Streaming was expected to save the struggling TV advertising industry. It has not.

Mondelez, the snack company behind Oreo cookies, made a bold move earlier this year by choosing not to spend any money on TV advertising to promote a limited edition of their popular cookie. This decision was driven by the changing viewing habits of their target audience, which includes Gen Z members, multicultural audiences, and households with children, who are not watching as much television as before.

Jonathan Halvorson, Mondelez’s global senior vice president of consumer experience, highlighted the shift in TV viewership, noting that traditional TV shows no longer have the same audience pull as they used to. As a result, Mondelez is reallocating its ad budget, with only 15% going to TV this year, down from 42% three years ago. Instead, they are focusing on social media platforms like Instagram and TikTok, as well as ads on retail websites like Amazon and Walmart.

The decline in TV ad spending is a trend seen across the industry, with brands like Hershey also reducing their TV ad budgets. Despite the rise of streaming services, TV advertising is facing a secular decline, with marketers expected to spend less on traditional and digital television this year compared to five years ago.

As the advertising landscape continues to evolve, companies are exploring alternative platforms like YouTube, Meta, and retail media to reach their target audiences. The rise of ‘retail media’ and the shift towards two-way communication with consumers are reshaping the advertising industry, with digital players and retailers benefiting from the changing dynamics of TV advertising.