Are Traditional TV Sponsorships Dead? Why Smart Brands Are Creating Their Own Shows Instead

18 Apr Are Traditional TV Sponsorships Dead? Why Smart Brands Are Creating Their Own Shows Instead

The television advertising landscape has undergone a fundamental transformation in recent years. Traditional TV sponsorships are not entirely dead, but they are experiencing significant decline as intelligent brands pivot toward creating their own entertainment content. This shift represents a strategic response to changing viewer habits, declining linear television viewership, and the need for more direct audience relationships.

The Decline of Traditional Television Advertising

The numbers paint a clear picture of traditional television's challenges. Linear TV advertising spending will drop more than 11 percent in 2026, reaching $139.1 billion. The U.S. broadcast TV and radio station industry will decline 9.3 percent to $32.83 billion in total advertising revenue in 2025, down from $36.19 billion in 2024.

Cord-cutting has accelerated this trend, hitting 9.5 percent in 2025. Total traditional U.S. multichannel households are expected to decline by 9.3 percent as consumers increasingly favor digital video and streaming alternatives. This shift reached a historic milestone when streaming viewership surpassed the combined audience of broadcast and cable television for the first time in May 2025.

The implications extend beyond simple viewership statistics. Consumer attention has become fragmented across numerous streaming platforms that increasingly differentiate themselves from each other. Brands must now consider not just linear TV, but platforms like Discovery+, Netflix, Hulu, and other specialized services to reach specific demographics effectively.

The Rise of Brand-Created Content

Rather than competing for attention during commercial breaks, forward-thinking brands are adopting a "be the show, not the ad break" philosophy. This approach involves creating television-quality editorial stories and entertainment content that directly engages audiences without traditional advertising interruption.

Major corporations like Pepsi and Anheuser-Busch are now creating television shows for streaming platforms, responding to an increasingly ad-free entertainment landscape. This strategy allows brands to produce the very content that audiences choose to watch, hoping to both entertain and influence brand preference simultaneously.

The transformation from traditional advertising to content creation can be illustrated through various brand approaches. Some companies develop documentary-style content that showcases their industry expertise, while others create fictional entertainment that subtly incorporates their brand values and messaging.

Strategic Advantages of Brand-Owned Programming

Direct Audience Relationships: The internet enables brands to create direct relationships with audiences, fostering deeper connections through entertainment and editorial storytelling. This bypasses traditional gatekeepers and allows for more authentic brand integration than conventional sponsorship arrangements.

Content Control: When brands create their own programming, they maintain complete editorial control over messaging, timing, and brand integration. This eliminates the risk of association with controversial content or competing advertisements that might appear alongside sponsored programming.

Long-term Value Creation: Brand-owned content can be repurposed across multiple platforms and continues to provide value long after its initial release. This contrasts with traditional sponsorships, which provide temporary exposure during specific broadcast windows.

Audience Data and Insights: Creating proprietary content allows brands to gather detailed audience analytics and engagement metrics directly, providing valuable insights for future marketing strategies and product development.

Case Studies in Brand Evolution

Foot Asylum exemplifies this content evolution, having transformed from creating short unboxing videos with creators like KSI seven years ago to producing multiple television-length formatted returning series on YouTube. This progression demonstrates how brands can build substantial audiences through consistent, quality entertainment content.

The company's journey illustrates the potential for brands to develop sophisticated content strategies that rival traditional media companies. Their success demonstrates that audiences will engage with brand-created content when it provides genuine entertainment value rather than overt promotional messaging.

Other brands have found success through different content approaches. Some focus on educational programming that positions them as industry thought leaders, while others create lifestyle content that naturally incorporates their products into engaging narratives.

Industry Transformation and New Opportunities

The proliferation of streaming services has created more opportunities for brands to develop content that accomplishes specific business goals. This environment is more conducive to brand storytelling than traditional advertising slots, which often interrupt rather than enhance the viewing experience.

As traditional network budgets tighten and fewer shows receive green lights, producers are increasingly turning to brands instead of networks to fund their projects. This creates mutually beneficial partnerships where brands gain access to quality content and producers secure necessary financing for their creative projects.

This shift has implications for the entire production industry. Television producers may find new partnership opportunities with brands seeking experienced production partners, while also facing increased competition from marketing and creative agencies entering the content creation space.

The Connected Television Factor

While traditional linear television declines, connected TV (CTV) spending will increase 3.6 percent in 2026 to reach $44.7 billion, with 56 percent of advertisers planning to increase their CTV budgets. This represents a shift toward more targeted, streaming-based advertising rather than traditional broadcast sponsorships.

Connected television offers brands the precision targeting capabilities of digital advertising combined with the premium content environment of television. This hybrid approach allows for more sophisticated audience segmentation and personalized messaging than traditional broadcast advertising.

Implications for Content Strategy

The transformation creates both challenges and opportunities for traditional media companies. Television networks must compete not only with other entertainment providers but also with brands that are developing their own compelling content strategies.

Brands entering the content creation space must invest in understanding entertainment production, audience development, and content distribution. Success requires more than simply translating advertising messages into longer formats – it demands genuine entertainment value and sophisticated production quality.

Future Considerations

The current media landscape suggests that successful brands will adopt hybrid approaches, combining traditional advertising with proprietary content creation. This strategy allows companies to maintain broad market presence while developing deeper relationships with core audiences through owned media.

Traditional TV sponsorships will likely persist in certain contexts, particularly for live events and premium programming that maintains strong linear viewership. However, the overall trend clearly favors brands that can create compelling content experiences rather than simply purchasing advertising space.

The transformation represents more than a tactical shift in media spending – it reflects a fundamental change in how brands build relationships with consumers. In an era where audiences actively choose their entertainment, becoming the entertainment itself offers a more sustainable path to engagement than interrupting it.

Smart brands recognize that this evolution requires new competencies in content creation, audience development, and entertainment production. Those who successfully navigate this transformation will likely establish significant competitive advantages in an increasingly crowded marketplace.