- Ad spending continued its shift away from linear TV to streaming during this yr’s upfront ad-buying season, but, thanks partly to the expansion of free ad-supported streaming services (FASTs), buyers managed to enhance costs, per a brand new report from Media Dynamics.
- Linear TV’s total prime-time ad sales amounted to $17.8 billion, down 3.2% from last yr’s $18.4 billion, in keeping with MDI’s estimates. Streaming, meanwhile, took in $13.2 billion through the latest upfronts, up nearly 18% over last yr.
- Ad buyers’ cost per thousand impressions (CPM) declined broadly, largely because of more streaming inventory. On broadcast and cable, the CPM for prime-time 30-second messages and adult viewers was $43.50 and $19.35, respectively (down 4.1% and 6.8%, respectively). For streaming, the typical CPM was $27.25, down 7.6% from last yr.
Prime-time TV is not any longer the powerhouse it once was. MDI’s report shows how much viewers have taken control of the experience and lured the ad dollars away with them. Since the 2023-24 upfronts, linear TV prime-time ad sales have dropped by $1.2 billion, while streaming ad sales have increased by $5 billion, per MDI’s estimates.
Linear TV’s $17.8 billion in prime-time upfront sales for this yr break down as $9.1 billion for broadcast (down 2.5% from last yr) and $8.7 billion for cable (down 4.3%), per MDI. Those declines were mitigated as several networks offered sports packages which might be prorated to account for portions that happen in prime-time, in keeping with MDI. In addition, some networks benefited from having several sports events. NBC, as an illustration, will broadcast the Winter Olympics, the Super Bowl and recently closed a brand new NBA broadcast deal that can put games on prime-time two nights per week. Fox also had a big amount of live sports inventory on the table, including the 2026 World Cup.
Though streaming platforms have more viewing flexibility and are due to this fact not as dependent on locking within the ad dollars early, they’re still making cases for upfront deals. Netflix, as an illustration, recently announced it doubled its overall commitments during this yr’s upfront season with year-over-year growth in categories including retail, CPG, telecom and tech. The company’s upcoming slate of original programming, together with its live sports, including WWE Raw and two NFL games on Christmas Day were particular draws for advertiser interest, said Amy Reinhard, the corporate’s president of promoting, in a blog post.
Still, streaming services are starting to feel some pressure. The growing popularity of FASTs, coupled with increased supply from ad-supported tiers from the premium providers, has turn into a bonus for buyers, who’ve continued to scale back their CPMs. Though, as MDI noted, this yr’s 7.6% decline was nowhere near as significant because the 17.6% drop that occurred between 2023 and 2024.
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