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Key Trends in Ad supported Streaming In 2025

May 28, 2025| Dave Dembowski| Add comment

Operative’s Dave Dembowski: Media companies face a key decision this year to focus top CTV inventory on direct premium sales or leverage technology for more automated buying and delivery.

The first half of 2025 has been a roller coaster for advertisers and media companies alike. U.S. political instability in particular created uncertainty that tempered the Upfront and NewFront ad sales season. Of course, every action has a reaction, and the CTV advertising industry is no different. As traditional direct ad sales decline, new opportunities emerge in the second half of the year that could alter the way buyers and sellers do business for years to come.

Media companies have a decision to make focus their top inventory on direct premium sales to make up for a down year of Upfronts or leverage technology to capture growing demand for more automated CTV media buying and delivery. Many factors are in play, which will determine how each media company moves forward in 2025 and beyond.

First-Half Of 2025: CTV Growth Amid Market Uncertainty

Key trends in streaming and advertising are intertwining. In 2025, ad-supported streaming has transitioned from an alternative to the standard. Two-thirds of adults prefer ad-supported streaming over other streaming business models. This shift is driven by rising subscription costs and fatigue over managing multiple paid services. Platforms like Netflix, Disney+ and Amazon Prime Video have introduced or expanded their ad-supported tiers, offering consumers more affordable options while providing advertisers with broader reach.

CTV Continues to outpace traditional linear TV in both viewership and advertising growth. By 2025, CTV ad spending in the U.S. is projected to exceed $25 billion, with 72% of households having cut the cord. Advertisers are increasingly attracted to CTV’s high engagement rates and advanced targeting capabilities, making it a central component of modern media strategies.

While ad-supported streaming is a bright spot of growth for the market, tariffs and economic uncertainty could reduce the growth significantly in the second half of the year. Streaming services are competing for finite ad dollars in an already hotly contested field, and a looming recession may place additional pressure on advertising budgets. This environment necessitates strategic planning and adaptability from media companies to navigate potential market fluctuations.

Creating A Stable Platform For Growth

In the rest of the year ahead, media companies are going to be focused on the all-important Q4 holiday season. Even with economic turmoil Q4 will inevitably make or break media companies. The brands that didn’t commit in the first half of the year may lean in starting in September as they realize they can’t generate sales without advertising spend regardless of the risks at play in the larger economy. Advertisers are going to want the opportunity to reach precise audiences across channels and platforms and will want to have control over pricing and targeting more than ever before.

Media companies are facing a turning point in their TV business. Demand for automation and targeting on CTV channels is merging with demand for premium placement on linear TV. Once left to separate digital and linear processes, media companies are faced with the need to unify their business to meet this new breed of advertiser demand. Creating a monetization strategy that is competitive requires agility, data and total control over audience and product.

Many media companies have been reluctant to share audience data, to unlock targeting on premium inventory and to sell their best inventory programmatically. All of these elements will be tested in the second half of 2025, when advertiser demand could push media companies to change their strategies.

The good news is that media companies don’t have to relinquish their ad sales strategies but rather modernize them. Live events, sports and other premium spots can still be sold directly, but need to be incorporated into a larger, agile, automated process. Media companies can hold onto control while streamlining their platforms for greater efficiency and agility.

Working on putting technology and processes in place now to capture demand in a way that can also be profitable is critical.  Media brands must focus on direct-sold innovation such as “linear streaming” which enables premium sales with dynamic delivery across streaming and linear TV. They also need to have the infrastructure in place to deliver and optimize ads fluidly across all content to reduce manual work and increase margins.

Key technology upgrades that media companies need to be considering in 2025 include programmatic capabilities, dynamic ad insertion and more sophisticated measurement frameworks that can validate business outcomes and help capture additional revenue.

Unified data platforms that connect viewer behavior across live, on-demand and digital touchpoints will also be key. With the right infrastructure, media companies can go beyond reach to deliver targeted, outcome-based campaigns that attract performance-driven marketers as well as traditional brand advertisers.

