Forrester: the media business will slow down and change strategies in 2027
Forrester forecasts a slowdown in the growth of streaming and linear TV in 2027. Brands will start measuring the share of AI recommendations, and Meta* will launch advertising in smart glasses.
The growth in paid streaming subscribers will slow down in 2027, the linear television audience will continue to shrink, and consumers will increasingly search for products using artificial intelligence. This forecast was published by the analytics company Forrester. The usual growth drivers of the largest media companies will come under pressure. In response, the industry will begin to develop new advertising models and reconsider its approaches to measuring placement effectiveness.
Free tiers on streaming services
One of the most notable changes will be the expansion of free offerings in the streaming market. Forrester expects at least three major paid-subscription video services to launch ad-supported tiers. Among potential participants, analysts name Disney+ — the service already has the necessary advertising infrastructure. Netflix has previously also allowed for the possibility of free offerings in certain markets.
Conversational advertising as a new channel
The second growth area is conversational advertising. According to Forrester's forecast, it will become a channel with a turnover of several billion dollars. Users will shift from traditional search to ChatGPT, Claude, Copilot, and Google's AI search tools. Brands will begin to invest more actively in formats integrated into the responses and recommendations of neural networks. Such solutions combine product search, offer comparison, and purchase decision-making within a single dialogue. Among potential market participants, Forrester highlights Google, Meta, Amazon, TikTok, Microsoft, and OpenAI.
The spread of AI search will also change how advertising effectiveness is measured. According to analysts' forecasts, one of the key media metrics will become recommendation share — the share of a brand's recommendations from AI. The metric will show how often the system suggests a specific company or product in response to relevant user queries. Forrester believes this indicator may take the place of impressions among advertisers' core KPIs.
Ads in smart glasses and money in women's sports
New advertising platforms will also emerge in wearable devices. Forrester expects Meta* to be the first to launch a large-scale advertising platform for AI-powered smart glasses. Analysts link the direction's prospects to the development of product search, navigation, and shopping through such devices. According to the company, Meta has already sold more than 7 million smart glasses. The product range is growing thanks to partnerships with Oakley and the release of devices under its own brand.
In addition, Forrester predicts a redistribution of sponsorship budgets in favor of women's sports. Five Fortune 500 companies will redirect part of their investments from men's competitions to women's. Additional interest from advertisers will be driven by audience growth and the Women's World Cup, which will take place in 2027.
What is happening in Russia
Similar changes are noticeable in certain segments of the domestic market. Brand presence in neural network responses has already become the subject of separate studies. According to a report by RateMe, the visibility of fashion brands varies depending on whether the user turns to an AI search block or a chatbot. Analysts found that not only the frequency of brand mentions matters, but also its position in the list generated by the neural network.
Russian consumers' attitudes toward using AI when choosing products are also changing. According to a study by Rodnaya Rech and Avito Ads, 35% of respondents turn to artificial intelligence to verify or clarify information, 34% to get a list of options or brands, and another 30% to compare offers.
The free ad-supported viewing model is also growing in the streaming segment. A Telecom Daily study showed that in the first half of 2026, the revenue of Russian online cinemas grew by 31%, to 99.5 billion rubles. Revenue from the aVoD advertising model increased by 10%, to 3.2 billion rubles. Market participants attribute further growth to the development of partner subscriptions, user retention, and an increase in average revenue per subscriber.
*Meta and the social networks Facebook and Instagram belonging to the company are recognized as extremist and banned in the Russian Federation.
Original: forrester.com
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