Ad Revenue Should Stabilize for Media Companies in 2025

The New York Liberty celebrate after winning the 2024 WNBA Championship against the Minnesota Lynx during Game 5 of the 2024 WNBA Finals on October 20, 2024 at Barclays Center in Brooklyn, New York. The advertising market has positive momentum going into 2025, especially for media companies with sports rights and tentpole live programming.

Stability in the Market

According to media executives, the industry expects stability in the market, with normalization in advertising spending and a focus on sports and live events. With the election uncertainty resolved, marketers are feeling more confident, leading to increased advertising budgets.

Normalization is the right way to say it with the advertising market," said Mark Marshall, NBCUniversal’s chairman of global advertising and partnerships. With the election settled, a lot of companies feel the uncertainty over that has gone away."

Despite the uptick in ad revenue following the election and the forecast stability, Natalie Bastian, global chief marketing officer at Teads, said she expects a lot of the same trends.

Sports and Live Events Reign Supreme

Sports and live events, such as awards shows, reigned supreme in conversations with media executives. The end of the uncertainty surrounding the election has helped the outlook improve, they said.

With the election uncertainty resolved, companies are focusing on sports and live events, as these formats offer the most engaged audiences. As a result, media companies with sports rights are in high demand, and companies are willing to pay hefty sums for the rights to games.

Linear Importance

While streaming services are increasing their sports rights, linear TV’s audience still significantly outpaces streaming. Both Marshall and Amy Leifer, DirecTV Advertising’s chief ad sales officer, emphasized that traditional TV is still important in discussions with advertisers, especially when it comes to sports.

A view of a ESPN cameraman during the game between the Jacksonville Jaguars and the Cincinnati Bengals on December 4, 2023 at EverBank Stadium in Jacksonville, Fl.

David Rosenblum | Icon Sportswire | Getty Images

"There’s still declines in linear TV in a lot of markets, but not in all markets," said Kate Scott-Dawkins, GroupM’s global president of business intelligence.

Conclusion

The advertising market is expected to stabilize in 2025, with a focus on sports and live events. As media companies, streaming services, and advertisers converge on these formats, the opportunity for growth increases. With sports rights and linear TV still prominent in the media landscape, this trend is unlikely to change soon.

Frequently Asked Questions

Q: What is expected to happen with the advertising market in 2025?
A: The market is expected to stabilize, with a focus on sports and live events.

Q: Why are sports and live events important?
A: Sports and live events offer the most engaged audiences and are a significant draw for media companies and advertisers.

Q: Is linear TV still important in discussions with advertisers?
A: Yes, traditional TV is still important, especially when it comes to sports.

Q: What are the key players in the market?
A: Major media companies, streaming services, and advertising agencies are all key players in the market.

Q: Is there growth opportunity in the market?
A: Yes, as media companies, streaming services, and advertisers continue to converge on sports and live events, opportunities for growth and increased revenue emerge.