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Ads move into AI chats? 3 takeaways from Forrester's 2027 media predictions

Forrester expects three shifts in the 2027 media market: free ad-supported tiers on paid streaming, ads on Meta's AI glasses, and conversational ads growing into a multibillion-dollar market. Here's what brands can check right now.

Dongle Media Lab6 min read

Adapted from ShortShock's “Shocki News” short-form video. Watch it on ShortShock's Instagram (@shortshock.offical).

Key takeaways

Forrester predicts that in 2027, media companies whose growth has hit a ceiling will look for new revenue in free ad-supported streaming, ads on AI glasses, and conversational ads. As more people ask AI instead of searching, it matters more for brands and creators to be named in AI answers.

As more people ask AI instead of running a search, ads are expected to follow them into those AI conversations. That's one of the calls in the 2027 media market predictions from research firm Forrester. Here are the three shifts Forrester highlighted and what brands and creators can check right now.

Shocki News frame: More people are asking AI instead of searching, and now ads are heading into those AI conversations too! Shocki looked ahead at how the ad market will change next year.

How does Forrester see the media market in 2027?

Shocki News frame: It's a 2027 outlook from the research firm Forrester. It says media companies whose growth has hit a ceiling will go looking for new revenue, and it names three areas.

Forrester expects media companies to step up their search for new revenue in 2027, because it sees growth in their existing businesses hitting a ceiling. The predictions were reported by Korean marketing outlet MADTimes.

Here's the backdrop. Paid streaming services are struggling to add subscribers, and social media growth is slowing. In search, more people are skipping the list of results and asking generative AI for a direct answer.

Forrester framed this year's predictions around one theme: big media's growth engines are hitting their limits and changing direction. It then named three new revenue sources media companies will pursue.

Will paid streaming services launch free, ad-supported tiers?

Shocki News frame: First, at least three paid streaming services will launch plans that are free as long as you watch ads. Disney+ is the most likely candidate, and Netflix has also hinted it could go free.

Forrester predicts that at least three paid streaming services will launch a free, ad-supported tier: a plan you can watch without paying, as long as you watch the ads.

Disney+ was named the most likely candidate. Netflix has also reportedly hinted it could offer a free tier. It fits a broader pattern: paid streamers that can no longer grow subscribers easily are turning to ads for new revenue.

Are ads coming to Meta's AI glasses?

Shocki News frame: Next up, AI glasses! Meta has already sold more than 7 million pairs, and next year it's expected to start ads on the glasses in earnest. Look up a place and the results come back mixed with ads.

Forrester expects Meta to launch ads on its AI glasses in earnest in 2027. Meta has already sold more than 7 million pairs of AI glasses.

The predictions also describe what those ads might look like: when you look up a place through the glasses, ads appear mixed into the results.

What are conversational ads, and why do they matter?

Shocki News frame: Last is the conversational ads I mentioned earlier, which will become a market worth billions of dollars next year. As AI recommendations gain influence, showing up in AI answers becomes important for brands.

Conversational ads are ads placed inside the conversations people have with AI. Forrester expects this market to grow to billions of dollars in 2027.

Behind this is a change in search habits. More people ask AI and take its answer instead of going through search results one by one. The more influence AI recommendations have, the more it matters for a brand to be named in AI answers.

What can brands and creators do right now?

Shocki News frame: So what should we try? Today, ask a generative AI for recommendations in your field and check whether your channel or product is in the answer, and if not, who gets recommended instead!

You can start today by asking a generative AI for recommendations in your field. As conversational ads grow, whatever appears in AI answers becomes the place where people see you.

When you get an answer, check whether your channel or product is in it. If not, look at who gets recommended instead. That tells you where your channel or product currently stands in AI answers.

Key takeaways

  • Forrester expects media companies to look for new revenue in 2027 through free ad-supported streaming, ads on AI glasses, and conversational ads.
  • Disney+ is the most likely candidate for a free ad-supported tier, and Netflix has also hinted it could go free.
  • The more influence AI recommendations have, the more it matters for brands to appear in AI answers.
  • Ask a generative AI for recommendations in your field and check whether your channel or product comes up, or who gets recommended instead.

Frequently asked questions

What are conversational ads?
They're ads placed inside the conversations people have with AI. Forrester expects this market to reach billions of dollars in 2027.
Will Netflix also launch a plan that's free if you watch ads?
Forrester expects at least three paid streaming services to launch free, ad-supported tiers. Disney+ is the most likely candidate, and Netflix has reportedly hinted it could go free.
How will ads appear on Meta's AI glasses?
When you look up a place through the glasses, the results come back with ads mixed in. Forrester expects Meta, which has already sold more than 7 million pairs of AI glasses, to start glasses ads in earnest in 2027.

Sources

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