Discover how TV advertising has evolved from traditional broadcast commercials to dynamic, data-driven strategies on CTV and OTT platforms.
Television transformed the world, and now technology is transforming television. In 2024, TV advertising spend in North America is projected to amount to nearly $70 billion. Of that ad spend, US brands will reportedly spend over $28 billion on Connected TV, making up over 40% of the total spent on TV advertising (CTV and linear).
How did we get here?
From the first 10-second black-and-white commercial aired in 1941 to the AI-powered, audience-targeted CTV ad campaigns of today, the evolution of TV advertising is a fascinating journey through technology, culture, and creativity.
In this blog, we’re taking a closer look at how we got from the early days of television to the advanced era of CTV and OTT advertising — what we call TV 2.0 at tvScientific. Let’s get started.
The Road to Modern TV Advertising
Phase 1: A New Era of Entertainment
The invention of the television in the late 1920s by Philo Farnsworth opened the door to a new way of storytelling — and advertising.
But it wasn’t until 1941, when the FCC lifted its ban on TV ads, that brands truly saw the medium’s potential. Bulova Watch Co., an American watch manufacturer, paid a mere $9 to claim their place in advertising history with the world’s first TV commercial. The ad aired during a baseball game in New York City, featuring a clock face and the tagline, “America runs on Bulova time.”
This simple message marked the beginning of a $70 billion industry that would transform how we buy, sell, and interact with brands.
Phase 2: The Early Days of TV Advertising
By the 1950s, TV sets had become household staples, and advertisers followed suit. Commercials featuring catchy jingles and memorable slogans became a cultural phenomenon throughout the next couple of decades. Ronald McDonald made his debut, Coca-Cola sponsored primetime programming, and jingles like “My bologna has a first name..." became impossible to forget.
But this was just the start.
Phase 3: The Golden Age of TV Advertising
Fast forward to the 1980s, when TV advertising truly hit its stride. Networks like ABC, NBC, and CBS dominated American living rooms, raking in billions in ad revenue. But because of the hefty price tag, TV advertising was really only reserved for the top 300 companies, who spent hundreds of thousands of dollars across just a handful of networks and a dozen programs.
Creative agencies elevated commercials to an art form, crafting iconic campaigns like Apple's 1984 Super Bowl ad, which redefined how brands tell stories.
This period also saw 24/7 programming from networks like CNN, creating new opportunities for advertisers to reach niche audiences with contextually relevant messaging. Suddenly, brands could align their ads with specific genres, from sports to business to entertainment.
And then came MTV. Features like call-in shows, live requests, and contests created highly engaged, targeted viewers for advertisers. Celebrity endorsements and visually striking music videos replaced traditional narrated commercials, and brands like Pepsi and Nike seized the opportunity to embed themselves in pop culture.
Phase 4: The Digital Disruption
The dawn of the internet in the 1990s and early 2000s changed everything. Streaming technology began to emerge, and services like Netflix and YouTube gave viewers unprecedented control over what, when, and how they watched.
By 2007, Netflix shifted from DVDs to streaming, paving the way for today’s on-demand world. Hulu followed with its ad-supported model, offering advertisers a way to stay in the game. Meanwhile, smart TVs and devices like Roku transformed traditional TVs into connected hubs, ushering in the age of Connected TV (CTV).
At the same time, programmatic advertising entered the scene. Brands could now use data to target ads with laser precision, moving away from the spray-and-pray model of the past. Instead of showing the same commercial to millions, advertisers could reach specific audiences based on interests, behaviors, and even location.
This brings us to…
Phase 5: The Current State of TV Advertising
Today, we live in the era of TV 2.0, a dynamic ecosystem where Connected TV (CTV) and Over-the-Top (OTT) platforms dominate. Half of TV consumption now happens via streaming services, and audiences don’t have the same loyalty to platforms as they did in year’s past. Today, viewers often switch between multiple streaming services depending on what’s available and expect personalization in their content — and their ads.
For advertisers, this shift brings a wealth of opportunity. Gone are the days of running ads across just a handful of programs. Now, the options are endless. CTV platforms like Hulu, Peacock, and Pluto TV combine the visual impact of traditional TV with the precision of digital advertising. Through programmatic technology, brands can serve ads that are relevant and measurable, and reach audiences where they are in an incredibly fragmented space.
Here’s what makes TV 2.0 so powerful:
- Advanced audience targeting: Reach the right person at the right time.
- Measurable outcomes: Track everything from store visits to conversions.
- Creative freedom: Use interactive overlays, dynamic creatives, and even shoppable ads.
- Cost efficiency: Maximize ROAS with data-driven campaigns.
And the innovation doesn’t stop there. AI and machine learning are making it easier than ever to optimize campaigns in real-time, ensuring brands stay ahead in an increasingly competitive landscape.
The Future of TV Advertising
As we look to the future of TV advertising, three trends are clear:
- 1. Ad-supported streaming is here to stay. Platforms like Netflix and Disney+ have embraced ads, proving that even premium services see the value in ad-supported models.
2. Interactivity will redefine engagement. From shoppable ads to augmented reality integrations, the next wave of TV ads will be more immersive and actionable than ever.
3. AI will revolutionize TV advertising. Both generative AI (for creative assets) and predictive AI (for ad optimization) will have a huge impact on how advertisers navigate TV ads going forward.
TV advertising has come a long way since Bulova’s first ad. It’s no longer about broadcasting to the masses — it’s about connecting with individuals. And as technology continues to evolve, the possibilities for brands are endless.
The future of TV advertising lies in the rapid adoption of CTV and OTT platforms. As audiences shift from traditional linear TV to streaming, advertisers will continue to leverage these platforms for precise targeting, real-time metrics, and personalized ad experiences going forward.
Join the TV 2.0 Revolution
If you’re still relying on old-school TV strategies, it’s time to rethink your approach. CTV offers the perfect blend of creativity, precision, and measurability to make your ad dollars work harder.
Ready to get started? Get in touch with us to learn how tvScientific can supercharge your CTV ROI.
