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The decline of traditional TV viewership has been a boon for ad-supported growth. In 2024, more than 180 million US viewers will turn to ad-supported live video platform (e.g., Pluto TV, Tubi, The Roku Channel) and streaming services (e.g., Netflix, Hulu, Disney+). CTV platforms experimenting with shoppable media already have large ad-supported audiences.

But traditional TV is in trouble, as marketers divert their dollars to CTV and ad-supported streaming services, per our 鈥淭V Ad Spending 2022鈥� report. More like this:. AI chatbots compared: Bard vs. Bing vs. ChatGPT. US ad market falls for 8th consecutive month in February. 5 charts showing where people (and advertisers) would go after TikTok.

Over 80% of Netflix鈥檚 new subscription sign-ups in 2023, for example, will be for ad-free plans, while 69% of Peacock sign-ups will be ad-supported. The majority of Peacock, Paramount+, and Hulu viewers watch ad-supported plans, according to our forecast. Viewers of Netflix鈥檚 ad-supported plan will be under 5% this year, but that share is expected to grow.

Many of them, like Netflix, are adding ad supported variants. So the inventory is increasing pretty rapidly. You're also seeing the growth of free ad supported streaming TV or FAST, channels like Pluto or Tubi. They have a lot of ads there. There's Disney Plus and Netflix as I mentioned. And there are short form videos like YouTube. TikTok is making a push into CTV. It's still super early.

That means the vast majority of the 288.9 million global Amazon Prime households (with 94.5 million in the US) will now become ad-supported viewers. By comparison, Netflix reported that it had reached 15 million ad-supported subscribers as of November 2023, with total global subscribers across tiers reaching 247 million.

Last year, Roku introduced Espacio Latino featuring Spanish-language content, and Adsmovil USA launched Nuestra.TV, an ad-supported streaming platform with free bilingual video content, on Roku and Amazon Fire TV. 蘑菇AV 80% of Hispanic audiences want more diverse content on their screens, according to a 2022 report by Kantar. Language Matters When Targeting Hispanic Podcast Listeners.

And some of the most popular ad-supported streamers, like Hulu, have increased their ad loads in recent years. People are spending more time streaming. We expect time spent with CTV among US adults to double from about 1 hour per day in 2019 to just over 2 hours per day in 2024. CTV usage also exceeds time spent on desktops and laptops.

In June 2023, one-fourth of all subscription video sign-ups were ad-supported, up from nearly one-fifth in 2021, according to Antenna. Advertising plans bring in more revenues per user than ad-free plans, which make them attractive to streaming services seeking profitability. One way to incentivize advertising sign-ups is to expand the price difference between ad-free and ad-supported plans.

Streaming video and music top Gen Z adults鈥� media activities, but their digital lives aren't just about entertainment. The multitasking, multidevice cohort treats the intersection of media and technology as a lifeline for socializing and staying informed.

The December 2022 arrival of free ad-supported Pluto TV, including programming aimed at the Quebec market, was eagerly anticipated by media buyers looking for more video ad inventory. Homegrown services have launched to meet the demand for local content. Club illico, Videotron鈥檚 SVOD service, grew its audience to more than 500,000 in 2021 (the latest available reporting).

Ad-free streaming services have launched ad-supported tiers, taking advantage of increasing time spent with CTV and improving the amount of inventory available to advertisers, our analyst Yoram Wurmser said on a recent 鈥淏ehind the Numbers: The Daily鈥� podcast. 鈥淓ven TikTok is making a push into CTV,鈥� he said. 鈥淭here are just more opportunities for ads on CTV.

OTT video viewing is about to get a boost in the UK, as traditional TV viewing gets a broadband delivery option next year.

To even out that income stream, more streaming services are pushing ad-supported plans that are significantly less expensive than their ad-free counterparts. 2. Linear TV ads still dominate in reach. Linear TV still accounts for almost six times as many ad impressions as CTV, making it the right channel for upper-funnel messaging.

Netflix had success with its password-sharing crackdown, encouraging moochers to pay for its cheaper, ad-supported tier. Now, Disney+, Hulu, and ESPN+ are aiming to do the same thing. Those platforms may not be able to replicate Netflix鈥檚 success, since they have smaller audiences and are less ubiquitous. Still, their ad-supported tiers may see a boost as users sign up for their own accounts.

Roku sells smart TVs and operates an ad-supported channel but faces more competition as rival streamers like Amazon and Netflix have added ad tiers. Should Roku score a deal with MLB, it would represent a strategic pivot in response to the evolving media landscape that has streaming platforms increasingly going head-to-head with traditional broadcasters.

It's still in favor of ad supported. So the number of ad supported folks outpacing number of paid folks, even though paid and ad supported subscriber growth has been pretty healthy on both and they both saw additions in Q4. You are still seeing a lot of folks who want that ad supported experience. Daniel Konstantinovic:.

And CTV presents an untapped opportunity as more streamers introduce ad-supported tiers. Banks鈥� legacy TV ads make CTV a prime channel to pivot into, helping their digital ad spend grow by 11.4% by 2025. Strong payments ad spend faces pressure from tightening credit. Credit card spending reached new heights this year, which has led issuers to expect a strong acquisition market.

US adults are increasingly viewing ads on CTV platforms as free ad-supported TV (FAST) becomes more popular and more streaming platforms introduce ads. The IAB encourages location-specific ads, clear calls to action, and seamless shopping experiences to make the most out of shoppable ads. Calls to action like 鈥渟can to learn more鈥� or 鈥渁dd to cart鈥� should be visible and easy to understand.

The AVOD market is crowded with these free ad-supported services like Tubi, Pluto and Freevee now, which means more competition for eyeballs and ad dollars that Roku faces. And I think even though they're investing in content, Roku isn't delivering that water cooler chat level content that lets it compete with other AVOD services that are paid, including HBO Max, Disney+ and Netflix.

As economic uncertainty lingers, the dust has yet to settle on the TV currency battlefield. We review what鈥檚 changed since last year and which networks support which Nielsen alternatives.

Payments brands are already familiar with TV advertising, so crossing over to the world of CTV as more ad-supported streaming options come online is a logical next step. Experian, for example, debuted a well-timed debit card ad featuring Travis Kelce on streaming services just a week after Taylor Swift was spotted at a Kansas City Chiefs game.

Yet advertisers haven鈥檛 migrated to CTV nearly as much as consumers have, partly because most CTV time still isn鈥檛 ad-supported. As new ad tiers (like within Netflix and Disney+) grow, so will the opportunity to meet audiences there. And since the CTV ecosystem is most likely to inherit traditional TV time, it鈥檚 a great fit for banks that have long relied on TV campaigns.