Addressable Advertising and AI: What’s Next for Media in 2025?

Letamp8217s first reflect on how some of my own 2024 predictions turned outA Continued Shift Toward Streaming ampamp CTV Check That said I was perhaps too cautious in forecasting the impact on local and regional adspend which I projected would shift only gradually even cautiously for now Turns out the ad migration has been significant BIA forecasts 2024 local CTV ad dollars excluding political will have increased by 12 from 2023 That shift though was relatively cautious compared to the national shift Overall eMarketer has projected CTV advertising in 2024 will have grown some 20 vs 2023 reaching fully 25 of the amount spent on linear TV advertisingSmart TV Platforms Expanding Use of ACR Data Check It probably wasnamp8217t too outofthebox to predict growth here the only speed bump would be privacydirected regulatory intervention or industry selfpolicing Automatic Content Recognition ACR technology which essentially takes occasional screenshots of what a user is watching on their smart TV to better enable targeting is expected to grow at a healthy CAGR of 146 from 2024 to 2030 per Grand View Research projectionsMore Sports Migration to Streaming Check For all the stuttering and pixelation of Netflixamp8217s stream of the Mike TysonJake Paul fight if you want to call it that expect Netflix to continue to acquire rights to major live sports and sportsadjacent events and Amazon shows no signs of slowing its inexorable march toward becoming a top NFL viewing destinationMore Fragmentation of Video Viewership Check A year ago we predicted continued growth and diversity in niche programming A lot of this has been driven by growth in local CTV providing options for smaller advertisers And of course free ad supported streaming TV FAST channels continue to proliferate now numbering about 2000 nationwide and growingStreamingHybrid Model Adoption Check The 2023 CharterDisney carriage deal via which CharterSpectrum customers are now being offered Xumo boxes enabling access to both digitalfirst and linear content was rightly hailed as groundbreaking and while Charter executives so far are circumspect about the impact on subscriber churn the company is indeed doing more such deals such as its recently announced agreement With Warner Bros Discovery giving subscribers WBDamp8217s Max streaming serviceFAST Consolidation Check Of course we noted that the ranks of FAST channels have reached some 2000 services so it stands to reason that there will eventually be a shakeout And while a major rationalization has yet to hit harbingers are appearing amp8211 at least in terms of streaming services overall AVOD and SVOD Disney Fox and WBD recently announced they would end their potentially pricey Venu sportsstreaming service but previously Horowitz Research reported that 42 of sports fans said they would subscribe to the muchpublicized potentially contentrich platform and among those who were likely to sign up 38 said they would likely make a change to their other streaming services to make room The Venu partnersamp8217 decision followed Disneyamp8217s announcement it would merge its Hulu Live with Fubo signaling yet more consolidation in sports streaming As is typically the case rising programming costs in the relentless arms race for eyeballs is the catalyst The consolidation is coming and the giants and firstmovers as in most such situations are most likely to prevailGet used to AI and Programmatic Tools and Programmatic as Standard Advertising Model Check I guess I donamp8217t need to elaborate on these two admittedly lowhangingfruit predictions And shocker Iamp8217ll predict a continuation of these trends in 2025 and beyond with as always the primary wild cards being some form of government regulation or industry selfregulationSo what about 2025Well borrowing a bit from what industry colleagues are saying coupled with my own observations Iamp8217ll forecast the following trends1 A amp8220Traditional Transitionamp8221 Anticipate traditional media to continue to transition to addressable platforms As marketers seek more reporting and accountability media groups will seek solutions to transition viewers and subscribers to more dynamic platforms offering addressability At the same time it will be imperative for media organizations to protect core revenue streams through additional technology solutions that enable agencies and clients to blend traditional and amp8220digitalamp8221amp8221addressableamp8221 campaigns2 More AI ampamp Automation Picking up from my 2024 prediction Artificial Intelligence many agree will play an increasing and eventually pervasive role in content creation distribution and personalization AIgenerated video content and even news reporting could become commonplace Behindthescenes automation tools will further optimize content workflows streamlining tasks like editing tagging and generating ad copy3 New Streaming ampamp Subscription Models Acknowledging it didnamp8217t happen as noticeably in 2024 I still believe itamp8217s a safe bet that as the streaming landscape continues to grow it will experience more consolidation Major platforms may bundle services and weamp8217re likely to see a rise in amp8220superappsamp8221 multifunctional platforms combining streaming social media and ecommerce that could reshape user behavior amp8220Subscription fatigueamp8221 may spur more innovative pricing models including payperuse or adsupported versions of premium platforms amp8211 as weamp8217ve already started to see from Netflix4 More Data ampamp Analytics The collection and use of data will be more sophisticated Brands will rely ever more heavily on data to target specific demographics Expect deeper insights into consumer behavior allowing for hypertargeted marketing Privacy regulations will likely evolve to reflect this possibly causing brands to plan carefully for how they gather and utilize personal data The shift toward privacyfirst approaches may become a standard in media industries but as always they will adapt5 Social Media Platforms Will Get More amp8220Personalamp8221 Social media will continue to shift toward more private closedcircle interactions eg private groups secure messaging as users seek more control over their data and privacy Capitalizing on this creators may increasingly diversify their revenue streams beyond advertising integrating ecommerce NFTs and moreOverall weamp8217ll continue to see more sophisticated consumer targeting and a heightened focus on personalization and interactivityOf course to quote legendary Hollywood screenwriter William Goldman amp8220Nobody knows anythingamp8221 So weamp8217ll all just have to see what unfoldsPosted at MediaVillage through the Thought Leadership selfpublishing platformClick the social buttons to share this story with colleagues and friendsThe opinions expressed here are the author39s views and do not necessarily represent the views of MediaVillageorgMyersBizNet

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Addressable Advertising and AI: What’s Next for Media in 2025?

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David Solomon

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