Dave Dembowski is SVP of global sales at Operative.

Commentary

US Moms Concerned That Tariffs Would Affect Holiday Season

• by Maria Bailey , Columnist, May 23, 2025

It’s not too soon to focus on the 2025 holiday season with potential tariff increases and changing consumer behaviors. In fact, U.S. mothers start shopping for deals as early as July.  Moms spend $1.6 trillion a year in the U.S. economy and are the decision-makers when it comes to holiday expenditures. We surveyed 500 moms across the U.S. on what matters to them as they gear up for the upcoming holiday gift-buying season.

According to the survey, 81% of moms are concerned about the impact of tariffs on their families, and 58% intend to change their shopping habits this year for the holidays. They are concerned foremost about groceries, followed by clothing and shoes, home goods and appliances, cars, electronics, and toys.

Seventy percent of respondents are worried about how tariffs on toys will impact their holiday shopping. Moms expressed concern about increased prices (84%), limited choices 51%, limited distribution 39%, online sellouts (36%) and the scarcity of hot toys (27%).

When asked about how they would adapt their shopping strategies, the majority said they would limit the number of toys their child receives, while 46% would consider purchasing experiences over toys. In a nod to sustainable practices and a bit of ingenuity, 37% of moms said they would sell toys that are no longer used to offset the cost of new ones, and 33% said  they would purchase gently used items from thrift stores or resell sites as gifts.  Moms also look to other moms for good advice: 32% said they would take recommendations from other moms for saving money, and 33% said they would use social media to identify sales.

Notably, when asked if they were willing to pay a little more for a product made in the U.S. to avoid tariffs, 30% said yes, 11% said no, and almost 60% said it depends on the price difference. It was an even split between moms who shop websites or retailers that highlight products made in the U.S., and those that do not. When it comes to toys, 63% admitted that they do not seek out American-made toys.

Winning Shoppers This Holiday Season

As brands prepare to win sales this holiday season, it is important to design marketing tactics that meet buyers where they are stretching their family dollars.  Here are three marketing tactics to add to your plans:

-- Bundle products that present a higher perceived value to shoppers.

-- Host toy trade-in days or promotions that give moms credit toward purchasing new toys in return for trading in old toys.  Donate old toys to earn social responsibility points with moms.

-- Engage with mom influencers focused on frugal living and smart shopping, as their audiences will grow this holiday season.

Start now to develop a dynamic holiday marketing plan that will evolve with ever-changing factors.   Preparation will allow your brand to capture sales for moms this year. 

 

Commentary

Signal Vs. Noise: How Economic Volatility Is Rewriting the Ad Playbook

• by Megan Boveri , 55 minutes ago

There’s a moment in every downturn when leaders realize: This isn’t just a blip. It’s the new operating reality. By now, the signs are clearer. Budgets are tightening. Consumer confidence is wavering. Teams are anxious. And economic policy is reshaping how brands go to market. Now is the time for marketing leaders to adapt strategically to help brands evolve and succeed during recession periods. 

Tariffs, inflation, and volatility in global supply chains aren’t just economic footnotes. They’re active forces reshaping marketing operations. Tariffs, for example, may not hit your media line directly, but they indirectly influence campaign timing, messaging, and budget strategy. When inventory gets delayed or costs jump mid-cycle, media plans shift, and often at the last minute. This requires strong collaboration between finance, operations, and marketing. Ask yourself: Which trends are cyclical and which are systemic? The better you can distinguish between headlines and hard data, the more confidently you can lead a brand through turbulence.

Protect marketing as a strategic investment. It’s tempting to view marketing as an expense, but history tells a different story. Brands that continue investing in marketing during recessions recover three times faster than those that don’t, according to WARC. Long-term risks of not protecting marketing include a decline in brand equity and diminished customer loyalty.

