Why did the coder refuse to eat cranberry sauce?
Because they couldn’t debug it!
Why did the UI/UX designer get mad at the stuffing?
Because it wasn’t user-friendly!
Why did the cloud engineer love Thanksgiving?
Because everything was serverless!
Code3
Director, Client Partnership
https://lnkd.in/eXMDbwgx
GM Financial
Product Marketing Manager Social Media
https://lnkd.in/esnaSv38
DEPT
Director, Search Growth Marketing Team
https://lnkd.in/eqp6Ub6i
Why Hawk Productions?
Creative Excellence: Transforming ideas into visually stunning narratives.
Tailored Solutions: Customized video content that aligns with your brand’s voice.
Cutting-Edge Technology: Delivering high-quality content across all platforms.
Proven Results: Videos that entertain, convert, and inspire.
Our Collaboration: Our partnership with Hawk Productions allows us to offer comprehensive video production services, seamlessly integrated into our consulting solutions. Ready to create something great? Let’s connect and elevate your brand together.
Hawk Digital specializes in elevating brand visibility and engagement through cutting-edge digital media services. Our expertise spans Online, Mobile, and Connected TV (CTV) advertising, along with video production and strategic content creation. By leveraging the latest technologies, industry standards, and retail media strategies, we craft targeted advertising campaigns that deliver measurable results. Hawk is dedicated to helping brands and agencies maximize their reach and achieve successful attribution for their marketing objectives.
In the recent campaign cycle, political advertising spending surged to around $16 billion, underscoring the financial impact elections have on the media industry. Of this total, approximately $2 billion went to Connected TV (CTV), while local broadcast and cable networks received a larger share of $11.5 billion. The division of ad spending between “digital” and “TV” can vary depending on how companies classify streaming; for some, streaming falls under digital, while for others, it’s part of TV. Regardless of these classifications, this spending represents a substantial revenue source for the industry. However, this influx of cash will be absent in 2025, and this anticipated decrease in ad revenue is a concerning prospect for broadcasters and advertisers alike, particularly as Wall Street could react negatively to declining financial figures.
For the TV industry, the loss of political ad revenue raises significant questions about future profitability. CTV faces challenges with filling inventory due to a lack of standardization, especially in measurement. Meanwhile, traditional broadcasters and cable networks struggle with an aging and dwindling viewership, putting pressure on their sustainability without substantial change. Compounding these challenges is Amazon’s expansion into ad-supported content, which has gained traction with an estimated 50-80 million subscribers. With popular sports programming like NFL and NBA games, Amazon is well-positioned to attract brand managers, given its integrated e-commerce platform that enables a “walled garden” advertising approach.
The upcoming year will force the TV industry to confront these economic realities head-on. Without another election cycle to drive ad spend, networks must adapt to a leaner financial outlook. This adjustment is expected to impact various metrics: CPMs (cost per thousand impressions) will drop as excess inventory increases, fill rates will decrease, and contextual targeting will gain importance as a way to boost ad performance. The industry is likely to see continued consolidation, as both streaming and linear channels face an oversupply problem. Channels with limited or no audience engagement will struggle to stay viable in an environment where ads are only effective if people are watching.
Advertisers, however, are positioned to benefit from lower CPMs and may find this an ideal time to expand their reach without significantly increasing ad budgets. For both advertisers and programmers, it’s an opportunity to leverage in-house ads to build brand awareness. Smaller advertisers and local broadcasters might also explore self-serve ad options to attract new audiences, potentially pulling spending away from digital platforms like Facebook, whose engagement is reportedly declining.
The absence of election-driven ad revenue will be especially impactful in swing states, where local broadcasters typically experience a surge in demand. For the past several months, these networks have enjoyed a steady stream of ad dollars, often having to balance inventory to avoid overwhelming viewers with political ads. Going forward, a return to typical spending levels will require local broadcasters to adjust their expectations and strategies to a more predictable and sustainable model.
On Wall Street, patience will be essential. Companies like Tubi, which is expected to surpass $1 billion in revenue this year, exemplify the cyclical nature of the media industry, where election cycles have traditionally driven significant revenue boosts. Although non-election years are less profitable, these platforms continue to refine their offerings in preparation for the next wave of political advertising.
Another emerging trend is the growing significance of the TV operating system (OS). Recently, VIZIO reported a 26% year-over-year revenue increase in its Platform+ ad unit, which generated $197 million, or 44.2% of the company’s total revenue in Q3. Samsung similarly shared that its Samsung TV Plus service has amassed 88 million monthly active users globally, indicating substantial growth for TV OS-driven ad-supported content. This statistic aligns Samsung with other major FAST (free ad-supported streaming TV) services like Tubi and The Roku Channel.
The increasing focus on the TV OS demonstrates a shift in revenue generation models for TV manufacturers, who now recognize the value of controlling the platform that delivers content and ads. Companies like LG, Roku, VIZIO, and Samsung, which have proprietary operating systems, are benefiting from this trend. Meanwhile, tech giants Amazon and Google have started to enter the space, with Amazon’s Fire TV and branded TVs gaining traction and Google’s Android OS powering many smart TVs. As these companies compete to establish dominance, the outcome may reshape the landscape of content distribution and ad monetization.
As the industry transitions from election-driven revenue peaks to a more consistent model, media companies must rethink their approaches to content, distribution, and advertising. Maintaining control over data and ad inventory will be crucial for content owners negotiating with TV OS providers. Moreover, advertisers and content creators will need to adapt to a market where traditional TV ad spend is replaced with more sustainable, long-term strategies that don’t rely on political spending cycles.
In conclusion, the absence of election-year ad revenue in 2025 will challenge broadcasters, cable networks, and streaming services to find innovative ways to sustain profitability. From adapting to lower CPMs to leveraging self-serve ads and contextual targeting, the industry faces a pivotal period. Additionally, the rise of TV OS as a revenue source highlights the need for media companies to embrace technological shifts in content distribution. As these trends evolve, the media landscape may undergo significant changes that redefine the role of TV in the digital age.
