Key Insights from LWD’s Q2 2025 Marketplace Conditions Report

As we enter Q2 2025, the media landscape continues to evolve, shaped by shifting viewership habits, growing digital investment, and the enduring influence of live sports. Lockard & Wechsler Direct’s Q2 2025 Marketplace Conditions Report breaks down the latest trends, inventory shifts, and category insights that will impact advertisers in the months ahead.

Latest Viewership Trends: Streaming Gains Momentum

TV viewership saw notable shifts in February 2025, with overall television usage declining compared to January. However, streaming maintained its upward trajectory, gaining 0.9 share points and reaching a record 43.5% of total TV usage (+15.4% YoY).

• YouTube continues to dominate streaming, increasing to 11.6% of TV usage.

• Tubi reached its highest share since July 2024 at 2%, bolstered by FOX’s Super Bowl streaming.

• Peacock inched up to 1.5%, reflecting its growing investment in content.

• Cable TV dropped 5% month-over-month, but news programming rose 8%, accounting for 27% of all cable viewership.

• Linear TV remains resilient for live sports, drawing 48% of the U.S. population for major events.

Total Video Themes: The Evolving Landscape

• Active Scatter Marketplace – Advertisers are increasingly turning to scatter buys to maintain flexibility, tightening inventory and driving competition.

• Digital & FAST Growth – Digital media continues to develop, with free ad-supported TV (FAST) services growing at the fastest rate among digital platforms.

• Ad-Supported Streaming Rises – 43% of total SVOD subscribers now opt for ad-supported tiers, with 56% of new subscribers choosing lower-cost, ad-driven plans.

• Live Sports Driving Demand – Both linear and streaming platforms benefit from MLB, NBA, NHL, Golf, and Horse Racing events, which are expected to fuel strong Q2 viewership.

Inventory Trends

• Increased Scatter Investment – Advertisers are allocating more budgets to scatter, surpassing both Q1 and Q2 2024 levels.

• Lower CPMs in Streaming – Prime Video’s ad tier launch is driving down costs, making digital video more attractive.

• Competitive Q2 Market – High demand for inventory in April and May, with some softness expected in late June.

• Key Buying Windows – Holiday weekends like Mother’s Day, Father’s Day, and Memorial Day may offer discounted scatter rates.

• Live Sports & News Inventory – Live sports and news remain in high demand, with strong primetime and weekend viewership, increased availability of national news inventory post-political spending, and growing streaming sports options for cross-platform advertising.

The Future of Total Video: Integrating Media Channels for Full-Funnel Impact

With the industry’s growing opportunities and challenges, it’s more important than ever to embrace a total video media strategy that leverages both digital and traditional TV for maximum reach and impact. These are a few of the trends we’re seeing:

• While streaming viewership jumped 56% YoY, linear TV grew 8%, powered by live sports and the presidential election.

• Drama holds 64% of top streaming shows, but comedy viewership grew 120% YoY, making it a rising genre to watch.

• Users now spend 19+ minutes per day on free ad-supported TV (FAST), marking a 10% increase from 2024.

• Time spent on Connected TV (CTV) will match traditional linear TV by 2026, further underscoring the importance of an omnichannel approach.

• Mobile remains dominant in media consumption, but CTV is growing at a faster pace, making it a key channel for advertisers.

• Linear TV and radio remain crucial for reaching mass audiences and building brand awareness, but can make more of an impact on overall performance when integrated with digital strategies for targeted engagement.

Looking Ahead

With scatter demand increasing, streaming ad models rising, and content preferences shifting, Q2 2025 presents a variety of challenges and opportunities for advertisers. The key to success will be leveraging cross-channel strategies, optimizing for live event-driven inventory, and staying agile in a competitive marketplace.

As the media landscape continues to evolve, LWD remains committed to helping brands navigate these changes and maximize their video investment. Sign up below to receive the full report!