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CTV ad spending is expanding because more services have adopted ads, streaming services have increased their ad loads, and people continue to spend more time streaming. Not too long ago, HBO, Netflix, and Disney+ featured no advertising. Now they all have ads. And some of the most popular ad-supported streamers, like Hulu, have increased their ad loads in recent years.

Nearly 4 in 10 (39%) of advertisers are buying CTV ad spots because more inventory is available due to new ad-supported streaming tiers, per The Trade Desk. Our forecast projects US retail media CTV ad spending to soar 335.5% this year and reach $8.67 billion by 2027. Yes, but:. Offsite programmatic retail media faces scrutiny over transparency and advertising quality.

Netflix adapts: Prime eked out an advantage over competitors by making ad-supported viewing the default rather than following Disney and 狈别迟蹿濒颈虫鈥檚 strategy of trying to get users to transition to cheaper, ad-supported tiers. While Netflix has had to shift CPMs below where it may want them to be, it has other initiatives that will help it compete with Amazon.

Netflix tallies its ad-supported subscriber count ahead of Upfronts: A survey shows it could have 22 million US subscribers as it enters an Upfront period rife with competition.

On today's podcast episode, we discuss how this year will look as Google's cookies fade away, the biggest threat to Google's search dominance, how many consumers are moving to ad-supported streaming, whether Apple can move the VR needle, Peloton's content hub on TikTok, the first person to ever complete Tetris, and more. Tune in to the discussion with our analysts Ross Benes, Evelyn Mitchell-Wolf, and Max Willens.

As ad-supported streaming becomes the new normal, this will change. And we expect that streaming companies will face increasing competition for those ad dollars, as the money once tied up with Hulu, Roku, and YouTube trickles to other streamers. More like this:. Report: Q4 2022 Digital Video Trends.

狈别迟蹿濒颈虫鈥檚 ad-supported tier has been a success and will cross the $1 billion mark for US ad revenues next year, per our forecast. CTV advertisers know that their ad dollars are going to waste, so any way streamers like Netflix can streamline their ad delivery will be appealing to buyers. 3. Advance buying will outlive linear.

Amazon debuts at Upfront Week, showcasing its ad-supported streaming services and more: It鈥檚 a strategic move to expand its digital advertising reach.

As streaming prices ascend, focus shifts to ad-supported tiers: All eyes on maximizing ARPU versus user growth.

The first was the removal of Netflix Basic, the company鈥檚 cheapest ad-supported tier, in the US and UK. The second was that 狈别迟蹿濒颈虫鈥檚 ad-supported tier has hit 1.5 million subscribers, according to The Information. The removal of Netflix Basic now looks like a move to soften the blow of worse-than-expected Q2 revenues.

The way advertisers think about TV is changing as it shifts from linear to ad-supported streaming. Here are three developments shaping TV ad measurement, streaming behaviors, and consumer targeting.

On today's episode, we discuss when people are most likely to boycott a brand, whether folks will shop elsewhere if they are charged for returns, where the NBA will live next season, if an ad-supported tier for Amazon Prime Video will work, how much vacation time people take in the US versus other countries, and more. Tune in to the discussion with our forecasting writer Ethan Cramer-Flood and analysts Ross Benes and Paul Verna.

This year鈥檚 upfronts have been unusual, with the haze of the Writers Guild of America strike and a decisive shift toward streaming. From YouTube鈥檚 mixed messages to 狈别迟蹿濒颈虫鈥檚 ad-supported tier鈥檚 less-than-impressive beginning, here are five trends pinpointed by our analyst.

On today's episode, we discuss what's going on with Netflix's ad-supported tier, what its plans to crack down on password sharing could do to viewership, and what Netflix's subscriber growth will look like over the next few years. "In Other News," we talk about fuboTV's current position in the market and what people stream the most on their TVs. Tune in to the discussion with our analyst Paul Verna.

While the platform鈥檚 ad-supported tier gains momentum, Netflix needs to beef up its targeting capabilities to win advertisers over. Meanwhile, viewers may be turned off by a heavy ad load and a crackdown on password sharing. But global growth shows promise for 狈别迟蹿濒颈虫鈥檚 future.

Connected TV (CTV) ad spend will exceed $30 billion in the US next year, according to our forecast. At a growth rate of 22.4% YoY, that makes CTV one of the fastest-growing ad formats we track. But where those ad dollars are coming from isn鈥檛 so simple.

Netflix is one of many players adapting its tactics, clamping down on password sharing and nudging users toward its cheaper, ad-supported tier, in an effort to boost its subscriber base and revenues鈥攅specially since ad-supported streaming yields higher ARPUs for the streaming giant.

Netflix needs new (and some existing) viewers to think of it as an ad-supported platform. The platform needs to build and grow relationships with advertisers and agencies that didn鈥檛 exist before. And it needs to develop its partnership with Microsoft, which is still in its infancy. 狈别迟蹿濒颈虫鈥檚 recent appointment of Greg Peters as co-CEO alongside Ted Sarandos indicates the platform鈥檚 ad focus.

But its push to increase ad-free, YouTube Premium subscriptions puts it at odds with the ad-supported push its competitors have made. Netflix and others spent the last year increasing the cost of access to ad-free subscriptions while increasingly pushing ad-supported tiers as the default for accessing their services.

The ongoing Hollywood strikes and a rise in free ad-supported TV (FAST) services have forced companies like Disney to adjust their pricing and content strategies accordingly. Consumers will continue to prioritize which streaming services they maintain and which they let go. This creates a competitive landscape where streaming platforms vie to be the 鈥渃hosen ones.鈥�.

Prime Video鈥檚 ad-supported strategy could be a factor. Rather than introducing a cheaper ad-supported tier 脿 la Disney and Netflix, Amazon is making ad-supported viewing the default for Prime Video and will charge an extra $2.99 monthly to avoid ads rather than trying to entice longtime ad-free subscribers to make the switch.

Brands benefit from ad-supported CTV inventory powered by retail media networks like Amazon Ads and Walmart Connect. Knowing how to efficiently reach the right shoppers with these high-impact ads鈥攁nd subsequently retarget them with digital ads鈥攃an produce outsize gains in holiday conversions. Expand buy now, pay later (BNPL) to physical stores.

础尘补锄辞苍鈥檚 OTT ad revenues are a small but increasingly important part of the story. Ad revenues from Twitch, Freevee, Prime Video, and the Fire TV platform will total $4.72 billion this year, up 84.4% from 2023.

Ad-supported video-on-demand (AVOD), such as The Roku Channel and ad-supported versions of subscription services like Netflix and Disney+. YouTube, which will have nearly 45% of its viewing time on CTVs. Digital live TV services, such as Hulu + Live TV. Mobile remains the king of digital advertising, largely due to its diversity of content.

Brands benefit from ad-supported CTV inventory powered by retail media networks like Amazon Ads and Walmart Connect. Knowing how to efficiently reach the right shoppers with these high-impact ads鈥攁nd subsequently retarget them with digital ads鈥攃an produce outsize gains in holiday conversions. Expand buy now, pay later (BNPL) to physical stores.