Grammy Gold: What the 2025 Awards Tell Us About the Future of TV Advertising

Toronto, Canada - January 18 2024 The 67th Annual Grammy Awards ceremony will honor the best recordings, compositions, and artists from September 16, 2023, to August 30, 2024, chosen by recording acad

The 2025 Grammy Awards celebrated music’s biggest names while showcasing how TV advertising is evolving, offering key insights into CTV growth, audience engagement, and the enduring value of major live events for advertisers and publishers.

As one of the most important nights of the year in the music industry, the Grammys pulls in millions of viewers vying to see their favorite artists perform and potentially win history-making awards. 

This year’s awards were stacked, pulling in major artists like Beyoncé, Kendrick Lamar, Taylor Swift, and Lady Gaga, who premiered a new music video through an ad with Mastercard. In addition to up-and-coming artists like Sabrina Carpenter, Chappell Roan, and Doechii. Each of their fan bases was itching to see a glimpse of them on screen. 

But what does this mean for advertising? Brands can reach users who fully engage with their TV screens. 

While the major news of the night was Beyoncé taking home album of the year for her genre-bending country-infused album “Cowboy Carter,” ad tech was asking—how much was the ad spend budget? How many viewers watched on CTV vs. Linear? How was consumer ad engagement?

This year’s Grammys weren’t only about celebrating musical achievements, they also paid tribute to the heroes who saved LA during the wildfires. However, for advertisers, the night was a case study of live TV’s evolving role in consumers’ lives. With viewership declining 9% to 15.4 million viewers, the ceremony offered critical insights for publishers and marketers alike.

Viewership and Ad Spend Trends

While Linear TV still commands a significant audience, the trend is shifting towards CTV. The average percentage of media budgets allocated to CTV has doubled from 14% in 2023 to 28% in 2025. Brands reflect this shift in their advertising strategies, with 72% planning to increase programmatic spending in 2025.

Despite the decline in Grammy viewership, the event remains a powerhouse for advertising revenue. Historical data shows that ad rates for the Grammys have steadily climbed, with 30-second spots reaching $866,100 in 2022 (a 4% increase from 2021) and experiencing double-digit growth in 2024. 

Pharma was a dominant advertiser, with companies like Pfizer, Eli Lilly, and AstraZeneca investing heavily—spending up to $1.6 million per ad in 2023. Media & Entertainment and Automotive brands also played key roles, with prominent names like Apple and Ford returning post-pandemic. 

The 2023 Grammys saw a viewership rebound to 12.55 million (a 30% YoY increase), mirroring strong ad demand seen in other tentpole events like the Oscars, where 30-second spots hit $1.4 million.

Data for the 2025 Grammys is still in the works, but based on the nature of the evening, we can surmise that advertisers invested millions into the night.

CTV vs. Linear TV: Ad Effectiveness and Engagement

While specific data on ad effectiveness for the 2025 Grammys is unavailable, industry trends provide insights.

For example, the 2025 Grammys streamed live on Paramount+ for $12.99/month, alongside other streaming platforms, though ad revenue from the platform remains unspecified. 91% of advertisers believe CTV is as effective or more effective than linear TV at driving return on ad spending. However, linear TV still generates about 6 times as many ad impressions as CTV, highlighting its continued importance for large-scale campaigns.

The Grammys’ social media impact was significant, with the event generating 102.2 million interactions online, making it “the most social television program ever.” Hilton and other brands extended their Grammy campaigns to TikTok, repurposing vertical ads to engage younger audiences, reflecting a broader trend of platform-specific content adaptation.

This demonstrates the power of integrating social media strategies with traditional TV advertising.

A Playbook for Publishers in the CTV Era

The 2025 Grammy Awards offer several key lessons for publishers. As CTV continues its rapid growth, publishers should diversify their offerings to include advertising solutions that span both CTV and Linear TV platforms. 

Despite overall viewership declines, major events like the Grammys still attract significant ad spend, highlighting the importance of creating premium inventory around such high-profile occasions. 

To stay competitive, publishers should invest in data analytics technologies that provide deeper insights into audience behavior across platforms. Nowadays, advertising also calls for more flexible ad formats that can seamlessly work across both CTV and Linear TV. 

And, of course, we all know the power of owning and utilizing the correct data effectively. Even The Recording Academy is hip to this. They used AI and natural language processing to analyze over 20 million news articles and blog posts for viewer engagement. They wanted to prioritize shareable, consumer-driven content over traditional brand messaging. Encouraging user-generated content and collaboration across teams ensures a cohesive and engaging social media presence. Publishers should invest in data analytics to better understand audience behavior across Linear TV and CTV and use these insights to offer more targeted advertising options. 

The Grammys’ record-breaking social media engagement shows the growing importance of integrating second-screen experiences into advertising strategies. 

Finally, the ceremony’s focus on wildfire relief efforts demonstrates how aligning with social causes can significantly enhance engagement and brand value. The Grammys used commercial airtime to support LA businesses affected by wildfires, featuring ads narrated by Doja Cat and the Jonas Brothers. Organized in two weeks, the initiative raised $7 million for relief efforts. 

To fully engage audiences and turn that targeting into revenue, publishers should embrace these lessons to better position themselves.