Q1 2026 Marketplace Snapshot: Stability, Scale & Strategic Shifts

ICYMI — our Q1 2026 Marketplace Conditions Report is here!

The first quarter of the year is often defined by reset and recalibration. With political spend cooling, holiday congestion clearing, and major live sports moments ahead, Q1 presents a unique balance of opportunity and pressure across the video landscape.

Lockard & Wechsler Direct’s Q1 2026 Marketplace Conditions Report highlights how brands can capitalize on early-year efficiencies while preparing for rising premium demand driven by sports, streaming consolidation, and AI-driven shifts in consumer behavior.

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Streaming Hits Record Highs — But Linear Still Wins Live

December delivered historic TV usage, with streaming reaching an all-time high 47.5% share of total TV viewing. Holiday programming and major sports fueled the surge, and Christmas Day became the most-streamed day ever.

But live sports continue reinforcing linear TV’s power. NFL programming delivered massive audiences, and sports-driven growth across targeted networks shows that broadcast and cable remain essential for scale — especially around tentpole events.

Takeaway: This isn’t a streaming vs. linear debate. Smart advertisers are blending both into their media mix with linear for reach and streaming for incremental, younger audiences.

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The Winter Olympics: A Defining Q1 Moment

NBCUniversal has already sold the 2026 Milan Cortina Winter Olympics as the highest-grossing Winter Games ever. With 100+ brands participating and nearly 85% investing in digital extensions, Olympic inventory is tight and demand is strong.

Still, last-minute packaging shifts and opportunistic scatter deals may open doors for agile brands.

Takeaway: Premium sports inventory drives CPM pressure, but flexibility creates opportunity. Monitor closely and move fast.

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Q1 Inventory Opens for Performance Buyers

With open enrollment and heavy Q4 political cycles behind us, Q1 inventory is notably more accessible. January typically brings pricing efficiencies, helping reset CPM baselines ahead of tighter February and March demand.

Advertisers are leaning into shorter commitments, opportunistic scatter buying, and prioritizing news and live sports for measurable impact.

Takeaway: Q1 is a prime window for performance-focused advertisers ready to act decisively.

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Streaming Consolidation Could Reshape Planning

A potential Netflix–WBD merger would create unmatched scale and premium IP within a growing ad-supported ecosystem. While consolidation simplifies buying across fewer premium players, it may also increase CPM pressure.

Takeaway: Test premium streaming early, but balance investments with linear to protect reach and negotiating leverage.

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AI Is Rewriting Search & Digital Advertising

AI is rapidly reshaping how consumers discover brands. Reduced reliance on traditional search engines, increased use of conversational interfaces, and shorter, more personalized journeys are weakening click-based search models.

Discovery is shifting toward conversational, visual, and AI-driven environments.

Takeaway: Optimize for generative search, invest in AI-friendly content, and evolve measurement beyond clicks.

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Looking Ahead

Q1 2026 is defined by stability and scaled opportunity. Political pressure is muted. Inventory is more flexible. Live sports remain premium drivers. Streaming continues expanding its share. AI is reshaping discovery.

Success this quarter comes from balance — pairing early-year efficiency with smart positioning around high-demand sports and premium content.

If you missed it, download the full Q1 2026 Marketplace Conditions Report below.

And stay tuned — our Q2 Marketplace Conditions Report is coming soon!