad spend is forecast to fall between 2021 and 2027.
In 2021, TV ad spend totaled $65.7 billion, a 6.3% annual increase. This rose marginally by 1.5% in 2022, to $66.6 billion. An 8% plunge is expected this year, which will see revenues fall to $61.3 billion.
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TV ad spend’s share of total media ad expenditure has also fallen since 2021. That year, its share was recorded at 20.8%, before decreasing to 19.6% in 2022 and 17.3% in 2023.
TV advertising revenue: 2024–2027 forecast
The forecast for the next few years shows fluctuating growth and fall rates in TV advertising revenues amid a general decline.
In 2024, it is set to rise marginally by 0.7%, to $61.7 billion. A 5.3% decrease is expected the following year, as TV ad spend falls to $58.5 billion. This is followed by another fractional increase of 0.2% in 2026, to $58.6 billion. By 2027, TV advertising spend in the US will have shrunk to $56.8 billion, after a 3% annual fall.
Between 2021 and 2027, total annual TV ad expenditure is expected to decrease by 13.4% overall. This is equal to an average annual growth rate of -2.3%.
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 $25.1 billion.