Key Highlights
- Ad revenue for media companies is projected to stabilize in 2025, with growth expected for platforms featuring sports and live events.
- Streaming platforms continue to capture a growing share of ad spending, but traditional TV remains critical for reaching diverse audiences.
- The end of the U.S. presidential election uncertainty has sparked optimism for ad spending into 2025.
- Sports and live events dominate advertiser priorities, delivering high engagement rates compared to other programming.
Ad Market Insights for 2025
Media companies anticipate a strong ad pipeline for early 2025, fueled by robust spending in Q4 2024 and the resolution of election-related uncertainties. Industry executives predict a return to normalcy in the advertising market after years of volatility.
Mark Marshall, NBCUniversal’s chairman of global advertising, noted:
“Normalization is the right way to say it. With the election settled, companies feel the uncertainty has lifted.”
Sports and Live Events Lead Engagement
Sports and live events, like award shows and marquee games, remain key drivers of ad revenue.
- Sports commercials see 24% higher engagement rates, according to EDO data.
- NBCUniversal’s 2024 Paris Olympics coverage generated $1.2 billion in ad revenue and a record audience of over 30 million.
- Fox sold out Super Bowl ads at $7 million each, capitalizing on an estimated audience of 123.7 million viewers.
- Disney’s Christmas NBA games sold out early, with overall ad revenue for the NBA season “pacing up substantially.”
Women’s sports also saw significant growth. The WNBA set new audience records in 2024, with ads during games achieving 16% higher engagement than the previous year.
Josh Mattison, EVP at Disney Advertising, emphasized:
“This year was transformational for women’s sports audiences.”
The Streaming vs. Linear TV Dynamic
While streaming services dominate ad growth, linear TV still holds a significant advantage in impressions and continues to play an essential role in media planning.
Key points:
- Streaming ad revenue is projected to grow by 10% in 2025, reaching $813.3 billion globally.
- Linear TV ad revenue will grow by nearly 2%, totaling $169.1 billion.
- Media companies emphasize a unified approach to advertising across linear and digital platforms.
Amy Leifer, DirecTV Advertising’s chief ad sales officer, highlighted:
“Despite the shift toward streaming, linear TV still generates six times more ad impressions.”
NBCUniversal and Disney have adapted their strategies to integrate linear and streaming audiences. Marshall noted:
“Peacock and linear TV serve distinct audiences, allowing us to maximize reach without cannibalization.”
Future of Media Advertising
With the advertising industry expected to surpass $1 trillion in revenue by 2025, sports and live programming will remain central to driving growth. Media companies are focused on creating engaging, seamless ad experiences to retain audiences across platforms.
As Tim Hurd of Goodway Group explained:
“The challenge for streaming platforms will be to enhance the viewing experience with personalized, non-disruptive ads.”
Overall, the convergence of linear and streaming media ensures advertisers can target both traditional and digital audiences effectively, positioning 2025 as a pivotal year for the media ad industry.
