Why TikTok’s Ad Revenue in the U.S. Will Overshoot TV Ads

In the ever-evolving digital ad landscape, TikTok has not only been a trendsetter but a force to be reckoned with in the ad landscape. With American advertisers growing more focused on moving budgets away from traditional media to digital-first platforms, TikTok's rapid growth is a seismic shift. As we head into 2025, one thing is for sure: TikTok ad revenue will surpass traditional TV ad spending in the United States—a disruption driven by changing consumer behavior, unmatched engagement, and the strategic rollout of the TikTok Shop Partner Agency ecosystem.

TikTok Is Overtaking Traditional Ad Revenue

TikTok's projected ad revenue in the United States will exceed $8 billion by the end of 2025, eclipsing TV ad spending, which has declined steadily since 2020. Companies employed TV commercials for decades to reach wide audiences, but as streaming and cord-cutting grow in popularity, TikTok is capturing those broken attention spans with laser-like precision.
TikTok's American advertising expenditure increased by 62% year over year in 2024, and linear television advertising expenditure dropped by nearly 7%, per eMarketer. The secret is out: brand storytelling's future is not passive TV watching but active, vertical-scrolling narrative.

Refer to TikTok Shop Partner Agency

This change is not occurring independently. Behind the scenes, TikTok Shop Partner Agencies are helping brands tap the potential of TikTok—i.e., the powerful e-commerce capabilities of TikTok Shop. These seasoned agencies are well aware of the ins and outs of TikTok's algorithm, user trends, and content formats, which enables companies to deliver natively integrated ads that are part of a user's For You Page.
Working with a TikTok Shop Partner Agency, therefore, allows businesses to leverage planning, data-optimize, and direct conversion capability in the TikTok platform, an option not available from TV networks.

Shifting Ad Budgets

Marketers are no longer testing TikTok. Media budgets are being shifted off traditional formats like TV and print onto TikTok due to its cost efficiency, scalability, and reach among younger generations.
TikTok agency teams are now more and more integrating TikTok as a core pillar of cross-brand campaigns. Instead of investing millions in prime-time ad placements with dubious ROI, brands are choosing ad flexibility, influencer collaborations, and live commerce sessions that drive quantifiable engagement.

Spend on TV Advertisements Decreases

The statistics don't lie. Old-school television has experienced a precipitous decline in both viewers and ad revenue. As audiences have moved to on-demand, mobile-first viewing, the TV model has found it difficult to keep up.
Conversely, TikTok provides content that is:

• Tailored in real-time by algorithmic streams
• Made for interaction
• Designed for mobile-native formats

Those days of one-size-fits-all, 30-second television commercials are over. Marketers require data and agility, not guesswork and GRPs.

TikTok CPMs vs. TV

Cost-per-thousand impressions (CPM) is a common measure of advertising, and TikTok's CPMs are considerably lower than television. TV CPMs vary between $20 and $30 based on time slots and audiences, while TikTok's CPMs begin at as low as $5–$10 based on targeting options and quality of content.
More significantly, the ad formats of TikTok enable brands to talk directly to people—comments, shares, saves, and link clicks offer actionable information, something TV never has been able to offer.

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What's Behind the Turnaround

Attention Span + Video-First Platform

TikTok is aware that attention spans these days are short-lived. That is why its content format—vertical, short-form video—is perfect for real-time engagement. The platform encourages creative storytelling within 60 seconds, allowing brands to connect with individuals in a manner that content is indeed consumed these days.
TikTok is not a disruption; it's the event itself.

Gen Z & Millennials as Target Market

The key to TikTok's strength is its users. More than 60% of TikTok users in the United States are Millennials and Gen Z, a generation that is largely inaccessible through traditional TV. These consumers require authenticity, creativity, and cultural relevance—just what TikTok delivers in abundance.
A 2024 Morning Consult poll found Gen Z has more faith in TikTok than in traditional media, using it as their default platform for product discovery, entertainment, and even news.

Advantages for Brands

Better Targeting

TikTok's algorithm doesn't only match ads with demographics—it matches them with behavior, interest, and present interaction. If you're in the business of selling skincare, technology items, or digital goods, the accuracy of TikTok targeting allows you to reach exactly who you're looking for when they're most likely to act.

Enhanced Involvement

TikTok ads don't look like ads. They look like content—and that's why they're effective. Branded challenges, native influencer content, and TikTok Shop livestreams consistently outperform traditional forms of advertising in engagement, especially among younger generations.

Real-Time Feedback

Perhaps most important among TikTok's advantages over TV is its ability to provide instant feedback. Advertisers can see what's working (or not) within a matter of hours after launching a campaign and tinker in the moment. Thanks to tools like comment analysis, heatmaps for engagement, and real-time dashboards for analytics, TikTok is a test-and-learn playground.
Role of TikTok Shop Partner Agencies

Strategy Formulation

A TikTok Shop Partner Agency not only assists brands in learning what performs on the platform but creates end-to-end strategies that convert viewers into customers. From brainstorming through choosing the optimal influencers, these agencies are experts at creating campaigns that marry organic reach and shoppable moments.
Marketing agencies that follow TikTok marketing agency standards ensure that your messaging remains consistent when switching over to accommodate TikTok's constantly changing trends.

Analytics & Ad Optimization

As soon as your campaign goes live, optimization is the game. Partner agencies provide robust analytics—tracking anything from view-through rates to TikTok Shop conversions—and tweak creatives, captions, and CTAs to maximize ROI.
These agencies are also in front of algorithm changes, TikTok advertising policy shifts, and beta feature updates, giving their clients a head start in a competitive online marketplace.

Conclusion

TikTok's success is not an accident. It's a result of cultural relevance, user-friendly design, and the increasing value of mobile-first, immersive storytelling. While ad budgets on TV are dwindling, it's no surprise that brands are turning to platforms with higher ROI, higher engagement, and more targeted reach.
TikTok will become the largest ad revenue platform in the United States by 2025, bigger than television, and whoever is working with a TikTok Shop Partner Agency will be first in line to enjoy the spoils. If you're a brand that cares about future-proofing your marketing, the choice is easy: get on TikTok or risk being left behind.