With an impending recession and tariff-induced volatility, we’re now operating in a newly created white space in the market. As ad rates drop, competition fades, and consumer attention becomes cheaper to earn, it’s going to be harder and more expensive to regain visibility than to maintain it. Brands that stay the course and stay visible often emerge stronger, more memorable, and better positioned for growth.

Lean into performance and precision. Confidence drives ad investment, and when it wanes, media spend is often the first line item on the chopping block. This can lead to media deflation and market share shifts -- which can actually be advantageous by shifting spend toward performance media that offers measurable ROI. Whether it's reallocating dollars based on real-time conversion data or adjusting creative based on shifting consumer sentiment, the ability to move fast is now a competitive edge.

Communication is key. Tariffs and supply shocks not only affect your bottom line, but also complicate marketing calendars and message-to-market alignment. Clients, partners, and teams need transparency, which is why internal communication is just as important as external messaging. For example,  budget cuts in one area should come with clarity on where dollars are being spent. The more you communicate and are in alignment, the faster you can act.

The advertising playbook is being rewritten in real time. Recessionary pressure, tariff unpredictability, and consumer caution all demand a more inventive approach to content, targeting, and media strategy. This is the time to retool, test new formats, rethink audience segments, and explore channels you have deprioritized in prior years.

While an impending recession is reshaping consumer behavior and the noise is deafening, the brands that stay focused on the signal won’t just survive. They’ll set the pace on the other side.

 

Walmart V. Trump: New Twist in the Tariff Smackdown

• by Sarah Mahoney  @mahoney_sarah, Yesterday

 

Last week, Walmart became the largest U.S. company yet to push back against President Donald Trump’s proposed tariffs. In an earnings call, CEO Doug McMillon warned investors the company would have little choice but to pass increased costs on to consumers.

Trump fired back with a Saturday morning social-media broadside: “EAT THE TARIFFS,” he wrote, accusing Walmart of making “BILLIONS OF DOLLARS” and adding, “I’ll be watching—and so will your customers.”

The suggestion, of course, is economically absurd. Trump has repeatedly claimed that countries like China would bear the brunt of tariff costs, not American companies or consumers. Walmart, which operates on razor-thin margins, is hardly in a position to absorb new import taxes unscathed.

Even conservative media outlets were stunned. In a blistering editorial, the Wall Street Journal said Trump’s demand was “bizarro world” economics, adding, “Mr. Trump doesn’t know much about retail.” The piece likened Trump’s CEO cosplay to his previous outbursts against “Comrade Kamala,” accusing her of inflation-control proposals that were “socialist, communist, Marxist and fascist.”

Walmart responded with restraint. “We have always worked to keep our prices as low as possible and we won’t stop,” a spokesperson told Marketing Daily. “We’ll keep prices as low as we can for as long as we can, given the reality of small retail margins.” The company’s net profit margin is about 3%.

But the dust-up reflects what’s quickly becoming a broader war of words between the White House and Corporate America. Earlier this month, after reports that Amazon was exploring tariff disclosures on product pages—similar to how it now itemizes shipping and handling—Trump reportedly phoned co-founder Jeff Bezos to box his ears. The White House later called Amazon’s proposal “a hostile political act,” and Amazon quickly said it had no intention of pursuing the plan.

Meanwhile, tariffs are no longer just a trade issue—they’re starting to reshape consumer confidence. Although most Americans haven’t yet felt the impact at checkout, they know it’s coming. The University of Michigan’s latest Survey of Consumers ticked downward again, including a 7% drop among Republicans. The index is now down nearly 30% since January, with current assessments of personal finances falling almost 10%.

“Tariffs were spontaneously mentioned by nearly three-quarters of consumers, up from almost 60% in April,” the report says. “Uncertainty over trade policy continues to dominate consumers’ thinking about the economy.”

