The Future of TV Advertising: Trends and Predictions for 2025
Olena Svietlova
2024-12-05 • 9 min to read
TV advertising is changing fast. With streaming dominating, use of AI in creative production, the game is wide open for advertisers of all sizes. Whether you’re a small business or a big brand, the opportunities are huge — if you know where to look. So, what’s happening, and how can you make the most of it? Let’s dive in!
1. Streaming Dominance and Ad-Supported Growth
Let’s face it: streaming is king now. Platforms like Netflix, Disney+, and Amazon Prime have become staples in most households. What’s even better for advertisers? Many of these platforms now have ad-supported options, meaning more opportunities to connect with viewers.
Parks Associates’ latest research shows that consumer habits continue to shift around video viewing - now 71% of US internet households use an SVOD (Subscription Video on Demand) service, 42% use an AVOD (Ad-Supported Video on Demand) and/or FAST service, and 18% use a TVOD service.
According to Nielsen, streaming TV now captures the attention of 40% of U.S. viewers, highlighting a significant shift in entertainment consumption habits.
Source: https://www.nielsen.com/data-center/the-gauge/
Key Drivers of Growth
Ad-supported tiers are growing fast. Netflix and Prime Video have introduced cheaper, ad-supported plans, pulling in budget-savvy viewers — and giving brands access to new audiences.
Younger viewers love streaming. Millennials and Gen Z are spending their screen time here. If you want to reach them, you need to meet them where they are.
Growth of FAST channels. Free Ad-Supported Streaming TV (FAST) channels are becoming a go-to for viewers looking for quality entertainment without the price tag.
It’s affordable! Advertising costs on streaming platforms have dropped, making it a great option even for smaller budgets.
What This Means for You: If you’re not advertising on streaming yet, what are you waiting for? This is where the action is.
2. TV Ads Are Affordable (Yes, Really!)
TV advertising used to feel out of reach for smaller brands, but not anymore. The cost of streaming TV advertising is expected to decrease as more streaming platforms introduce ad-supported subscription tiers.
This shift is being driven by major players like Amazon Prime Video, which, in January 2024, began including short ad breaks for shows and movies as part of their standard subscription. While viewers can opt to pay an additional $2.99 per month to keep the experience ad-free, many will embrace the ad-supported tier for its affordability, significantly expanding the available inventory for advertisers. By offering an affordable ad-supported option, Amazon is likely to capture a segment of its audience that prefers cost savings over an ad-free experience.
For advertisers, this creates an opportunity to deliver campaigns on one of the largest and most diverse streaming platforms at a potentially lower cost than traditional TV or even other digital channels.
3. AI-Generated Creative: Making Ads Easier for Everyone
Creating great ads doesn’t have to be complicated or expensive. AI-generated creative is changing the game by helping advertisers craft high-quality, audience-specific ads quickly and affordably. Whether you’re a small business looking to get started or a bigger brand wanting to fine-tune campaigns for different audiences, AI makes it simple.
Benefits of AI-Powered Creative Production
Reduced Production Costs: AI tools significantly lower the expenses associated with creating multiple ad versions, making TV advertising more accessible to businesses of all sizes.
Faster Turnaround Times: Generate various creative versions quickly, allowing for more agile campaign management and testing.
Easier A/B Testing: Create multiple versions of ads to test different messages, visuals, or calls-to-action without the traditional high costs of production.
Consistent Brand Voice: Maintain brand consistency across numerous creative variations while testing different approaches.
Why It’s a Win-Win:
AI-generated creative lowers the bar for entry, making advertising accessible to everyone while giving bigger advertisers the tools to reach the right people with the right message. No massive budgets. No privacy headaches. Just smarter, more effective advertising.
Want to Learn More?
For a deeper dive into how AI is transforming TV advertising, read our article:
AI and TV Ads: Changing the Game
4. Programmatic Ads: Focus on Strategy, Let Automation Handle the Rest
Running TV ad campaigns doesn’t have to be a hassle. Simply set your goals, and everything else is handled automatically — from buying ad space and optimizing performance to delivering results — so you can stay focused on the big picture. It’s that simple!
Why You’ll Love Programmatic TV Advertising:
Flexibility: Need to tweak your campaign? No problem — you can adjust on the go.
Time-saving: Automation handles the heavy lifting so you can focus on your message.
Smarter decisions: Real-time data shows what’s working and what’s not, helping you quickly fine-tune your campaigns — or even doing it for you!
What This Means: Programmatic buying makes advertising simpler and smarter. If you’re not using it yet, it’s time to give it a shot.
