Comcast is set to launch Universal Ads in an attempt to attract smaller advertisers away from tech giants.

• Small- and medium-sized businesses will benefit from Universal Ads, an advertising platform launched by Comcast, which aims to streamline the ad-buying process.
• Comcast has struck agreements with various media companies such as NBCUniversal, Warner Bros. Discovery, AMC Networks, Fox Corp., A+E, and Roku, among others.
• In the first quarter, a new platform will be launched to draw more ad dollars to media companies' streaming services, as advertisers have already invested heavily in technology and social media.

The company aims to introduce a new advertising platform that will facilitate easier ad buying for small businesses, while also attracting advertisers away from social media and digital platforms and towards traditional TV streaming services.

Comcast unveiled Universal Ads, a new platform for advertisers to purchase ad spots on premium video content on streaming services of traditional media companies prior to the annual CES tech conference in Las Vegas.

Comcast has formed partnerships with various media companies, allowing advertisers to purchase advertising spots on multiple platforms. Currently, NBCUniversal, Xumo, A+E, DirecTV, , Paramount, TelevisaUnivision, and others are part of the platform, with more expected to join in the near future.

"Mark Marshall, chairman of global advertising and partnerships for NBCUniversal, stated that Universal Ads aims to attract new advertisers who have not previously worked with the company. He added that while the platform is currently focused on streaming and small- to medium-sized businesses, it has the potential to expand to include linear and agency clients in the future."

Comcast Advertising's Universal Ads, set to launch in the first quarter, aims to simplify the ad buying process for all advertisers, making it as easy as buying ads on social media and tech platforms, said James Rooke, president of Comcast Advertising.

"Rooke stated that many advertisers have built their businesses on social video, yet when speaking with these advertisers, there is a growing desire to diversify away from relying on a limited number of big technology companies."

Rooke stated that the challenge lies in the fact that big tech companies have made it effortlessly easy to conduct transactions on their platforms, while traditional media, often referred to as premium content, does not offer the same level of simplicity.

Marshall revealed that he and Rooke had been discussing ways to generate new demand opportunities for nontraditional advertisers over the past few months.

FreeWheel, Comcast's ad tech company, was used to create the free, self-service platform. Several partners that have already joined are existing FreeWheel clients.

Plans exist to provide free, automated AI tools for ad production, which can be a challenge for smaller businesses.

Marshall stated that Universal Ads has a significant chance to capture market share from competitors through a distinctive and cooperative approach that will drastically alter the advertising industry.

Going on the offensive

The traditional TV industry is going through a tumultuous period as consumers are increasingly drawn to streaming services.

The increasing popularity of social media and tech platforms is eclipsing the amount of time spent on TV viewing, with younger generations gravitating towards platforms like TikTok.

Advertising has become a crucial aspect for streaming services, including NBCUniversal's Peacock, to achieve profitability. While streamers have been capturing a larger portion of ad dollars in recent quarters, their revenue still lags behind that of tech giants.

The tech platforms have attracted a vast number of advertisers due to social media's immense scale.

"NBCUniversal has a significantly smaller number of advertisers compared to Meta, which has over 10 million advertisers spending on search and social media," Marshall stated.

Despite GroupM, WPP's media investment group, declaring TV as the most effective advertising form in a recent report, the segment is predicted to experience only a 2% growth in 2025, resulting in a total global ad revenue of $169.1 billion.

According to GroupM estimates, global ad revenue for "pure play digital" platforms such as YouTube and TikTok, excluding the streaming arms of traditional media, is predicted to increase by 10% to $813.3 billion in 2025.

According to eMarketer, social media ad spending in the U.S. is predicted to reach $102.66 billion in 2025, a 13.6% increase from the estimated $90.35 billion spent in 2024, which represents a 19% rise from the previous year.

In 2025, traditional media companies can expect the ad market to stabilize, but digital media ad budgets are predicted to still surpass those of traditional media.

"Rooke advised that instead of remaining in a shrinking market, we should take a proactive approach and focus on areas with growth potential."

Despite the rise of digital advertising, large-scale advertisers and brands continue to invest heavily in traditional media outlets for live sports and events. Fox has already sold out of Super Bowl ads for February, with each ad costing approximately $7 million. The expanded College Football Playoff format has also attracted significant advertising dollars.

Rooke stated that the key to the Universal Ads platform is to sign up other media companies in order to present a unified front and attract more ad dollars from digital platforms.

Amy Leifer, chief advertising sales officer at DirecTV, stated that smaller and medium-sized companies face challenges in managing multiple ad platforms due to the creation of obstacles by individual ad platforms and walled gardens.

Executives from NBCUniversal, Warner Bros. Discovery, and Fox, along with Leifer, emphasized the significance of targeting small- and medium-sized businesses as potential advertisers.

Ryan Gould, Warner Bros. Discovery's executive vice president of sales in streaming, digital and advanced advertising, stated that the concept of enabling small- and medium-sized businesses to connect with audiences through premium content, particularly on connected TV, is in line with the increasing need for adaptability and speed in advertising.

CNBC reported that media executives believe traditional linear TV remains a crucial advertising platform due to its broad reach among demographics, despite the growing popularity of social media. They added that linear and streaming are now viewed as complementary rather than separate entities in discussions.

Rooke stated that advertisers are searching for alternative platforms to social media because they are experiencing diminishing returns from existing channels.

"They're running out of new audience," he said.

Disclosure: Comcast owns CNBC parent NBCUniversal.