Traditional TV Advertising Revenue Drops for the Third Successive Year, Streaming Offsets Losses
In the world of television advertising, the annual upfronts have become a significant event where networks try to sell the bulk of their commercial inventory ahead of their next cycle of original programming. This year, the trend towards streaming platforms became even more pronounced, as NBCUniversal reported a record upfront haul, while other media companies saw flat sales compared to the previous year.
NBCUniversal's impressive haul can be attributed to the Super Bowl, Winter Olympics, Spanish-language FIFA World Cup rights, and a new NBA deal. The company is said to be largely sold out of most of its inventory tied to Super Bowl LIX, with the company seeking at least $7 million for a 30-second ad.
However, the story is different for other media giants. Paramount Global, Disney, and TelevisaUnivision indicated that upfront sales were flat compared to the previous year.
The 2025 upfront also saw a decline in dollars committed to cable, with a 4.3% drop to nearly $8.68 billion compared to the previous year. On the other hand, the total value of upfront commitments increased by 8.1% compared to the 2024 upfront, reaching nearly $31 billion.
This shift in TV advertising spending is evident, with a significant growth in streaming ad revenues during the annual upfronts. Advertisers committed a greater amount of money to streaming than they did to either broadcast or cable primetime in the 2025 upfront, a trend that marks the second consecutive year this has occurred.
Connected TV (CTV) ads, which include streaming via smart TVs and devices like Roku or Fire Stick, continue to see rapid growth. According to projections, CTV ads will reach around $30 billion in 2024, a 22.4% increase over 2023, with continued double-digit growth expected through 2027.
The declining CPM (cost per thousand impressions) rates across all platforms also contribute to this shift. Broadcast TV CPM dropped 4.1% to $43.50 for a 30-second prime-time ad targeting adults. Cable TV CPM declined 6.8%, settling around $19.35, while streaming CPM fell 7.6% to approximately $27.25.
Despite lower CPMs, streaming’s improved inventory scale and ad effectiveness are attracting more advertisers. Linear TV still commands a premium in certain live event ad slots but faces consistent overall spending declines. The growth of free ad-supported streaming TV (FAST) platforms also contributes to better ad-buying economics on streaming, providing increased inventory and lower cost per impression for buyers.
In summary, the 2025 upfronts reflect a continuing migration of advertising dollars away from linear broadcast and cable to streaming platforms. This shift is accompanied by declines in CPM rates due to expanded streaming inventory and shifting consumer viewing habits favoring connected TV, particularly among younger demographics. However, linear TV still commands a premium in certain live event ad slots but faces consistent overall spending declines.
Sources: 1. Variety 2. Ad Age 3. Media Dynamics 4. The Hollywood Reporter 5. eMarketer
- The shift in TV advertising spending towards streaming platforms is evident, with the business sector increasingly investing more money in streaming ads during events like the annual upfronts.
- In the world of finance, traditional broadcast and cable networks are seeing a decline in ad revenues, while technology advancements such as Connected TV and streaming platforms are experiencing significant growth, reflecting a trend in the business world towards digital media.
