Advertising Digest: December 2024

2024 – What. A. Year.

(04.01.2025) As I sit in my London flat, back from a Caribbean Christmas break, I reflect on all that’s been happening in the advertising industry over the last year.

First of all, we hit $1 trillion (yes, with a “t”!) of global ad revenue for the first time!

We’ve also seen an explosive growth of retail/commerce media network, saw streaming platforms reshape video advertising, M&As happening left and right, and AI changing the way we do things (for the better and worse).

Let’s have a look at all that’s been happening in December 2024 before we look ahead to predictions for 2025.

Retail Media Networks: A Growth Engine for the Industry

Retail media continues to dominate the conversation, with businesses across sectors leveraging first-party data to create targeted advertising opportunities and diversify revenue streams.

1️⃣ Kroger-Albertsons Merger Blocked | RMN

The proposed Kroger-Albertsons merger was blocked on antitrust grounds, leaving both grocery giants scrambling to compete with Walmart Connect’s dominance in the retail media space.

The merger would have unified their retail media networks, enabling better integration of shopper data and enhanced in-store ad targeting capabilities. Its failure underscores the challenges of scaling retail media under regulatory scrutiny.

2️⃣ Skyscanner Ads Platform Launch | RMN

Skyscanner launched its Ads Platform, using 1p travel data to power contextual ad campaigns. Advertisers can now target consumers based on behavioural insights and real-time trends.

The platform includes predictive recommendations, enabling brands to adjust campaign spend dynamically to maximise ROI.

3️⃣ Hy-Vee Scales In-Store Media | DOOH

Hy-Vee is installing over 10,000 in-store digital screens in partnership with Grocery TV, giving advertisers access to real-time messaging across 400 locations. This move highlights a rising trend where retailers are transforming their physical spaces into revenue-generating platforms by offering hyper-local advertising solutions.

Streaming and Connected TV: What’s Next for Video Ads

Next to retail media, “streaming” was on everyone’s lips (and in their media plans) this year.

The streaming market shows no signs of slowing down, so let me elaborate on it a bit more.

📈 Ad-Supported Streaming Booms

Streaming platforms have doubled down on ad-supported models, transforming how advertisers and audiences interact. According to eMarketer, global CTV ad spend is set to grow from $25 billion in 2024 to $28.2 billion in 2025, representing a 12.9% increase.

 Meanwhile, linear TV ad revenues are expected to decline by 3.4% to $163.7 billion in 2025.

In the U.S. alone, ad-supported streaming services like Netflix, Disney+, and Max are projected to collectively generate $13 billion in ad revenue in 2025, up from $11.5 billion in 2024. These platforms have embraced tiered subscription models, allowing viewers to choose between ad-free or ad-supported experiences. Netflix, for instance, launched its ad-supported tier in 2023, and it now contributes over 15% of its total subscriber base revenue.

📈 Roku Bridges Social and CTV Ads

Roku is revolutionising CTV advertising by offering advertisers free tools to convert branded social media content into CTV-ready ads. This initiative, which will be available through Q1 2025, targets smaller and mid-sized advertisers—segments expected to play a significant role in the projected addition of 20,000 new CTV advertisers by the end of next year. Roku’s self-service platform makes it easier for brands to adopt CTV advertising, opening doors to the 60 million HHs using Roku devices in the U.S. alone.

📈 Profitability and Live Sports in Streaming

In a significant milestone, streaming services such as Disney+, Paramount+, and Max have achieved profitability in their direct-to-consumer divisions. Analysts attribute this success to increased revenue from ad-supported tiers and live sports programming. Platforms like Max and Disney+ have invested heavily in live sports franchises, with some streaming-exclusive events rivalling linear TV in viewership.

Global streaming ad revenues will reach $191 billion in 2025, accounting for 44% of total digital video ad spend. Live sports, in particular, are driving higher CPMs for platforms, with the average CPM for live sports ads surpassing $65—a 30% premium over other CTV content.

