Key Trends In Ad-Supported Streaming In 2025
Operative’s Dave Dembowski: Media companies face a key decision this year to focus top CTV inventory on direct premium sales or leverage technology for more automated buying and delivery.
The first half of 2025 has been a roller coaster for advertisers and media companies alike. U.S. political instability in particular created uncertainty that tempered the Upfront and NewFront ad sales season. Of course, every action has a reaction, and the CTV advertising industry is no different. As traditional direct ad sales decline, new opportunities emerge in the second half of the year that could alter the way buyers and sellers do business for years to come.
Media companies have a decision to make: focus their top inventory on direct premium sales to make up for a down year of Upfronts or leverage technology to capture growing demand for more automated CTV media buying and delivery. Many factors are in play, which will determine how each media company moves forward in 2025 and beyond.
First-Half Of 2025: CTV Growth Amid Market Uncertainty
Key trends in streaming and advertising are intertwining. In 2025, ad-supported streaming has transitioned from an alternative to the standard. Two-thirds of adults prefer ad-supported streaming over other streaming business models. This shift is driven by rising subscription costs and fatigue over managing multiple paid services. Platforms like Netflix, Disney+ and Amazon Prime Video have introduced or expanded their ad-supported tiers, offering consumers more affordable options while providing advertisers with broader reach.
CTV continues to outpace traditional linear TV in both viewership and advertising growth. By 2025, CTV ad spending in the U.S. is projected to exceed $25 billion, with 72% of households having cut the cord. Advertisers are increasingly attracted to CTV’s high engagement rates and advanced targeting capabilities, making it a central component of modern media strategies.
While ad-supported streaming is a bright spot of growth for the market, tariffs and economic uncertainty could reduce the growth significantly in the second half of the year. Streaming services are competing for finite ad dollars in an already hotly contested field, and a looming recession may place additional pressure on advertising budgets. This environment necessitates strategic planning and adaptability from media companies to navigate potential market fluctuations.