Breaking Down TV’s Great Divide: Why Ad Sales Must Evolve
The following is an excerpt from our TVREV Special Report, Smashing the Silo Barrier: Why Total TV Is Revolutionizing Ad Sales. It is a free download on TVREV.
The television industry is at a crossroads. As viewers seamlessly shift between linear broadcasts, streaming services, and on-demand content, traditional ad sales models are struggling to keep up. The artificial divide between “linear” and “digital” ad inventory no longer reflects how audiences consume content, creating massive inefficiencies that cost broadcasters time, money, and opportunity.
The numbers tell the story: linear TV advertising revenue is projected to decline by 3.4% globally in 2025, while streaming TV ad spending is expected to grow by 19.3%. In the US, ad giant Group M predicts that streaming will account for a 35.8% share of total TV ad revenue in 2025 and will surpass linear by 2029.
This shift isn’t just about dollars moving around; it’s about a fundamental shift in viewing habits. While 88% of U.S. households are now equipped with at least one internet-enabled TV device, 71.3 million households still have a pay TV subscription.
What does that mean? That audiences don’t see linear and streaming as two separate media types—for them it’s all just TV.
What the industry needs is a unified approach that recognizes that reality—one that treats ad inventory holistically, prioritizing audiences over delivery mechanisms. By categorizing both streaming and linear inventory into premium and non-premium buckets, broadcasters can sell high-value placements directly while automating the rest, driving greater efficiency and profitability.
The Problem: Fragmentation and Inefficiency
The way audiences consume television today is vastly different from just a decade ago. Viewers move fluidly between live linear programming, streaming platforms, and on-demand services, often consuming content across multiple screens in a single day. Despite this convergence in viewing habits, the advertising industry continues to cling to outdated silos—treating linear and digital as separate entities.
This approach has created significant inefficiencies:
Fragmented Inventory: Linear and streaming platforms often operate on separate tech stacks, making it harder to plan, manage, and optimize campaigns across the full spectrum of available inventory.
Duplicated Efforts: Ad sales teams must create distinct strategies for linear and streaming, doubling their workload without doubling their effectiveness.
Misaligned Metrics: The reliance on traditional GRPs for linear and impression-based buys for digital has made cross-platform measurement and unified audience targeting a logistical nightmare.
As Steve Reynolds, CEO of Imagine Communications, aptly noted during a recent TVREV webinar,
We’re still selling spots when we should be selling audiences.
Perhaps most importantly, this siloed model ignores the way viewers think about TV. As Jonathan Steuer, CEO of Anonymous Media Research, explained:
Consumers aren’t sitting there thinking, ‘Am I watching linear or streaming?’ They’re just watching TV. Until the industry adapts to that reality, we’re going to keep leaving money on the table.
The result? Advertisers struggle to achieve reach, broadcasters lose out on revenue, and the entire ecosystem suffers from diminished profitability. Breaking these silos is not just a matter of improving efficiency—it’s about realigning the industry to reflect current (and future) viewing habits.
The Solution: Total TV
To address the inefficiencies plaguing traditional ad sales models, the industry is increasingly embracing a unified approach often referred to as Total TV. This model reimagines ad inventory by shifting the focus from delivery mechanisms—linear versus streaming—to audience value.
At its core, Total TV categorizes inventory into two distinct types:
1. Premium Inventory
High-demand content like live sports, top-rated originals, and prime-time programming.
Sold directly to advertisers to ensure maximum CPMs and profitability.
Allows broadcasters to maintain control over valuable placements and cater to clients seeking high-visibility opportunities.
2. Non-Premium Inventory
Content with less demand but significant reach potential, such as off-peak programming or niche audiences.
Sold programmatically or through automated systems, leveraging both data and automation to target specific audiences efficiently.
Optimizes fill rates and maximizes value from inventory that might otherwise remain unsold.
The real power of Total TV lies in its ability to use data to eliminate inefficiencies and maximize value across the board. By breaking down the barriers between linear and streaming, broadcasters can manage all inventory under a single framework. This then allows them to streamline operations and drive greater profitability.
Shifting from “Spots” to “Audiences”
One of the biggest shifts Total TV represents is the move from selling individual ad spots to selling audiences. Rather than focusing on where an ad is placed—whether during a prime-time show on linear TV or a pre-roll on a streaming platform—the emphasis is on delivering the right audience to advertisers. This audience-first model aligns with the platform-agnostic way today’s consumers watch TV.
“When you treat audiences as your core inventory, you eliminate so much of the friction that’s bogged us down for years. It’s a win for broadcasters and advertisers alike.”—Rob Weisbord, President of Broadcast and Chief Revenue Officer at Sinclair
“Premium inventory is about making more; non-premium is about spending less. Together, they create a path to profitability.”—Steve Reynolds, CEO, Imagine Communications
Broadcasters are thus able to focus their resources where they matter most. High-demand premium inventory is carefully curated for maximum impact, while automation handles the heavy lifting for non-premium inventory, reducing overhead and operational complexity.
The U.S. Opportunity
For all the success Total TV has achieved in international markets, the U.S. remains the ultimate proving ground. With its massive ad budgets, massive audiences, and complex media landscape, the American market offers both unique challenges and unparalleled opportunities for broadcasters willing to embrace change.
“The ability to manage all inventory under one roof is a game changer for advertisers. It’s about delivering the right audience at the right time, no matter the platform.”—Rob Weisbord, Sinclair
Broadcasters that adopt Total TV now will not only gain a competitive edge but also position themselves as leaders in a rapidly evolving industry.
