Key Takeaways:

• Only about 34.4% of U.S. households still pay for cable, satellite or telco TV (late 2025), down from a peak near 85% around 2010, according to Leichtman Research and S&P Global data.
• Streaming hit a record 48.6% of all U.S. TV viewing in May 2026, per Nielsen's The Gauge, as YouTube alone reached 14.2% of TV time in July 2026, a record for the platform.
• U.S. CTV ad spend is forecast at roughly $37.95 billion in 2026, up 14.5% from $33.35 billion in 2025 (eMarketer).
• For the first time, CTV upfront commitments ($17.73 billion) exceeded primetime linear TV upfronts ($16.98 billion), per eMarketer's Q2 2026 forecast.

Is Cable TV Still Worth Advertising on in 2026?

Yes, but for a narrower job than it once had. Cable and broadcast remain strong for live sports, big cultural moments, local reach, and older viewers, but they are no longer the default way to reach audiences.

Before social media, families gathered around the TV, and commercials were events rather than interruptions, as seen when the Super Bowl turned ads into pop culture, jingles stuck in our heads for decades, and a single broadcast could reach millions of people at once. That broad, captive audience made TV a reliable engine for brand awareness.

However, that model is under pressure as linear TV ad spending fell sharply in 2025, a non-Olympic, non-election year, and the IAB expects only a small 1.7% decline in 2026, helped by the Winter Olympics, the World Cup and the midterm elections. CTV, meanwhile, is forecast to grow 13.8% in 2026.

How Many U.S. Households Have Cut the Cord?

Roughly two-thirds of U.S. households no longer subscribe to traditional pay TV. eMarketer estimates that about 80.7 million American households are now cord-cutters or cord-nevers in 2026, outnumbering pay-TV households by more than 25 million.

To put that in perspective, in 2023 the cord-cutting and pay-TV groups were much closer, at about 68.7 million and 62.8 million households respectively. The gap has widened every year since. However, older viewers, especially those 65 and over, remain the group most likely to keep a subscription, which is why linear TV still makes sense for brands that skew older or buy locally.

What is Connected TV (CTV) Advertising?

Connected TV (CTV) advertising is video advertising delivered through internet-connected televisions, streaming sticks and game consoles, on services such as Netflix, Hulu, Disney+, Prime Video, Peacock, Tubi, and YouTube. It combines the big-screen experience of TV with the targeting and measurement of digital advertising. Here, CTV allows advertisers to target by interests, location, and viewing habits, then measure view completion rates and conversions. Therefore, advertisers are now reallocating budget from linear channels, and eMarketer projects that CTV ad spending will surpass traditional TV ad spending in 2028.

Why is YouTube a Leading Platform for TV-style Advertising?

YouTube is now the most-watched streaming service on American televisions. Nielsen's July 2026 report put YouTube at 14.2% of all U.S. TV viewing, well ahead of Netflix, which was at 8.0% in May.

The scale is global as well:

• About 2.7 billion monthly logged-in users worldwide, making it one of the most visited websites in the world.
• $40.37 billion in ad revenue in 2025, up 11.7% from $36.15 billion in 2024. Ad revenue reached $9.88 billion in Q1 2026, up 11% year over year.
• According to YouTube broadcast, more than 150 million Americans watch YouTube on a connected TV each month.

This works for engagement as people actively search for and choose YouTube content, which makes them more receptive to ads that fit what they are watching.

How Should You Split Your Budget?

There is no single right answer, but a practical starting framework looks like this:

1. Choose CTV when you want TV-scale reach with digital precision, clear measurement and flexible budgets.
2. Choose YouTube when engagement and content matter: tutorials, product stories, B2C brand building and search-driven discovery.
3. Keep linear TV when your customers skew older, your buying is local, or you want live sports and major events.
4. Test and reallocate: Run CTV and YouTube campaigns with clear KPIs, then shift spend based on completed views, cost per completed view and conversions.

FAQ

How many Americans still have cable TV? About 34.4% of U.S. households still subscribed to traditional pay TV in late 2025, according to Leichtman Research and S&P Global.

Is CTV advertising better than traditional TV advertising? CTV offers more precise targeting, measurement and flexibility, while linear TV still delivers broad reach for live events and older audiences.

How big is the CTV advertising market in 2026? In this case, eMarketer forecasts U.S. CTV ad spend of approximately $37.95 billion in 2026, up 14.5% from 2025.

What share of TV viewing is streaming? Streaming reached a record 48.6% of U.S. TV viewing in May 2026 and 48.5% in June, according to Nielsen's The Gauge. Nielsen's measurement covers TV sets only, and the company has noted that estimates may be recalibrated.

Is YouTube considered TV? On American TV screens, yes. YouTube is the single largest source of TV viewing time in the U.S. at 14.2% in July 2026, and CTV is its biggest viewing surface in the U.S.

Sources

• Leichtman Research Group / S&P Global, pay-TV household penetration, late 2025 (via Review42 and AdWave summaries)
• eMarketer, U.S. pay-TV and non-pay-TV households forecast; CTV ad spending forecasts (December 2025 and Q2 2026)
• Nielsen, The Gauge (May, June and July 2026 releases) and Media Distributor Gauge
• IAB, 2026 Ad Spend Forecast
• Alphabet 10-K (YouTube ad revenue, 2025); Variety (Q1 2026 YouTube ad revenue); YouTube Brandcast

‍