Top 5 Media Landscape Insights- April

Stay on top of today’s constantly changing media environment with DirectAvenue’s Top 5 Insights. We give you specific network updates and emerging media trends in a digestible format.

April 1, 2024

1. OTT, Streaming Subscription Revenues To Top Legacy Pay TV In 2025– Next year, it is anticipated that revenue from Over-The-Top (OTT) and streaming subscriptions will surpass traditional pay TV subscription revenues for the first time, rising by 9% in 2025 to reach $71.92 billion, according to eMarketer. Traditional pay TV subscriptions, including cable, satellite, and telecommunications services, are expected to reach $62.51 billion in revenue by 2025, holding a share of 46.5%. Consequently, OTT revenues are projected to constitute more than half (53.5%) of the total U.S. video subscription revenues in 2025.
2. Local Ad Spending Forecast To Grow 9% To $172B In 2024– Increased political advertising expenditure and accelerated growth from local Connected TV (CTV) and digital platforms are expected to propel U.S. local advertising up by 9.3% to an anticipated $172 billion in 2024 compared to the previous year, as indicated by BIA Advisory Services. Digital media, including Over-The-Top (OTT)/CTV, digital television and radio, PC/laptop, mobile devices (smartphones, tablets), and digital print media (newspapers, magazines, directories), is anticipated to amount to $84 billion, capturing a 48.7% share.
3. Streaming Viewers Now Up To 80%, Of U.S. Adults to 214M– According to a survey conducted by AdTaxi in 2023, approximately 214 million adults in the United States consumed video content through streaming platforms within an average 30-day period. Notably, streaming viewership is even more prevalent across various age groups, with over 90% of viewers aged 12-17, 18-24, 25-34, and 35-44 engaging in streaming. Among viewers aged 45-54, the percentage is at 88%, while for those aged 55-64, it stands at 75%, and for those aged 65 and above, it reaches 53%. Looking ahead to 2024, the survey predicts that 73% of adults will opt for streaming as their primary source of TV.
4. Global Ad, Marketing Spend To Rise 7.7% In 2024-With concerns about recession and inflation largely in the past, the global expenditure on advertising and marketing is projected to increase by 7.7% to $1.76 trillion in 2024. Comparatively, in 2023, there was a 4.4% surge in global spending on advertising and marketing compared to 2022. Breaking it down further, in 2023, global spending on advertising saw a 2.6% growth to $732.9 billion, while marketing spending rose by 5.1% to $897.7 billion.
5. CTV Ad Frequency Soars 80% In 2 Years- The prevalence of advertising content on connected TV has been on the rise, showing an 80% increase per household over the span of a brand campaign, as reported by Innovid in its analysis of advertising trends. In 2023, the average frequency of these messages reached 7.42, up from 4.08 two years prior. Campaigns garnering over 200 million impressions demonstrated an even higher ad frequency, averaging at 12.14 messages.