LWD’s Guide to Navigating the 2025 Ad Landscape
Total Video Trends and Insights to Drive Ad Strategies
2025 is here! Understanding the evolving dynamics of the video advertising landscape is critical for staying ahead of the curve. Lockard & Wechsler Direct’s Q1 Marketplace Conditions Report highlights key trends, category insights, and strategic implications for brands strategizing ad campaigns in the New Year. Here’s a preview of the top themes and insights we see shaping the first quarter and beyond!
Key Marketplace Themes
- Pricing Efficiencies Following a Competitive Q4
The heightened competition of Q4 2024, fueled by political campaigns, open enrollment, and holiday spending, has paved the way for softer inventory and pricing efficiencies in early Q1.* Brands can capitalize on this window before demand rises in February and March. - Streaming Supply Surges
The growth in streaming impressions is driving unprecedented pricing efficiencies. Lower CPMs make streaming an even more enticing option for brands looking to expand their reach while optimizing budgets. - Live Sports Dominate Ad Spend
Live sports continue to command attention and budgets across total video platforms. The NFL, in particular, captured a significant 30% share of linear ad dollars in Q4 and is poised to maintain its momentum into the playoffs and Super Bowl.
Marketplace Highlights: Opportunities & Challenges
- Inventory Trends
Morning, daytime, and late-night TV will offer the most inventory availability, while early fringe and primetime news will be tighter. Award season is also kicking off, adding cross-platform opportunities with music and entertainment events. - Streaming’s Role Expands
The flood of streaming inventory—fueled by ad-supported tiers from Prime Video, Disney+, and others—has brought down CPMs significantly. However, free streaming platforms like FAST channels remain stable in their pricing.†
Viewership Trends to Watch
- Streaming Hits Record Heights
Streaming now accounts for over 41% of TV usage, driven by platforms like YouTube, Prime Video, and The Roku Channel. The consistent rise in engagement is reshaping the video landscape.* - Linear TV Still Leads in Ad Time
Linear TV dominates ad inventory with higher ad loads and generates six times the ad impressions of CTV.† It remains a critical channel for brands seeking mass reach. - Live Sports: A Steady Anchor
Nearly half of the U.S. population watches live sports, a trend expected to hold through 2028.‡
Strategic Takeaways for Q1 2025
- Capitalize on Seasonal Efficiencies
With softer inventory early this quarter, brands should front-load campaigns to maximize impact before demand—and pricing—ramps up in February and March. - Leverage Streaming Growth and Pricing Advantages
YouTube had a record-breaking 2024, reaching 243.8 million viewers (71.3% of the population) who spent an average of 36 minutes per day on the platform.~ As forecasts project these metrics will continue to grow, YouTube and other streaming platforms offer opportunities to diversify media spend, secure lower CPMs, and target younger & highly engaged audiences. - Invest in Live Sports
Live events remain a prime driver of reach and ROI. Live sports advertising across total video can support brand goals to reach more engaged audiences. - Plan for Platform-Specific Dynamics
Ad loads and pricing vary widely between linear TV and streaming platforms. Understanding these nuances will help optimize campaign strategies and maximize budget efficiencies.
Looking Ahead
The evolving video advertising landscape continues to present both challenges and opportunities. Q1 offers a unique moment for brands to recalibrate their strategies and leverage insights from LWD to stay competitive. Whether you’re optimizing for streaming, further leveraging linear’s power in reach, or riding the wave of live sports viewership, the key is agility and informed decision-making.
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Sources:
* The Nielsen Company, The Gauge November 2024
† eMarketer Forecast, Nov 2024
‡ eMarketer, US Sports Streaming 2024
~ eMarketer, Digital Video Forecast and Trends Q4 2024
Better planning & measurement start here. Let’s get to work!