Key Points:
- Ad spending is expected to stabilize and grow in 2025, especially for media platforms with sports rights and live events.
- Streaming and traditional TV will remain key distribution platforms to target diverse demographics.
- The post-election period has brought optimism, with ad spending picking up in Q4 2024 and a strong pipeline forecast for Q1 2025.
The advertising market is showing positive momentum heading into 2025, particularly for media companies with rights to sports and live programming. Industry executives have highlighted the stabilizing trends as uncertainty tied to the 2024 election fades.
Sports and Live Events Drive Revenue
Sports and live events like the Summer Olympics, Super Bowl, and WNBA Finals continue to dominate ad spending conversations. These programs generate high engagement, with sports commercials seeing 24% higher interaction rates compared to other types of programming, according to EDO advertising data.
NBCUniversal reported record-breaking ad revenue of $1.2 billion from the Paris Summer Olympics in 2024. Meanwhile, Fox Corp has already sold out its ad slots for the 2025 Super Bowl, with rates reaching $7 million per spot.
The growing interest in women’s sports, including the WNBA and the FIFA Women’s World Cup, presents a major growth opportunity. Despite women’s sports only accounting for 3% of total sports TV ad spending in 2024, advertisers are increasingly tapping into this space.
Digital vs. Linear TV
While streaming continues to capture a growing share of ad budgets, linear TV remains essential for advertisers targeting older demographics. Traditional TV is expected to grow by 2% in 2025, generating $169.1 billion in global revenue, while digital platforms like YouTube and TikTok are projected to grow by 10%, reaching $813.3 billion globally.
Executives from NBCUniversal and Disney emphasized the importance of combining linear TV and streaming platforms for ad campaigns. By merging linear audiences with the precision targeting of streaming ads, companies maximize both reach and engagement.
The Rise of Programmatic Ads
The shift toward programmatic ad spending—automated digital ad buying—continues to grow. Platforms like Peacock and ESPN+ are proving effective in engaging audiences without cannibalizing traditional TV viewership.
Disney, with its expansive portfolio that includes ABC, ESPN, and Disney+, has been able to unify audiences across linear and digital platforms. The convergence of platforms like ESPN+ with Disney+ enhances audience targeting and performance, creating new opportunities for advertisers.
Optimism for 2025
The global advertising industry is forecasted to surpass $1 trillion in total revenue for the first time in 2025, driven by digital platforms and retail media. Mark Marshall, chairman of global advertising at NBCUniversal, described the current market as “normalizing,” while Dan Porter, CEO of sports media company Overtime, noted strong growth in early 2025 ad pipelines.
As sports programming and live events maintain their dominance, advertisers are encouraged to invest strategically across both traditional TV and digital platforms. The increasing importance of women’s sports, combined with the integration of linear and streaming, positions media companies for continued growth in the year ahead.
