The New York Liberty recently celebrated their victory in the 2024 WNBA Championship against the Minnesota Lynx, marking a significant event in the sports calendar. This achievement comes during a broader trend in the advertising market, which appears to be gaining momentum as we approach 2025. Media companies are particularly optimistic, especially those that hold sports broadcasting rights and feature live programming.
Discussions among media executives highlight live events, such as sports and award ceremonies, as crucial to the advertising landscape. The conclusion of the recent election cycle has also alleviated some uncertainties, contributing to a more favorable outlook. Despite a migration of viewers away from traditional TV bundles towards streaming services, executives maintain that traditional television remains significant for advertising.
Mark Marshall, president of global advertising and partnerships at NBCUniversal, commented on the normalization of the advertising market as the election-related uncertainty dissipates. He noted an increase in scatter market budgets, which involve buying advertising space close to broadcast dates. However, many marketers remain cautious during this busy period, which is typical in election years.
Nathalie Bastian, global chief marketing officer at Teads, echoed these sentiments, noting that while major events such as the Summer Olympics and presidential elections have boosted TV ad revenue in 2024, media budgets themselves might not grow significantly going into the new year. This emphasizes the importance of live sports programming for media companies, as advertisers will have more options for spending their budgets.
Globally, the advertising industry is set to surpass $1 trillion in revenue for the first time in 2024, with a projected 7.7% growth in 2025. Digital advertising, particularly on platforms like YouTube and TikTok, is leading this growth, although traditional television is still expected to see a steady increase in revenue.
The popularity of live sports remains high, with reports showing commercials during live events generating better engagement than other types of programming. NBCUniversal recorded $1.2 billion in advertising revenue from the Paris Summer Olympics, demonstrating the lucrative nature of sports broadcasting.
Media companies are also seeing success with high-profile events like the Super Bowl, which has already sold out its advertisements at a high price, reflecting the continued value of such occasions. Furthermore, viewership for women’s sports, including the WNBA, is rising, presenting new advertising opportunities despite currently only capturing a small fraction of overall sports advertising budgets.
This growth indicates that while traditional media faces challenges, its role in the advertising ecosystem remains vital, particularly as interest in women’s sports continues to expand.The rights to host the 2027 and 2031 FIFA Women’s World Cups have been secured by an unspecified entity, which reflects the growing interest of streaming services in expanding their sports offerings. This trend highlights a broader shift in the media landscape, as both traditional and digital platforms are increasingly seeking sports content.
Despite the ongoing decline of linear television viewership in many regions, it continues to significantly outperform streaming services in terms of total viewership. Experts acknowledge this dynamic; for example, Kate Scott Dawkins from GroupM noted the potential for appreciating linear TV’s effectiveness for advertisers. Meanwhile, Amy Leifer from DirecTV Advertising emphasized that, although viewers are shifting towards streaming, linear TV still delivers more advertising impressions and generates six times the revenue compared to streaming platforms.
Media executives are now encouraging advertisers to view linear and streaming platforms as complementary rather than competitive. Leifer highlighted DirecTV’s strategy is to treat all TV, regardless of its delivery method, as an integrated whole. This has led to discussions about merging digital and linear TV advertising strategies to maximize reach and effectiveness.
Furthermore, industry leaders from NBCUniversal and Disney pointed out the need for a unified approach to advertising across platforms. They noted that while different demographics have varying viewing preferences, with older audiences leaning toward linear and younger ones favoring streaming, the two mediums can coexist without cannibalizing each other. For instance, NBCUniversal’s streaming service Peacock is said to attract a different audience than its linear programming.
Disney’s expansive portfolio, which includes ABC, ESPN, and the streaming service ESPN+, is seen as a strategic advantage in this evolving landscape. Executives believe that convergence between streaming and linear services will enhance consumer experiences and foster growth opportunities for advertisers, indicating a shift in how media consumption and advertising will be approached collectively moving forward.