Video is unmatched in its ability to combine sight and sound, creating immersive experiences that captivate and leave lasting impressions. As the advertising world shifts from Linear TV (Traditional Broadcast and Cable TV) to Streaming TV and Programmatic Video, businesses are faced with new challenges and opportunities. In this first installment of our two-part blog series, we’ll examine the evolution of video advertising, the differences between these modern formats, and how they can help businesses succeed in today’s landscape.

From Past to Present


 Broadcast and cable TV once dominated advertising, offering broad reach at the expense of precision and waste. Ads were tied to channels, not viewers, often missing potential customers—like a busy mom watching sports instead of the ‘home renovation’ channel where cleaning service ads aired.

Today, consumer behavior has shifted toward on-demand content. By 2026, US adults are expected to spend 20% of their daily media time with Streaming TV via apps, platforms, and services. Yet only 8.1% of ad budgets will go to Connected TV (CTV) advertising, highlighting a lag in advertiser adaptation.

This shift reflects more than convenience; it’s about efficiency. Streaming TV and Programmatic video provide targeted, cost-effective options that Linear TV could never match. With 75% of Americans planning to cut the cord by 2025, the time to embrace these new formats is now.

What’s Driving the Shift?


 Cost and choice are key drivers. Viewers are moving away from expensive cable bundles in favor of streaming platforms like Disney+, FOX, and Sling, which offer tailored content. For advertisers, this transition means engaging audiences who are actively choosing their content, making them more receptive to ads.

Streaming TV vs. Programmatic Video

While often grouped together, Streaming TV and Programmatic video have distinct roles:

  • Streaming TV: Found on platforms like Roku, Hulu, and Amazon Fire TV, Streaming TV ads are non-skippable and reach highly engaged viewers. It’s ideal for brand-building campaigns aimed at household decision-makers.
  • Programmatic Video: These ads run across digital platforms like YouTube and news apps, offering granular targeting based on browsing behavior, location, and device use.

Both formats minimize wasted impressions, ensuring every dollar of your ad budget works harder.

Why You Need Both


 Choosing only one format can limit your reach. Consider this example:

  • Dad watches sports on the living room TV.
  • Mom browses recipes on her iPad in the kitchen.
  • The teen daughter streams her favorite show on her smartphone.

By using both Streaming TV and Programmatic video, your message reaches every household member on their preferred device, maximizing impact.

Avoiding Common Pitfalls
 As you explore these formats, keep these tips in mind:

  • Understand Device Usage: People spend hours on multiple devices daily. Use Programmatic video for short, engaging content while Streaming TV ads deliver high-quality, longer-form storytelling.
  • Focus on Storytelling: Streaming TV ads are non-skippable, so grab attention from the first frame.
  • Target Smartly: Hyper-targeting is powerful but over-narrowing can shrink your audience. Find a balance between precision and reach.
  • Adjust Your Budget: With Streaming TV ad spend expected to grow 63% by 2025 as traditional TV declines by 13%, businesses should reallocate resources accordingly.

Looking Ahead


 Streaming TV is growing rapidly—22.4% year over year—and offers immense potential for businesses ready to adapt. In the second part of this series, we’ll explore solutions to common challenges, from ensuring brand safety to maximizing the unique benefits of each format.

The future of video advertising is here, and it’s an exciting time to make your move. For a personalized video advertising proposal tailored to your business, contact Local Fare today and start building your campaign.