 

Commentary

Performance Media Takes Center Stage

• by Tom Turner , Op-Ed Contributor, May 16, 2025

A recent study by Advertiser Perceptions revealed that current “economic uncertainty is driving advertisers to prioritize performance over brand safety.

Fortunately, a focus on performance media achieves both. As we head into upfront season, there is a reason you're hearing the term “performance media” now more than ever. Data, and the collection of it, has never been more robust.

Some brands will even admit that they have more data than they know what to do with.  As a result, many are not harnessing it for its greatest potential value … as an indicator of how well their media is performing.

Look no further than direct-to-consumer (D2C) advertisers if you want to understand the most practical use of data to drive media optimization.

D2C advertisers are on the front lines of using first- and third-party data to better inform their media strategy.  

There was a time when only certain media channels were trackable for performance.  If a viewer dialed a unique 800 number on a TV ad, you knew what network they were watching. Or if they clicked on a banner ad, it was simple for digital strategists to know what site worked for driving leads.

Today, virtually all media can be attributable due to the proliferation of data tracking that exists.

With the right data attribution platform advertisers no longer rely on last touch attribution.  Instead, advertisers correctly apply multi-touch attribution to understand which media channels are truly driving meaningful KPI lift.  

Sure, the efficiency and flexibility of performance media make it a huge draw for D2C advertisers looking to build their brand while maximizing their return on ad spend. After all, every dollar counts when trying to move sales and beat expectations. However, the real star of the show is knowing how to apply the right data in the right way to guide optimization.

Which is why more advertisers are considering themselves “performance” advertisers in today's market. Reporting and analyzing impression delivery, reach, and frequency are still mainstays in our industry and stand front and center when it comes to building a brand.  But focusing on data and analytics that decipher which media works best for driving business outcomes … that is new marketing.

Today's most successful growth brands are those that emphasize audience reach while giving consumers a direct opportunity to respond or purchase product within the message.  Using third-party attribution platforms like iSpot, Extreme Reach, or TV Squared (to name a few) can help advertisers understand which media is driving tangible results beyond audience measurement.  Results that drive actionable insights and measurable bottom-line growth.

Virtually all brands are looking for engagement with viewers.  Visit a website, purchase a product, sign up for a service or simply request more information. With the right attribution platform and the acumen to understand what data means, advertisers can drive improved business outcomes while also building their brand…in real-time.  It's called Performance Media.

Streaming TV's 44.3% April Share Nearly Tops Total Broadcast/Cable

• by Wayne Friedman , 5 hours ago

Streaming TV viewing keeps gaining on legacy TV -- nearly topping the combined viewing share of both broadcast and cable TV, according to Nielsen’s total TV/streaming viewing measurement.

In April, its 44.3% share was just a share point behind the combined broadcast/cable viewing share of 45.3%.

Streaming TV grew 4% versus March and 15% over the same month a year ago.

Broadcast viewing was down 6% compared to a year ago to 20.8% share, with cable 16% lower to 24.5% share.

The most-watched streaming TV show was “Grey’s Anatomy” (at 3.9 billion viewing minutes), which airs on both Hulu and Netflix.

While “Grey’s Anatomy” airs exclusively for its current 21st season on Hulu, Netflix had 60% of total streaming viewing of the show for the month.

Right behind "Grey's Anatomy" was Warner Bros. Discovery Max's “The White Lotus,” coming in at 3.7 billion minutes.

In terms of individual channels, YouTube continues to sharply climb -- hitting another new high with 12.4% of total TV watch-time -- up 15% from March., and 30% higher compared to the same time period a year ago.

The Roku Channel also moved higher -- up nearly 70% versus as year ago (1.4%, April 2024) -- to a 2.4% share. Netflix remains in second place versus YouTube -- down 1% to 7.5% share -- while Amazon Prime Video grew 9% to 3.5% share.

Commentary: You Reap What You Fund: Advertising's Moral Debt

Commentary

You Reap What You Fund: Advertising's Moral Debt

• by Shirley Marschall , Featured Contributor, May 15, 2025

We speak so much about business goals. Sustainability and DEI used to be part of them (at least on paper).

