The Future of TV Advertising: How Data, AI & Virtual Production are Changing the Game

For decades, TV advertising was the gold standard – big budgets, prime-time slots, and mass audiences.

But the rise of digital advertising was the game changer. Google led the way with precision-targeted ads in the early 2000s, giving brands a way to reach specific audiences with measurable results. Then, in November 2007, Facebook built on this, using social data to refine targeting in a way traditional TV couldn’t compete with. It wasn’t the first to introduce targeted ads, but its approach set a new standard.

Advertisers, once spending millions on TV primetime slots with little way to track ROI, suddenly had data-driven, hyper-targeted campaigns at their fingertips. The industry pivoted, Amazon expanded its reach, and today, CTV, OTT, and AI-driven programmatic ads dominate – leaving traditional TV advertising fighting to stay relevant.

But let’s be clear: TV advertising isn’t dead. It’s just evolved beyond recognition.

So, let’s dive a bit deeper and see what’s been going on…

TV Advertising in 2025: The Data Behind the Shift

The numbers tell the story: big TV budgets are being replaced by data-driven, targeted strategies.

• Global ad spend hit $933 billion in 2024, with $274 billion still going to traditional media, including TV (MAGNA Global Ad Forecast).
• In the UK, advertising grew 8.3% to £39.7 billion, with 81% of all spend now digital (The Media Leader).
• Streaming services are leading the charge:
  –  UK TV ad spend rose just 3% in 2024, adding £150 million to reach £5.15 billion.
  –  But here’s the real story – £1 billion of that came from streaming services alone, making up 30% of the UK TV ad market (The Guardian).

The big-budget, mass-market TV ad; a staple of advertising for decades is quickly becoming a niche reserved for tentpole events like the Super Bowl, Olympics, Oscars, and the BAFTAs. Everywhere else? Targeted, cross-platform, and measurable campaigns are winning.

Where Ad Budgets Are Moving: CTV, OTT & AI-Driven Advertising

With brands moving away from primetime TV, where are those ad budgets going?

• Connected TV (CTV): Smart TVs allow interactive, real-time ad targeting.
• Over-the-Top (OTT) Streaming: Platforms like Netflix, Disney+, and YouTube let advertisers bypass traditional broadcasters and place tailored ads directly into streaming content.
• Addressable Advertising: The opposite of old-skool mass-market TV ads. Instead, ads are delivered to specific households based on data, ensuring precision targeting and higher ROI.

And at the core of all of this? AI-driven programmatic advertising, where brands buy digital ad space in real-time, adjusting messaging dynamically based on viewer behavior, time of day, and device.

Sky Media: How Traditional TV is Fighting Back

While some traditional broadcasters have struggled to adapt to the rapid shift towards digital advertising, Sky Media has proactively embraced this change. They’ve implemented innovative strategies to transform how brands reach audiences, here’s a little break down for those not in the know:

• AdSmart from Sky: A hyper-targeted TV advertising tool, letting brands serve ads to specific households across 100+ channels and OTT platforms (AdSmart from Sky).
• Sky Media IQ: Uses first-party data to match TV campaigns with digital strategies, ensuring a seamless cross-platform experience.
• Voice-Activated Ads: Interactive ads that viewers can engage with using voice commands, improving brand recall and engagement (Sky Media Industry Upfronts).
• Contextual Targeting Ads: AI-driven ad placement based on in-show content, ensuring ads appear at the most relevant moments (The Media Leader).
• Programmatic Ad Expansion: Sky now offers automated, real-time ad buying for premium on-demand content, making ad placement more flexible and efficient (Sky Media Industry Upfronts).

This aggressive shift towards digital-first, data-powered advertising is proof that TV isn’t dead – it’s just evolving.

Why Virtual Production & Bespoke Studios are the Future

But here’s the other side of the equation: creating the actual ad content.

The Question: If advertising is now hyper-targeted, cross-platform, and AI-driven, why would brands still produce expensive, rigid, one-size-fits-all campaigns?

The Answer: They wouldn’t.

This is why bespoke studios, AI and Virtual Production (VP) are proving to be the future, allowing brands to create cost-effective, flexible, scalable ad content.

Why Virtual Production Works for Advertising

• Faster Turnaround: Brands can create multiple ad variations for different audience segments in real time.
• Cost Efficiency: No need for multiple locations, everything can be built virtually.
• Seamless Cross-Platform Integration: Ads are automatically optimised for TV, CTV, OTT, social media, and mobile without additional reshoots.
• Sustainability: Lower carbon footprint from fewer physical productions.

The Future of Television Advertising: What’s Next?

So, where do we go from here?

• AI-Generated Ads: AI-Generated Ads: Automated content creation based on audience data and trends.
• Real-Time Dynamic Ad Personalisation: Ads that adjust messaging on the fly depending on viewer behavior, weather, or time of day.
• Interactive Shoppable TV Ads: Viewers can purchase directly from an ad with a single click or voice command.
• AR & AI Integration: Immersive ads tailored to digital environments and AI-powered avatars.

The future of advertising isn’t just digital: it’s dynamic, adaptive, and deeply personalised.

FAQ: The Future of TV Advertising

The days of big-budget, generic TV ads are over.

Advertising has moved beyond expensive, mass-market TV campaigns.

• Brands are shifting to data-driven, targeted strategies across CTV, OTT and digital platforms.
• Sky Media and other broadcasters are evolving, investing in addressable, programmatic, and AI-driven advertising.
• Bespoke studios and Virtual Production are becoming the industry standard for cost-effective, scalable ad content.

TV advertising is being transformed – evolving into a smarter, more AI and data-driven beast:

TV Advertising Evolution

1. Advertising budgets are migrating away from traditional forms of advertising to much more targeted, cross-platform and measurable campaigns.
2. From Connected TVs to Addressable Ads, these newer forms of campaigns are driving real success and innovation.
3. In this brave new world, traditional broadcasters have upped their ad game to enable brands to reach audiences in new and innovative ways.
4. From AdSmart to Ad Expansion, digital-first, data-powered advertising is the game-changer.
5. The Future? Bespoke studios, virtual production… and all the advantages that they bring.
6. From AI-Generated Ads to Interactive TV Ads, the new landscape of personalised, dynamic and hyper-targeted advertising is here to stay.

The new era? Targeted, flexible, and platform-agnostic advertising, and that’s exactly where we at Broadley Studios step into the equation…

Why Brands Choose Broadley Studios

We’ve built one of the UK’s most cutting-edge Virtual Production set-ups, helping brands stay ahead of the curve whether they’re creating ads for TV, streaming, or digital-first campaigns.

• Advanced Motion-Tracked Camera Systems: We integrate multiple motion-tracked cameras with Brainstorm’s InfinitySet and MRMC robotics, delivering seamless CGI and live-action integration.
• Unreal Engine Integration: Create hyper-realistic, dynamic virtual environments.
• Cost-Effective, Scalable Solutions: High-quality advertising without the exorbitant price tags.
• 360° Production Services: Full production support, dry-hire studio access or whatever your project needs.

Located in Marylebone in Central London, we provide fully equipped studio spaces for Virtual Production, green screen, live streaming, and film shoots and our super experienced team are at hand to make it all happen for you.

For more information about our film, green screen and virtual production capabilities, and to find out how we can help you and your production and capture the magic of your project, please call us on +44 207 725 5858, email us at [email protected] today.

The Broadley Team

Broadley Studios – For People With Something to say