Emerging Trends in CTV for 2025

As streaming continues to grow, four key trends are set to shape the future of CTV advertising:

1. Audience Growth: Streaming will represent 43% of total TV time by the end of 2025, up from 42% in 2024, as viewership continues to outpace ad spend.
2. CTV Targeting Innovation: Enhanced targeting capabilities will drive higher ad spend, with platforms leveraging advanced data insights to deliver personalised and effective campaigns.
3. Creative Experimentation: With better targeting comes the opportunity for bolder creative in CTV ads, including interactive formats and AI-powered personalisation.
4. Competition Among Platforms: Smaller streaming players, like Tubi and Pluto TV, are expected to compete aggressively with incumbents by offering lower ad loads and competitive pricing.

Streaming Advertising: By the Numbers

1️⃣ Global CTV ad spend: $28.2 billion in 2025 (up 12.9% YoY).

2️⃣ U.S. ad-supported streaming revenue: $13 billion in 2025 (up from $11.5 billion in 2024).

3️⃣ Live sports CPMs: $65+ (30% higher than other CTV content).

4️⃣ Linear TV ad revenue: Declining 3.4% to $163.7 billion in 2025.

 Further reading recommendations:

➡️ Key CTV Trends Driving Advertising Innovation In 2025 | AdExchanger

➡️ 7 CTV Trends To Watch in 2025 | WebFX

➡️ Higher, Further, FAST-er: CTV Will Keep On Growing In 2025 | AdExchanger

Artificial Intelligence (AI): Transforming Advertising

AI continues to reshape the advertising landscape with tools that

(1) enhance targeting,

(2) audience segmentation, and

(3) campaign efficiency.

However, transparency and privacy remain critical challenges.

Amagi Acquires Argoid AI

Amagi’s acquisition of Argoid AI will bolster its OTT content planning and monetisation tools. By integrating Argoid’s recommendation algorithms, Amagi aims to deliver hyper-personalised experiences, driving engagement and optimising ad placements.

This is a key example of how AI-powered platforms are revolutionising content delivery.

Generative AI in Audience Segmentation

Fullthrottle.ai launched a generative AI-powered “Audience Library” that uses large language models to categorise 1p data based on demographics and purchase intent.

This innovation allows advertisers to predict consumer behaviour more effectively, paving the way for highly personalised campaigns.

Privacy and AI in the Spotlight

As more advertisers use AI tools, balancing innovation with privacy is becoming crucial. Technologies like differential privacy and federated learning help brands analyse data without compromising personal information. At the same time, stricter data privacy laws mean companies must use AI responsibly and comply with regulations.

This balance is expected to drive new privacy-focused AI applications in 2025.

Mergers, Acquisitions, and Industry Consolidation

The advertising industry is undergoing a wave of consolidation, as companies seek scale and synergies to compete in a fragmented marketplace.

Omnicom-IPG Merger

The Omnicom-IPG merger will create the world’s largest agency holding company with combined revenues of $25.6 billion. This deal will reshape the competitive landscape, forcing WPP and Publicis to reassess their strategies to maintain market share.

Amagi and Argoid AI Deal

Amagi’s acquisition of Argoid AI not only boosts its AI capabilities but also exemplifies the increasing focus on M&A to drive innovation. With this deal, Amagi is strengthening its position in the OTT content programming space, using AI and advanced monetisation to enhance its offerings and compete more effectively.

Experian Buys Audigent

Experian’s acquisition of Audigent highlights the growing importance of identity data in advertising. By integrating Audigent’s data management capabilities, Experian aims to streamline targeting and measurement, offering clients a more cohesive ad tech solution.

 Looking Ahead to 2025

As 2025 kicks off, the advertising world will face big changes, shaped by new tech, stricter regulations, and evolving consumer behaviour.

Here are key insights to watch:

1️⃣ Retail Media’s Rise: Retail media networks are expected to generate $52 billion in ad spend globally by 2025, with e-commerce giants like Walmart and Amazon leading the charge.

 2️⃣ CTV Ad Spend Growth: Streaming platforms will continue to gain ground, with eMarketer predicting nine services to surpass $1 billion in ad revenue by 2026, up from just two in 2020.

3️⃣ AI-Powered Ad Buying: Tools like Google’s Performance Max and Meta’s Advantage+ will see wider adoption, but advertisers will push for greater transparency and control over their campaigns.

4️⃣ Consolidation Continues: M&A activity will intensify, with agency holding companies, ad tech firms, and OTT platforms leading the charge to consolidate capabilities and streamline operations.

👉 What trends are you watching as we move into 2025?