Predicting the Unpredictable 2025
It is that time of year again, where I get out my festive crystal ball and try to conjure up even a semblance of foresight for the year ahead. Yet again, I look in the mirror and try to make sense of what has happened across 2024 and try to fathom how I can even start to wade through the uncertainty surrounding the start of 2025.
We now have a “known” unknown in the White House ready to test the world’s fractured confidence and it is a brave person who would claim to understand the mind of the American president. Mr Trump’s outlook on the world will have a huge impact, with Russia, Ukraine, Israel and Palestine waiting to hear how the “Commander in Chief” of the USA will address global issues. Furthermore, his anticipated pro-American trade levies (once implemented) could also have a huge impact on global business but that is a story yet to fully land.
Closer to home Rachel Reeves and the Labour Party have also created a dent in UK confidence. According to a poll by the CBI, two thirds of business leaders plan to slash hiring plans because of the budget. Such a positive outlook I hear you cry but let us try and turn that frown upside down.
The positive news is that TV is not dead, it’s just disguising itself under the name of video which will play out everywhere and is looking to grow. H1 of 2024 say the digital marketplace grow by 16%, with video outperforming the rest of the digital sector at 26% (source: IAB). This demand underscores the power of AV and really underlines the strength of the format. An evolving landscape where brands are invited to reach audiences in immersive, story-rich formats. Not only is video a favoured medium, but it also maintains its punch in terms of return on investment:
The TV marketplace is not looking overly rosy, with predictions ranging from par to down 6. A large portion of this pessimism can be landed at the feet of the UK government plus the year-on-year comparisons need to account for a EURO’S football tournament (where England reached but lost the final) and the 2024 Paris Olympics.
2025 will see the Women’s Euros Tournament and the Women’s Rugby World Cup tournament as well. On a like for like comparison this does not stack up, but the star of Women’s sport is in the ascendency and Women’s football is the fastest growing sport in the UK. And England stand a decent chance of winning both tournaments.
With the number of large advertising accounts now landing at their new homes, there is a good chance that some of these clients will look to push on in their sectors. After a perceived “quiet period” for Amazon, I expect them to come out firing.
SVOD is an area which I expect to grow. All the big guns of Netflix, Prime and Disney+ will all expect growth in their areas, and if LinkedIn is anything to go by, then 2025 is going to be the “year of the FAST channel”, with CTV spends predicted to benefit from significant y/y growth.
Key trends are:
- The attack on the traditional TV market revenues will continue, with TVOOH, Cinema, Connected TV, and Subscription VOD all eating into the share of the Broadcasters. However, we are reaching the point where the boundaries are so blurred it is tricky to know where one starts and stops. CTV is a “playground” which everybody seems to want to get into, and revenue numbers for this area vary massively on which agency or buy-side platform you speak to.
- Content continues to be king. 2024 proved this and for 2025 the big tournaments keep on coming with Women’s Euros, the Women’s Rugby World Cup, the Ryder Cup, and a summer of international cricket proving just the tip of the iceberg. These events will continue to aid the TVOOH market, as viewers look for the combined attraction of the event TV programming but also wanting to benefit from the warmer temperatures that the summer offers.
- Media inflation will rise again across all audiences, and the challenge of reaching a 16-34 Adult universe exacerbates with inflation predicted of 14% across the year. This highlights the need for relevant content. Provision of this content in the relevant environments will again highlight the importance of “content and context,” which C-Screens preach as being of great importance.
- Measurement continues to be a major talking point for the industry with metrics being challenged in certain areas. Having a robust and accountable methodology will be key, and C-Screens are now able to join this conversation. Investment in case studies and measurement is key for the company moving forward.
- AI looks to have established itself as an acceptable part of the media landscape. Whilst I am still a slight sceptic (as I am old), and believe the human element is key for providing objectivity on a subject, I am reluctantly letting AI enter my wheelhouse and agree it has its place in providing balance, strategy and efficiencies into media planning functionality. Relationships are still key though.
- Last year’s final prediction of Crystal Palace getting into Europe did not happen (shock!), and given their current plight, I have decided to downgrade my expectations to simple Premier League survival. If this fails, then next year’s prediction will be even grimmer.
Finally, I would like to wish everybody a successful 2025 – See you next year!