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The Six Big Advertising Trends that Will Shape Live Streaming in 2026

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This year we finally saw the tipping point that media companies needed to move from a linear-first business mentality to one that focuses on streaming. Millions of people are abandoning linear for streaming, with live sports causing the biggest shift of all. As audiences embrace streaming, advertisers follow.

With both audiences and advertisers demanding awesome streaming experiences, media companies are scrambling to make multiple changes at once. Shifting from linear to streaming is not one-for-one. Viewers have different FAST options as well as access from major subscription services and RSNs. Amid the landgrab is also the challenge of satisfying advertisers. Not only do they want access to audiences, they want all of the things that streaming can unlock including targeting, interactivity, creative placements and more.

Moving from the controlled chaos of 2025, media companies are forming their plans, investing in technology to unify their business across linear and streaming, and delivering innovations to engage both fans and advertisers.

Here are the six major trends that will define this new phase of streaming.

Streaming Leads Live Sports

Across all streaming live sports accounts for 30% of all content viewership. This year, the percent of people who streamed the Super Bowl reached double digits. That number is set to rise as more people cut the cord. With streaming taking a meaningful percentage of the audience from linear, media companies and franchises are starting to take streaming seriously. That means rethinking how they approach monetization, advertising formats, and fan engagement for the connected TV era - and live sports is the primary focus.

In just a few years, as many as half of all sports viewers will be on streaming, which means most people will be able to interact with ads, see targeted and personalized content and even streamed games with other things from shopping to gaming to sports betting to social media. All of these opportunities are driving the future of streaming and are what media companies and franchises are pinning their future growth on.

New Inventory Opportunities with AI and Virtual Ads

How AI, virtual advertising and data-driven overlays are localizing content and unlocking new ad inventory without disrupting the viewing experience. Live sports is the jewel in the crown for media companies moving to streaming, but there are many other growth opportunities that follow close behind. AI and virtual ads make it much easier for media companies to insert brands into the content including product placement and AI-generated signage to overlays and pause ads.

Many of these concepts are already available today through creative ad-tech companies, but it’s very early days. Media companies need to build out opportunities to monetize and scale so they move from one-off premium deals to programmatic deals that anyone can execute.

Extended Content Enhances Attention and Monetization

The rise of creator integrations, halftime shows, and immersive companion content means brands get many new opportunities to engage viewers on the big screen. On streaming, media companies can open up social media engagement so people can post content and interact with friends while they watch.

Many athletes and actors are influencers in their own right, providing opportunities for crossover content that brands can sponsor on multiple platforms. AT&T had an immersive sponsorship with the NBA All-Stars that supported the slam dunk contest as well as on-the-ground photo opps which drive views on social media.

Gamification and Interactivity Redefine the TV Viewing Experience

The value of gamification and interactivity through betting, fantasy, and prediction layers has the potential to drive higher engagement, longer watch times, and richer audience data. The obvious example that’s already live is the rise of interactive sports betting on top of live games. FanDuel and Amazon’s partnership integrates custom content into NBA and WNBA broadcasts that give FanDuel customers direct access to real time stats and rankings. Fantasy sports and sports betting experiences are likely to take over streaming live sports.

This same concept can also be applied to other content. Consider a show like Squid Games or a reality TV show like Love Island, where viewers are able to be more involved with the content - for example, by betting on outcomes or voting on what players need to do.

Women’s Sports and the New Live Sports Paradigm

Streaming opens up an opportunity to deliver content to many more audiences, which actually has an interesting effect - some formerly niche content becomes mainstream. This is exactly what is happening with women’s sports. Women’s sports viewership is up more than 400% in the past few years and is considered to be a multi-billion dollar opportunity. From the WNBA to women’s soccer, golf and more, there is a near endless array of women's sports that will attract growing viewership and more advertisers.

Similarly, formerly regionally broadcast sports like rodeo are moving into prime time. Last year, Teton Ridge acquired The Cowboy Channel and Cowgirl Channel with an audience of more than 100 million people. This is hardly a niche sport - but many audiences and brands were shut out when it was broadcast in only a few markets. With these sports coming to streaming, more viewers can access content, and brands can access inventory and target key audiences.

Shoppable Ads Drive New Outcomes

Today, shoppable ads on streaming are mostly the kind that includes a big QR code so that viewers can shop on their phones. However, very soon, more people will be interacting with their TVs and will want to shop right on the big screen. Imagine clicking on a basketball player mid-game to see if what they are wearing is sponsored gear - and then buying their shoes right on the TV. Or imagine viewers watching a car commercial and clicking through to an experience where they could build their own car and schedule a local test drive.

WIth streaming, these concepts are only limited by how advertisers and media companies set expectations with viewers. If viewers feel like picking up the remote or connecting their TV to a keyboard is worth it, they’ll do it. Already gamers consider their TV to be an extension of a highly engaged experience driven by their controllers.

The Age of Experimentation Starts Now

After seventy years or more with 30 second spots on linear TV serving as the core model, TV is only now starting to change in earnest. With steaming, there is no clear model that will replace the 30 second spot. Instead, it’s likely that streaming monetization will look different for every type of content and even every type of viewer.

The goal today is to encourage experimentation and see what works best. Brands will want to target audiences, personalize content, and be part of the action. Media companies will have to determine the best way to attract brands based on their desired outcomes, while creating a profitable growth engine for themselves. There will always be premium content that sells for more, but what those premium ads will look like, only time will tell.

[Editor's note: This is a contributed article from Operative. Streaming Media accepts vendor bylines based solely on their value to our readers.]

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