蘑菇AV

On today's podcast episode, we discuss whether this is the beginning of Amazon's decline, if the Internet is becoming more ad-free, whether shopping pairs well with streaming, where brands will shift their ad dollars during the Super Bowl as they lean away from X (formerly Twitter), ChatGPT creator OpenAI's deal with publishing giant Axel Springer, the most visited tourist attractions in the world, and more. Tune in to the discussion with our analyst Blake Droesch and vice presidents of content Suzy Davidkhanian and Paul Verna.

Viewers are not rigid in their choices: Almost 40% preferred services with both ad-free and ad-supported tiers, showing a willingness to switch between options based on their needs. 蘑菇AV 1 in 4 viewers reported switching tiers, indicating a healthy balance between the need for cost savings and the desire for ad-free viewing.

Prices are already going up: Netflix ended its 鈥淏asic鈥� ad-free subscription last month, NBCUniversal's Peacock just raised its 鈥減remium鈥� tier to $6 and its ad-free tier to $12, and YouTube Premium just went up $2.

Despite the Basic With Ads subscription tier being released just two weeks ago, we鈥檙e forecasting Netflix will see US ad revenues of $830 million in 2023, growing to $1.02 billion in 2024. It鈥檚 an impressive acceleration in ad revenues, but it puts the company behind a few streaming rivals.

This year, time spent with digital video will officially surpass time spent with TV among US adults. Video advertising is also moving toward digital as advertisers set their sights on connected TV and social video, and even take advantage of retail media networks鈥� video opportunity. Whether you鈥檙e pitching a video ad campaign or reevaluating a tight ad budget, here are five charts that will help with the how, what, where, when, and why of video advertising. Whether you鈥檙e pitching a video ad campaign or reevaluating a tight ad budget, here are five charts that will help with the how, what, where, when, and why of video advertising.

Despite a tightening ad market, the Super Bowl powers on: Fox has sold out spots for Sunday鈥檚 game, with prices stabilizing after last year鈥檚 jump.

That figure nearly matches the total for traditional TV viewers (232.2 million) and exceeds the total for subscription OTT (sub OTT) viewers (226.4 million). Digital audio is so mainstream that listener growth will inevitably be slow going forward. Any media that achieves widespread penetration will eventually hit a user growth wall, as digital audio did in 2021.

That鈥檚 due to the higher ad loads there and the commonality of ad-free streaming. Ad load estimates for linear TV vary, but generally the average is about 15 minutes of ads per hour. Streaming ad loads are much lighter, although they vary significantly, ranging from nearly 9 minutes per hour to 1 minute per hour, according to MediaRadar.

High audio listenership and time spent this year means limited growth. Subscription revenues will be healthy, as most listeners pay to limit ads. And Spotify will lead in nearly every metric, though several platforms are doing well.

Global digital video ad revenues will top $360 billion in 2027, according to Omdia. That鈥檚 up more than $170 billion from this year. By contrast, video subscription revenues will rise about $30 billion over that period and remain below $120 billion in 2027.

On connected TV (CTV) and OTT platforms, these include audience size, ad loads, impressions, content quality, inventory scarcity, and pent-up demand. More broadly, CPMs are affected by macroeconomic conditions and the general health of the ad market. YouTube is an outlier among streaming services.

Streamers are raising prices to increase revenues, but Netflix is trying the opposite: The company reduced subscription prices in more than 30 countries as it looks to expand abroad.

YouTube鈥檚 anti-ad blocking campaign sparks a user outcry: The company is raising ad-free pricing in multiple markets shortly after banning ad blockers.

Digital Video Forecast and Trends Q3 2024 (Subscription required). US CTV Time Spent vs. Ad Spending 2024 (Subscription required). Note: Data was provided to 蘑菇AV by Comscore.

Among all generations, Gen Xers are the least likely to cancel their subscriptions (66% versus 72% of the total population), according to a June 2024 survey by LendingTree. A quarter of Gen Xers watch Disney+. At 25.5%, Gen Xers are in third place for Disney+ adoption among the generations.

As consumers embrace ad-supported video, they鈥檙e ditching ad-free. Just 58% of respondents to a Hub Research survey used ad-free TV services in June 2024, down from 84% the previous year. Amazon Prime Video was the last ad-free service for many households, and its introduction of ads in 2024 led to a major drop-off in ad-free platform usage.