But what about something even more fundamental? A moral compass. A shared red line. The industry’s version of “Don’t be evil.”

Something that makes the entire ad tech ecosystem say: “STOP.”

Maybe it’s the absence of that line -- or the absence of consequences for crossing it -- that led to the recent wave of disturbing CEO statements.

These aren’t just red flags. They’re flares in the sky.

Meta:

Zuckerberg on ads: “You [brands] tell us what your objective is, connect your bank account… You don’t need measurement, just read the results we spit out.”

Perplexity:

The CEO proudly announces its browser will track everything users do online, to power hyper-personalized ads.

A surveillance engine dressed as convenience.

X: CEO Yaccarino declares the platform a “megaphone for truth,” while legacy media is “left whispering.”

This, while doubling down on “real-time fact-checking" -- on a platform riddled with brand safety disasters.

These statements aren’t just tone-deaf. They’re the sound of an industry crossing a line and daring us to notice.

So where’s the response? Where is the collective industry “Stop”?

Advertising Doesn’t Just Reflect Culture, It Funds It

We like to act as if advertising is neutral  -- as if media buying is just a job.

But the influence of this industry runs deep and wide.

Advertising isn’t a side effect of the digital economy. It is the economy.

According to the Interactive Advertising Bureau, 75% of all U.S. ad spend -- nearly $300 billion -- now flows through digital channels.

Behind that number are millions of jobs: agencies, platforms, publishers, creators, engineers.

We don’t just sell products. We shape culture, sustain industries -- and fund the internet.

That kind of influence isn’t neutral -- and it shouldn’t be directionless.

We Keep Pretending We Don’t See It

We’ve normalized the absurd:

•   Platforms profiting from chaos while offering brand safety as a premium feature.

•   Agencies funneling spend to risky platforms because the incentives are aligned somewhere, just not with the client.

•   Advertisers outraged one day, back in the media plan the next.

We talk about “values,” but behave like there’s no alternative.

We warn about misinformation, but reward it with spend.

We say we want safety -- for brands, users, and society -- and then optimize toward volume anyway.

The Consequences Are Already Here

If you’ve ever wondered how the internet got this toxic, don't just blame the platforms.

The issue is what we’ve chosen to fund.

You can’t build a media ecosystem on attention at any cost, and then be shocked when the cost shows up.

You can’t prioritize performance over people and then panic when trust evaporates.

You Reap What You Sow

This isn’t about cancel culture. It’s about accountability.

It’s about the long-term consequences of building an industry on volume, velocity, and plausible deniability.

Ad tech has spent the last decade optimizing for conversion, automation, and scale, while neglecting the foundation of credibility, trust, and shared responsibility.

Time to Rethink What We’re Growing

We can’t fix everything, but we can stop pretending this is fine.

We can demand better from platforms and from ourselves.

We don’t need more acronyms. We need a compass.

We don’t need another workaround. We need a stance.

Because in this industry, as in life, you reap what you sow

 

Commentary

Charter/Cox Merger: The Start of Something Big? Maybe Just a Good Play

• by Wayne Friedman , Staff Writer, Yesterday

Looking at the Charter Communications-Cox Communications massive merger, one wonders --why didn't this happen earlier -- like ten years ago?

Cord-cutting of cable TV bundles began its slow rise about two decades ago. Now it is much more prevalent. But that is not the main issue -- especially for one of the dominant pay cable TV players.

Charter is currently is the biggest pay TV provider, with 12.7 million cable subscribers -- slightly above that of Comcast Corp (12.5 million).

Analysts have been musing over a possible combination of Charter and Comcast -- even some company executives. Still, although streaming platforms (and streaming distributors) have made major headway -- regulatory concerns would no doubt be heightened.