5. Relevant Metrics: Focusing on What Counts
Let’s be real: knowing how many people might have seen your ad isn’t enough anymore. Advertisers need real insights, and thankfully, new tools are making that possible. We are moving beyond basic metrics like CPM (cost per thousand) and CPA (cost per action) to focus on data that truly reflects campaign impact. Integrating CTV metrics with other digital channels ensures a more holistic understanding of performance.
The Path to Better Measurement
Cross-Platform Insights: Tools like iSpot and VideoAmp are challenging legacy providers by offering unified metrics across streaming, linear TV, and digital channels.
Standardization: Industry-wide collaboration is key to creating consistent measurement practices, helping advertisers make informed decisions across platforms.
Why It Matters: Better data = better ads. If you’re not tracking performance closely, you’re leaving opportunities on the table.
Predictions for TV advertising in 2025 and Beyond
The future of TV advertising is exciting — and full of possibilities. Here’s a sneak peek at what’s on the horizon:
1. FAST Channels: The New Cable TV
Remember how cable TV transformed entertainment in the ’90s? That’s exactly what’s happening now with FAST (Free Ad-Supported Television) channels. These channels bring back the “lean-back” viewing experience with scheduled programming but with a modern twist—completely free and supported by ads. It’s like traditional TV but smarter and more accessible. FAST is quickly becoming a go-to for viewers looking for free, high-quality entertainment.
2. Walled Gardens: Dominant but siloed
Video streaming platforms like YouTube, Amazon, and Apple TV+ have a massive share (and growing) of viewer attention. These platforms operate as “walled gardens,” creating closed ecosystems for their programming and advertising, meaning buyers have to use the ad-buying platform specified by the walled garden and cannot use their DSP of choice as they do with other CTV advertising. Hence, while these digital walled gardens have become “must buy”, they also present new challenges for advertisers:
Hard-to-Measure Performance: Each platform keeps its own data, making it tricky to track performance across channels.
Planning Challenges: Audience data is siloed, complicating campaign strategies.
Frequency Overload: Managing how often your ad is shown across platforms can get messy.
Data Blind Spots: Limited data sharing means fewer insights for optimization and attribution.
To succeed here, advertisers need to build platform-specific strategies and invest in creative solutions to measure, plan, and optimize campaigns effectively across these ecosystems.
3. AI-Powered Media Planning: Smarter and Faster
AI is taking media planning to the next level. Advanced algorithms now analyze massive amounts of data to predict audience behavior, optimize ad placements, and adjust campaigns on the fly. These AI tools can recommend the best strategies, distribute budgets more effectively, and continuously optimize for better performance — all automatically. This makes media planning faster, smarter, and more impactful.
4. TV Advertising for Everyone: The Democratization of CTV
Here’s the exciting part: TV advertising isn’t just for big brands anymore. Thanks to the rise of FAST channels, lower CTV ad costs, and AI-powered tools, small and medium-sized businesses (SMBs) can now play in the TV advertising space. What does this mean?
Affordable Access: Premium TV slots are now within reach for smaller budgets.
Easy Ad Creation: SMBs can create professional-quality ads using AI tools without spending a fortune.
Local Targeting: Data-driven placement lets businesses target specific local audiences effectively.
Compete with Big Brands: SMBs can now go head-to-head with larger companies in the world of TV advertising.
Some Challenges to Watch Out For
Of course, it’s not all smooth sailing. Here are a few bumps in the road to keep in mind:
Ad clutter: With more brands jumping into streaming, it’s getting crowded. To stand out, you’ll need to get creative.
Privacy: Stricter regulations mean you need to respect viewers’ data while still delivering targeted ads.
AI bias concerns: Machine learning algorithms used in audience targeting and creative generation may perpetuate existing biases or create new ones, potentially leading to unfair ad distribution across different demographic groups.
Attribution still evolving: While attribution and data that feed attribution model tools are improving, the industry is still far from perfect attribution.
How to Stay Ahead: Focus on creativity, respect your audience’s privacy, and stay flexible.
Final Thoughts: Your Time to Shine
TV advertising has never been more exciting — or more accessible. Whether you’re a small business dipping your toes into streaming ads or a big brand looking to refine your strategy, the opportunities are endless. The key? Stay adaptable, embrace new tools, and always put your audience first.
At Skybeam, we’re here to help you navigate this ever-changing world of TV advertising.
Ready to Revolutionize Your TV Advertising? Transform your TV ad strategy today!