Dear ROGER,

Welcome to the February 2025 issue of Key Notes - Marketing Keys' monthly newsletter! Whether you're a die-hard football fan or just tuning in for the commercials, we hope you enjoy the Big Game this Sunday with friends and family. Key Notes is an informative, quick-read newsletter to get you caught up on all things media and marketing. Our goal is for you to be informed and entertained with the latest media and marketing happenings quickly and efficiently. 

Super Bowl LIX is set to showcase ads from major industries like beverages, technology, financial services, snacks, and pharmaceuticals. However, one category is noticeably stepping back: entertainment. Fewer theatrical movie studios and streaming services are expected to air commercials during the big game this year, marking a shift from previous Super Bowls.

A key reason for this decline is the ripple effect of last year’s writers' and actors' strike, which disrupted production schedules and marketing plans. Despite this, Super Bowl advertising remains as competitive as ever, with the cost of a 30-second commercial rising to an average of $7.5 million. Some brands that secured spots later in the process are reportedly paying as much as $8 million due to high demand.

Some advertisers opt for earlier placements, while others take a strategic risk by airing their commercials later in the game, hoping to capture more engaged viewers in a close contest. Last year, the Super Bowl set a new record, drawing an average of 123.7 million viewers across multiple platforms. The event continues to dominate as the top live TV broadcast of the year, making it a prime opportunity for brands to reach massive audiences.

Even though some entertainment companies are scaling back their Super Bowl presence, FOX will be heavily promoting its own streaming platform, Tubi. With AI-generated elements playing a growing role in ad creation and the Kansas City Chiefs once again in the Big Game, this year’s Super Bowl promises to deliver excitement both on and off the field.

The media industry is changing as big companies start separating their cable TV networks from other parts of their business. While this might seem simple, it actually involves disconnecting these networks from long-established connections to things like movie studios, streaming platforms, and theme parks. Companies are rethinking their priorities, focusing on things that bring in the most value, like streaming services and film production. This change is part of a plan to boost profits by concentrating on what they do best.

For example, Comcast is selling off some of its cable networks like USA Network, E!, MSNBC, CNBC, and Syfy, but keeping major brands like NBC, Telemundo, Bravo, and Peacock. Similarly, Paramount Global, now under Skydance Media, is focusing more on its movie and TV studios, showing that creating content is key to long-term success. As traditional media companies spend less on regular TV programming, they're investing more in streaming services to stay competitive and profitable.

But separating these cable networks comes with challenges. A report says these new, independent companies may face higher costs and struggle to operate as efficiently without the support of a larger company.

Looking at past examples, similar changes have worked out. In 2013, News Corp split into two separate companies, and in 2019, Fox sold parts of its business to Disney and focused on sports, news, and network TV. Since then, Fox has done well as a more focused company. As NBCUniversal, Paramount Global, Warner Bros. Discovery, and possibly Disney consider doing the same, the big question is: Will these changes make companies stronger and more efficient, or will they lead to new problems in a changing media world?

As we move through 2025, the marketing world is witnessing major shifts that are bound to reshape strategies across industries. Key events, like Google potentially selling off Chrome and a looming Supreme Court decision that could impact TikTok’s future in the U.S., are just the beginning. These changes, along with evolving consumer behavior and technology, are set to challenge traditional approaches to marketing. The year promises to bring both risks and rewards for brands, requiring them to stay nimble and adaptive as new trends emerge.

A major force reshaping the marketing world this year is AI. It’s not just a trend—it’s becoming deeply integrated into how brands reach their audiences. From ad targeting and bidding to optimizing performance, AI is transforming the way companies approach their marketing operations. However, the biggest change may come from the way consumers are using AI tools, such as ChatGPT, to get information rather than relying on traditional search engines like Google. This shift will have a profound impact on how brands connect with their customers, requiring a rethinking of existing digital strategies.

SEO and consumer behavior are on the brink of a major shift as well. In the coming months, it’s possible that the phrase "Google it" will become outdated as more users turn to AI for answers. This could lead to fewer traditional search engine queries, meaning marketers who continue to rely on search as a primary channel will face rising costs. At the same time, new user funnels will emerge, challenging brands to reconsider where and how they show up in this evolving ecosystem. Marketers will need to diversify their channels and embrace AI-driven platforms if they want to stay relevant in 2025.

The social media landscape is also in flux, with TikTok’s future uncertain. If TikTok remains, it will continue to be a valuable, cost-effective channel for marketers who can adapt quickly. However, if TikTok is shut down, platforms like Meta, YouTube, and Reddit will likely compete for its audience. Regardless of TikTok’s fate, short-form video content will remain a significant opportunity for brands in 2025. In this shifting environment, focusing on incrementality—measuring the direct impact of marketing activities—will be crucial. Brands that prioritize this approach, alongside embracing new technologies, will be better positioned to thrive in an increasingly competitive market.

A new bipartisan bill is being reintroduced in Congress that would place stricter limits on social media access for young users. The proposed legislation would prevent children under 13 from creating accounts on social media platforms and stop companies from using algorithms to suggest content to users under 18. It also pushes for schools to restrict social media use on their networks, with supporters arguing these measures are necessary to protect children's mental health.

Advocates of the bill point to growing concerns about the negative impact of social media on young people, citing research that links excessive use to declining mental well-being. Several organizations, including child health and consumer protection groups, have voiced their support, emphasizing that limiting exposure to harmful content and addictive features could benefit kids and teens. They believe the bill is a necessary step in making digital spaces safer for younger audiences.

However, critics argue that the legislation could infringe on young people's rights, particularly their ability to freely express themselves and access information. Some digital rights organizations have pushed back, stating that restricting access to social media contradicts principles of free speech. Similar efforts at the state level have already faced legal challenges, with courts questioning whether such restrictions violate constitutional rights. While federal laws already regulate how companies collect data from children, this bill would go a step further by requiring platforms to block younger users entirely—a move that is likely to spark further debate.

Last month, Meta announced changes to its approach to content moderation, notably reducing its role in actively fact-checking misinformation. Previously, the platform flagged a portion of disinformation posts from countries like Russia, China, and Iran, but now, much of that responsibility will fall on the users themselves. While flagged content will carry warnings, it will still remain visible, sparking concerns about the effectiveness of these changes in limiting the spread of false information.

This shift underlines the challenges that social media platforms face in managing content, and it highlights the growing need for stronger safeguards to fight disinformation. As Meta steps back from its more active role, it becomes clear that a more thorough approach to moderating content is necessary to protect users and advertisers alike from the harmful effects of misleading information.

For advertisers, the impact is clear: companies will need to be more proactive in managing brand safety. Since platforms like Meta are stepping away from policing content, it’s essential to invest in independent tools and technology to monitor how and where your ads appear. By leveraging these resources and building expertise, businesses can better ensure their brand’s integrity.

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Whether you've been at your marketing position for 1 year or for 20 years, the pressure to produce and come up with the right strategies to reach your target audience is always there.

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Until next month,

Roger Keys

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