Ad-supported streaming—which includes FAST channels and all premium long-form streaming platforms like Hulu, Peacock, Netflix, Prime, etc.—benefits from growing reach and viewership as 75% of all streaming hours are now ad-supported, up from 58% a year ago, per Magna.
Among other highlights, sports will continue to grow for TV with content such as the college football playoffs, the WNBA on Prime Video, and exclusive NBA games on Peacock. Meanwhile, out-of-home (OOH) ad sales are predicted to grow by more than 4.8% this year to $10 billion, driven by double-digit growth in digital OOH revenues.
However, other traditional media channels may struggle in 2025. For instance, Magna forecasts a decrease of -2% for audio media and publishing ad revenues, with digital ad formats not being able to offset declines on legacy formats. Magna predicts that audio media will account for $16 billion, while publishing will account for $15 billion.
Despite uncertain times, the economy is healthy
The Magna report explores how business and consumer confidence deteriorated since January due to several factors, such as the stock market recording decreases and the cost of food rising.
Though overall food costs did not rise in Q1—staying around 3%—U.S. consumers were shaken by the sharp inflation in eggs, which is typically a food staple of American households.
The combination caused a drop in the consumer confidence index, which decreased from 74 in December to 58 in March, close to the all-time low recorded in June 2022 when gas hit $5 per gallon in the wake of the Ukraine invasion.
When it comes to the economic outlook on the U.S. ad market, the research notes how the core economic fundamentals like consumer price index (CPI) inflation, job market, retail sales, and corporate profits stayed healthy.
Additionally, international trade tensions don’t necessarily lead to extensive economic damage. However, the current confidence crisis has already impacted economic activity in Q1, and Magna expects negative GDP growth for the first quarter and cautious investment and marketing spending in the months ahead.