The advertising market is expected to have a positive momentum heading into 2025, particularly for media companies holding sports rights and key live programming. Sports and live events, such as awards shows, were highlighted in discussions with media executives regarding their outlook on the advertising market for the upcoming year. The resolution of uncertainties surrounding the election has also contributed to an improved perspective, according to industry experts.
Despite the trend of consumers moving away from traditional TV packages and an increase in ad spending on streaming platforms, executives stressed the continued significance of traditional TV in conversations with advertisers, especially concerning sports content. The industry anticipates stability in the market and aims to move beyond the recent slowdown in ad expenditure.
Mark Marshall, NBCUniversal’s chairman of global advertising and partnerships, described the current state of the advertising market as “normalization,” attributing the positive shift to the conclusion of the election period. He noted an increase in scatter market budgets in the fourth quarter, referring to the buying and selling of ads closer to their airdate.
Executives foresee a stable market post-election and anticipate similar trends in the advertising landscape. Natalie Bastian, global chief marketing officer at Teads, expects the continuation of existing budget patterns from 2024, which saw a boost in TV ad revenue due to major events like the Summer Olympics and the presidential election.
The global advertising industry is projected to exceed $1 trillion in total revenue for the first time this year, excluding U.S. political advertising, with an estimated 7.7% growth in 2025 to reach $1.1 trillion, as reported by GroupM, WPP’s media investment group. Digital platforms, including retail media, are identified as the primary drivers of this growth.
TV advertising, considered the most effective form of advertising, is expected to grow by nearly 2% in 2025 to reach $169.1 billion in total global ad revenue. In comparison, ad revenue for pure-play digital platforms, excluding digital extensions of traditional media, is projected to increase by 10% to $813.3 billion globally in 2025, according to GroupM.
The appeal of sports content to large audiences and advertisers has led media companies to invest significantly in securing rights to sporting events. Commercials aired during live sports programming have shown 24% higher engagement compared to other content, according to EDO, an advertising data company.
The importance of live event coverage, particularly in sports, remains a key aspect of media engagement. Streaming services are urged to enhance the viewer experience by offering personalized and non-disruptive ad units to maintain audience engagement.
Major events like the Summer Olympics and the Super Bowl have attracted substantial ad revenue, with companies like Comcast’s NBCUniversal and Fox Corp. reporting successful ad sales. The growing popularity of women’s sports, exemplified by the WNBA, presents new opportunities for advertisers and media companies.
The shift towards streaming services for sports content has not diminished the significance of linear TV, which continues to attract a larger audience. Industry experts emphasize the need to integrate linear and streaming platforms when allocating ad budgets to maximize reach and effectiveness.
Executives from companies like NBCUniversal and Disney highlight the importance of unifying digital and linear television advertising strategies. The convergence of linear and streaming platforms offers enhanced opportunities for advertisers to reach diverse audiences across different age groups and preferences.
In conclusion, the evolving landscape of advertising reflects a shift towards a more integrated approach that combines traditional linear TV with digital streaming platforms to optimize ad campaigns and engage a wide range of viewers.
