Who Will Win? What 2025 Holds for Advertising Revenue
By Movieguide® Contributor
A new report mapping out advertising’s role in the entertainment industry revealed that ad dollars will flow freer than ever in 2025, but not every sector will benefit from the growth.
Media giant GroupM predicted that 2024 will be a major milestone for advertising as the total spent during the year will top $1 trillion for the first time. They expect the record numbers to only continue through 2025, with a prediction of a total of $1.1 trillion spent by advertisers next year.
While these numbers are astronomical, the growth will be selective within the industry, rather than being a windfall boost that reaches all sectors. GroupM highlighted streaming as the most lucrative area for advertisers, estimating the industry will see a 19.3% growth in ad spending next year. Meanwhile, linear TV reigns as the biggest loser, predicted to see a 3.4% decline in ad spending in 2025.
READ MORE: ROKU FACES UNCERTAIN FUTURE DUE TO ADVERTISING SLOWDOWN
Not all legacy media, however, is in decline. In a bright spot for traditional Hollywood, cinema advertising was predicted to have grown 5.2% this year, emphasizing the medium’s return to popularity.
The introduction of ad-supported tiers across all major streaming services makes this major shift in advertiser money possible. The lower subscription cost of these memberships has been widely popular, with Netflix recently announcing it topped 70 million such subscribers after launching its ad tier only two years ago.
Even with that staggering number, Netflix remains a relatively small player in the advertising space which is dominated by a few key players. GroupM noted that just five companies — Google, Meta, TikTok parent company ByteDance, Amazon and Alibaba — will account for more than half of all total global ad revenue next year.
READ MORE: META WINS IN DIGITAL AD SPACE AS OTHER COMPANIES FALTER
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