Ad revenue should stabilize for media companies in 2025

From CNBC: 2024-12-27 07:00:01

The New York Liberty emerged victorious in the 2024 WNBA Championship against the Minnesota Lynx in Game 5 of the 2024 WNBA Finals at Barclays Center in Brooklyn, New York. The advertising market appears optimistic for 2025, particularly for media companies with sports rights and live programming, following the end of election-related uncertainty. Executives anticipate stability and a rebound in ad spending post-election, emphasizing the importance of traditional TV, especially for sports advertising. The global advertising industry is projected to exceed $1 trillion in total revenue for the first time this year, with a 7.7% growth expected in 2025, driven by digital platforms.

With sports continuing to draw large audiences and advertisers, media companies are investing heavily in broadcasting rights. Live sports commercials have shown 24% more engagement than other programming, prompting streaming services to enhance viewer experiences with personalized, non-disruptive ad units. Major events like the Summer Olympics have generated record ad revenues, with the Super Bowl and NBA games also seeing strong ad sales. The WNBA’s growing audience presents a significant opportunity for advertisers in women’s sports. Streaming services are increasingly investing in sports rights, following the trend in both legacy and digital media companies. Linear TV still has a larger audience than streaming, but both platforms offer unique opportunities for advertisers. Advertisers are now focusing on a unified approach to TV advertising, combining both linear and streaming platforms. NBCUniversal and Disney have seen success in integrating their linear and streaming offerings, catering to different audiences on each platform.



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