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254.2 million people in the US will watch OTT video this year, per our February 2024 forecast. YouTube is close behind, with 241.8 million people watching on the platform.

US Ad-Supported vs. Ad-Free Streaming Video Viewers 2024 (Subscription required).

The future of streaming media is ad-supported. Netflix and Disney rolled out ad-supported tiers in their streaming services in late 2022, and Amazon Prime Video joined the party in Q3 2023 when it announced it would launch an ad tier in early 2024.

Hulu was the star of upfront streaming spend in iSpot.tv鈥檚 March survey, with 74% of brands and advertisers saying they were allocating spend to the platform. YouTube TV also had a huge showing, with almost half (48%) of respondents saying they were assigning spend to it. Peacock, Roku, and Paramount+ rounded out the top five.

Among subscription over-the-top (sub OTT) platforms, Paramount+ is set for standout ad revenue growth of 24.1%. And among the cohort of major free ad-supported streaming TV (FAST) services, Tubi will set the pace at 24.7%. Nearly every CTV player will outperform the wider digital ad market. To see the full forecast, click here. Social network ad spending鈥攅xcluding TikTok鈥攊s in bad shape.

Annual ad revenues per ad-supported user are considerably less than revenues generated by an annual ad-free subscription for Spotify and Pandora. As long as this dynamic holds, digital audio players will continue to promote ad-free subscriptions to ad-supported users, removing them from programmatic advertisers鈥� reach when successful. Measurement remains a sticking point for advertisers.

It's on the streaming side, under streaming AVOD and SVOD, and under SVOD, you've got the ad-supported and the ad-free. And so Ross, which streaming company has the largest share of the OTT subscription pie or SVOD? Ross Benes:. Netflix does. Marcus Johnson:. Okay. Ross Benes:.

Amazon is doing it organically through its ad-supported video content, including its exclusive license for the NFL鈥檚 Thursday Night Football franchise and its ad-supported Freevee streaming service. Other retailers are getting there through partnerships, notably Walmart with The Trade Desk and The Kroger Co. with Roku.

The ad-supported streaming platform鈥檚 fake-out ad simulated a connected TV (CTV) platform exiting the big game, scrolling to Tubi, and opening the app. 鈥淒isrupt, make noise, get people talking about Tubi the next day.鈥�

Ad-supported subscribers increased 34%, with over 45% of new users opting for ad-supported viewing in available markets. The significant increase in subscribers and revenues highlights Netflix's ability to adapt and thrive despite market challenges. The crackdown on password sharing has effectively boosted new ad-supported subscriptions and charged revenues.

A guide to everything seen (and overheard) at POSSIBLE to help you determine if it's worth putting in your 2025 budget.

Retailers worldwide will spend $4.09 billion advertising on YouTube this year, per WARC Media. Next year, that figure will increase by nearly half a billion to $4.56 billion.

Solution: 鈥淎dvertisers need to consider how the ad-free and ad-supported audience sizes stack up to each other for a given service,鈥� Benes said.

Many in digital advertising, including the Interactive Advertising Bureau, have begun to use connected TV (CTV) as an umbrella term to include content delivered via CTV devices or OTT services.

Total media ad spending in the US will pass the $350 billion mark this year, but growth is slow at just 3.8%, according to our forecast. 鈥淭hat is not great compared to almost anything in recent memory; however, there is a U-shape to this line,鈥� our analyst Ethan Cramer-Flood said during our 鈥淯S Digital Ad Spend Outlook鈥� webinar. Connected TV and retail media will prove to be bright spots, but social media could be a challenge.

Streaming has been a home run for sports-based advertising Through sports rights, new and niche content, and creative ad formats, every major streamer is attempting to grab a share of sports connected TV (CTV) ad spend.

In its first rebrand in 14 years, Pepsi unveiled a new logo and color palette to be seen on shelves in North America this fall, marking the brand鈥檚 125th anniversary. While the revamp nods to Pepsi鈥檚 nostalgia, it pushes into what Todd Kaplan, Pepsi鈥檚 CMO, said is an increasingly 鈥減hygital鈥� world, where consumers engage with brands both in-store and online.

Walmart鈥檚 $2.3 billion Vizio acquisition will give brands new ways to reach consumers and boost product discovery, while Amazon is reaping the rewards from the launch of Prime Video鈥檚 ad-supported tier and its investments in live sports. Other retailers looking to get in on the CTV boom include Albertsons and Instacart. Overall, we expect off-site RMN ad spending to grow 42.1% YoY in 2025.

Ad-supported streaming will be more popular. 鈥淲e have seen the future of streaming media, and it鈥檚 补诲-蝉耻辫辫辞谤迟别诲,鈥� Verna said. We predict streaming ad prices will coalesce even further. Next year, as Amazon Prime releases an ad-supported tier, it鈥檚 poised to bring in $3.13 billion in CTV ad revenues, overtaking Roku as the third-highest earner among streaming services, per our forecast.

The less expensive ad-supported plan is a good entry point for new customers. In markets where it sells ads, 4 in 10 new Netflix subscribers opted for the ad-supported tier in Q4 2023, according to the company. Ad-forward: On the other end is Amazon, 鈥渁 very ad-dependent company,鈥� Benes said.

But there are a lot of players that are coming into the ad supported space. I mean, there's just been news that Amazon is considering an ad tier for Prime Video. Apple TV, of course, has been licensing sports content against which they sell advertising. The same is true of other platforms that we don't yet break out individually, but they're part of that long tail.

I think it's going to yield a lot more subscribers to the ad-supported tier. We saw with Netflix that there was a really quick turnaround. All of these users who were getting a free ride to Netflix were not really willing to give up on access to it. They still wanted cheap access. The cheapest access is the ad-supported tier, [inaudible] that ad-supported tier.

Albertsons, Costco, and Instacart are enhancing their retail media offerings. TikTok Shop reached a $1 million livestream. And three-time consecutive first place winner Walmart is developing immersive ways to shop and catering product lines to younger shoppers. Here鈥檚 our Unofficial Most Interesting Retailers List for June 2024.

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