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Paramount鈥檚 streaming growth offsets legacy TV decline: Streaming revenues surge, but ad revenue from linear TV continued to decline, highlighting the company鈥檚 shifting priorities.

People are really looking for premium content and experience that鈥檚 super lean back, frictionless, easy to access and at no cost to them,鈥� Samsung TV Plus鈥� global head of strategic partnerships Sarah Nelson told Axios.

As recently as 2018, CPG still funneled over half of its ad dollars to traditional TV, radio, print, and out-of-home. By 2020, most CPG marketing was digital, but it still lagged the national average. Four years later, the narrative has flipped entirely: CPG has moved away from traditional media more dramatically than any industry besides tech and retail.

On today's episode, we discuss whether watching TV with other people ruins the potential of targeted connected TV (CTV) ads, who's winning the CTV advertising race, and how CTV stacks up against traditional TV ad spending. "In Other News," we talk about Netflix's road map for video games and what to make of its 1 million user milestone for its ad tier. Tune in to the discussion with our analyst Paul Verna.

For instance, healthcare and pharma often targets older demographics who spend less time on mobile and more on traditional TV and certain social platforms, such as Facebook, that retain a desktop presence. And financial services, telecom, and technology and electronics specifically target populations with more intensive mobile device usage.

In the US, 77% of TV-owning households had a smart TV as of Q1 2023, according to Hub Research. Connected TVs, which include smart TVs, streaming sticks, and other devices, will be used in 115.1 million households next year, more than double the number of traditional pay TV households, according to our forecast.

But in 2024, retailers鈥� traditional ad spending will contract by 6.2%, while all other industries combined will grow by 1.8%. The increase is fueled by political ad spending, which leans toward traditional formats like TV and print media, in a unique presidential election year. But retail鈥檚 dominance over traditional and digital advertising will remain unchallenged.

As traditional TV continues to decline, Amazon is positioning itself as a long-term home for live sports content. Advertisers gain more flexibility with multi-league sponsorships. With WNBA, NFL, NASCAR, and now the NBA under its belt, Carney says Amazon can now offer brands a year-round ecosystem for sustained sports marketing.

The new TV looks like YouTube: Forget old-school programming鈥擸ouTube鈥檚 Shorts, podcasts, and second-screen features are reshaping television into an interactive, on-demand experience powered by creators.

Almost every industry will reduce its traditional ad spending this year, but the overall figure will net out positive because 2024 is a US presidential election year and political advertising relies heavily on traditional TV. Because of this influx, spending in the 鈥渙ther鈥� category will surge by 140.0%. Click here to view our full forecast for US traditional media ad spending, by industry.

Streaming investments drive Paramount鈥檚 layoffs: the company struggles to balance growing debt with declining traditional TV ad revenues.

All eyes are on streaming. Last year, non-pay TV viewers surpassed traditional pay TV viewers in the US, per our forecast. Years of streaming platform proliferation are over, yielding to consolidation and fragmented ad measurement. Bundles between streaming platforms and partnerships with retail media platforms are forming, leaving media buyers with a headache over how to strategize.

And they鈥檙e not just watching longer-form videos; they鈥檙e also watching Shorts and podcasts on TV screens. TikTok and Instagram want to make inroads on CTV. Both are reportedly working on CTV apps of their own, according to The Information. Meta has made TV-adjacent moves in the past with features like Facebook Watch and IGTV, though neither really took off.

鈥淰iewers come back because they know and like what they鈥檙e getting, like they would on a traditional TV show,鈥� she said. Consistent content could help creators secure more brand integrations or create their own products. 鈥淗aving [more predictable content] is often considered the path to owning IP,鈥� said Enberg.

Celebrity-driven spots featuring Post Malone and Doja Cat ensure appeal to younger audiences, who split their attention between traditional TV and digital platforms like TikTok and YouTube. Super Bowl ads go beyond entertainment鈥攖hey鈥檙e an investment in brand identity and cultural relevance. With this year鈥檚 lineup, brands are set to make a lasting impression well beyond game night.

Prime Video's ad model positions Amazon as a strong competitor to traditional TV networks and streaming services. Prime Video鈥檚 ad debut early this year forced Netflix to lower CPMs to $29-$35 from last summer鈥檚 $39-$45 range. Prime Video's default ad-supported offering for 97.2 million US households and its competitive pricing drove significant revenue growth.

On today's podcast episode, we discuss why households with no pay-TV (traditional or digital) will be the majority and if livestream shopping in America can become habitual. Tune in to the conversation with Senior Director of Podcasts and host Marcus Johnson, Principal Forecasting Writer Ethan Cramer-Flood, and Senior Director of Forecasting Oscar Orozco. Listen everywhere and watch on YouTube and Spotify.

Consumers are seeing and hearing healthcare-focused ads on a range of traditional and digital channels. Here鈥檚 the data you need to ensure your advertisements are resonating with patients.