Eyes Move, Ad Spend Grooves

Plus, a Federal Judge says Google can't pass Go.

May 02, 2025

Welcome to The TV Room. Your weekly digest of television, streaming, and digital media insights that matter.

This week we're covering:

  • ☝️ Ad Spend Is On the Up

  • 🚶 Precise Sets the Compliance PACE

  • 🎥 Creative Spotlight: Nintendo: “Playing Together”

  • 💝 Welch’s AI Helps Write Lunchbox Love Notes

CTV Ad Spend Surges While Viewer Habits Evolve

Connected TV advertising is having a moment, with eMarketer projecting US CTV ad spending to hit $32.57 billion in 2025, nearly double its 2021 levels. In fact, CTV is outpacing all other ad categories, including social media, digital video, and paid search.

The shift makes sense: Over 80% of US households now have at least one connected TV device, and streaming accounts for 41% of total TV time, up 31% from two years ago.

But there are growing pains.

Recent Wurl data shows some interesting trends in viewer behavior:

  • Average session lengths dropped around Q2 2023 and haven't fully recovered

  • Ad loads have stabilized at around 9 minutes per hour (compared to 15 minutes in traditional TV)

  • Ad fill rates are lower than previous years, suggesting supply is outpacing demand

The good news? There's plenty of room for growth. A significant 64% of CTV users prefer ad-supported content if it means paying less for streaming services. And performance metrics are strong; 65% of marketers now recognize CTV's potential to drive measurable results.

What's next?

For streaming platforms and advertisers, success in 2025 will require:

  • Better content discovery and personalization to keep viewers engaged

  • Innovation in ad formats, including interactive and contextual targeting

  • Improved metadata standards to help match premium content with relevant ads

  • Strategic focus on younger viewers, who show 69% acceptance of live TV ads despite growing up with ad-free experiences

The shift to streaming is accelerating. Maintaining momentum will require continuous innovation in both content delivery and ad experience.

Read More:

TV Industry Updates

  • Roku’s innovative collaboration: Roku partnered with Adobe to integrate their platforms, enabling advertisers to reach high-value audiences through the app.

  • LG’s emotional targeting: LG leveraged AI to segment webOS viewers by emotions, setting the stage for ads that resonate on a more personal level.

  • Pharma’s TV ad surge: Pharma brands boosted their investments by nearly 30% in Q1, with top drugs like Rinvoq and Tremfya driving TV ads higher.

  • Broadcast era in retreat: Sony reclaimed Jeopardy! and Wheel of Fortune from traditional syndication, signaling a shift away from the broadcast TV model.

  • Genesis on top: Genesis’s artsy ad "Blank Canvas" captured 169 million impressions, leading the auto TV ad rankings with its creative flair.

  • Precision in targeting youth: Precise TV introduced its PACE tool to safely target under-18 audiences.

Stay up to date on the latest in TV advertising by joining our Slack community!

Creative Spotlight: Nintendo: “Playing Together”

Nintendo's Switch 2 "Playing Together" campaign featured Paul Rudd recreating his 1991 Super NES commercial while showcasing the new console's multiplayer capabilities through Mario Kart gameplay.

The Details:

  • The ad cleverly referenced Rudd's original 1991 Nintendo commercial, where he played Super NES on an outdoor projector as young gamers gathered behind him

  • Rudd attempted to humorously recreate the original scene at home, but also demonstrated the Switch 2's GameChat feature while playing with friends.

  • Behind-the-scenes reports revealed Rudd got so engaged playing Mario Kart World that the crew had to remind him to stop playing for real and start acting

What We Loved: The campaign masterfully bridged a 34-year gap in Nintendo's history while highlighting both the social aspects of modern gaming and the timeless appeal of their products across generations.

Marketing Mix

  • AI lunchbox love: Welch's Fruit Snacks launched a Lunchbox Notes Translator that uses AI to turn candid parental comments into heartfelt messages for kids.

  • Google's ad tech monopoly: A federal judge ruled that Google wields an illegal monopoly over publisher tools and ad exchanges.

  • Duty-free dual campaign: Lotte Duty Free unveiled a dual marketing campaign with different slogans for Korean and foreign customers.

  • Cola wars redrawn: Tariffs are squeezing PepsiCo's margins as its Irish-produced concentrate faces a 10% levy.

  • Fiverr embraces AI: The freelancer marketplace launched a campaign starring "Stranger Things" actor Brett Gelman as "Another AI,".

  • Tariff trouble: Temu and Shein will raise prices starting April 25 as new US trade rules eliminate the "de minimis" exemption.

The TV Room is your go-to source for staying ahead in the world of television and digital media. Want to chat about these stories with other industry pros? Join our Slack channel to continue the conversation.