For over a decade, Charter and Comcast focused on the necessary business strength around other communication businesses -- broadband and especially mobile. The latter seems to be the business with the most upside -- where the likes of Charter and Comcast specifically put a lot of emphasis.

Other parts of the pay TV industry have been rumored to see a possible merger -- that of DirecTV and Dish Network -- in the early 2000s, when both were major players.

In 2002, the two satellite pay TV providers were turned down by U.S. regulators -- the Federal Communications Commission. These days, the two companies carry much less marketplace dominance, making it much a more likely scenario.

Mobile communications businesses are another story. That is why Chris Marangi, co-CIO of Value at Gabelli Funds, muses that perhaps T-Mobile -- a mobile/broadband-first company -- might be thinking about a bid: “Don’t expect an overbid but if T-Mobile ever had a desire for Charter, now would be the time to express that.”

With regard to the Charter-Cox deal Marangi says -- “Cable is a scale business -- added size should help Charter compete better with the larger telcos, tech companies and Starlink.”

In this regard, Charter has been making some headway with better bundling of cable TV and streaming platforms, to compete with the likes of Roku and Amazon Channels.

It was the first to leverage deals from legacy, TV-networks based media companies in their efforts to maintain revenue from traditional linear TV network carriage deals -- like its deal with Wall Disney for ESPN and ABC, which also gave it the ability to sell Disney+, Hulu, and ESPN+. Other legacy cable TV distributors have been doing similar agreements.

With the deal, Cox’s business will gain from Charter better’s cable TV/streaming business leverage for Cox’s 6.5 million overall customer base. But bigger gains appear to be with broadband and mobile in the long term.

"Speculation has swirled since Cox went private in 2004 whether it would participate in consolidation and with whom," Marangi says.

So.. who will be next

Commentary Nielsen, We Need a Gauge with a True Ad-Supported View

 Here's a little more research on TV media marketing that serves greater potential for consumer engagement and purchase experience according to Nielsen: Philip Jay LeNoble, Ph.D.

Commentary

Nielsen, We Need a Gauge With a True Ad-Supported View

• by Dave Morgan , Featured Contributor, 7 hours ago

First things first. Nielsen, thank you for creating a new view of The Gauge that breaks out the viewing of content that is ad-supported. Previously, the report didn’t differentiate the portions of U.S. TV viewing that were on ad-free streaming and whose audiences, therefore, weren’t available to advertisers.

It shows, for example, that “[i]n Q1 of 2025, 72.4% of TV viewing was on ad-supported platforms, compared to 27.6% for ad-free platforms. Traditional TV (cable and broadcast) are tied at about 29% to account for 58% of total ad-supported TV.”

The idea is to give advertisers an idea of where they can connect to their desired audiences.

While I laud the new release, I would like it to go further. Nielsen, how about making it a gauge of the number of ad exposures and multiple-time reach available across broadcast, cable and streaming channels?

Why is a true ad-exposure Gauge important? Because the vast majority of streaming services are “ad-light,” carrying far fewer ads and ad time than their linear brethren. Plus, streaming viewership tends to have a very strong skew toward heavy-streaming viewers. That's one of the reasons that we see the same ads over and over again when we’re watching popular streaming programming.

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Is it hard to make a true ad-exposure Gauge? Of course not. Nielsen has all of the data to do it, as do many ad platform companies that work across both linear and streaming. In fact, in October of last year, comScore released a report with media analyst Evan Shapiro called “Setting the Score” that did exactly that. It showed that while streaming might command more than 45% of all content viewing time in the U.S., it commanded well under 14% of ad-viewing time.

But Nielsen can take this even further for us, and make the Gauge really valuable. How about including a simple graph to show the curve of the declination of reach with the increase of frequency? This is the biggest problem today for CTV advertisers, and it would be great for Nielsen to demonstrate leadership in presenting something that would be enormously beneficial for advertisers, agencies and publishers alike.

What do you think, folks? Should Nielsen lead the way with a true ad-exposure Gauge for TV?