Ad tech: To capture a slice of the dynamic advertising market broadcasters must beef up digital ad platform

By Shirish Nadkarni

At the recently concluded NAB Show in Las Vegas, several exhibitors were seen offering technology designed to help cost-burdened and revenue-inhibited broadcasters generate additional revenue in the dynamic advertising market.

Traditional linear broadcast is becoming increasingly digital, opening new opportunities for more sophisticated advertising that can help monetise content as it is distributed to multiple platforms. Preserving the overall viewer experience is going to garner top priority, and the industry is working towards perfecting its ad-insertion technology.

There are several ways in which broadcasters can boost revenue – by leveraging digital platforms, diversifying revenue streams beyond traditional advertising, and optimising content distribution and monetisation strategies. Digital platforms offer opportunities to increase advertisement revenue, subscription income, and engage viewers more effectively.

However, the industry’s long-term growth will depend on its ability to compete with over-the-top (OTT) platforms and adapt to shifting consumer preferences. Revenue for TV broadcasters was virtually stagnant between the fiscal years 2022 and 2025 as consumers increasingly opted for digital content such as OTT applications on TV or mobile, or pure-plays such as YouTube and Instagram. 

This trend is expected to continue because of accelerating broadband and Internet penetration, and the natural advantages of the digital medium, such as on-demand availability of content, and the ability to actively engage with it. As a result, revenue from traditional linear broadcasting is expected to be stagnant or fall marginally.

However, TV broadcasters have countered the likelihood of stagnation of revenue by launching their own digital platforms in the shape of mobile apps or dedicated apps for smart TVs, for content such as live sports and news. These steps are projected to raise the broadcasters’ margin by 300 basis points by fiscal 2027, thanks to economies of scale. This would move their profitability closer to the pre-COVID 19 pandemic levels.

“Rising subscription revenue has also been supportive,” said Ankit Haku, Director, CRISIL Ratings. “As a result, digital revenues of these broadcasters grew 15% on average over the fiscal years 2022 to 2025, and will continue to grow in double-digits over the next two fiscal years. With the linear broadcasting segment nearly flat, this will increase the revenue contribution of digital to 25% by fiscal 2027.

“The growth in the digital segment is also helping broadcasters capture higher advertisement revenue from sectors such as fast-moving consumer goods, automobiles, e-commerce and real estate. These segments have gravitated towards digital because of shifting consumer consumption preferences as well as the ability of the digital medium to deliver targeted and personalised advertisements through data-driven analytics.”

In 2025, local business investment in digital marketing is accelerating at an unprecedented pace. According to eMarketer, traditional linear TV advertising is expected to shrink by US$4 billion between now and 2027. 

Despite these challenges for terrestrial media, total ad spending is still projected to grow by 4.5% in 2025, largely fuelled by a double-digit surge – at least 12% – in digital advertising.

The takeaway?

The path to revenue growth this year will meander through digital expansion. And for broadcast professionals, this means evolving their sales strategy to align with where advertisers are putting their dollars. 

“To drive digital revenue growth, your station’s digital solutions must align with what advertisers are actively seeking,” said Chris Brunt, Director of Digital Revenue and AI, Jacobs Media, Wisconsin. 

“Across all market sizes, businesses are significantly increasing their investment in OTT/CTV (smart TV advertising), influencer marketing, and social media campaigns. If you are not fluent in these evolving digital strategies, you risk missing out on valuable opportunities.”

Before the advent of smartphones and streaming, the world of linear TV used more traditional forms of advertising than they do in the modern world in which there are scientific devices to measure the impact of advertising spend and the return on this investment.

In days of yore, there was considerable difficulty in identifying the media in which a company’s advertising should appear. Ad campaigns were distributed to media houses more on the recommendations of advertising and PR agencies, and/or on the strength of personal relations between the advertiser and the media representative.

The digital world has changed everything. Consumers can now decide when, where and how to watch the content of their choice. Ergo, advertisers now have available to them a wide range of advertising strategies to identify target consumers based on their consumption patterns. There is now minimal wastage – money on advertising is spent scientifically, although it comes at a cost, by way of purchasing reports from measurement agencies.

Consumers are increasingly favouring event-based viewing and on-demand streaming content experiences instead of traditional linear TV consumption. This has contributed to significant declines in pay-TV revenue, which is projected to drop to US$15 billion annually by 2027, according to Price Waterhouse Coopers.

Media consumption is changing, and the linear methodologies many people are accustomed to simply don’t translate in the digital advertising arena. 

“At NAB, we are concentrating on the broadcast segment, in which we see a lot of interesting developments around our new technology, ATSC 3,” said Mark Simpson, President & CEO of Triveni Digital. “We were very much a key part in the development of this standard. It is a complex standard, but helps immensely in revenue generation.

“We also have a very extensive test and measurement product line called StreamScope, as also a new orchestration system which will help you automate switching of different configurations without making an error. Really, it is a full range of products that we offer to broadcasters, to help them reduce costs and improve their revenue.”

Advertisers can streamline their ad spend strategy to get maximum value for their buck. In February this year, the ad sales business of Charter Communications, Spectrum Reach, announced the full-market rollout of its newest planning tool, Audience Reach Optimizer (ARO). The tool is designed to boost the effectiveness and efficiency of advertisers’ campaigns, delivering their TV ads to their intended audience.

ARO leverages Spectrum Reach’s data insights in a privacy-focused way to simplify the process for advertisers to target audiences more efficiently at the household level. The new planning tool identifies new opportunities for multi-screen engagement across traditional TV and streaming platforms, maximising campaign impact and audience engagement.

“We are delivering solutions that make it easier for advertisers in today’s competitive advertising landscape,” said Jason Brown, Senior Vice-President & Chief Revenue Officer for Spectrum Reach.

“By providing unique, data-driven insights on campaign reach and frequency through tools like ARO, we empower advertisers to fine-tune their targeting strategies, optimise media spend and maximise audience engagement with information they cannot access elsewhere. Ultimately, this insight drives better business outcomes for our clients.”