Media companies are entering 2025 with renewed optimism as advertising revenue shows signs of stabilizing. Sports and live events remain the backbone of this resurgence, drawing advertisers eager to capture engaged audiences.
Companies anticipate a strong start to the year, buoyed by the enduring appeal of both traditional TV and streaming platforms, reported CNBC. While advertisers increasingly allocate budgets to digital, executives emphasize that traditional TV remains crucial, particularly for live sports programming that attracts diverse demographics.
Mark Marshall, NBCUniversal’s chairman of global advertising, highlighted a promising first quarter ahead as advertisers return to the table after a cautious fourth quarter. The industry’s scatter market, where ad buys happen close to air dates, has also seen a resurgence, signaling renewed confidence among marketers.
Sports continue to dominate the advertising landscape, generating unparalleled engagement.
Commercials aired during live sports drive 24% more viewer interaction compared to other programming, according to advertising data firm EDO. Media companies, recognizing this value, have invested heavily in securing sports broadcasting rights, per CNBC.
NBCUniversal’s record-breaking $1.2 billion in ad revenue from the Paris Olympics and Fox Corporation’s sold-out Super Bowl ad slots, each costing $7 million, underscore the unrelenting demand for live sports coverage.
Streaming platforms are joining the race, aggressively acquiring sports rights to stay competitive. Netflix’s recent deal to stream the FIFA Women’s World Cup exemplifies this trend, as digital media companies aim to bolster their sports portfolios. As streaming gains ground, its ability to complement traditional TV could define advertising strategies in the coming years.
Women’s sports have also emerged as a growing opportunity for advertisers.
The WNBA’s record-breaking 2024 season highlighted the increasing popularity of women’s athletics, with ad engagement during these broadcasts up 16% from the previous year. Despite this progress, women’s sports accounted for only 3% of sports TV ad spending in 2024, leaving room for significant growth, per CNBC. The recent spike in interest from major advertisers, coupled with investments in women’s sports broadcasting, could mark a turning point in 2025.
Traditional linear TV, while experiencing declines in some markets, remains a critical platform for advertisers. Its reach continues to outpace streaming, especially for live events. This dual reliance on linear and streaming platforms allows advertisers to maximize demographic reach and engagement, ensuring balanced investment strategies.
As the global advertising industry is poised to surpass $1 trillion in revenue for the first time, sports and live events stand out as pivotal elements in this growth. Media companies that strategically leverage their sports rights and enhance live programming experiences are likely to see the most significant benefits, reported CNBC. While challenges remain, particularly in balancing budgets across platforms, the path forward is clear: sports are the linchpin of a thriving advertising landscape in 2025.