Top 5 Media Landscape Insights- January

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.

January 1, 2025

1. Content Spending: Sports Rising- Sports TV content expenses for TV “packagers” are projected to total around $35 billion this year, accounting for roughly 40% of all programming costs, according to Madison and Wall. This includes spending by TV networks, standalone premium streamers, and local TV stations on a variety of sports, including the NFL, NCAA, NBA, MLB, MLS, Olympics, Golf, NASCAR, NHL, UFC, WWE, Grand Slam tennis, the WNBA, and regional sports networks. 
2. What Advertisers and Retailers Need to Know about Retail Media Heading into 2025- In 2024, U.S. omnichannel retail media ad spending grew by 20.4%, reaching $52.3 billion, making it the fastest-growing ad channel. In-store retail media is projected to grow 45.5% next year, surpassing $1 billion by 2028. Retail media ad spend on connected TV (CTV) is expected to rise by 45.5% in 2025, with retail media potentially capturing 20% of CTV ad dollars by 2027. Amazon and Walmart are positioned to capitalize on this growth. Walmart’s $2.3 billion acquisition of Vizio will offer brands new consumer engagement opportunities, while Amazon benefits from its Prime Video ad-supported tier and investments in live sports.
3. First Netflix Games Set NFL Record, Become Most-Streamed Ever- Netflix achieved impressive NFL broadcast-level viewership for its exclusive Christmas Day games, drawing an average of 24.2 million U.S. viewers across two games, according to Nielsen. The streaming platform also successfully avoided any significant buffering or latency problems, which had been a concern in the industry. Furthermore, Netflix surpassed the viewership of games streamed on NBCUniversal’s Peacock platform.
4. Walmart’s Investments in Value, GenAI, and Advertising Paid Off in 2024- In 2024, Walmart led the U.S. retail market by focusing on savings and convenience, while expanding its e-commerce and advertising efforts to challenge Amazon. Key moves included a $2.3 billion acquisition of Vizio to enter the CTV advertising market, and partnerships with Disney Advertising and NBCUniversal to target ads on Disney+ and Hulu, as well as run shoppable ads during live sports.
5. Keeping the Holiday Momentum Alive with CTV- Retail sales are expected to reach a record $973 billion, a 4.8% increase from last year. So what are a few CTV best practices to implement for the New Year? 
   • Prioritize value-driven content in Q1, leveraging seasonal trends.
   • Launch an omnichannel New Year campaign.
   • Use interactive ads to boost engagement and conversions, especially during slower sales periods.
   • Use TV to maintain momentum and overcome the January sales slump.