Navigating Transformation: Insights from Winterberry Group’s 2024 Advertising Outlook… Here’s a hint, watch out for CTV advertising!

The advertising and marketing landscape is poised for substantial transformation in 2025, as highlighted in Winterberry Group’s latest report, “Outlook for Advertising, Marketing and Data 2024: A Market In Transformation.” With an estimated 10.4% growth in U.S. ad spending, bringing the total to $570 billion, the report identifies key trends and drivers that will shape the industry’s evolution.

From Over The Top Marketing’s perspective, which is OTT CTV and online video advertising agency, we feel there are three specific bullets to highlight from the chart below.

• CTV Ad Spending is UP 20.1% (the highest percentage across all online and offline)
• Online Video Ad Spending is UP 10.9%
• Linear TV Ad Spending is DOWN 9.4%

The key question to ask yourself: Are you allocating enough of your video budget to OTT/CTV and Online Video to capitalize on reaching potential customers where they have chosen to go for their information and entertainment?

If you’re still allocating 10% – 25% of your overall video budget, it isn’t enough to capitalize on these trends. The scales have tipped, and linear is no longer the dominant force it once was.

Key Drivers of Growth

1. Digital Channel Dominance: Digital advertising continues to expand, with connected TV (CTV) expected to grow by over 30% and other formats like video and influencer marketing following suit. By 2024, digital channels will command 64% of total ad spend, driven by their ability to leverage data and target audiences effectively. Over The Top Marketing has been seeing and expecting this growth since their arrival in the CTV agency industry in 2018 (one of the original OTT agencies).
2. Data Infrastructure Investment: Spending on data and data-related services is anticipated to rise by nearly 14% to $36 billion. This reflects a shift from siloed data applications to integrated intelligence systems that support omnichannel marketing and advanced analytics.

Emerging Trends

1. Shifts in Media Consumption: The continued decline of traditional linear TV is spurred by cord-cutting and the growth of ad-supported streaming platforms. This evolution is driving advertisers to integrate linear and digital strategies for more precise audience targeting.
2. Generative AI and Automation: The adoption of AI for creative production and campaign optimization is accelerating. AI tools are enabling faster, more efficient content creation while improving targeting and measurement capabilities. However, regulatory scrutiny of AI and data privacy remains a concern.
3. Retail Media’s Evolution: Retail media networks are expanding into broader commerce media ecosystems, utilizing first-party data to enhance targeting and ROI. This shift reflects a deeper focus on omnichannel shopping behavior and trade promotion optimization.

Takeaways for Marketers

To succeed in 2025, brands must embrace data-driven strategies such as highly targeted CTV advertising. Collaboration between fully managed CTV agency services such as Over The Top Marketing and allowing their expertise and access to data to set campaigns up for success.

Winterberry Group’s comprehensive analysis underscores a market in flux, where innovation and adaptation are key to staying competitive. For a more detailed look, you can access the full report on their website.