If you’re planning to lounge on the sofa and binge your favorite show Friday night, what are you using to watch it?
Chances are, not cable.
While cable is still a viable option for watching TV (for now), streaming platforms are taking over the industry. With this rise in popularity, businesses’ opportunities for profitability are growing, too.
Haven’t thought about the role streaming might play in your ad spend next year? Now might be a good time to start. Here are three streaming and auto trends to consider going into 2025.
1. The Golden Age is Here but Not for Long
We’re in the golden age of streaming advertising, particularly in automotive.
More and more Americans are using streaming platforms to watch TV and movies each year. Yet while these streaming services are getting more attention, less ad money is being spent on them compared to cable. Why? The streaming industry simply hasn’t fully matured yet—and not everyone has caught on to its value.
This current imbalance is nothing but advantageous to advertisers: you can target specific audiences efficiently and do it at a low cost.
In many ways, this is the modern-day equivalent of Facebook’s targeted advertising model circa 2007. Back then, there was a surplus of ad space on the platform. This glut of supply, paired with low costs and a huge user/consumer base, was a goldmine for advertisers.
We’re seeing a similar golden opportunity right now in streaming. But keep this in mind: The heyday won’t last forever.
More brands are recognizing the value of streaming advertising. And as more brands choose to invest in streaming advertising, ad costs will inevitably rise. The takeaway? If you’re looking for the opportune moment to invest your advertising dollars in streaming, this is it.
2. Dealers Will Focus More on Direct ROI and Efficacy in Streaming
Recently, we’ve observed a big shift in the way car dealers and manufacturers are approaching advertising.
During the supply chain shortage a few years ago, many dealers had a leg up on consumers and, as a result, didn’t have to worry much about their marketing strategy. That’s the perk for brands when demand outstrips supply: When everything is going “up into the right” (i.e., sales are increasing), marketing tactics are relatively inconsequential.
But now the supply-chain bottleneck is gone, and it turns out that more car inventory equals more scrutiny in ad spend.
Since the competition is (re)heating up, dealers are basically kickstarting and re-engaging their marketing machine. They want to see creative, strategic approaches, data-driven decisions, and direct ROI. Because of this, we’re seeing dealers ask harder questions about the efficacy of their advertising. We’re not just talking about ad impressions; dealers want to ensure their marketing efforts, whether through streaming or other channels, are actually moving cars off the lot.
While this is a trend we’ve already noticed in the last few months of 2024, it’s sure to carry into 2025.
3. Education and Context Will Be Paramount for Marketers
At this point, the value of streaming advertising is no secret, and we believe using this platform will become more commonplace in 2025. But as more brands jump into streaming advertising, their marketing teams will need to get up to speed on this platform’s unique opportunities and challenges to succeed in the market.
For instance, an existing challenge in the streaming space is fragmentation. This is unique to streaming—it was basically a nonissue in the big digital marketing trends before it. While Google dominates search and Meta dominates social media, no single streaming platform captures the entire market in the same way. Sure, Netflix may be the largest streamer to date, but it gets a healthy dose of competition from other platforms like Peacock, Disney Plus, and Amazon Prime.
Moral of the story: Investing in just one platform, like Netflix, won’t saturate the market in the same way it would on Google or Instagram. Advertisers will likely need to research multiple platforms, rather than just one, to determine the best strategy for reaching their target audience effectively.
Streaming advertising is a trend in and of itself that will become more prevalent in the coming year. And we believe that the marketers who dedicate themselves to learning the complexities of this market will be poised to outpace competitors and yield better results in 2025 and beyond.
Brett Hall is a Partner and Vice President of Sales & Marketing at EMG, an advertising technology company that specializes in Streaming Media (CTV & Audio) for the automotive industry
